CLARK ATLANTA UNIVERSITY

Transcription

1 CLARK ATLANTA UNIVERSITY Policy : Financial Aid Emergency Loan Policy CLARK ATLANTA UNIVERSITY POLICY and PROCEDURE Subject: Emergency Loans Department: Financial Aid Review Date: 1/13/09 11/15/12 Issued By: Vice President for Enrollment Services and Student Affairs Distribution: Financial Aid, Student Accounts Receivable, Office of Enrollment Support Services and Student Retention and Accounts Payable Effective Date: 11/15/12 Required Approval: President No. of Pages: 8 Carlton E. Brown, President Signature of Approver Date 2/6/2013

2 Table of Contents Page 1.0 Policy Statement Procedure Narrative Entities Affected By This Policy Definitions Desktop Procedures Appendix A Loan Application Form Appendix B Loan Data and Terms Appendix C Promissory Note. 8 Emergency Loan Policy Page 2

3 1.0 Policy Statement Short term emergency loans are made available to students to cover expenses associated with their enrollment at Clark Atlanta University (CAU) or to cover personal emergencies while in attendance at CAU. 2.0 Procedure Narrative Applicants for the Clark Atlanta University Emergency Loan must be enrolled at CAU at the time of application. Students must have a grade point average of 2.5 or better, earned over a minimum of two semesters. Emergency Loan applicants must demonstrate an ability to repay the loan requested. In some instances a co-signer or endorser may be required to process a loan request. Applicants whose repayment history on prior emergency loans has been delinquent may be denied an emergency loan. Loans will be approved only for expenses related to attendance at CAU or personal emergencies while in attendance. No student can borrow more than twice during the fall or spring semester and no more than once during the summer. No loans will be permitted during the last thirty (30) days of any term or during the two weeks prior to a major vacation period. A student may borrow up to $1,000 at any one time. Requests for amounts greater than $1,000 (not to exceed $2,000 under any circumstances) are reviewed on a case-by-case basis and require approval of the Vice President for Enrollment Services and one faculty member to be designated at the beginning of each year. The Financial Aid Office is authorized to approve loans of $1,000 or less. Students may not borrow monies without having cleared their previous balance. For loans of $1,000 or less students are told at the time the paperwork is submitted whether they have been approved or not. If a decision cannot be made at that time they are notified of their loan status by phone. Accounts Payable cuts the check and Student Accounts Receivable releases checks to the student once they have received the paperwork. All loans carry a minimum charge of $5.00 per $ borrowed. Loans must be repaid in ninety (90) days unless special arrangements are made during the application process. Special arrangements must be documented in writing at the time the loan is made. A $15.00 late fee is assessed on all loans not paid in full per the terms of the loan. Payment is made by credit card, cash or check payable to Clark Atlanta University. Payment is made through Student Accounts Receivable. 3.0 Entities Affected By This Policy Emergency Loan Policy Page 3

4 Financial Aid, Student Accounts Receivable, Office of Enrollment Support Services and Student Retention and Accounts Payable 4.0 Definitions Financial Aid Office The Financial Aid Office is the University office responsible for administering the Federal, State, Institutional, and Private financial aid funds, and providing timely, accurate, and comprehensive services to CAU students. Financial Obligation The amount a student has agreed to pay the University. Promissory Note A promissory note is a promise to pay a specified amount on demand or at a certain time Emergency Loan Policy Page 4

5 5.0 Desktop Procedures: Emergency Loans Procedures: Step Action 1 Eligible students must complete an application for the Clark Atlanta University Emergency Loan 2 The completed application and a valid Clark Atlanta University identification card (Panther Paw Card) must be presented to the Office of Financial Aid 3 Prior to approval Financial Aid and Student Accounts Receivable review the students account to determine if any third party refunds are forthcoming 4 Applicants must sign a Promissory Note in the Financial Aid Office which specifies the provisions relating to interest penalty and late payment charges 5 Students are notified at the time they submit their paperwork of their loan status. If a decision cannot be made at that time they are notified by phone. 6 If the paperwork for the approved loan is in Accounts Payable prior to 2 pm a check is in Student Accounts Receivable office the following day. Students must sign that they have received their check from the Student Accounts Receivable Office 7 Principal and interest are payable to Clark Atlanta University and brought to the Office of Student Accounts Receivable within ninety (90) days of the approval date. Payment can be made by credit card, check or cash. 8 Student Accounts Receivable and/or Financial Aid review the list of outstanding Emergency loans on the first business day of each month 9 Students whose loans are due or past due are notified that they have 15 days to submit a payment to the University 10 If a student does not pay within 15 days a Student Accounts hold is placed on their account Emergency Loan Policy Page 5

6 6.0 APPENDIX A Clark Atlanta University Emergency Loan Fund -APPLICATION FORM- (Please print except where signature is required. Press hard for duplicate copies) PERSONAL DATA NAME: (Last) (First) (Middle) SSN: DOB: LOCAL ADDRESS DRIVER S LICENSE NO. ISSUING STATE PERMANENT ADDRESS STREET: STREET: CITY: CITY: STATE: ZIP CODE: STATE: ZIP CODE: PHONE: PHONE: MATRICULATION DATA CLASSIFICATION: Freshman Sophomore Junior Senior Graduate STATUS: New Returning Transfer Special Part-Time GPA: Earned Credits Credits this Term Expected Graduation Date EMPLOYMENT DATA Place of Employment: Address: Spouse s Name: Spouse s Place of Employment REFERENCE DATA Include persons over 18 years of age who will always know your address. Do not include fellow students: Name: Name: Address: Address: City State Zip City State Zip Emergency Loan Policy Page 6

7 7.0 APPENDIX B LOAN APPLICATION DATA LOAN AMOUNT REQUESTED: $ Repayment Source: Reason for Loan Request: Have you ever had an emergency loan? Yes No If yes, indicate when: Do you have an emergency loan at the present time? Yes No If yes, with whom I HEREBY CERTIFY THAT all the information provided on this application is true, correct and complete and that the loan money will be used for the purpose described above. I have read the instructions and conditions printed on all pages of this application. I understand that all my records at CLARK ATLANTA UNIVERSITY may be reviewed as part of this loan application. I understand that failure to repay as per the terms of the Promissory Note will suspend my rights and access as a student. I further understand that my diploma may be withheld and all requests for official transcripts or information may be denied until either payment or satisfactory arrangements for payment of loans from this students Emergency Loan shall be made, and that, if I have for ninety (90) days or more, ignored statements regarding this suspend the loan, a HOLD may be placed upon my records and I may be prohibited from re-registering for the next semester. I further understand that if I should be eligible for any refunds from CLARK ATLANTA UNIVERSITY (tuition, fees, etc.) and at such time have an outstanding Student Emergency Loans. It is also understood that the Promissory Note is the official legal document governing any enforced collection of amounts due including, but not limited to, collection agency referral, court action and garnishment (see Promissory Note for exact loan provisions and penalties). Signature of Applicant: Date: Reviewed: Prior Loans GPA Enrollment FA Status Employment Other Approved Loan Amount: $ Source of repayment: Financial Aid Representative: Date: Associate VP, ERS: Date: White Copy-Department Yellow Copy-Accounting Gold Copy-Student Accounts Pink Copy-Student Emergency Loan Policy Page 7

8 8.0 APPENDIX C Clark Atlanta University Emergency Loan Fund -PROMISSORY NOTE- (Please print except where signature is required. Press hard for duplicate copies) The Promissory Note must be returned before issuing of any funds. NAME (Last) (First) (Middle) SSN DOB LOCAL ADDRESS PERMANENT ADDRESS STREET STREET CITY CITY STATE ZIP CODE STATE ZIP CODE PRINCIPAL INTEREST TOTAL $ $ $ PROMISSORY NOTE FULTON COUNTY, GEORGIA For value received, to wit: a loan wit: a loan in the amount of. The undersigned jointly and severally promises(s) to pay to the order of Clark of Atlanta University, the principal sum of $ dollars, with interest on the unpaid balance from the date of this Note, until paid, the rate of five (5) percent. Principal and interest shall be payable to CLARK ATLANTA UNIVERSITY and brought to the office of Student Accounts within ninety (90) days of the approval date. If any monthly installments under this Note are not paid when due and remain unpaid three (3) days after the due date, the entire principal amount outstanding and accrued interest shall at once become due and payable at the option of the University or Note Holder. The University or Note Holder may exercise this option to accelerate the balance during any default by Borrower regardless of any prior forbearance. If a suit is brought to collect, this Note, the University or Note Holder shall be entitled to collect all reasonable cost and expense of suit including, but not limited to, reasonable attorney s fees and/or collection costs. Borrower may repay the principal amount outstanding in whole or in part. Borrower hereby waives presentment, demand, notice of dishonor, protests and all other notices whatsoever. (SEAL) Signature of Notary Public Signature (Borrower) Emergency Loan Policy Page 8

9 Print Name (Borrower) Emergency Loan Policy Page 9