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Newfoundland and Labrador
Regulation 2011


NEWFOUNDLAND AND LABRADOR REGULATION 61/11

NEWFOUNDLAND AND LABRADOR
REGULATION 61/11

Student Financial Assistance Regulations (Amendment)
under the
Student Financial Assistance Act
(O.C. 2011-182)

(Filed June 22, 2011)

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, June 20, 2011.

Robert Thompson
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   S.2 Amdt.
Definitions

        2.   S.3 Amdt.
Educational institution designation

        3.   S.5.5 Amdt.
Required provisions

        4.   S.5.9 Amdt.
Obligation to pay interest

        5.   S.7 Amdt.
Debt reduction calculation

        6.   S.10 Amdt.
Payment deferral

        7.   Commencement


 NLR 105/03
as amended

        1. Paragraph 2(g.1) of the Student Financial Assistance Regulations is repealed and the following substituted:

          (g.1)  "prime rate" means, for any day, the variable reference rate of interest as calculated by Canada’s Minister of Human Resources and Skills Development based upon the variable reference rates of interest declared on the previous business day by the largest 5 Canadian institutions as their prime rate, calculated by ignoring both the highest and lowest of those 5 rates and taking the average of the remaining 3 rates;

 

        2. Paragraphs 3(8)(e), (f) and (g) of the regulations are repealed and the following substituted:

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

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

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

 

        3. Paragraph 5.5(a) of the regulations is repealed and the following substituted:

             (a)  any refund of fees paid to an educational institution by the borrower of

                      (i)  financial assistance, or

                     (ii)  funds intended as financial assistance

as provided under the Act shall be paid by the educational institution to the borrower's lender for credit against a student loan received under the Act by the borrower;

 

        4. (1) Subsection 5.9(8) of the regulations is repealed and the following substituted:

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

             (2)  Section 5.9 of the regulations is amended by adding immediately after subsection (9) the following:

           (10)  Notwithstanding another provision of this section, interest calculated under this section shall be calculated as simple interest and shall not be compounded.

 

        5. Section 7 of the regulations is amended by adding immediately after subsection (3) the following:

             (4)  Notwithstanding another provision of this section, the grant issued to a borrower

             (a)  before August 1, 2005 shall not exceed $110 per week of study;

             (b)  between August 1, 2005 and July 31, 2007 shall not exceed $140 per week of study;

             (c)  between August 1, 2007 and July 31, 2009 shall not exceed $70 per week of study; and

             (d)  on or after August 1, 2009 shall not exceed $60 per week of study.

             (5)  Notwithstanding another provision of this section, a borrower who graduated between August 1, 2002 and August 1, 2004 shall receive the greater of the benefit to which they were entitled under this section or section 8 during that period.

 

        6. (1) Section 10 of the regulations is amended by adding immediately after subsection (1) the following:

          (1.1)  The start date of the payment deferral period may predate the date of the application by 6 months.

             (2)  Section 10 of the regulations is amended by adding immediately after section (2) the following:

          (2.1)  In assessing an application for deferral, the minister may consider whether the borrower has declared bankruptcy under the Bankruptcy and Insolvency Act (Canada), and notwithstanding that the bankruptcy has not been discharged, the minister may consider and approve an application for deferral under this section where other eligibility criteria have been met.

             (3)  Section 10 of the regulations is amended by adding immediately after subsection (4) the following:

          (4.1)  The time period referred to in subsection (4) shall be calculated from the date the borrower ceases to be a full time student.

             (4)  Section 10 of the regulations is amended by adding immediately after subsection (5) the following:

          (5.1)  Once in a borrower's lifetime, 3 months of interest may be capitalized to the borrower's loan principal.

Commencement

        7. (1) Sections 1, 3 and 4 of these regulations are considered to have come into force on April 1, 2004.

             (2)  Section 2 of these regulations is considered to have come into force on August 1, 2002.

             (3)  Section 5 of these regulations is considered to have come into force on August 1, 2002.

             (4)  Section 6 of these regulations is considered to have come into force on May 11, 2004.