United Student Aid Funds loan application

February 14th, 1972

United Student Aid Funds loan application

~ 2 page application completed and submitted at the University of Nevada “student loan office” on February 14, 1972 by Donald Clayton, student.

Click on images to enlarge: 

These documents are labeled “RAMM COPY”.  The most probable reference to this notation is here.

First National Bank of Nevada later became First Interstate Bank.  The “Second and Virginia” location of the bank is the location that had a direct underground link to the Harrah’s Casino vault and counting room located across the alley next door.

The June 1963 date for Nevada residency refers to the residency listed here.   A list of resident addresses for Donald Clayton from January 1963 through January 1972 is not available at this time, but the 750 Southworth address is real, even though it is the same number as the requested student loan.

Larry E. Gilman was not the friend that suggested my applying for the student loan.  He was attending the University California San Francisco (UCSF) dental school at the time of my application.  His legal address was at Rose Circle.

The notes about Berkeley or Palo Alto and “Home” phone number are notes made by USAF, Inc. agents.

“D. J. Jackson” was the Assistant Director for student loans at the University of Nevada. 

The student loan application took one month to be processed.  The check was issued and sent to the University of Nevada loan officer who then handed each check directly to the student.  The 2/18/1972 disbursement date was changed to 3/18/1972 (by the bank) AFTER the loan application was signed.  The applicant was NOT told that the check would take a month before it was issued.  By the time that the check was issued I had lost my place of residence as I did not have the money for the rent.

(Mrs.) J. Roberts was the (student) loan officer for First National Bank (of Nevada).

The interest rate for this student loan was 7%.  The “due date” for the loan was June of 1974.

It is VERY important to note that no copy of the Interim Note that the student was required to sign at the time (on the date) that the check was actually issued was ever presented to the loan applicant.  The application requires an affirmation that the amount of the loan is “required for the student to meet his immediate educational needs”.   If a student refused to sign the Interim Note (he/she) could be charged with a criminal offense and be fined $10,000 and be imprisoned for up to 5 years.

To even apply for a student loan exposes anyone applying to severe penalties unless the student loan is accepted.  Read each line.  Believe what is said.  Everything about the note and the application process is a “catch 22”.

A final note regarding this application.  It is obvious that based on the “family income” that the applicant (me) had no financial ability to repay the loan (with a stated family income of $210!) and that the loan itself was insufficient to meet realistic educational expenses.  Nevertheless, the loan was willingly issued by both the bank and USA Funding, Inc.   ALL student loans are issued based on “Easy Credit” being issued to those who easily and willingly demonstrate that they have NO ability to ever repay the loan.

The “lenders” prey on the hopes and dreams of the young and the innocent and of their parents and (often) their friends and relatives too.  The myth of the benefits of a “good education” are quickly replaced by the reality of the broken dreams caused by endless and impossible debt.

2012.05.12 – 06:30.