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1. First-Time Loan Students
First-Time loan students are mainly second year students in the Faculty of Engineering and Architecture, and higher class students who are receiving financial aid for the first time.
As part of the loan program for undergraduate students in the Faculty of Engineering and Architecture (second year and on), applications of financial aid recipients
are re-evaluated and the students will receive a new financial aid package including a grant percentage and a loan amount towards their tuition fees.
The student loan program was designed to allow an increase in the overall financial assistance provided to students who will partially assume the responsibility of this aid by repaying the loan part after graduation. The financial aid package, including the AUB grant and the Bank loan, is determined such that students with low to average need will receive less grant but more loan, whereas students with high need will receive more grant but less loan. Hence, the loan is mandatory to the students who are receiving financial aid.
The loan currency is lebanese pounds (LBP) and the interest rate will be 3% as announced by Central Bank of Lebanon.
The loan is subsidized by AUB during a student's years of study until graduation. Accordingly, AUB will pay the interest of the loan relieving the students and their parents from this financial burden during these critical years until graduation. Repayment of the loan starts after graduation and over a maximum period of 10 years following a grace period of one year.
Starting graduation an interest rate will be applied at the rate generally applied by the bank on student loans as decided by the Central Bank of Lebanon. The annual loan amount will range between 5% and 30% of the annual tuition fee not exceeding LBP 7,300,000. The students must take the loan during each of their years of study as determined by the Financial Aid Office (FAO) and should therefore repeat related procedures each year. The total amount of the loan will depend on the eventual repayment ability of the student (parents) as judged by the bank.
When the student loan is approved by the bank, the amount of loan transferred from the bank to the student's AUB account will be used to cover any outstanding balance in that account, otherwise the student may choose to either ask for a refund or keep the amount in his/her account for the following payment period.
The loan program is mandatory. Any student who declines to take the loan will lose the entire financial aid package including the grant and will therefore be responsible for resettling the balance due to the cancellation of the financial aid grant, as per AUB's regulation for outstanding balances.
However, if the student's loan is not approved by the bank, then student will not lose the financial aid grant.
Loan Procedures:
The loan process consists of 2 phases, each consisting of a certain set of procedures. Phase 1 is referred to as the Student Loan and is repeated each year.
Phase 2 is referred to as the Personal Loan and occurs only once. During the two phases, the student and one of his/her parents are involved, the latter serving as guarantor. If both parents are not working or do not satisfy the conditions required by Byblos Bank for a guarantor, then any relative/friend to the student can be the guarantor provided he/she fits those conditions. The process should end by the deadline stated on the top of this page. Students are advised to start the process at the beginning of the assigned schedule since it takes at least a week to 10 days to finalize it. The student and guarantor are referred to here within as the Client.
Phase 1: Student Loan
This phase involves the following procedures:
1. The FAO assigns the loan amount for the year based on the financial aid received.
2. The student is informed by email about the new package, financial aid grant and loan amount .
3. An application is available on this site (click here to access and print the application). The client should fill and sign the application form before going to the bank.
4. The Client should go to Byblos Bank – Hamra Branch to submit the application and the required documents (see below). Original documents and a photocopy of each are required.
5. The bank will study the application.
6. The bank will inform the FAO and the Client of the final decision.
7. If the loan is approved the Client should go again to Byblos Bank in order to finalize the process.
It is the Client’s responsibility to follow-up with the bank for the final signature after the bank approval within the set time frame and process deadline.
These procedures should be repeated each year by the client during the student’s period of study for the purpose of renewing the loan.
Required Documents:
The client (mainly the guarantor) is expected to submit to the bank staff during the first appointment the following documents in order to accelerate the approval process.
The original copy of the documents should be brought along with a photocopy of each or the file will not be accepted. For employees:
- Loan Application (completely filled)
- Identity card of guarantor and student - AUB ID for the student - Aunthenticated certificate of salary for employees (recent)
- Last 3 payroll slips or bank statement of the salary domiciliation account for the last six months
- Proof of residence (telephone bill or electricity bill or copy of title deed or certificate from the mayor)
- Syndicate ID if available
For self-employed:
- Loan Application (completely filled)
- Identity card of guarantor and student
- AUB ID for the student
- Proof of residence (telephone bill or electricity bill or copy of title deed or certificate from the mayor)
- Statement of account for the business for the last year
- Legal documents of the company
- Syndicate ID if available
All students who fail to comply with the above procedure will lose the complete financial aid package of grant and loan and hence will have to resettle any outstanding balance to AUB.
Phase 2: Personal Loan
Upon graduation the student should convert the Student Loan to a Personal Loan. This consists of the following procedures:
1. Three months prior to the expected date of the student’s graduation the client proceeds to the bank with the required documents to sign an
application in order to convert the Student Loan to a Personal Loan.
2. As in Phase 1, the bank will study the new application.
3. Upon the bank’s approval the Client should go again to Byblos Bank for a final signature. It is important to note that although the client is
signing prior to graduation the Personal Loan becomes effective only after the graduation of the student.
4. Byblos Bank sends to the FAO the list of students who have finalized the conversion and these will be cleared by FAO during the AUB clearance process.
5. Students who do not finalize the conversion of the Student Loan within the set deadline will not be cleared and AUB will keep hold of their diplomas
until the process is completed.
An Alternative to Phase 2: Cash Settlement
Upon graduation, the student can choose not to convert to a Personal Loan provided he/she pays the entire amount
of the Student Loan to the bank during the period of Phase 2. In this case the student will also be cleared as described
in Phase 2 and no prepayment penalty will be applied. For more information or further clarifications please contact the financial aid office.
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