Harrison College Institutional Loan Program

Began utilizing an Institutional Loan Program for all campuses within past six months, ran pilot at one campus for over a year prior to statewide roll out Saw an opportunity that needed to be filled for students that did not have enough title IV funding to cover tuition, fees, and books and could not get approved for an alternative loan Student must maintain a full-time status to participate in the IL program, along with exhaust all title IV possibilities and not be approved for an alternative loan program Institutional Loan Program Background…

Students are required to make a $65/mo or $75/mo payment to participate in the program while they are attending school First payment must be received before the student is considered participating in the program and awards are moved to an approved status Loan maximum per academic year is contingent upon the student’s program of study Institutional Loan…

Harrison Institutional Loan is split into two separate promissory notes - Programs 1-3 and Programs 4-6 – prices are different between programs Differences between the two notes are the monthly payment, maximum amount of the note, and the repayment period Institutional Loan…

Programs 1-3 –Total note cannot exceed more than $10,000 –Student must maintain a full-time status (12 credit hours or more) to participate in loan program –Students enrolling in the program are required to pay $65 per month while attending school, first payment due upon completion of loan application –Maximum balance to be paid is $4,000 within an academic year (3 terms)

Institutional Loan… Programs 1-3 continued… –Repayment terms and conditions 0-$1499 borrowed = 1 year repayment $1500-$2999 borrowed = 2 years repayment $3000-$4999 borrowed = 3 years repayment $5000 or above = 4 years repayment 10% interest on remaining principal balance of loan that begins accruing after the borrower ceases attendance

Institutional Loan… Programs 4-6 –Total note cannot exceed more than $15,000 –Student must maintain a full-time status (12 credit hours or more) to participate in loan program –News students to the program are required to pay $75 per month while attending school, first payment due upon completion of loan application –Maximum balance to be paid is $6,000 within an academic year (3 terms)

Institutional Loan… Programs 4-6 continued… –Repayment terms and conditions 0-$1999 borrowed = 1 year repayment $2000-$3999 borrowed = 2 years repayment $4000-$5999 borrowed = 3 years repayment $6000-$7999 borrowed = 4 years repayment $8000 or above = 5 years repayment 10% interest on remaining principal balance of loan that begins accruing after the borrower ceases attendance

Institutional Loan… Students that make continuous payments and stay continuously enrolled, will have the remaining principal balance of the loan forgiven up a maximum of $3,500 Loan forgiveness portion is offered as an incentive for students to complete all courses through graduation without taking terms off

Institutional Loan… Credit balances will not be created by this loan program for charges that are not directly related to tuition, fees, books Loan is intended to only cover their direct cost gap while they are attending school

Institutional Loan… Currently taking care of monthly payments for current students through business office as well as the collection of any remaining balance on the note if the student ceases attendance prior to graduation Will most likely need to outsource the collection efforts as the program continues to grow over the next several months

Institutional Loan… Currently 210 students are actively enrolled in the IL program 95% of the possible 624 student payments have been made on time