Harrison College Institutional Loan Program

1
Harrison College Institutional Loan Program
2
Institutional Loan Program Background

• 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

3
Institutional Loan

• 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 students program of study

4
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

5
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)

6
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

7
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)

8
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

9
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

10
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

11
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

12
Institutional Loan

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