Associated Students Inc. president Chris Jackson is proposing to provide an alternative to SF State’s short-term loan program, which should be available for the 2006 fall semester.

Compared to the short-term loans offered by the university, ASI emergency loans will feature key differences that put students’ typically tight pockets into consideration.

“[ASI] loans will be more student friendly than the university’s,” said Jackson.

The university currently offers loans in increments of $50 up to $500 with certain terms, according to SF State’s short-term loan Web site. There is a five dollar processing fee that is added to the amount of the loan, and the first payment is due about 30 days from the loan date. On late payments, there is a $10 penalty and a 6 percent annual percentage rate interest will begin to accrue the day after the first missed payment.

On the other hand, ASI loans will start at about $400 maximum and have several key differences from university short-term loans. For one, there is no processing fee. On late payments, there is only a one-time late fee and will still remain interest fee.

Fiscal Services Supervisor Diana Chow, said that another loan program for students is a great idea and would help with San Francisco’s high cost of living.

“We’re all for it,” said Chow. “That’s more money to give out to students which is great.”

Chow said the short-term loan program is a very busy program, lending money to an average of 1,600 students every year.

According to Jackson, the most important feature of ASI’s loan program is the ability for students to volunteer time in exchange for up to 25 percent of the loan. Student will have the entire semester to volunteer in any of the programs offered by ASI, such as doing office work or helping setting up events.

Giving students the option to have part of their loans forgiven by volunteering is a way to motivate them to get involved with ASI programs, according to Jackson.

Jackson said ASI emergency loans, like the SF State’s short-term loans, can be used for a variety of situations when an unforeseen cost arises in a student’s life. Loans can be used for book money, help repair a broken vehicle, lab fees, and many other emergency costs.

The loans are designed to help students deal with the increasingly higher cost of going to college.
ASI board members said Jackson has until Apr. 30 to present the complete proposal to ASI board of directors. After that, the newly elected 2006-2007 student government will take over on May 1st. Jackson hopes the next ASI board will carry the program on.

Funding for these loans will come from ASI’s budget, which is paid by the $42 enrollment fee that all SF State student pay.

ASI used to help fund the university emergency loans, but pulled out of the program five years ago to focus on other programs offered by ASI.

Applications for the short-term loans can be found in the Loans and Fiscal Services office in administrations building room 358.