Section 3361:40-13-02 - Financial aid: long term loans(A) A long term loan may be granted for university related student needs.(B) Borrowers, except for college of medicine students, shall repay their loan, plus interest thereon, in monthly installments over a five-year period (sixty months) beginning nine months after graduation, or from the last date of enrollment at the university of Cincinnati. College of medicine students shall repay their loan, plus interest thereon, in monthly installments over a maximum period of ten years (one hundred-twenty months) beginning nine months after graduation, or from the last date of enrollment at the university of Cincinnati. The nine-month period between enrollment and repayment shall be considered a grace period in which no interest shall accrue; however, borrowers shall be encouraged to repay any or all portions of their outstanding loan during this period.(C) In addition to the nine-month grace period, graduates of the college of medicine in residency training may defer repayment of their loans for up to three years, during which time no interest shall accrue. Graduates who continue in residency training beyond three years should make at a minimum monthly payments of fifty dollars, which shall be applied to principal and interest.(D) If the borrower's grace period elapses, and the borrower returns to the university of Cincinnati during the repayment period, payment of principal and interest may be extended by a manager of the bursar's office.(E) A manager of the bursar's office may grant a borrower an extension of time to repay their loan when the borrower demonstrates an inability to meet the monthly payment requirements set forth in the promissory note. In no event shall the minimum monthly repayment be less than fifty dollars, which shall be applied to principal and interest.(F) All applications shall be channeled through the office of student financial aid for an audit of current student aid. The entire application and promissory note shall be completed in full before sending for final approval.(G) An application fee shall be assessed to all loan applicants.(H) Interest, in accordance with applicable restrictions, shall be charged beginning at the end of the grace period, as stated in paragraph (B) or (C) above, and continue until the loan is paid in full. In the event a borrower fails to meet two or more scheduled payments, the entire unpaid balance, including principal and interest due, shall become immediately due and payable, and a service indicator (noting delinquency) shall be placed against the borrower's university records, unless the borrower has made new arrangements with the university for loan repayment.(I) The applicant shall be a full-time registered student with the university of Cincinnati and in pursuit of a degree.(J) A loan shall be denied if the applicant has a delinquent obligation owed to the university of Cincinnati or if the applicant has a past due loan.(K) The applicant shall meet the minimum age requirements of eighteen years of age, set by the state of Ohio.(L) The president of the university shall have the authority to develop administrative guidelines and procedures to implement this policy, including such matters as the maximum dollar amount of all long term loans and the application fee assessed for such long term loans. The president may delegate the authority granted by this paragraph.Ohio Admin. Code 3361:40-13-02
Effective: 9/16/2019
Promulgated Under: 111.15
Statutory Authority: 3361
Rule Amplifies: 3361
Prior Effective Dates: 03/16/1978, 09/23/1979, 05/24/1980, 03/01/1983, 02/25/1985, 12/21/1990, 04/24/1992, 06/17/1998, 03/13/2000