Short Term Loans

Hallway Loan Program

The University of Iowa has a limited amount of money available for short-term loans to students, administered through the Financial Aid Office.  International students who wish to apply for $500 or less should instead apply for the Hallway Loan Program.  Students who need between $500-$1500 can apply for this Short Term Loan detailed below instead.

The main differences between the two programs are these:  The maximum amount available through the “hallway program” is $500, interest-free, repayable in the last month of the semester during which the loan is taken.  Under the short-term loan program for international students, the maximum amount available is $1500.  The interest rate is 4%, and the loan must be repayed in full within one year (or before graduation, if that comes sooner).

Short-Term Loan Program for International Students

  • The maximum amount available is $1500.
  • Loan requests must be justified on the basis of an educational or educationally-related expense or living expense.
  • Short-term loans are not available while classes are not in session.
  • Students have some choice in determining how and when the loan is repaid.  Points to remember in determining a payment schedule include:
  • ---annual interest rate is 4%
  • ---all loans must be paid within one year or before graduation, whichever comes first
  • ---final repayment must be scheduled before graduation
  • Students will receive a bill in the mail from a private collection company when the loan payment is due.

Eligibility Criteria

  • Students must be registered for the current semester.
  • Only students in F-1 or J-1 student status who are participating in degree programs will be considered by ISSS for the loans.  Nondegree students, J-1 scholars, J-2 and F-2 dependents, and students in other immigration categories are not eligible.
  • Students are eligible for only one short-term loan each semester.
  • Students new to the UI are not eligible for loans during their first year, unless they hold a UI graduate assistantship or scholarship from some other agency.
  • Late registrants are not eligible for loans to cover the first 1/3 of tuition.
  • Students must show evidence of ability to repay the loan by the specified due date.
  • Students reapplying for a short-term loan must have fully repaid any previous loans.

Procedure

  1. Complete the top portion of the Short Term Loan application form
  2. Meet with an ISSS adviser during walk-in hours.
  3. If the adviser approves your request, the necessary papers will be prepared and sent to the Financial Aid Office.  The Financial Aid Office has the final authority to approve or deny a short-term loan request.  It takes two business days to process the request.
  4. The Financial Aid Office prepares the final loan agreement, which you must go (with your university ID card) to the Financial Aid Office to sign.
  5. You can receive the amount deposited directly to your bank account, or have the amount applied to your University of Iowa account.

Consequences of Failure To Repay by Due Date

  • Registration is restricted until all indebtedness, including a reinstatement fee, is paid.
  • Students cannot use their ID cards to add charges to their UI account.
  • Transcripts will not be released.
  • Students will not be permitted to register for any subsequent semester.
  • Annual interest of 10% will be charged.