Loan Repayment Policy

deniseE

We would like to draft a policy that requires all employees to remain current on his/her educational loan obligations during employment. This has been an unwritten expectation-so it will not be "new" information for employees.

Does anyone have a similar policy?


Thanks!!!

Don D

Denise: Are you talking about employees who have outstanding obligations to pay government sponsored student loans? If so, why is your company concerned about that? It's like any other financial obligation.

deniseE

>Denise: Are you talking about employees who have outstanding
>obligations to pay government sponsored student loans? If so, why is
>your company concerned about that? It's like any other financial
>obligation.



We are a student loan guaranty agency. We have an interest in employess repaying student loan obligations timely. It's a waste of resouces to make collection calls across the hall!

Don D

boy, that IS a different twist on the loan scenario. Have you considered an announcement on the intercom once a month calling out the names of your delinquent employees. Seriously, you may get a response from someone in HR at a banking institution or credit union who has a really tight policy about expectations for their ee's paying their obligations. Will watch for it.

deniseE

THAT policy should keep me hopping in the legal department!!!!
x:D

Thank you for responding!
-denise

sonny

I don't know about the intercom, but I once worked in a bar where the owner started posting for all to see outstanding bar tabs. They were paid VERY quickly.

Parabeagle

I know. I paid mine ages ago. Would you make him take my tab down off the board, now?? Please? x:D

hrbanker

[font size="1" color="#FF0000"]LAST EDITED ON 02-07-03 AT 05:38PM (CST)[/font][p]As a bank, we allow employees to borrow at 1% less than the general public. The preferential rate is lost if the loan becomes in default of any of the terms and conditions and the default is not cured within 30 days. Since the rate for your employees is probably locked in, maybe you can tie prompt payment to some other perk.

We also have a code of conduct that requires employees to maintain their financial affairs in a satisfactory manner, and to manage debts in relation to income and net worth. All employees are expected to live within their income and to manage their personal finances so as to avoid embarrassment personally or to the bank. Employees who violate this policy can be terminated on grounds of financial irresponsibility.

--The exception is when someone declares bankruptcy because the bankruptcy law prohibits employers from taking adverse action against an employee because of a bankruptcy. We then have to look at whether or not our image suffered...were any of the creditors our customers? In banking reputation is everything.

deniseE

Thank you for your response...would you mind providing me with a "sample" of the policy/codes you mentioned? It sounds very similar to what we are trying to accomplish.

Thanks again!

hrbanker

I'll be happy to. Just let me know where you would like to have it FAXed or e-mailed.

[email]nmurrell@belmontbank.com[/email]