It is the policy of Texas State Technical College to establish loan funds to provide emergency loans to students.

The acceptance of gifts for loans will be performed in accordance with COP 3.03, Acceptance of Gifts and Bequests.The acceptance of restricted loan fund gifts should be closely examined to insure that the best interests of the College will be served through such gifts.

Because collectibility of loans is not guaranteed, loan fund gifts requiring return of the gift on demand by the donor cannot be accepted.

Loans to students will not exceed $100 and will be interest free.A service charge of $5.00 will be collected at the time the loan is made.The $5.00 service charge will be credited to income and will be used to replenish the emergency loan fund for students.

The authority to allocate fees or unclaimed deposits to loan funds is retained by the Board of Regents.

The President will appoint a responsible individual or committee to authorize any student loan subject to restrictions in addition to any other criteria.

Upon request for an emergency loan by a student the person(s) authorized to approve loans will complete the process to determine that there is a need for the loan. After the establishment of need, a review of records will be made to insure that all conditions and restrictions for the granting of a loan have been met. If the determination is made that the student is qualified for the loan a simple loan note will be executed and signed by the student indicating understanding of the terms of the note and countersigned by the person authorized to grant loans.

The loan note must state the following:

1. All pertinent student information such as name, address, telephone number, driver’s license number, student or colleague issued student ID number and social security number.
2. Terms and conditions of the loan including the student’s obligation and date the loan repayment is due is not to exceed 30 days from date of disbursement. If authorized by grantor of a gift, loan period may be greater than thirty days.(This period should not exceed 30 days from the date of disbursement, unless the loan funds are a gift and the grantor of the gift authorizes the longer period.)
3. Place of payment and fees to be collected.
4. Agreement by the student borrower The student borrower agrees that this is an obligation due to the college for which the student’s transcript, diploma, certificate of completion, degree, and other official records may be withheld pending payment.
5. Signature of the student and the lending officer.

Loan service fees collected upon loan repayment will be credited as income to particular loan income and expense accounts and not to the loan receivable account.

Loans will not be made to a student with a history of failure to pay more than one previous loan on the due date or who has any outstanding insufficient funds. Second loans will not be granted if a student is in arrears in the repayment of the original loan.

The Business Office will reconcile the loan receivable account on a monthly basis and provide a listing to the person(s) authorized to grant loans indicating which loans are past due. It is the responsibility of the Business Office to take action to collect all past due loans and to maintain a file of the actions taken.The Business Office will send a certified letter within 1 days after the maturity date of an outstanding loan.After exhausting all alternatives to collect from the student the balance owed, the Business Office will refer delinquent loans to a collection agency within 90 days from the loan due date. A hold flag should be placed upon the student’s official record if the student fails to pay.

A loan will be considered uncollectible after a period of one (1) year. A recommendation will be made for the full amount of the loan to be charged off as bad debt and action will be taken to write off the loan as uncollectible. The President’s approval shall be obtained prior to writing off any uncollectible loans.

The College may turn the balance due from the student borrower over to a credit bureau to reflect the student’s credit worthiness.

Loans receivable cannot exceed the balance of funds available from a loan account without violating the constitutional prohibitions against extension of credit.