This procedure outlines the steps of the Tuition Loan process in accordance with the Financial Aid Policy. 

Scope

This procedure applies to all full-time students of Parami University and administrative staff responsible for financial aid and tuition loan management.

Eligibility Criteria

• Full-time enrolled students of Parami University.

• Students demonstrating limited financial capacity to pay the upfront tuition fee.

General Information

1. The Tuition Loan helps students who cannot pay the full tuition less scholarship amount during the academic year.

2. The loan is interest-free, with a one-time administrative fee of 10% of the total outstanding loan.

3. The loan must be repaid within a flexible period of five to ten years after the student begins earning an income following graduation, whether through employment, freelance work, or self-owned business. The exact repayment period will depend on the student’s income level and their ability to allocate disposable income. Students may also begin repayment earlier if they are in a position to do so and notify the Financial Aid Office. The Financial Aid Office will work with each student to develop a personalized repayment plan, including a five-to-ten-year year repayment schedule, which will then be forwarded to the Finance Office for collection of payments.

4. For students completing an Associate degree who do not immediately continue to a Bachelor’s program, repayment begins once they complete the Associate degree and start earning an income.

5. For students completing a Bachelor’s degree, repayment begins once they complete the Bachelor’s degree and start earning an income.

6. Students who withdraw from the University before completing their degree are still responsible for repaying any outstanding tuition loan. Repayment begins once they start earning an income and follows the standard five-to-ten-year repayment schedule. The Financial Aid Office will assist withdrawn students in creating an appropriate repayment plan.

7. Monthly repayment installments are generally 5-15% of the student’s monthly income. If a student’s income is below the national minimum wage in the country where they reside, they may request a temporary pause by notifying the Financial Aid Office.

Procedures

Step 1: Application

• No separate loan application is required. 

• Tuition Loan eligibility is determined as part of the overall financial aid review.

Step 2: Review and Approval

• The Financial Aid Committee will review the financial capacity of a student, evaluate the scholarship amount to be awarded to the student, decide the portion of tuition the student needs to pay upfront, and determine the remaining balance with a Tuition Loan. 

• Total tuition is thus covered through Scholarship + Upfront Payment + Tuition Loan.

Step 3: Loan Disbursement

• The loan is not disbursed as cash; it is considered as a portion of the tuition fee that has been deferred to a future date.

Step 4: Repayment

Repayment can begin:

 a) After graduation 

 b) Upon withdrawal from the University, or 

 c) Before graduation.

(a) After Graduation

1. After completing an Associate degree or a Bachelor’s degree, students with tuition loans must notify the Financial Aid Office once they begin earning and submit income verification every six months. Income verification can include employment contracts, official payslips, tax records, invoices, bank statements, or other proof acceptable to the Financial Aid Office.

2. Repayment begins only when a graduate starts earning an income. If a graduate continues studying at another institution, such as transferring after the Associate degree or enrolling in a Master’s program after the Bachelor’s degree, repayment will be deferred until they begin employment.

3. The Financial Aid Office will develop and customize a repayment schedule with a period of five to ten years that is suitable for the conditions of the student.

(b) Withdrawal 

1. Students who withdraw from the University before completing their degree must notify the Financial Aid Office. Repayment begins after withdrawal and is counted from the start of earning income above the national minimum wage of the country where the student resides.

2. If the withdrawn student continues studies elsewhere with external sponsorship, repayment is deferred until the completion of that program. If the student continues self-funded studies, repayment begins once they start earning an income.

(c) Before Graduation

1. Students are not required to begin repayment before graduation. If the student is in a position to begin repayment, they may begin repayment before graduation. The 10 percent administrative fee will be waived if at least 50 percent of the outstanding loan is repaid before graduation and the Financial Aid Office is notified in advance.

Special Conditions and Circumstances

1. If a student is deceased, loan repayment will automatically cease.

2. If a student becomes permanently unable to work due to a medical condition, repayment may be waived after the student or family submits official medical documentation and the Financial Aid Office reviews and approves the case.

3. In cases of financial hardship, such as family emergencies, students may request a grace period of up to six months. Requests must be submitted in writing with documentation and approved by the Financial Aid Office.

4. Students who become unemployed after beginning repayment may request a temporary suspension of payments. The repayment period will be extended based on the length of the suspension.

5. Students who do not submit income verification every six months may be placed on administrative hold until verification is received.

6. Students who miss or delay payments without prior approval may be charged a late fee of 1 percent of the missed installment per day, up to a maximum of 30 percent of the missed amount, until the payment is made.

The Financial Aid Office, in collaboration with the Office of Finance, monitors repayment, verifies income, and manages all communications. The Financial Aid Committee is responsible for the initial review and approval of loans.

Repayment Example

Scenario: Suppose Student A takes a total loan of USD 3080. Details are shown below.

A Sample 5-Year Repayment Schedule

A Sample 10-Year Repayment Schedule

Note: The repayment plans above are sample calculations/projections based on the student’s possible income and repayment capacity. The actual amount to be repaid is limited to the total loan plus administrative fees, not the projected total in the tables.

Review

The Office of Financial Aid is responsible for ensuring compliance with this procedure across various offices of the University.

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