Employee Emergency Assistance Loan Program
Emergencies may arise for any employee at any time, and when they do, unplanned out-of-pocket expenses can cause financial destabilization. In these situations, the employee may have limited options and may opt to seek high-interest loans, default on their debts, or even file for personal bankruptcy. Financial stress has a negative impact on an employee’s health and well-being, as well as their job performance.
Texas State University Employee Emergency Assistance Loan Program will issue short-term emergency loans to benefit-eligible employees who have an immediate need for funds as the result of an emergency and have no other source of money available within the time necessary to act, or who have a dire personal financial hardship.
A fund will be established and maintained by the Office of Human Resources, with funds donated by generous faculty and staff year-round. Loans in the amount of up to $1,000 will be issued to individual employees who apply for funds in accordance with the expressed need, subject to fund availability. To the extent permitted by the Texas Public Information Act, an employee’s application for and receipt of an Employee Emergency Assistance Loan is confidential.
Eligibility
Employee Emergency Assistance Funds will be used to issue zero-interest loans of up to $1,000 to employees who have submitted an application, and meet the following criteria:
- Individual is an active benefits-eligible employee at Texas State University in good standing;
- Individual has been employed on a full-time, continuous basis with Texas State University for at least 1 year;
- Employee does not have an outstanding Emergency Assistance Loan or owe monies to the University; and
- Employee is facing a temporary financial hardship as a result of an emergency situation.
Emergency situations include, but are not limited to:
- Health emergencies;
- Transportation emergencies;
- Death or critical illness within immediate family;
- Child care emergencies.
- Housing emergencies;
- Extraordinary utility bills caused by unusual natural occurrences (e.g., temperatures below freezing for a significant amount of time). This would not include normal temperature fluctuations that should be anticipated.
Procedures
Employees seeking to receive an emergency loan should:
- Submit an Application for Employee Emergency Assistance Loan on the HR website.
- Committee will review the request for funds and make a determination.
- Committee will issue a notice of determination.
- If the loan is approved by the committee, HR will submit a request for the loan amount (payment) to be issued to the employee and create a loan repayment agreement.
- Employee must sign the loan repayment agreement and elect method for repayment (payroll deduction or direct pay via electronic check).
Loaned funds that are repaid by employees will be used to replenish the Employee Emergency Assistance Fund.
Frequently Asked Questions
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Application and Selection Questions
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Is there a limit to the number of loans I can take?
There is no limit to the number of emergency assistance loans that an employee may take; however, an employee may only take one loan at a time.
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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 following the receipt of a loan request.
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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 and/or prior/outstanding loans taken
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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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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 by electronic check (ACH) or via payroll deduction.
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What is the repayment schedule?
The repayment schedule is determined by the employee at the time of application. If approved for a loan, the employee must complete the loan repayment agreement.
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What happens if I separate from employment and have an outstanding loan balance?
Upon separation, any remaining loan balance will be deducted from the employee's pay. If the loan balance exceeds the employee's pay, the employee must make arrangements with TXST to repay the outstanding balance.
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