Think borrowing a short term loan is the way to go??
Take a look at
these
Frequently Asked Questions and their answers and decide if borrowing a
short-term loan is worth the possible risk. We want you to be educated
about the possible downfalls of using short-term loan funds to
cover
non-emergencies.
Student Fiscal Services (SFS) is
here
to help. We can go into further detail
on any or all of these questions. Please ask before it's too late!
How does the Short-Term Loan (STL) Program work?
An STL is a loan fund that will assist students while waiting
for
financial aid or some other form of money to pay tuition and expenses. It
is not intended to act as a long-term solution to financial difficulties.
The program is designed to help cover short-term costs. The
expectation is that the funds will be paid back as agreed no matter what
other circumstances may arise.
What is the cost of borrowing an STL?
There is a one time $30 fee for borrowing this money. There is no
interest assessed. Another $30 fee is added when/if the student
utilizes the one-time extension option.
Are there payment plans for my STL?
No. The loan is to be paid in full by the due date* stated in the
promissory note or, if a one-time 90 day extension has been filed, by
the extended due date.
*Due dates for short-term loans are always the
4th Friday of the quarter after the loan is taken out. For
example, if you take out a loan during Autumn quarter, it will be
due the 4th Friday of Winter quarter.
Are there deferment options for my STL?
No. This is a short-term solution only and does not include any
deferment provisions.
What happens if I don't pay as agreed?
The loan transfers to the Student Fiscal Services in-house collection
group. At this point
we try to contact you to settle this loan as agreed. If we
cannot reach you or payment is not received, the loan is referred to
outside
collections.
Is my Credit Rating affected?
Your credit rating is affected when you take out a loan and do not pay it
back as agreed. As there are no payment arrangements or deferment options
on this loan, the credit bureaus are notified once the loan is 60 days
past due.
I didn't get the job I wanted right out of school, how do I
pay this loan back?
Unexpected changes do not change the
conditions of the promissory note. The loan will still be due in 90
days and the credit bureau reporting will still happen...plan
ahead...save now...ask yourself if you really need to borrow
this money!
I can't get my transcripts...now what?
Transcript holds will be placed if the loan is not paid as agreed. They
will remain until the balance is paid in full (including any
collection fees).
Why did the collection agency charge me so much?
The agency can charge up to 33% according to the terms of the promissory
note signed when the loan was taken. This means an $1,800 loan may grow to
almost $2,300!! Is it worth it?
I can't buy a house, a car, or get a credit
card...help!
Taking out a loan is a serious obligation. If the
loan is not paid back as agreed it will negatively affect your credit
report. It may affect your ability to buy a house in the future. It may
affect your chances of getting a credit card, a car loan or even of
getting a job. Having a negative credit report will affect more than just
your ability to buy something.
Help is available to students that want to learn how to manage their
funds.
SFS Outreach offers Money
101 sessions to help you develop money management skills.
If you have questions about your Short-Term Loan, you may contact
Student Fiscal Services at 206-543-4694, or by using the email link
below.
