The Scholarship and Financial Aid office claims it was keeping up with processing applications for financial aid fairly well until August. However, some students say they have been waiting all summer for their loans to go through.
Denise Spudic, a graduate assistant for communication studies, said she filled out her student loan forms in mid-July, requesting the maximum amount of subsidized loans.
"I called [the Bursar's office] persistently for three weeks, starting August 12," she said. "I noticed my graduate fee remission wasn't going through."
Student loans were applied to her account a day before the extended deadline of September 3. Spudic was not the only student with these kinds of concerns.
Director of Scholarship and Financial Aid Bob Zellers said there was a large increase in applications for student loans this year. Compared to last year, he said, there has been a 50 percent increase in number of applications, given the national and state economy.
"We weren't expecting that kind of increase," he said. "We expected 20 or 30 percent, but nothing like this."
Zellers said they were keeping up with processing the loans fairly well, but in August there was a huge increase in applications. About 60 percent of the loan applications came in at the beginning of August, Zellers said.
He also noted another complication: sometimes students don't realize that award letters simply denote eligibility for a loan, and after receiving the award letter, students need to turn in request forms for financial aid.
Processing student loans should take about five business days, Zellers said. However, the increased number of applications made processing and awarding grants take longer than many students might like.
Financial Aid Advisor Janet Trimble said she believes the credit crisis has a lot to do with more students asking for financial aid.
"A large part of what we're dealing with is credit companies cracking down on who can co-sign on private loans," she said. "There's been a huge amount of job loss, and so we're seeing more students and parents taking out loans."
Zellers said that Congress has changed the law so that students can borrow more with unsubsidized loans. This is called "maxing out." Undergraduate students can now take out unsubsidized loans for up to $2,000.
When determining a student's cost of attendance, or budget, the school considers full tuition and fees, room and board, books and supplies, transportation and miscellaneous costs, Zellers said.
"If the loan amount is more than a student's tuition, they get a refund," Zellers said. "And if [he or she] doesn't live on campus, they'll get the remainder back for living fees."
For students who did not receive their financial aid before school started, an emergency loan is an option, Zellers said. Usually emergency loans are worth $150 and can be used to cover the cost of books, but more can be awarded to cover these costs.
Zellers said the university is in the business of "direct lending."
"Once a loan is certified on our side, it goes to the federal processor," Zellers said. "They authorize the loan and put a credit to the student's account, but we don't see that money. Money is granted as the federal government makes it available."
Director of Grants and Contracts Kathy Lucas said she hasn't had any trouble collecting money from the state.
"Our only part in this process is to draw down the money," Lucas said. "We have access to the federal government, and we draw money [from them] into our bank account."
Zellers said that while the problem was simply an increase in the number of applications received, there is little the department can do to make the process run smoother.
"We need to make an effort at both ends; we need students to help by turning in applications sooner, and we need to increase communication with students," Zellers said. "There is little likelihood that we can hire any more personnel."
Zellers said the Financial Aid Department is almost caught up with processing loans, and it is currently focusing on processing loans that have been applied for during the past week
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