Handbook of Business Procedures
Jan. 21, 2011
Jan. 21, 2011
Student Accounts Receivable
15.3. STUDENT LOANS
A. Short-Term Loans
Cash loans are short-term cash loans given for a one-month term and are due in full on or before the due date. A student must be currently registered at least half time in order to obtain a cash loan. A half-time student can be any of the following:
- Undergraduate – enrolled in at least six hours during a semester
- Graduate – enrolled in at least five hours in a long semester or at least two hours during a summer semester
- Law – enrolled in at least five hours in a long semester or at least three hours during a summer semester
For more specific information, see the applicable catalog on the University catalogs website.
A student can receive a cash loan before the first class day if the student’s fee bill has been paid or has been deferred to the student’s financial aid account and the Office of the Registrar has loaded the registration records for that semester.
Tuition loans, which have a one- to three-month repayment period, must be applied to a student's tuition bill. Any subsequent refund of tuition and/or fees must be applied to outstanding cash or tuition loans regardless of the loan due date. For details regarding tuition loan guidelines, please refer to the Tuition Loans website.
B. Long-Term Institutional Loans
The Office of Student Financial Services (OSFS) and various departments on The University of Texas at Austin campus have long-term institutional loan funds from which loans may be made to students. Some of these funds are similar to federal loans in that repayment does not start until a borrower graduates, withdraws from the university, or drops below half-time student status. None of these loans are eligible to be included in federal consolidation loans. Generally, deferment of repayment ends once a student no longer attends The university.
For specific information, the student can contact a counselor in OSFS. The student can also contact the department in which the student is majoring to find out if that department has long-term institutional loan funds available.
C. Federal Perkins Loans
Eligibility for a Federal Perkins Loan is determined by (OSFS) based on each individual’s Free Application for Federal Student Aid (FAFSA) information and on availability of Perkins loan funds. Perkins loans are need-based loans. For more information regarding Perkins loans, please refer to the Perkins Loan Services website or contact the Office of Student Financial Services (OSFS).
D. Nursing Faculty Loan Program Loans
The Nursing Faculty Loan Program (NFLP) is a loan program funded by the Health Resources and Services Administration (HRSA) Bureau of Health Professions that allows nursing schools to make loans to students who are enrolled in the school’s advanced degree nursing programs with the intention of becoming nursing instructors. This is not a need-based loan program; however, students must complete a Free Application for Federal Student Aid (FAFSA) because it is a federal loan program.
E. Financial Bar, Collection Agency Placement, and Credit Bureau Reporting
- Financial Bar
When a loan is past due, it becomes a financial bar, which prevents receipt of university services, including registering for class, obtaining new institutional loans, and receiving official transcripts.
- Collection Agency Placement
If a short-term or long-term institutional loan reaches four months past due, or a federal loan reaches six months past due, the loan is sent to a collection agency outside the university and a collection fee is added to the amount owed.
- Credit Bureau Reporting
Tuition loans, long-term institutional loans, Federal Perkins, and NFLP loans are reported to the three national credit bureaus the month after the loan is disbursed. Emergency cash loans that are sent to collection agencies are also reported to the credit bureaus.