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St. John's, Newfoundland and Labrador, Canada

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Newfoundland and Labrador
Regulation 2003


NEWFOUNDLAND AND LABRADOR REGULATION 105/03

NEWFOUNDLAND AND LABRADOR
REGULATION 105/03

Student Financial Assistance Regulations
under the
Student Financial Assistance Act
(O.C. 2003-469)

(Filed September 8, 2003)

Under the authority of section 16 of the Student Financial Assistance Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John’s, September 2, 2003.

Deborah E. Fry
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   Short title

        2.   Definitions

        3.   Educational institution designation

        4.   Amount of assistance on certificate

        5.   Consolidation and repayment

        6.   Debt reduction grants

        7.   Debt reduction calculation

        8.   Loan remission

        9.   Early childhood education grants

      10.   Interest relief

      11.   Deferred bursary

      12.   Loan forgiveness due to disability

      13.   Commencement

Schedule


Short title

        1. These regulations may be cited as the Student Financial Assistance Regulations.

Definitions

        2. In these regulations

             (a)  "Act", unless the context indicates otherwise, means the Student Financial Assistance Act;

             (b)  "division" means the Student Financial Services Division of the department;

             (c)  "financial assistance" means a loan or other form of assistance given to a person by a lender under the Act to assist in covering the costs associated with enrolment at an educational institution;

             (d)  "full course load" means the maximum number of courses that an educational institution usually requires a person to complete during a period of study in his or her program of study;

             (e)  "full time student" means a qualifying student who is enrolled in 80% of a full course load or who qualifies to receive financial assistance under subsection 3(3) or (4) of the Student Financial Assistance Administration Regulations;

              (f)  "partner", with respect to a borrower, means a person

                      (i)  to whom the borrower is married, or

                     (ii)  with whom the borrower is cohabiting and has cohabited with in a conjugal relationship for at least 12 consecutive months, or

                    (iii)  with whom the borrower has filed his or her most recent income tax return as a common law partner;

             (g)  "period of study" means a period of study at an educational institution that is not fewer than 12 weeks in length within a period of not fewer than 15 weeks and not more than 52 consecutive weeks in length; and

             (h)  "program of study" means a series of periods of study, the successful completion of which, if all requirements are met, qualifies the person for a degree, diploma or certificate.

Educational institution designation

        3. (1) In order to qualify as an educational institution under the Act an institution that offers a program of study in the province shall be

             (a)  a college or university as defined in the Memorial University Act;

             (b)  the college as defined in the Colleges Act, 1996; or

             (c)  registered as private training institution under the Private Training Institutions Act.

             (2)  An institution in another province or territory of Canada, including an institution that offers distance education courses to residents of the province, may be designated as an educational institution where that institution has been designated for student financial assistance purposes by the appropriate authority in the province or territory of Canada in which it is located.

             (3)  An institution referred to in subsection (2) that is also a private training institution shall not be designated as an educational institution unless it is registered under an Act of another province or territory of Canada that is equivalent to the Private Training Institutions Act.

             (4)  An institution that is in the United States of America that is accredited by an accrediting agency approved by the United States Secretary of Education and is defined as an institution of higher education in accordance with the publication of the U.S. Department of Education: The Federal Financial Aid Handbook may be designated as an educational institution.

             (5)  An institution that is outside Canada and the United States of America that

             (a)  offers programs that lead to an associate, undergraduate, graduate or professional degree or is at least 2 years in duration and is acceptable for full credit towards an undergraduate degree; or

             (b)  where the Lieutenant-Governor in Council considers the circumstances to be exceptional, a non-degree granting institution that is recognized by the country in which it is located as an accredited post-secondary educational institution that provides programs that lead to a certificate or diploma,

may be designated as an educational institution.

             (6)  An application made by an institution to be designated as an educational institution by the minister shall be in the form and contain the information required by the minister.

             (7)  A designation of an institution as an educational institution by the minister shall be in writing.

             (8)  In order to qualify for and maintain a designation as an educational institution, that institution must

             (a)  provide information and counselling to students with respect to their eligibility for financial assistance;

             (b)  collect and report information to the division as required by the minister;

             (c)  have a refund policy acceptable to the minister for students who withdraw before completing their program;

             (d)  where applicable, comply with the requirements of the Private Training Institutions Act;

             (e)  have a grade 12 or equivalent entrance requirement or a mature student policy in place that is acceptable to the department;

              (f)  have a default prevention plan that is acceptable to the department;

             (g)  adhere to all specified administrative requirements of the department; and

             (h)  comply with all other requirements that the minister may by policy establish.

             (9)  Where an educational institution designated under the Act fails to comply with the requirements to maintain that designation, the minister may, with the approval of the Lieutenant-Governor in Council, cancel its designation as an educational institution.

Amount of assistance on certificate

        4. (1) A certificate of eligibility for financial assistance shall not be issued in an amount that is less than $67.

             (2)  The maximum amount of financial assistance that may be issued to a qualifying student shall be $110 per week of a period of study.

             (3)  Notwithstanding subsection (2), a student enrolled in medical school at Memorial University of Newfoundland may qualify for $200 per week during a period of study.

Consolidation and repayment

        5. (1) All student loans received as financial assistance shall be consolidated not more than 6 months after the borrower ceases to qualify as a full time student.

             (2)  Once a borrower’s student loans are consolidated, he or she shall commence repaying the consolidated loan in accordance with the terms and conditions applicable to that consolidated loan.

             (3)  Interest on a loan to a borrower shall commence being payable by that borrower on the first day of the month following the last day on which that borrower ceases to be a full time student.

Debt reduction grants

        6. (1) A borrower who has

             (a)  graduated from a program of study in the province that is not fewer than 80 weeks in duration; and

             (b)  borrowed more than $165 per week, including assistance under the Act and the federal Act for a period of study; and

             (c)  in accordance with the standards of the educational institution attended, passed 80% of a full course load in the period of study referred to in paragraph (b); and

             (d)  applied for and been considered eligible to receive financial assistance by way of a loan for not less than 50% of the required length of his or her post secondary program,

is eligible for a debt reduction grant to reduce the loan amounts repayable by that borrower.

             (2)  Notwithstanding paragraph (1)(c), a borrower approved to enrol in less than 80% of a full course load in accordance with subsection 3(2), (3) or (4) of the Student Financial Assistance Administration Regulations must successfully complete 100% of that course load in order to qualify for a grant under subsection (1)

             (3)  Notwithstanding paragraph (1)(a), the minister may determine that a program of study attended outside the province qualifies under this section for a grant where

             (a)  the borrower’s program of study was not offered in the province;

             (b)  the borrower was enrolled in graduate studies;

             (c)  the borrower’s program of study differs substantially from any program of study offered in the province;

             (d)  the borrower did not meet the minimum entry requirement for his or her program of study in the province but met the requirements for substantially the same program outside the province;

             (e)  the borrower applied to do his or her program of study in the province but was denied entry due to limited spaces in that program;

              (f)  the borrower received transfer credits toward advanced standing into his or her program of study, resulting in a reduced length of time for that program;

             (g)  the borrower’s partner has undertaken studies outside the province that qualify him or her for debt reduction grants under one or more of paragraphs (a) to (f); and

             (h)  for another reason that the minister considers to be appropriate.

             (4)  Where

             (a)  10 or more years have elapsed since a borrower commenced his or her program of study; or

             (b)  2 or more years have elapsed since a borrower graduated from his or her program of study,

that borrower no longer qualifies for a grant under this section.

Debt reduction calculation

        7. (1) Where the issuance of a grant under section 6 is approved, that grant shall

             (a)  for a borrower who has passed a full course load, be equal to the amount borrowed that is in excess of the amount referred to in paragraph 6(1)(b); and

             (b)  for a borrower who passes 80% of his or her full course load, be equal to 50% of the amount borrowed that is in excess of the amount referred to in paragraph 6(1)(b),

and shall be applied directly against the borrower’s loan received by way of financial assistance under the Act and these regulations.

             (2)  Notwithstanding subsection (1), where the balance owed on a borrower's loan is less than the amount of a grant to which he or she is entitled, the remaining balance of the grant shall be paid to the borrower.

             (3)  A grant to a borrower shall not exceed the principal amount of his or her loan at the time of its consolidation.

Loan remission

        8. (1) Until July 31, 2004, a borrower may apply to the minister for loan remission to reduce the amount of his or her loan that is to be repaid.

             (2)  An application made under subsection (1) shall be made not more than 12 months after he or she has graduated from his or her program of study.

             (3)  A borrower may qualify for loan remission under this section where he or she

             (a)  has graduated from a program of study offered by an educational institution that is not fewer than 80 weeks in duration; and

             (b)  has graduated from a program of study within the time normally specified for the completion of that program plus one academic year; and

             (c)  has a combined debt load that exceeds the minimum debt threshold that is the greater of

                      (i)  $22,016 for a program of study of 128 or fewer weeks, or

                     (ii)  $172 per week times the total number of borrowing weeks for a program of study that is more than 128 weeks; and

             (d)  has completed his or her program of study in the province.

             (4)  Notwithstanding paragraph (3)(d), where a borrower completed his or her program of study outside the province, the minister may determine that the borrower qualifies for loan remission if

             (a)  one or more of paragraphs 6(3)(a), (b), (c), (d), (e) and (h) apply to that borrower; or

             (b)  his or her partner undertook studies outside the province and qualified for loan remission.

Early childhood education grants

        9. (1) A borrower who

             (a)  has graduated from an early childhood education program offered in the province; and

             (b)  has completed the program referred to in paragraph (a) within the time scheduled by the institution attended for that program, plus one academic year;

             (c)  has borrowed more than $165 per week, including financial assistance under the Act and the federal Act, for the period of study pertaining to the approved early childhood education program; and

             (d)  is, at the time of the consolidation of his or her loans, employed as an early childhood educator,

is eligible for an early childhood education grant to reduce the loan amounts payable by that borrower.

             (2)  Where the issuance of a grant in accordance with this section is approved, that grant shall be applied directly against the borrower’s loan received by way of financial assistance under the Act and these regulations.

             (3)  Notwithstanding subsection (1), where the balance owed on the borrower’s loan received by way of financial assistance is less than the amount of the grant to which he or she is entitled, the remaining balance of the grant shall be paid to the borrower.

             (4)  A grant received under this section shall not exceed the principal balance of the student loan owing by the borrower at the time of its consolidation.

             (5)  Where a borrower has received an overaward of financial assistance under the Act, that overaward shall be deducted from grant amounts awarded under this section.

Interest relief

      10. (1) Where a borrower is required, on a monthly basis, to repay his or her loan received as financial assistance and he or she has difficulty making those payments, that borrower may apply for interest relief to the minister, in the form that the minister may require.

             (2)  The minister shall consider gross family income, financial assets and monthly student loan payments of a borrower under the Act and the federal Act where he or she is determining eligibility for interest relief and that relief shall be in accordance with the Schedule attached to these regulations.

             (3)  Interest relief under this section shall be available to the borrower for not more than 30 months over the duration of the repayment schedule of his or her loan.

             (4)  Notwithstanding subsection (3), the minister may allow an additional 24 months of interest relief within the first 5 years of repayment of the borrower's loan.

Deferred bursary

      11. Where a borrower qualified for a deferred grant under section 9 of the Student Allowances Regulations that grant shall not be available to that borrower after July 31, 2004.

Loan forgiveness due to disability

      12. (1) A borrower may, in the form required by the minister, apply to the minister to have his or her student financial assistance removed from active recovery because he or she has a permanent disability that was acquired after the first day of his or her first period of study for which he received financial assistance and that makes repayment of that loan impossible.

             (2)  The minister may, where he or she considers it to be appropriate, and upon the advice of the division, forgive the repayment of a student loan by a borrower who makes an application under subsection (1).

             (3)  A decision made by the minister under this section is not eligible for review or appeal.

             (4)  The minister may, for the purpose of making a determination under this section require the expertise and opinion of a medical practitioner to review documentation submitted with respect to an application and to determine the nature and extent of the applicant’s disability.

             (5)  In this section a permanent disability is a functional limitation caused by a physical or mental impairment that restricts the ability of that person to perform the daily activities necessary to participate in studies at a post secondary school level or the labour force and that limitation is expected to remain with the person for his or her expected life.

Commencement

      13. These regulations shall be considered to have come into force on August 1, 2002.


Schedule

Max. Gross Family Income (monthly) for Interest Relief Eligibility

Monthly payment up to $


Family Size

 

1

2

3

4

5

6

7

8

9

10

50

1500

2339

3006

3541

4032

4484

4889

5229

5510

5722

75

1533

2379

3042

3579

4073

4526

4934

5274

5557

5771

100

1566

2420

3078

3617

4113

4569

4978

5321

5604

5820

125

1599

2451

3115

3655

4153

4612

5023

5368

5653

5870

150

1635

2482

3152

3693

4194

4655

5069

5415

5702

5920

175

1671

2514

3187

3731

4235

4698

5114

5472

5751

5970

200

1705

2549

3225

3770

4276

4741

5159

5519

5800

6021

225

1741

2584

3263

3809

4317

4784

5204

5565

5850

6072

250

1777

2619

3300

3849

4358

4827

5249

5612

5900

6123

275

1813

2655

3339

3889

4400

4870

5295

5658

5950

6174

300

1849

2690

3379

3929

4442

4914

5342

5705

6000

6225

325

1885

2725

3418

3969

4484

4958

5389

5752

6050

6277

350

1923

2761

3457

4009

4525

5002

5438

5800

6100

6329

375

1962

2796

3496

4049

4567

5046

5485

5850

6151

6381

400

2000

2831

3536

4090

4610

5091

5533

5900

6202

6433

425

2039

2866

3575

4130

4653

5136

5580

5950

6253

6486

450

2078

2900

3614

4170

4696

5182

5628

6000

6304

6539

475

2117

2936

3654

4210

4740

5227

5676

6050

6356

6592

500

2157

2972

3693

4251

4783

5273

5725

6100

6408

6646

525

2197

3008

3732

4292

4827

5319

5774

6151

6460

6700

550

2239

3044

3771

4333

4871

5365

5823

6202

6513

6754

575

2281

3080

3811

4374

4915

5412

5872

6253

6566

6808

600

2324

3116

3850

4416

4959

5459

5921

6304

6619

6863

625

2367

3152

3889

4458

5003

5507

5970

6355

6672

6918

650

2411

3188

3929

4500

5048

5554

6020

6407

6726

6973

675

2441

3225

3968

4542

5093

5602

6070

6459

6780

7028

700

2470

3262

4007

4585

5138

5651

6120

6511

6834

7084

725

2500

3300

4046

4627

5184

5700

6170

6563

6888

7140

750

2535

3337

4086

4670

5230

5750

6221

6615

6943

7196

775

2570

3375

4125

4712

5275

5800

6272

6668

6998

7253

800

2605

3413

4164

4756

5321

5850

6323

6721

7053

7310

825

2640

3452

4204

4800

5368

5900

6374

6775

7109

7367

850

2675

3491

4243

4844

5415

5950

6425

6829

7165

7434

875

2710

3529

4282

4888

5462

6000

6476

6883

7221

7491

900

2745

3565

4321

4932

5510

6051

6527

6938

7277

7549

925

2780

3601

4361

4976

5558

6102

6579

6993

7333

7607

950

2816

3639

4400

5020

5606

6153

6631

7048

7390

7665

975

2852

3678

4439

5064

5654

6205

6683

7103

7447

7724

1000

2888

3717

4479

5108

5702

6257

6735

7158

7504

7783