Chapter 2. Accounting Services
Section 2.2. Fund Principles

2.2.5. Student Loan Fund

Student Loan Fund: A fund maintained to account for loans to students of the University. If only the income of a fund may be loaned, the principal of that fund will be shown in the Endowment and Similar Funds group. Any income earned from such principal investments in the Endowment Fund will be distributed to the Student Loan Fund as received.

Loans to the faculty and staff, if they are not material in amount, are included in the Student Loan Fund group.

An allowance for uncollectable or doubtful loans is to be established and shown on the Statement of Financial Condition as a deduction from the notes receivable. The offsetting charge to establish the reserve is deducted from the total loan fund balances. Actual write-offs will be made against the account which accumulates investment income for the Student Loan Fund, unless otherwise directed by the controller.

The guaranty deposit with loan guaranty agencies will be carried as an asset in the Statement of Financial Condition. If a deposit is depleted, appropriate reduction in the asset will be made.

Interest income from loans and investments will be recorded as an addition to this fund group.

Reimbursements from the federal government for administrative costs of the student loan program are to be recorded as Federal grants and contracts revenue of the General Fund.

In the Statement of Financial Condition and Statement of Changes in Fund Balance, the fund balance will be subgrouped as to those funds restricted to federally restricted loans and other funds available for student loans. The Federal portion of student loans shall include funds provided by mandatory transfers required for matching purposes.