Student Loan Repayment for Alumni
- Letter to Alumni Re: Student Loans (February 15, 2008)
- Report and Recommendation on Student Loans (by the Task Force on Student Loans)
January 30, 2005
Washington, D.C. Open Session (Excerpt)
#7. Student Loan Collection. The Board of Trustees authorized the administration to take all necessary steps, including but not limited to: use of collection agencies, refinancing arrangements with commercial banks, factoring of receivables and, in selected cases, legal actions, to recover past due principle and interest on AUBG loans.
October 2008 AUBG Board Resolution on Student Loans
October 5, 2008
Blagoevgrad, Bulgaria Open Session (Excerpt)
#5. Student Loans. In fulfilling its fiduciary duty to its students - past, current, and future - the Board of Trustees of the American University in Bulgaria hereby instructs the administration to take all necessary measures to enforce the contractual provisions of AUBG-funded student loans and improve the aging of the portfolio. All past due accounts should be processed for collection (through collection agencies, court filings or factoring) by the end of the fiscal year.
The Board of Trustees further recommends that a joint letter be sent by the Chair of the Board and the Presidents of AUBG and the AUBG Alumni Association to all outstanding accounts informing them of the Board's Resolution and the actions to be taken.
List of Alumni in past due loan status
Dear AUBG Alumni:
Please find below a list of alumni names whose loans are in past due status. This may be due to change of address that was not reported to AUBG and lack of information for work in Bulgaria,among others. If you see your name and believe it is there in error, please contact Liuba Tomova at email@example.com to correct our records. (If you see the name of a friend of yours, please let them know so that they may take an appropriate course of action.) If you are past due on your loans, please contact us (or the collection agency that works on your case) to arrange a repayment plan. AUBG will use all legally permissible methods to collect the past due amounts,including, but not limited to: use of collection agencies, factoring (selling the receivable to third parties) and legal proceedings.
AUBG-funded (Institutional) Student Loans
Due to the underdeveloped banking sector at the time, prior to 2001 AUBG was lending money to its students in order to cover part of their educational expenses. Between 1995 and 2001 there were different loan programs in effect. The common between them all is that it is a contractual agreement between AUBG and the borrower, whereby AUBG agrees to lend a sum of money and the borrower agrees to repay it during certain period and under certain conditions.
When you accept a student loan, you also undertake an obligation to repay it. This is a serious obligation, no different than securing a loan for a house or other major purchase.
Contrary to popular belief, default on a student loan is not ignored by colleges, banks, or the government. Extended default eventually can lead to prosecution. Whatever your circumstances, do not default on your loan, because if you do not make payments on time, your cosigner/guarantor will be required to make the payments. In case of default the AUBG will take all legally permissible actions against you and the guarantor to secure payment. AUBG is committed to collect past due amounts. See the Board of Trustees resolutions on the subject above.
For several court decisions after lawsuits against graduates in default, follow the links below:
- Court Decision 17.12.2009
- Court Decision 05.03.2009
- Court Decision 27.10.2003
- Court Decision 29.05.2003
Holds of the academic transcripts release
According to the AUBG policy if the borrower hasn't paid his/her student loan installments due, the borrower is not going to receive the required transcripts and diplomas until the obligation is cleared.