Policy Title: Emergency Hardship Loan Fund	Category: Human Resources
Owner: Vice President for University Operations	Policy ID#: 3-6004-034
Contact: Vice President for Human Resources Web: https://hr.colostate.edu/ Email: myhr@colostate.edu Phone: (970) 491-6947 Also Contact: Commitment to Campus Web: https://commitmenttocampus.colostate.edu Email: c2c@colostate.edu Phone: 970-491-5257	Original Effective Date: 5/16/2014 Last Revision: 4/17/2026

POLICY OWNERS

This policy is jointly owned by the Vice President for Human Resources and the Vice President for University Operations.

PURPOSE OF THIS POLICY

This policy explains how CSU may help employees who are facing a sudden personal or family Emergency by offering short-term loans. The Emergency Hardship Loan Fund (EHLF) gives temporary financial help to employees who are in urgent need because of medical issues, natural disasters, or unexpected hardships.

The goal is to provide a fair and caring process with clear rules for who can get help, how much they can borrow, how to pay it back, and how to apply. This program shows the university’s commitment to supporting employees.

APPLICATION OF THIS POLICY

This policy and the Emergency Hardship Loan program are for CSU employees who are experiencing emergencies outside their control—like a medical issue, natural disaster, or urgent, unexpected expense.

All loans may be available for up to $1,500.00, and repayment happens through payroll deductions. Employees who are paid hourly or who are not receiving a paycheck (for example, some 9-month employees during the summer) are not eligible.

Employees must be able to pay the loan back within 18 months.

EXEMPTIONS FROM THIS POLICY

None. 

DEFINITIONS USED IN THIS POLICY

As used herein, the following definitions shall apply:

Eligible Employee: This includes half-time or greater benefits-eligible Academic Faculty, Administrative Professionals, Post-Doctoral Fellows, Veterinary Interns, Clinical Psychology Interns, and State Classified salaried employees. You are not eligible if:

• You are not in active paid status (for example, on unpaid leave)
• You are a 9-month employee not working during summer unless under contract
• Your job is ending before the loan would be repaid
• You are on probation or under disciplinary action
• You must certify that your employment is in good standing. Human Resources will check this before the application is reviewed
• Less than two years have passed since your last EHLF loan was approved

Emergency: A sudden, unexpected event that causes financial hardship and the Eligible Employee has no other immediate sources of money to help with the situation.

Good Standing: An employee in good standing is:

• In a current and active status with the university
• Meeting established performance expectations as evidenced by satisfactory or better performance ratings
• Not subject to any recent (within the past two years) performance management measures, including but not limited to performance improvement plans, letters of expectations or reprimand, corrective actions, and/or disciplinary actions

POLICY STATEMENT

The maximum loan amount available through the Emergency Hardship Loan program is $1,500. At this amount, the loan should not be considered as taxable income to an employee who participates in this program.  However, if a loan is not repaid as agreed, the employee may become liable for any tax consequences from the unpaid loan.

CSU makes the following disclaimer with respect to all loans made under this policy:

Disclaimer Regarding Tax Liabilities. CSU and its employees and agents make no representation as to the tax consequences of any payment, loan, or grant made under this or any other program. If there is any tax advice contained herein, it is not intended to be used and cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

POLICY PROVISIONS

A.  Qualifying Loans

1. Eligible Employees may receive an Emergency Hardship Loan of up to $1,500, based on the application materials and upon a determination by the EHLF Committee that the loan is reasonable and necessary because of a bonafide emergency. Examples of an Emergency include:
   1. Death in the family causing financial hardship, such as unexpected travel to attend the funeral;
   2. Being the victim of a serious crime that results in the loss of cash, credit, or access to accounts;
   3. Urgent medical, dental, or other healthcare treatment expenses not covered by insurance;
   4. An unforeseen, calamitous event or urgent circumstance that creates hardship not caused by the Eligible Employee including but not limited to difficulties in paying rent or mortgage.

2. Examples of non-Emergency needs for which loans cannot be provided:
   1. Personal purchases or gifts for others, for example, for holidays or special occasions;
   2. Vacations or to use during annual leave;
   3. Predictable expenses such as income tax, auto registration, or maintenance;
   4. Expenses previously paid are not eligible for loans

B.  EHLF Committee  

1. The EHLF Committee is appointed by the Vice President for Human Resources (VPHR). The VPHR will designate a Chair. The committee consists of five or more voting members plus such advisory and ex officio (non-voting) members as the committee may appoint from time to time. The Division of Human Resources will provide administrative support to the EHLF Committee.
2. The EHLF Committee will include at least one representative each from the Classified Personnel Council (CPC), the Administrative Professional Council (APC), and the Faculty Council (FC). The committee will also include the Employee Housing Programs Coordinator in the Division of Human Resources.
3. The Chair will serve a three-year term and may be reappointed by the VPHR. In the event of a resignation by the Chair, the vacant position will be filled by the VPHR, who may make appointments to the EHLF committee at any time.
4. The EHLF committee will have the following authority and responsibilities:
   1. To review loan applications and make determinations as outlined in this policy. All decisions made by the EHLF Committee are subject to review by the VPHR or their designee, whose decision on any matter related to such loans will be final. Only the EHLF Committee may request that a decision be reviewed.
   2. To approve an EHLF loan application for an amount not exceeding $1,500, provided that documentation is attached to the application and supports the Eligible Employee’s need for the requested amount due to an Emergency, or to deny an application for reasons clearly stated in writing.
5. When making any determination or decision regarding loan applications, the EHLF Committee will document its decisions in writing. Such records are protected from disclosure under C.R.S. §§ 24-72-202(4.5) and 24-72-204(3)(a)(II) and will be maintained by the Division of Human Resources. The office of Business & Financial Services will maintain confidential financial data as defined under C.R.S. §24-72-204(3)(a)(IV).

C.  Applications for Loans: Procedures 

1. The EHLF Committee shall establish procedures, subject to the approval of the VPHR, for employees to apply for Emergency loans from the EHLF. These procedures will include a simple application form that is available online or can be obtained in person from the Division of Human Resources.
2. The loan application will require the employee to provide sufficient information to establish their eligibility (as defined above), the nature of the Emergency need, and amount requested. The Eligible Employee must provide supporting documentation to verify the nature and amount of the Emergency expense or loss (e.g., an estimate of Emergency repairs, a medical bill, or the amount of a pending insurance claim).
3. An Eligible Employee may not be granted more than one Emergency loan at a time. However, they may reapply for a new loan once their previous loan has been successfully repaid.
4. An Eligible Employee must certify that their employment status is in good standing, and they are not currently under probation or the subject of a corrective or disciplinary action.
5. An Eligible Employee may not be awarded a loan if the required payroll deduction cannot be applied under applicable laws (e.g., when wage garnishments reduce the employee’s pay below a legal threshold). The Division of Human Resources will reject the loan application and will not forward it to the EHLF Committee.
6. Loan Determinations:
   1. In reviewing a loan application, the EHLF Committee will consider the following factors (along with any other relevant information provided by a reliable source):
      1. The amount requested and employee eligibility;
      2. The nature and circumstances of the Emergency hardship described by the Eligible Employee, including the foreseeability, urgency, and severity of the need;
      3. Any other information provided by the applicant;
      4. The applicant’s history of successfully repaying any prior EHLF loans.
   2. The committee will not consider any information about the applicant that is not directly related to eligibility, need, or employment status.
7. Loan Terms and Conditions
   1. All loans shall be made under the following conditions:
      1. The loan will be repaid in equal monthly installments amortized over a period of up to six months (for loans of $500 or less), up to one year (for loans of $1,000 or less), or up to 18 months (for loans of $1,500 or less). Repayment will begin with the next payroll cycle occurring one calendar month after the loan disbursement date (e.g., a loan disbursement in January begins deductions in March). No interest will be charged on loans, though certain charges may apply as outlined in subsection (iii) below.
      2. Payments will be deducted directly from the employee’s payroll. If the employee terminates employment or does not receive pay for any payroll period while the loan is outstanding, the employee must remit payment by check or cash directly to Business and Financial Services. Any outstanding balance upon termination will be deducted from the employee’s final paycheck.
      3. Any loan obligation in default will incur a 1.5% payment deferral charge on the unpaid loan balance, calculated from the date that the payment was due. The deferral charge will be applied to the adjusted balance each month until the loan payments are up to date or the loan is fully paid. A loan will be considered in default if payment is not made within ten (10) days of the due date. CSU reserves the right to accelerate a loan, declaring the full amount due and payable, if it is in default. If the loan terms are not adhered to, the account may be referred to an external collection agency, reported to the credit bureaus, and the employee will be responsible for collection agency fees (20% of the debt), as well as any costs and reasonable attorney fees incurred by CSU in its collection efforts. The delinquent account may also be reported to the Colorado Department of Revenue for interception of your Colorado income tax refund and wage garnishment.
   2. An Eligible Employee may obtain the Emergency Hardship Loan Application from the Division of Human Resources website or by emailing MyHR@colostate.edu.
   3. An Eligible Employee must sign to indicate their agreement with the terms and conditions of the Emergency loan on the application.
   4. The Eligible Employee must authorize the University to make automatic payroll for each pay period until the loan is paid in full. This authorization is included as part of the loan application process.

COMPLIANCE WITH THIS POLICY

Compliance with this policy is required. For assistance with interpretation or application of this policy, contact the Division of Human Resources at MyHR@colostate.edu.

REFERENCES 

Emergency Hardship Loan Fund Program information website

Internal Revenue Code, 26 USC § 7872(c)(3) - Treatment of loans with below-market interest rates--$10,000 de minimis exception for compensation-related and corporate-shareholder loans 

Internal Revenue Code, 26 U.S.C. section 7872, as described in IRS Publication 15-A (2013)v

FORMS AND TOOLS

EHLF Application

APPROVALS

Approved by Anthony A. Frank, President on May 16, 2014

Revision approved by Amy Parsons, Vice President for University Operations on April 3, 2015

Revision approved by Lynn Johnson, Vice President for University Operations, on January 15, 2020

Revision approved by Brendan Hanlon, Vice President for University Operations, on March 29, 2023

Revisions approved by Brendan Hanlon, Vice President for University Operations, on April 17, 2026