Short Term Loans
Valdosta State University has thirteen short term loan accounts. Private families or organizations established many of the loan accounts as early as 1920. The following guidelines allow us to offer the Short Term Loan as a valuable resource for students who are in need, thereby complying with the intent of the donors as stated in the creation of the loan funds, while also maintaining the financial integrity and continued use of the funds. The short-term loan funds were the original source of financial aid before the federally funded programs were established.
Need a Short Term Loan!
If you find yourself needing funds to pay tuition and fees, you may qualify to receive a VSU short term loan.
What is a Short Term Loan?
A short term loan is a fixed amount of money that Valdosta State University allows you to borrow for a specific amount of time. These loans are short-term meaning they last only for the duration of a school semester. When the school semester ends, you are expected to have re-paid the loaned money in FULL, making payments as indicated on the repayment installment agreement. There are no exceptions. There is no extended payment plan. The balance due must be paid on the due date.
How Do I Apply For a Short Term Loan?
EASY!! Ask for a Short Term Loan Application in the Office of Student Accounts, University Center South (1 Stop Shop). If your application has been approved, the loan amount is applied directly to your university student account after you and your co-signer (if applicable) have signed the required loan documents.
Do I Qualify for a Short Term Loan?
All loan sources have eligibility criteria that the student must meet in order for the money to be borrowed. Loans are only made to cover direct educational expenses incurred at Valdosta State University, i.e., payments to the university for fees, books, on campus housing and meals. Following are the requirements to obtain a loan:
- Currently enrolled with at least one credit hour
- G.P.A. =/+ 2.0
- Satisfactory loan rating with the Office of Student Accounts
- Show a means to pay back the loan
- Satisfactory credit history for loans
- No history of default or collections
- No holds on your student accounts (such as library fines, health center fees, parking citations or housing, etc)
- Student must be enrolled and attending on-campus or online courses. International students attend VSU with designated funds to pay all educational costs, so we are not able to give non-U.S. citizens a short-term loan.
How Much Money Can I Borrow?
$1 - $3,000.00. To borrow money in excess of $ 600, you will be required to find a financially responsible person to act as security for the loan. This person is called a co-signer, because they will be legally bound to your promissory note as well as you. This means that the co-signer is liable to pay the Short Term Loan if the borrower does not pay as agreed. A co-signer must be employed FULL TIME, at least 21 years old, and not your spouse (husband or wife). The co-signer signs your promissory note in front of a notary public who witnesses the signature and dates/seals the document.
Can I re-pay the loan with weekly payments?
Sure! The University accepts payment in the form of cash, checks, and MASTERCARD, DISCOVER, or AMERICAN EXPRESS credit cards. You may also pay back the loan with awarded financial aid for the semester. However, if you do not receive the financial aid for whatever reason, the short-term loan is due according to the terms of the promissory note. All short-term loan balances must be paid in full before any new loans will be processed.
What Happens If I Cannot Re-Pay the Loan by the Due Date?
A $25 late fee is added to your loan amount for each installment payment that is missed and a HOLD is immediately placed on your student record. The hold will prevent you from completing your registration for classes, prevent you from receiving your transcript, and you will not be eligible for any future short-term loans. Should you withdraw from school, the loan is due on the withdrawal date. If you have not re-paid the loan within 90 days after the due date, your loan is sent to a collection agency for further collection efforts. Any collection costs are added to your loan amount.
The Cost of a Short Term Loan
In order to cover our processing costs, we do charge fees for this service provided to you. The fees include 5% interest, a $5 service charge. Loans requiring a credit check pay $4.75 for each credit check required. When you borrow the money, you are required to sign a legal document called a promissory note. This is a formal written unconditional promise to pay the amount of money loaned plus service fees and interest charges. This arrangement is not like a credit card where you can carry the amount owed for months and pay a little money at a time. The amount borrowed is payable in full on the maturity/due date. You are responsible for the loan being repaid regardless of the means of re-payment. Installment payments are to be made on fixed dates with payment in full required on the loan payment dates:
|Amount of Money||Service Charge +||Interest Charge at 5%||Require Co-Signer?*||Late Fee Past Due||Credit Check $4.75|
|$1 - 299||$5.00||$1.00-4.00||NO||$75.00||YES|
|$300 - 600||$5.00||$1.00-9.00||NO||$75.00||YES|
|$601 - 1199||$5.00||$10.00-20.00||YES||$75.00||YES|
|$1200 - 2449||$5.00||$21.00-40.00||YES||$75.00||YES|
|$2450 - 3000||$5.00||$41.00-50.00||YES||$75.00||YES|
+ If short-term loan money is disbursed to you and you do not use the loan funds, you are still responsible for the service charge.
What is a Credit History Check?
Information is gathered from credit bureau organizations on both the borrower and the co-signer. The information is used in evaluating the applicant’s ability to pay the loan back by the due date. The applicant and co-signer must have a satisfactory credit rating to be considered for a short-term loan.
A student requesting a short term loan will be required to pay an additional $4.75 for each credit report before any other processing on the short-term loan is completed. An unfavorable credit history rating is cause for denial of the short-term loan.
If you have any questions, please email Jennifer Griffin or call the University Bursary at 229-333-5725 or 1-800-618-1878 (option 6).