NEWFOUNDLAND AND LABRADOR REGULATION 67/09

NLR 105/03
as amended

1. Section 2 of the Student Financial Assistance Regulations is amended by adding immediately after paragraph (a.1) the following:

(a.2) "designated operation" means an operation that is designated under paragraph 247.5(1)(a) of the Canada Labour Code;

(2) Paragraph 2(e) of the regulations is repealed and the following substituted:

(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 or who is a member of the reserve force who interrupts his or her program of studies to serve on a designated operation until

(i) the last day of the month in which his or her service on the designated operation ends, or is considered to have ended under subsection 5.2(7), or

(ii) the date determined under subsection 5.2(10) that is the earlier of the day

(A) on which it is determined by Canada's Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations that the injury or disease, or the aggravation of the injury or disease, no longer precludes the borrower from returning to a program of studies, and

(B) that is 2 years after the day on which the borrower's service on the designated operation ended;

2. Subsection 4(2) of the regulations is repealed and the following substituted:

(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 $60 per week of a period of study in student loan; and

(b) second,

(i) an amount of not more than $80 per week of a period of study in a non repayable grant, or

(ii) where the qualifying student is enrolled in medical school at Memorial University of Newfoundland, an amount of not more than $90 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 $50 per week of a period of study in student loan.

3. Subsection 5.2 of the regulations is repealed and the following substituted:

Payment free status

5.2 (1) Where a student loan is issued to a borrower, that student loan has payment free status during the period

(a) commencing on the period of study start date indicated on the borrower's certificate of eligibility; and

(b) ending 6 months after the last day of the month of the borrower's period of study end date as indicated on his or her certificate of eligibility.

(2) Payments are not required on a student loan during the period that the student loan has payment free status.

(3) A borrower who is not issued a student loan for a current period of study and

(a) who is enrolled in at least 60% of a full course load; or

(b) meets the requirements of subsection 3(4) of the Student Financial Assistance Administration Regulations,

may apply to the minister for payment free status on his or her student loan.

(4) An application under subsection (3) must include or be accompanied by the information that the minister may require.

(5) Where the minister receives an application under subsection (3), and is satisfied that the borrower has complied with these regulations, the minister may grant payment free status to the borrower's student loan.

(6) Subject to subsections (7) and (11), when a student loan is issued to a borrower who is a member of the reserve force and who interrupts his or her program of studies to serve on a designated operation, that student loan has payment free status until 6 months after the last day of the month in which his or her service on the designated operation ends.

(7) Where, as a result of the date on which his or her service on the designated operation ends, the borrower is unable to continue in a program of studies within 6 months after that date, the minister may, on application, defer by up to 6 months the date on which the service on the designated operation is considered to have ended.

(8) A borrower referred to in subsection (6) must, no later than 30 days after receipt of his or her posting message provided by Canada's Department of National Defence, unless circumstances beyond the control of the borrower necessitate a longer period, notify the minister in the prescribed form that he or she will be serving on the designated operation and must provide the minister with a list of outstanding student loans not owned by the corporation and, where the minister requests, provide the minister with

(a) his or her social insurance number;

(b) a list of outstanding student loans;

(d) information that is necessary to assess whether the borrower meets the requirements of subsection (6), (7), (10) or (12).

(9) The minister may consider one or more of the requirements of subsection (8) of these regulations to be satisfied where a borrower has provided a notification and information to Canada's Minister of Human Resources and Skills Development in compliance with subsection 8(3) of the Canada Student Financial Assistance Regulations.

(10) Where a borrower referred to in subsection (6) is unable to continue full-time in a program of studies as a result of an injury or disease that is attributable to or was incurred during the designated operation, or the aggravation of an injury or disease, if the aggravation was attributable to or was incurred during the designated operation, the borrower will be granted payment free status until 6 months after the earlier of the day

(a) on which it is determined by Canada's Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations that the injury or disease, or the aggravation of the injury or disease, no longer precludes the borrower from returning to a program of studies; and

(b) that is 2 years after the day on which the borrower's service on the designated operation ended.

(11) Where it is determined by Canada's Minister of Human Resources and Skills Development under subsection 8(2) or (4) of the Canada Student Financial Assistance Regulations that the date when the borrower ceases to be a full time student under those regulations will be delayed for the purpose of those regulations, then the borrower will be granted payment free status until 6 months after that date for the purpose of subsections (7) and (10) of these regulations.

(12) Where a determination referred to in subsection (11) is not applicable, a determination by the minister of eligibility in subsections (7) and (10) shall be made on the same basis as if the determination was made under subsection 8(2) or (4) of the Canada Student Financial Assistance Regulations.

4. Subsection 5.3 of the regulations is repealed and the following substituted:

Rules respecting payment free status

5.3 (1) Where the period of study end date shown on a borrower's application under subsection 5.2(3) changes to another date, his or her student loan payment free status ends 6 months after the last day of the month of the new period of study end date.

(2) Notwithstanding subsections 5.2(2) and (3) a borrower is not entitled to payment free status on his or her student loan where that borrower is in arrears on interest payments on his or her student loan.

(3) The minister may terminate a payment free status where

(a) the borrower to whom that status applies or his or her spouse, parent or sponsor has provided false or misleading information to the minister; or

(b) the borrower fails to comply with a provision of the Act or regulations made under the Act.

(4) Notwithstanding that the last day of the month of the period of study end date as stated on a certificate of eligibility or application made under subsection 5.2(3) has been reached, the student loan to which it applies retains its payment free status during the period between the previous period of study end date and the last day of the month of the next period of study end date as shown on the borrower's current certificate of eligibility or application where

(a) the period between the last day of the month of the previous period of study end date and next period of study start date as shown on that borrower's current certificate of eligibility or application is less than 6 months; and

(b) that borrower delivers the current certificate of eligibility or application made under subsection 5.2(3) to the minister within the 6 month period referred to in paragraph (a).

5. Subsection 5.8 of the regulations is repealed and the following substituted:

Consolidation and repayment

5.8 (1) A borrower who enters into one or more student loan agreements shall enter into a consolidated loan agreement with the lender after the borrower ceases to be a full time student.

(2) A consolidated loan agreement shall include the amount and duration of the payments to be made to discharge all outstanding student loans.

(3) If a borrower does not enter into a consolidated loan agreement within 6 months after ceasing to be a full time student, he or she shall be considered to have entered into a consolidated loan agreement and the lender shall establish the amount and duration of the payments to be made to discharge all outstanding student loans of that borrower unless the borrower subsequently enters into a consolidated loan agreement.

6. (1) Subsection 5.9(2) of the regulations is repealed and the following substituted:

(2) From August 1, 2007 to July 31, 2009, the interest rate in effect on any day 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.

(2) Section 5.9 of the regulations is amended by adding immediately after subsection (2) the following:

(2.1) After July 31, 2009, the interest rate in effect on any day on a student loan owned by the corporation is 0%.

(3) Subsection 5.9(4) of the regulations is repealed and the following substituted:

(4) From August 1, 2007 to July 31, 2009, the interest rate in effect 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.

(4) Section 5.9 of the regulations is amended by adding immediately after subsection (4) the following:

(4.1) After July 31, 2009, the interest rate in effect on any day on a student loan not owned by the corporation is 0%.

(5) Subsection 5.9(6) of the regulations is repealed.

7. Section 10 of the regulations is repealed and the following substituted:

Payment deferral

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

(2) The minister shall include a consideration of 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 payment deferral and payment deferral shall be in accordance with the Schedule attached to these regulations.

(3) Payment deferral 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 student loan.

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

(5) Where a borrower fails to pay interest on a student loan, the minister may, as a condition of providing payment deferral or other financial assistance, require the borrower to

(a) pay all or a part of the accrued interest owing on that student loan; or

(b) capitalize all or a part of the accrued interest owing on that student loan and that capitalized accrued interest shall form a part of the principal owed on that student loan.

(6) Where the minister grants payment deferral under this section, the first payment on principal and interest owed on a student loan that the borrower must make is due within one month after the end of the payment deferral period.

(7) The minister may terminate payment deferral that he or she has granted where

(a) the borrower has provided false or misleading information to the minister; or

(b) the borrower fails to comply with a provision of the Act, regulations made under the Act or the borrower's student loan agreement.

(8) Where, on April 1, 2004, a borrower's loan under the federal Act is in interest relief status under that Act, an application shall be considered to have been made under subsection (1) with respect to that borrower's student loan.

8. Section 12.1 of the regulations is repealed and the following substituted:

Debts collected by subrogation or under Act

12.1 (1) Notwithstanding the interest rate applicable to a student loan under the terms of the student loan agreement, from August 1, 2007 to July 31, 2009 the interest rate in effect 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 the interest rate applicable to a student loan under the terms of the student loan agreement, after July 31, 2009 the interest rate in effect 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 0%.

(3) 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.

(4) Subsections (1) and (2) shall not apply to debts owed to the Crown or the corporation as a result of a judgment of the court.

Commencement

9. These regulations come into force on August 1, 2009.