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St. John's, Newfoundland and Labrador, Canada

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Newfoundland and Labrador
Regulation 2007


NEWFOUNDLAND AND LABRADOR REGULATION 82/07

NEWFOUNDLAND AND LABRADOR
REGULATION 82/07

Student Financial Assistance Regulations (Amendment)
under the
Student Financial Assistance Act
(O.C. 2007-311)

(Filed July 25, 2007)

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, July 18, 2007.

Gary Norris
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   S.4 R&S
Amount of assistance

        2.   S.5.1 R&S
Loan and grant disbursement

        3.   S.5.9 R&S
Obligation to pay interest

        4.   S.12.1 Added
Debts collected by subrogation or under Act

        5.   Commencement


NLR 105/03
as amended

        1. Section 4 of the Student Financial Assistance Regulations is repealed and the following substituted:

Amount of assistance

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

             (2)  Financial assistance issued to a qualifying student shall be issued in the manner and amounts as follows:

             (a)  first, an amount of not more than $70 per week of a period of study in student loan; and

             (b)  second, an amount of not more than $70 per week of a period of study in a non repayable grant; and

             (c)  third, where the qualifying student is enrolled in medical school at Memorial University of Newfoundland, a further amount of not more than $60 per week of a period of study in student loan.

 

        2. Section 5.1 of the regulations is repealed and the following substituted:

Loan and grant disbursement

      5.1 (1) A student loan or a grant issued under section 4 shall not be disbursed before the borrower’s period of study start date or after the last day of the month of the borrower’s period of study end date.

             (2)  Notwithstanding subsection (1), with the written approval of the minister, a student loan or a grant issued under section 4 may be disbursed in a manner that does not comply with the disbursement requirements of subsection (1).

 

        3. Section 5.9 of the regulations is repealed and the following is substituted:

Obligation to pay interest

      5.9 (1) Before August 1, 2007 the interest in effect on any day on a student loan owned by the corporation shall be

             (a)  the prime rate on that day plus 2.5% yearly; or

             (b)  after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 5% yearly.

             (2)  After July 31, 2007, the interest rate in effect on a student loan owned by the corporation shall be

             (a)  the prime rate on that day yearly; or

             (b)  after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

             (3)  Before August 1, 2007 the interest rate on any day on a student loan not owned by the corporation shall be in accordance with the student loan agreement relating to that student loan.

             (4)  After July 31, 2007 the interest rate on any day on a student loan not owned by the corporation shall be

             (a)  the prime rate on that day yearly; or

             (b)  after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

             (5)  Notwithstanding paragraph 2(g.1), in subsection (4), "prime rate" shall be the prime rate established under the student loan agreement relating to the student loan.

             (6)  Subsections (1), (2), (4) and (5) apply notwithstanding the interest rate applicable to a student loan agreement before August 1, 2007.

             (7)  Interest on a student loan shall accrue commencing on the first day of the month following the last day on which the borrower under that student loan ceases to be full time student.

             (8)  After consolidation of a student loan, interest on that loan shall accrue daily and shall be calculated monthly.

             (9)  Interest accruing on a student loan for 6 months immediately after interest commencement under subsection (7) shall accrue daily and be payable on the first day of the seventh month after interest commencement and where the interest amount is not paid as required, that amount shall be capitalized and form part of the principal owed on that student loan.

 

        4. The Act is amended by adding immediately after section 12 the following:

Debts collected by subrogation or under Act

   12.1 (1) Notwithstanding the interest rate applicable to a student loan agreement before August 1, 2007, after July 31, 2007 the interest rate on any day for a debt owed to the Crown or the corporation as a result of the Crown or the corporation fulfilling the obligations of a borrower under that student loan agreement, shall be

             (a)  the prime rate on that day yearly; or

             (b)  after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

             (2)  Notwithstanding paragraph 2(g.1), in subsection (1), "prime rate" shall be the prime rate established under the student loan agreement relating to the student loan.

             (3)  Subsection (1) shall not apply to debts owed to the Crown or the corporation as a result of a judgment of the court.

Commencement

        5. These regulations shall come into force on August 1, 2007.