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Employee Loan Program

Program:

The Loan Office administers the Brown University Employee Loan Program. This loan program was initially established through a gift to the University and later expanded upon by the Corporation. Upon request, Brown may provide a loan to employees of the University. However, no employee can be guaranteed he or she will receive a loan.

PROCESS:

Applicants should expect the process to take approximately 10 to 12 business days from the time the application is received in the Loan Office. Loan applications are currently processed on Tuesdays and Thursdays. See further instructions below regarding completion of the application.

Loan Eligibility:

To be eligible to apply for an employee loan, Brown employees must:

  • Be working on the regular payroll (working means “at work”, “on paid vacation”, or “on paid sick leave” - those “not at work” or “on extended leave” are not eligible) and eligible for full-time benefits;
  • Have completed their probationary period;
  • Be in good standing with an expectation of continued employment with Brown for at least 12 months; and
  • Not have a lien or levy on their salary or wages or have outstanding past due debt to the University (Miscellaneous Accounts Receivable, Faculty Club, Controller’s - Travel).

Loan Terms:

  • Employee may borrow an amount up to 20% of his or her annual base salary.
  • Interest rate is fixed at the prime rate at the time of the loan application, up to a maximum of 12% simple interest.
  • Only one employee loan may be outstanding at any point in time.
  • A credit bureau history will be obtained by Brown University to ascertain creditworthiness of the employee.
  • Loan will be repaid through payroll deduction over a 12-month period or over the remaining months of full-time, active employment if less than 12 months will be worked.
  • If an employee does not receive a salary (for leave of absence or other reason), he or she agrees to pay the regularly scheduled payment by the prescribed payment due date. Failure to do so may result in an acceleration of the loan with a demand for immediate payment in full.
  • Upon termination of employment, the principal and interest due, will be deducted equally from each of the paychecks subsequent to the notification of termination. If the deductions are not sufficient to pay the principal and interest due, the employee agrees to pay the remaining amount in full as of the last date of employment.
  • A late fee equal to 10% of the payment will be assessed after each missed payment.
  • In the event of default, employee will pay Brown University all reasonable attorney’s fees and other costs or charges incurred for the collection of the loan.
  • Brown University will utilize the services of a commercial collection agency to assist in the collection of a past due loan. Commercial collection agencies do report accounts to national credit bureau services.

Loan Application

This is a fillable PDF form. Please complete the form online, then print and sign. Deliver completed form to your supervisor.

Employee Loan Application Form.

Employee:

The employee must complete a Brown University Employee Loan Application. Employee must sign certifying all information is correct, authorizing Brown to obtain a credit history report, affirming repayment of the loan and acknowledging repayment terms when there is no salary or University employment is terminated. The application can be obtained by calling or visiting the Loan Office, or by downloading the form above. Upon completion, the employee must direct the application to the Department Head for approval.

Department Head:

The Department Head must sign certifying the applicant is a “working” employee who has completed his or her probationary period, is in good standing, and is expected to remain an employee of the University for the next 12 months. If the employee does not meet any of these eligibility criteria, the Department Head should not sign the application and the reason should be explained to the applicant.

Once the Department Head has signed the application, it should be forwarded to the Loan Office for processing.

Note: Applicants should expect the process to take approximately 10 to 12 business days from the time the application is received in the Loan Office.