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| Section: |
Employee/Labor Relations |
Section Number: |
5.2.3 |
| Subject: |
Financial Aid: Short Term Loan or Campus Shoppe Charge Account Procedure |
Date of Present Issue: |
03/29/00 |
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Date of Previous Issues:
08/67, 08/88 |
POLICY:
Student loan/Campus Shoppe Charge Account forms are available at the Financial
Aid Office for approval within the following limits:
Student loans will not exceed two hundred (200) dollars and must be repaid,
generally, within thirty (30) days with the following exceptions:
- The Financial Aid Office may approve up to three hundred (300) dollars
in check form in some cases, based on professional judgement, and up to four
hundred (400) dollars as a Campus Shoppe Charge Account.
- Thirty (30) day extension may be granted if approved by the Director of
Financial Aid prior to the due date of the Loan.
APPROVAL AND REPAYMENT PROCEDURE
| WHO |
DOES WHAT |
| Student |
1. Request form from Financial Aid Office and completes the student section
of the form. |
| Financial Aid Office |
2. Determines funds available, requirements of loan fund or Campus Shoppe
Charge Account, and decides on specific fund to debit the loan or if the
student is eligible for the Campus Shoppe Charge Account.
3. Completes the "Loan Office Use Only" section and approves the Student
Loan Agreement (Attachment #1). |
| Student |
4. Signs completed loan agreement and retains goldenrod copy for personal
copy if they are receiving a check or takes the goldenrod copy to the Campus
Shoppe if it is for a Campus Shoppe Charge Account. |
| Financial Aid Office |
5. Gives student copy of Note and Collection Procedures form. Forwards
the top two (2) copies of agreement to Business Office. Records and files
the pink copy in a binder alphabetically. |
| Business Office |
6. Issues the check to students eligible for the loan program. If the
form is received by 2:00 p.m., the check should be ready for the student
after 10:00 a.m. the next business day at the Student Service Center. If
the form is received after 2:00 p.m., the check should be ready for the
student after 10:00 a.m. two business days later. Enters date issued, account
and check number on the form. Enters appropriate amounts as charges against
the student's account. |
| Campus Shoppe |
7. Sets up a Charge Account for the student to use for a limited time. |
| Student |
8. Picks up check at the Student Service Center for the loan or uses
account for purchases for Campus Shoppe charge accounts (for a limited
time). |
| Business Office |
9. Attaches agreement original to historical copy of check, yellow copy
to account clerk for student loans and a receipt to Financial aid. |
| Financial Aid Office |
10. Upon receipt, the loan is posted in the ledger alphabetically and
numerically. |
| Student |
11. Repays loan on or before due date at the Student Service Center or
by mail to the Business Office and receives a cash receipt. |
| Business Office |
12. Sends copy of receipt to Financial Aid Office when paid. |
| Financial Aid Office |
13. Updates payment information from the receipt to the ledger. |
DELINQUENT STUDENT LOANS COLLECTION PROCEDURE:
- A student whose loan becomes delinquent will be assessed a penalty of 10%
of the unpaid balance.
- A student will have a 10 day grace period after the due date of the loan
before the loan will be considered delinquent and subject to the 10% penalty.
- After a loan becomes delinquent, all funds due the student will be applied
against the loan until the balance due plus any penalties or service charges
are paid.
- When a loan becomes delinquent, the student automatically forfeits his
or her privilege to make a loan application for a period of one year from
the date the payment was received.
- If a loan becomes delinquent and the student willfully ignores the payment
request, the privilege of using the student loan fund will be permanently
withdrawn from the student. (Determination of this negligence will be made
by the Business Office, the record keeping and collections agent for the
loan fund.)
- If no satisfactory explanation is received within 60 days, the account
will be turned over to the State of Michigan, Department of Revenue, for
collection. The student will be responsible for all costs and fees associated
with the collection of the debt.
- See Account Receivable Collections Procedure, Business and Support Operations,
Section 3.7.1.
- Students with delinquent accounts will not be allowed to register the next
semester nor will their transcripts be mailed to other Universities by the
Registrar's Office until said accounts are cleared.
- Loans in excess of $50 will be assessed a 1.5% per month late charge.
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