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1. THE LOAN CONCEPT
The idea is that the students who have previously received financial aid and who are eligible for the loan will have their financial aid grant converted into a package of grant and loan thus increasing the total amount of financial assistance they may receive. The total package of financial aid as grant and loan will be greater than the previous financial aid award. In this way, the loan responsibility will be shared by students and they will be repaying the loan after graduation. During the students’ years of study AUB will pay the interest of the loan, thus relieving students and their parents of the financial burdens during these critical years.
After graduation, the student loan is converted to a personal loan that must be repaid over a period of 4 years with an interest rate equivalent to the best lending rate of the bank at the time less two percent. The student will be given a grace period of six months to start repaying the loan, however the interest is applied immediately after graduation.
The maximum amount of the loan that may be assigned to a student is $3,600 per year. Half of the amount assigned was reflected as a "Prospective Loan" on the statement of fees for the fall semester since the loan is not considered final and effective unless it is approved by the bank. The bank’s decision comes at a later stage after the students go through the loan procedures. If the loan is not approved by the bank, the student will still receive the financial aid grant but will be responsible for resettling the balance due as per AUB's regulation for outstanding balances as a result of the loan denial.
2. LOAN PROCEDURES
The loan procedures require that one of the student’s parents be involved or any other guarantor provided he/she is a close relative to the family. 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 finalize it.
The student and the parent (or guarantor) are referred to here within as the client.
- The client fills and signs a loan application form with the help of a Bankmed staff.
- The client submits the required documents listed below.
- The bank will investigate about the client and study the application.
- In case of approval, the bank will call the client to finalize the process.
- It is the client responsibility to follow-up with the bank for the final signature after bank approval.
3. REQUIRED DOCUMENTS Documents Required from Employees
- Copy of the Applicant's ID card.
- Salary Attestation in original form signed by the employer showing the number of years of employment and preferably to be duly certified by the Employer's Bank.
- Latest Telephone &/or Electricity bill.
Documents Required From Self-Employed Customers
- Copy of the Applicant's ID card.
- Copy of the certificate of registration in the Trade Register.
- Latest account statement at other banks for the last 3 months
- Latest Telephone &/or Electricity bill.
Documents Required From Professionals
( Lawyers, Doctors, Engineers…)
- Copy of the Applicant's ID card.
- Copy of the Medical Insurance Card.
- Latest account statement at other banks for the last 3 months
- Latest Telephone &/or Electricity bill.
Documents Required From Military Staff
- Copy of form #1 for Internal and General Security Members.
- Copy of form #2 for Army Members.
- Recent salary attestation or payslip in original form, in addition to the name of the officer in charge and his phone number.
- Latest Telephone &/or Electricity bill.
Documents Required from Employees of the Public Sector
- Copy of the Applicant's ID card.
- Recent salary attestation or payslip in original form.
- Latest Telephone &/or Electricity bill.
Documents Required From Retired Customers
- Copy of the Applicant's ID card.
- Salary Attestation in original form duly signed and certified by the Ministry of Finance.
- Latest Telephone &/or Electricity bill.
REMEMBER
The loan is mandatory. Any student who declines to take the loan will lose the whole financial aid package including the grant.
Accordingly, the student will be responsible for resettling the total due balance as per AUB's regulation for outstanding balances.
However, as stated earlier, if the loan was not approved by the bank, the financial aid grant percentage would still apply but the due balance of the cancelled loan should be resettled by the student as per AUB's regulation for outstanding balances.
For more information or further clarifications please contact the financial aid office. |