Students may wait longer for loans

Phyllis Bolt-Bannister, the University of Arizona's student financial aid director, said students may have to wait even longer next fall.

Because of a federal regulation change, effective next semester, the UA will not be allowed to process financial aid funds for the nearly 25,000 students who get help from Uncle Sam until three days before classes begin, Bolt-Bannister said. This semester, as in the past, the Office of Student Financial Aid was allowed to begin disbursing money 10 days before the first day of class.

The new rule will mean the UA will have only three days to receive money from lenders, credit accounts, and then cut checks for the two out of three UA students who receive financial aid, Bolt-Bannister said.

In all, more than $200 million in aid was disbursed to UA students during the 1996-1997 academic year, she said.

After student loan lenders electronically transfer funds to the UA, the Bursar's Office credits student accounts immediately for those who are eligible to receive federal aid, she said.

If a student is not eligible, the money is transferred into an interest-earning university account until the student is eligible to receive it, Bolt-Bannister said.

If the money sits in the UA account for 10 days, it must be sent back to the lender, per federal law, she said.

John Tugade, a computer engineering senior, said he was concerned about the problems the extra delay may cause.

"It is going to be a big hassle," he said.

Tugade said he is still waiting to receive his Stafford loan check for this semester because of a record mix-up.

"They're saying last semester I wasn't a student here," he said.

Tugade said he has had problems in the past receiving his student loan disbursement on time.

"One semester, I wasn't able to get books for a while," he said. "I had to borrow a friend's book until I got my loan money."

Geosciences junior Renee Becker, however, said she has had nothing but good experiences with UA's financial aid office.

"They do it wonderfully here, in my opinion," she said.

Becker said she has never had a problem receiving her loan money on time at the UA.

She said that when she attended a community college in Catonsville, Md., she did not receive her financial aid check until after she graduated.

Becker said she is concerned about delays the new financial aid check policy may cause.

"I might not be able to get my books on time," she said.

While buying books seemed to be a primary concern for students, Bolt-Bannister said any student eligible for financial aid can apply for a temporary loan to help cover semester start-up costs.

Bolt-Bannister said the temporary loans take one day to process and can be used for tuition, books or living expenses.

The total aid given to last year's students was four times the amount UA students received when Bolt-Bannister came to the university 14 years ago, she said.

But more money requires more regulations.

Bolt-Bannister said that the UA's financial aid office must contend with federal audits as well as periodic inspections by the U.S. Department of Education, the Department of Health and Human Services and the Arizona Board of Regents.

"We're under a microscope here because it's a lot of money and there are many intricate rules," Bolt-Bannister said, pointing to the Code of Federal Regulations for Financial Aid, a 1,250-page book that sits on a shelf in her office.

Bolt-Bannister's advice to students who want to be eligible for aid right away is to maintain at least 12 credit hours and turn in applications on time.

"If you're walking around with it (the application) in your backpack, you're not going to get your money," she said.

The priority deadline to apply for next semester's financial aid is March 1. Students can still apply after the deadline but may miss out on certain opportunities, such as Pell grants.