The student loan program was designed to allow an increase in the overall financial assistance provided to eligible students. These, however, will partially assume the responsibility of this aid by repaying the loan part after graduation. The loan component is added as an option such that the student may refuse the loan while keeping the financial aid grant.
The loan is currently offered by affiliated banks in U.S. Dollars with a low interest rate that will be charged on the student during the period of enrollment, the grace period and the entire repayment period. The interest rate is reviewed annually as per Central Bank provisions and accordingly the student needs to apply every year for the loan. The maximum annual loan award is 30% of the tuition fee subject ot the bank's approval. The total amount of the loan will depend on the eventual repayment ability of the student (parents) as assessed by an affiliated bank. Students will have to repay the loan after graduation for up to 10 years following a grace period of one year.
The new loan program has special benefits to AUB students, including a waiver of the loan application fees, minimal guarantee conditions, whereby a personal guarantee is sufficient, and free life insurance granted with the loan.
As per Central Bank requirements, however, the interest part is to be paid by the student during the years of study and during the repayment period. The student starts repaying the loan principal in addition to the interest after graduation over a maximum period of ten years following a one year grace period.