Employee Emergency Assistance Loan Program
The Employee Emergency Assistance Loan Program (EEALP) was established to assist employees during times of unforeseen financial hardship or emergency by providing full-time, benefits-eligible employees with short-term loans to help meet financial needs caused by a bona-fide emergency. This program is designed to assist with unforeseen and unavoidable crises that could not reasonably have been mitigated.
A bona-fide emergency is an unforeseen crisis that is not self-inflicted or preventable, and that the employee would not have had a reasonable means to avoid or mitigate, resulting in a significant impact on the employee’s ability to maintain sustenance. The assessment of ability to maintain sustenance takes into account all reasonable sources of household income.
Note: If the University learns that the employee used the funds for inappropriate purposes or provided false information on the loan application, the employee may be required to re-pay the loan in full immediately and/or be subject to disciplinary action at the full discretion of the University, up to and including termination.
Eligibility
Employees must meet the following criteria to be eligible for the Employee Emergency Loan Program:
- Must be a full-time, benefits-eligible employee as defined by ERS/TRS, and must have completed one year of continuous service with TXST.
- Must have a documented emergency that has resulted in financial hardship (e.g., significant and documented medical expenses impacting the ability to sustain basic needs; fire; natural disaster; or other events resulting in the loss of housing or a significant loss of household income affecting the ability to pay for basic needs).
- Must be in active status, with employment in good standing.
- Must not have any outstanding emergency loans from previous requests.
Loan Details
- Loan Amount: Up to $1,000, based on expressed need and available funds
- Interest Rate: Zero-interest loan with no additional fees
- Term: Repayment begins within 60 days and must be completed within 12 months
- Confidentiality: Applications and repayment agreements are confidential to the extent permitted by the Texas Public Information Act
Repayment
- Repayment will occur through monthly payroll deduction only, with the option to repay early at any time without penalty.
Application Process
To apply for an emergency loan, employees must:
Submit an application: The employee must complete an emergency loan request form, providing a brief description of the emergency, the requested loan amount, and supporting documentation (e.g., medical bills, funeral expenses, etc.) that outlines the bona-fide emergency and the required loan amount.
Employees are expected to be truthful and transparent throughout the process and forthcoming with all reasonable information so an informed decision may be made.
Review and approval: Applications will be reviewed by the committee using a rubric to ensure eligibility qualifications are met and to consistently assess each request. The committee will issue a notice of determination.
Loan agreement: If the loan is approved by the committee, HR will submit a request for the loan amount to be issued to the employee and prepare a loan repayment agreement. Employees must sign the loan repayment agreement, which outlines the loan amount, repayment terms, and conditions.
If it is determined that an employee was not truthful or transparent in their application, the employee may be required to re-pay the loan in full immediately and/or be subject to disciplinary action up to and including termination.
Employees who are approved for an emergency loan and are in repayment status must notify hrbenefits@txstate.edu at least two weeks prior to any planned voluntary separation from the University, for any reason, including but not limited to resignation or retirement. Failure to provide this notice, which allows time for the remaining outstanding loan amount to be reconciled against final pay, will result in the employee being placed on no rehire status and losing good standing with the University.
Frequently Asked Questions
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Nature of Emergency
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What is the definition of a bona-fide emergency?
A bona-fide emergency is an unforeseen crisis that is not self-inflicted or preventable, and that the employee would not have had a reasonable means to avoid or mitigate, resulting in a significant impact on the employee’s ability to maintain sustenance.
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What are some examples of a bona-fide emergency?
Some examples of a bona-fide emergency are a house fire, a flood, or death of a partner/breadwinner.
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What does not constitute a bona-fide emergency?
Some examples that do not constitute a bona-fide emergency are routine car repairs and routine veterinary expenses.
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Application and Selection Questions
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Can I take more than one loan at a time?
Employee emergency assistance loans may not be taken concurrently (e.g., only one loan may be outstanding at a given time).
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How often does the committee meet?
The committee meets on an ad hoc basis within a reasonable time following the receipt of a loan request, subject to funding availability.
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What does the committee take into consideration for granting a loan?
Committee considerations may include but are not limited to:
- eligibility criteria (as outlined above)
- fund availability
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Are emergency loan applications considered confidential?
Information will only be shared with relevant parties on a need-to-know basis. Texas State University is a public institution that is subject to open records requests.
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Loan Approval/Denial Questions
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If approved, how much will I receive?
The program has limited funds. In order to ensure fairness and properly direct funds to help the greatest number of employees, an employee may receive an amount less than initially requested.
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Once approved, how will I receive the loaned funds?
Employees approved for emergency assistance loans will receive the funds via check through University Advancement.
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Once approved, how long does it take to receive the monies?
Once a loan is approved, please allow up to 10 business days for issuance/receipt of monies.
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What happens if my application is denied?
Committee decisions relating to employee emergency assistance loans are final and may not be appealed. Reasons for approval/denial will not be provided.
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Taxes and Repayment Questions
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Are there any tax implications associated with the loan?
If the loan is repaid, it is not considered income and is therefore non-taxable to the employee.
If an employee does not repay the loan, it may be considered income, and will then be counted as taxable wages for that calendar/tax year.
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How does the loan get repaid?
Loans can be repaid online via payroll deduction.
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What is the repayment schedule?
Recipients will be required to sign documentation that includes repayment authorization via payroll deduction. Repayments will be automatically deducted from the employee’s paycheck, and the repayment schedule will be determined by the employee at the time of application. Deductions will occur monthly, with the option to repay early.
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What happens if I separate from employment and have an outstanding loan balance?
Repayments are automatically deducted from the employee’s paycheck on a monthly basis through payroll deduction. The repayment schedule is selected by the employee at the time of application, with the option to make higher payments and repay the loan early. The full loan must be repaid within 12 months, and the first deduction typically begins with the payroll cycle following loan approval.
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What if I am unable to repay the loan?
If an employee is unable to make a scheduled payment due to unforeseen circumstances, they must notify HR immediately to discuss possible adjustments or deferrals. Repayments will be deducted directly from the employee’s paycheck on a monthly basis.
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Funding Sources:
- The program is funded through donations from TXST employees, alumni, and the greater university community.
- Repayments are used to replenish program funds. It is designed to support employees in times of need and is sustained by the generous contributions of the Texas State University community.