short term loans for business by abe20

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									LAKE CITY COMMUNITY COLLEGE

                                   POLICY
________________________________________________________________

TITLE: Short Term Loan Fund              NUMBER: 6Hx12:9-16
________________________________________________________________

AUTHORITY: District Board of Trustees    PAGE: 1
________________________________________________________________

RESPONSIBILITY: Vice President for Instruction and Student Services
________________________________________________________________

OTHER: State Board of Education Rule     DATE: See History
   6A-14.054                                   Below
   Florida Statute 240.319
________________________________________________________________

It is the policy of the District Board of Trustees to maintain a Short Term Loan Fund for students.




History: Adopted: 12/10/74; Effective: 12/10/74; Revised:7/14/87, 7/13/93, 3/11/97


LAKE CITY COMMUNITY COLLEGE
                                 PROCEDURE
_______________________________________________________________

TITLE: Short Term Loan Fund                         PAGE: 1 of 3

_______________________________________________________________

AUTHORITY: District Board of Trustees    DATE: See History Below
_______________________________________________________________

RESPONSIBILITY: Vice President for Instruction and Student Services
_______________________________________________________________


NUMBER OF RELATED BOARD POLICY: 6Hx12:9-16

In accordance with Policy 6Hx12:9-16, the following procedure shall apply:

PURPOSE

To provide temporary, repayable institutional aid to students, who without such aid, would be
unable to enroll or continue enrollment at Lake City Community College. Funds are available on a
first come, first served basis until they are exhausted.

LOAN LIMITS: The maximum loans may not exceed the equivalent cost of 15 credits, plus books.

LOAN PURPOSE: Loans may be made for any of the following purposes:

       1.      Matriculation and tuition
       2.      Books
       3.      Other emergencies as may be accepted by the Director of Financial Aid.

STUDENT ELIGIBILITY: Students must:

       1.      Be enrolled at least half time;
       2.      Have a minimum cumulative GPA of 2.00;
       3.      Not be in default on any previous loan or other financial aid loan;
       4.      Have no outstanding financial obligations to the College.
       5.      Show some visible means of repayment, such as completed financial aid awards, job,
               or other earned benefits.
       6.      Sources of repayment other than approved financial aid awards will require a co-
               signer.

 History: Adopted: 9/11/90; Effective: 9/11/90; Revised: 11/18/91, 7/13/93, 01/10/95, 3/11/97,
01/05/09

Procedure 6Hx12:9-16
(continued)
Page 2 of 3


LOAN CRITERIA:

       1.     All loans are subject to a fee of $15 per loan for application processing and
              documentation preparation.
       2.     No student shall be allowed more than one loan at a time.
       3.     All loans are due and payable within eight weeks or on the last regular class day of
              the semester, whichever comes first.
       4.     Loans not repaid by the due date are considered in default (see loan remedy section).
       5.     Any loan cosigned or guaranteed by someone other than the borrower must have that
              person’s signature and financial information.

LOAN REMEDIES: Any person who has not repaid a loan within the specified time will be
considered in default and will be:

       1.     Subject to a late charge of one percent per month (or any portion thereof) on the
              original loan amount;
       2.     Subject to a records freeze with no release of information (including, but not limited
              to transcripts, grades, etc.);
       3.     Denied further registration privileges at LCCC until the loan, and late charges are
              repaid;
       4.     Ineligible for further financial aid of any type until the loan is totally repaid;
       5.     Ineligible for further emergency borrowing at any time in the future;
       6.     Possibly placed with the College's collection agent, and/or Credit Bureau. If the
              borrower is placed with a collection agent, he/she will be subject to additional
              collection expenses as charged to the College.

LOAN PROCEDURES:

       1.     Student picks up a Short Term Loan application from the Financial Aid Office.
       2.     The Financial Aid Office completes an evaluation to see that the student meets all
              applicable criteria.
       3.     If approved, the total amount of the loan (tuition/fees/and/or books) is entered onto
              the student's account. A book voucher is given to the student to purchase books.
       4.     Students will not be allowed to register if they owe any outstanding balance on a
              Short Term Loan.


LOAN REPAYMENT:

       1.     All borrowers must come to the Financial Aid Office to initiate a repayment form for
              monies due for any Short Term Loan.

Procedure 6Hx12:9-16
(continued)
Page 3 of 3

       2.     The Financial Aid Office completes a loan repayment form, and sends it to the
              Cashier's Office.
       3.     Cashier accepts money and repayment form, then marks "paid" on both copies of
              form.
       4.     Student is given a receipt by the Cashier. The Financial Aid Office, the person
              handling collections, and Business Office keep copies of the repayment form.

LOAN COLLECTIONS:

       1.     Students not repaying their loan on the date due are sent a reminder letter by the
              Financial Aid Office indicating the terms of the agreement.
       2.     A copy of the reminder notice is sent to the employee responsible for collections in
              the Business Office. Upon receipt, student's records are frozen so that no registration
              or grade processing can occur.
       3.     If the student has not repaid within five days, a notice of default is sent to the
              borrower indicating continued default status.
       4.     A copy of the default notice is sent to the employee responsible for collections for the
              Business Office documentation.
       5.     If the student has not repaid within the additional five days, the short term loan file is
              forwarded to the Business Office for collection.
       6.     If the account is still outstanding after due diligence procedures are followed by the
              internal collection person, it may be referred to a collection agency.

								
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