university of illinois - UIHistories Project

io66 BOARD OF TRUSTEES [December 17
specify conditions under which loans may be granted, although the Board of
Trustees may transfer funds from other sources to be used for this purpose.
(b) The President is authorized to accept offers of gifts of loan funds
which, when received, shall be reported to the Board of Trustees. Offers shall
not be accepted where the terms require that loans be made on the basis of
race or religious affiliation.
(c) The Finance Committee of the Board of Trustees shall determine
from time to time the general policies to be followed in the granting of loans.
In general, the following types of loans shall be made.
(1) Short Term. These loans are made to students to meet temporary
financial problems, and are to be repaid during the same academic session in
which they are made. They are limited to relatively small amounts and ordinarily
do not require security. The applications must be approved by the
Dean of Students and the Vice-President and Comptroller, or their designees.
(2) Long Term. These loans are made to provide material assistance
to the student during his attendance at the University, and are generally expected
to be repaid from earnings after he leaves the University.
Each application must be approved by the dean or director of the college
or school in which the student is enrolled, the Dean of Students, and the
Vice-President and Comptroller, or their designees. Security, by means of
the signature of a financially qualified cosigner on the note or by satisfactory
collateral, is required unless otherwise provided in the deed of gift or waived
in meritorious cases.
The Bursar shall, upon approval of the application, determine the fund
from which the loan shall be made and shall make the loan on the receipt of a
promissory note in the form approved by the Legal Counsel. The Bursar
shall make collections on all notes and the interest thereon and, when necessary,
may institute proceedings to enforce collection by referring delinquent
notes to the Legal Counsel or to agencies outside the University.
(d) Income on the student loan funds may be reserved to defray expenses
incidental to the administration of such funds, when not prohibited by
the terms of the gift. After providing for such expenses, any balance shall
be added to the principal of the funds.
(e) If at any time student loan funds are not needed for student loan
purposes, they may, upon approval of the Finance Committee, be invested
temporarily in prime interest bearing securities.
GIFTS AND GRANTS
Sec. 13. (a) Gifts and grants. They may be accepted from persons,
corporations, or agencies outside the University under conditions specified in
this section. Staff members may conduct preliminary negotiations with prospective
grantors or contractors with the prior knowledge and approval of
the department head or other appropriate administrative officer, but are not
authorized to bind the University to accept a gift or grant.
(b) Scholarships and Fellozvships. These are gratuitous payments to
students to provide financial assistance during the period of their training.
There are two kinds of scholarships: (1) aid to undergraduate students and
(2) aid to graduate students, limited to tuition and fees. Fellowships are
defined as awards involving cash stipends for students in the Graduate College.
In certain exceptional cases, postdoctoral fellowships may be granted. Fellow-