Emergency loan should not be repaid – The Daily Evergreen
WSU’s Short-Term Emergency Loan Program is one way to start helping financially insecure students stay in school. It needs to be better funded so that it can develop into a financial aid program with no repayment required.
Jill Creighton, the dean of students at WSU, said the WSU’s short-term emergency loan program is designed to provide financial assistance to students in an emergency. The program provides short-term loans of up to $ 500 that are due at the same term as they are borrowed and have an interest rate of 6%. The loans are financed by a few donor families, and the whole program is self-sufficient in its financing and can only continue if the loans are repaid.
The loan itself is not much different from student loans, it is just on a smaller scale and needs to be paid back sooner. However, this is the only emergency that is not incredibly predatory.
The program has a strict set of guidelines for who is eligible to receive loans.
Karen Fischer, Associate Dean of Students, said in order for students to apply, they must meet with a case manager and determine if the student is in a financial emergency and whether or not they can repay the loan. The student should have an easily accessible source of income and some imaginable way to repay the money at the end of the term. Students are also limited to two loans for their entire undergraduate stay at WSU.
The program fails to help those students who need help the most to stay in college because they must already have some form of financial stability. By only helping students who might otherwise stay in college and instead providing a poorly managed safety net for students who might fall prey to a bad financial decision, the program is designed to fail.
However, the program is a solution for some unique scenarios. The program is designed to help students with a steady stream of income avoid falling into financial disaster if an unexpected event occurs, such as a crash or a delayed paycheck.
WSU’s Short-Term Emergency Loans are a good back-up system for a limited number of students, but the program has many shortcomings that must be addressed if it is to achieve its goal.
If a student applies for a loan later in the semester, they will have a small window to repay a large amount of money, meaning the case manager would be likely to turn down their case. Withholding help from students at the end of semesters when they are most likely to need help disrupts the basic purpose of the program.
Additionally, if a student does not have a steady stream of income and encounters financial disaster, they will likely be denied a loan. This means that the people who need help the most are the least likely to receive it from the program.
These loans offer real help to those who are eligible, but ultimately fail to help the students who need it most. If the program is to be successful, it can’t even begin to do so until it helps the students who need it most.
The program needs to get more funding so that it can expand to offer an assistance program for students who are unable to repay the loan or who apply for a loan late in the term.
The Office of the Dean of Students needs to reach out to more donors and lobby the state to provide a steady stream of income to the service so that it can help more students.
Students applying for a relief package must prove that they are in a financial emergency and have no way of repaying it before the end of the term and be limited to a package throughout their term. undergraduate stay at WSU.
Adding funding to the WSU’s short-term emergency loan program will not solve the deeper issues facing university spending or accessing opportunities, but it will help less well-off students stay. at school if they encounter an emergency that would otherwise have thrown them into a financial hole with little to get out of.
Gus Waters is a first year political science and dual history student from Bellevue, Washington. He can be contacted at 335-1140 or at [email protected] The opinions expressed in this column do not necessarily represent the opinions of The Daily Evergreen, its editors or publishers.