Student Loan Scheme

Preamble

The Student Study Loan (SSL) is designed to help the students of Bahria University (new intake) to pay their university tuition. The Study Loan is the money that students borrow to cover the costs associated with their studies. It is different from other types of loans due to zero interest rate. Students of all degree programs are eligible to apply for this loan except Medical & Dental, however, preference will be given to the students of undergraduate program. The University’s Student Study Loan will provide financial support to a student ( new intake) whose academic progress is being or may be impeded by the lack of financial resources.

Financial Impact

1. Initially the allocated budget for students study loan in FY 2013-14 is Rs. 4.00 million that may be revised depending upon fiscal space.
2. Secondly, once the student starts repaying the loan, further disbursement of loan can be made from that repayment. It will be a revolving fund and maximum students are expected to be benefited from this scheme.

Eligibility Criteria

1. Student Study Loan will be offered to those needy students of Bahria University who secured admission in any academic program at Bahria University (except Medical & Dental) and are unable to pay full Fee & other charges in one go. However, preference will be given to the students of undergraduate programs of Bahria University.
2. The student after securing admission and getting fee voucher will be eligible to apply for Student Study Loan.
3. Students (new intake) with minimum 75% marks in latest earned certificate/degree can apply for Student Study Loan.

Loan Approvals and Limits

1. All loans will be processed through Central Scholarship Committee with recommendations of respective DG Campuses. Final approval will be accorded by the Rector Bahria University.
2. Students (only 1st semester) can only request for loan upto the limit of 75% against the total 1st semester fee. The application form for Student Study Loan is attached at Annex ‘A’.

Loan Conditions

1. Successful applicants for a loan must sign a Loan Agreement, including a repayment schedule. Copy of Student Agreement is attached at Annex ‘B’.
2. The repayment schedule must be so structured as to allow full loan repayment prior the students is permitted to graduate.
3. Loan will be drawn in favor of Bahria University and not in favor of students. The loan amount is not to exceed limit of 75% of the total 1st semester fee.

Guarantors

1. Parents / guardians are to be joint borrower (s) (irrespective of their means and age of student).
2. Co-obligation of spouse in case of married students. The Guarantor Bond is attached at Annex ‘C’.

Security Clause

Following parameters will be adhered in awarding the Student Study Loan:

1. No security deposit by the applicant (student). A bond will be signed between the applicant (student) and Bahria University mentioning the repayment schedule as well.
2. The final transcript and degree will not be issued prior clearance of all payable loans by the students. Account office of respective campus is to confirm clearance or otherwise of loan payable by the students.
3. Parents / guardians to be joint borrower (s) (irrespective of their means and age of student).
4. Co-obligation of spouse in case of married student.

Failure to Comply with Loan Repayment

When a student will fail to payback the Study Loan, his/her final transcript and degree will not be issued till he/she clears all loan payments.

Confidentiality

Documentation for all loans (whether approved or not) will be retained on an individual student file for each student, and is subject to the University’s Privacy Policy.

SOPs for Student Study Loan

a.  Application Request

1. The eligible students after securing admission and getting fee voucher are eligible to apply for Student Study Loan.
2. The students are to apply for student study loan to their respective Head of the CU on prescribed application form along with supporting documents.

b.  Documents Required

1. Letter of admission
2. Completely filled Application Form of SSL
3. 02 passport size photographs
4. CNIC copy of the student and the Parent/ Guardian
5. Utility Bills (electricity bill/phone bill/sui gas bill)
6. Student/Co-borrower/ guarantor’s bank account statement for last 6 months

c.  Selection Process

1. Campuses are to initially scrutinize all the received applications and short list the candidates considering their need. Head of CUs are to forward the application(s) (SSL) duly approved by respective DGs with their comments/recommendations to Central Scholarship Committee within 5 to 7 working days after the date of issuance of fee voucher.
2. The Central Scholarship Committee after processing the applications (SSL) is to recommend the applicants within 3 to 5 working days for final approval of Honorable Rector. In case there is any delay then applicants is to be allowed to attend classes subject to conditional admission till the time final approval is accorded by the Honorable Rector.

d.  Loan Payment

1. The loan payment will be drawn in favor of respective CUs of Bahria University and not the student.

Agreement with Student & Guarantor

Once the final approval is granted, an agreement will be signed between the students with guarantee of his/her parents or spouse in case of married student and the University. Copy of agreement is attached at Annex ‘C’.

Repayment Schedule

For repayment of Student Study Loan following are to be ensured:

1. Repayment is to begin from very next month of borrowing and has to pay back before leaving the University, regardless of whether or not he/she has completed the degree program.
2. The repayment of 100 % loan may be ensured before the student completes his/her degree requirement and final degree may be issued once the student clears his/her study loan.
3. Students after availing SSL will apply for Financial Assistance Scholarship at BU. The amount approved under FAS scholarship will not to be paid to the student but will be adjusted against the loan amount.
4. The Student shall payback the differential amount (loan amount – FAS Scholarship awarded) in installments to relevant Accounts Section/Department of their Campus or otherwise his/her FAS amount of following semester will be adjusted accordingly.  Director Campuses will forward the receipt report along with original cheques/ cash payment to the Director Finance for deposit of the received amount to revolving fund account keeping in loop the DSA Office for updating and maintaining the record.

Amendment Powers

1. Rector Bahria University has the full powers to amend/ abandon any one or all terms and conditions of the Students Study Loan Policy and Student Agreement if required, under extreme compassionate grounds.
2. The policy will come into effect from the date of approval and shall be reviewed after every one year.

Student Loan Scheme Form (Download)