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Newfoundland and Labrador
Regulation 2012


NEWFOUNDLAND AND LABRADOR REGULATION 30/12

NEWFOUNDLAND AND LABRADOR
REGULATION 30/12

Student Financial Assistance Regulations (Amendment)
under the
Student Financial Assistance Act
(O.C. 2012-083)

(Filed April 24, 2012)

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, April 5, 2012.

Robert Thompson
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   S.10 R&S
10.     Definitions
10.1   Repayment assistance
10.2   Two stages of
          repayment assistance
10.3   Application and
          approval process
10.4   Eligibility
          requirements
10.5   Determination by
          Canada's Minister of
          Human Resources and
          Skills Development
10.6   Repayment assistance
          period
10.7   Suspension of
          repayment terms in
          agreement
10.8   Monthly payments
          during repayment
          assistance
10.9   Failure to make
          payments
10.10 Return to school
10.11 Transitional
10.12 Transitional
          permanent disability

        2.   S.12 R&S
Loan forgiveness due to permanent disability or death

        3.   S.12.01 Added
Loan forgiveness due to severe permanent disability or death

        4.   Sch Rep.

        5.   Commencement


NLR 105/03
as amended

        1. Section 10 of the Student Financial Assistance Regulations is repealed and the following substituted:

Definitions

      10. In this section and in sections 10.1 to 10.12

             (a)  "federal student loan" means a loan made by the Government of Canada under the Canada Student Financial Assistance Act (Canada) or the Canada Student Loans Act (Canada);

             (b)  "monthly affordable payment" means the amount that a borrower can reasonably afford to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 10.5;

             (c)  "monthly required payment" means the amount that a borrower would be required to pay on all his or her federal and provincial student loans on a monthly basis as determined under section 10.5;

             (d)  "permanent disability" means a functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in studies at a post-secondary school level or the labour force and is expected to remain with the person for the person's expected life;

             (e)  "provincial portion" means, in relation to the monthly required payment or the monthly affordable payment, the portion of the payment of all of the borrower's federal and provincial student loan that is equal to the provincial student loan;

              (f)  "provincial student loan" means a student loan made under the Act; and

             (g)  "repayment assistance" means repayment assistance provided for under section 10.1 to 10.12.

Repayment assistance

   10.1 (1) A borrower under a consolidated loan agreement who is having difficulty making payments under the student loan agreement may apply for repayment assistance.

             (2)  Repayment assistance available includes, for a loan owned by the corporation

             (a)  a reduction in the borrower’s monthly payments on the student loan; or

             (b)  assistance from the minister in forgiving an outstanding student loan by forgiving monthly payments on the loan.

             (3)  Repayment assistance available includes, for a loan not owned by the corporation

             (a)  a reduction in the borrower’s monthly payments on the student loan; or

             (b)  assistance from the minister in paying off the borrower's outstanding student loan by making monthly payments on the loan in the amount of the reduction under paragraph (a).

             (4)  The amount of assistance provided by the minister, under subsections (2) and (3), shall be determined so that,

             (a)  in the case of a person receiving repayment assistance other than a person described in paragraph (b), the borrower’s student loan is repaid in full within 15 years from the day the borrower last was a qualifying student; and

             (b)  in the case of a person with a permanent disability who is receiving repayment assistance and who, in an application for repayment assistance, discloses his or her disability, the borrower’s student loan is paid in full within 10 years from the day the borrower last was a qualifying student. 

Two stages of repayment assistance

   10.2 (1) Repayment assistance is provided in 2 stages as follows:

             (a)  during stage 1, the monthly assistance provided by the minister relates to payments payable on account of interest owing and payments deferred on account of principal owing on the outstanding student loan; and

             (b)  during stage 2, the monthly assistance provided by the minister relates to payments payable on account of principal and interest owing on the outstanding student loan as are required so as to ensure that the student loan is repaid in full within the time period specified in subsection 10.1(4). 

             (2)  Subject to subsection (4), the two stages of repayment assistance are consecutive and a borrower shall receive stage 1 for the full period of time for which it is available under subsection (3) before the borrower is entitled to stage 2 repayment assistance. 

             (3)  A borrower may receive repayment assistance under stage 1 for a period of up to 60 months, subject to sections 10.10 and 10.11. 

             (4)  Notwithstanding subsection (3), a borrower who meets the eligibility requirements specified in subsection 10.4(1) and in either paragraph (b) or (c) of subsection 10.4 (3) is eligible for repayment assistance at stage 2 without having received stage 1 of repayment assistance. 

             (5)  For the purpose of this section, where the lender is the corporation, the minister shall be considered to have complied with this section by forgiving, each month, the portion of the borrower’s outstanding student loan that is equal to the payments that the minister is otherwise required to make under this section.

Application and approval process

   10.3 (1) A borrower who wishes to receive repayment assistance shall submit an application to the minister.

             (2)  The application shall be in the form approved by the minister and shall provide the information relating to the applicant’s family status, number of family members and family income, and other information as may be required to determine eligibility for the repayment assistance. 

             (3)  Where the minister determines that the applicant meets the eligibility requirements under sections 10.4 and 10.5, the borrower shall be entitled to receive repayment assistance for a period of six months. 

             (4)  If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, the borrower shall submit an application for the assistance to the minister no later than 30 days after the end of the six month period. 

             (5)  Subsections (2), (3) and (4) apply with necessary modifications to every successive application for repayment assistance made under subsection (1) until the borrower’s student loan is repaid in full. 

Eligibility requirements

   10.4 (1) To be eligible for repayment assistance, a borrower shall

             (a)  reside in Canada;

             (b)  submit an application to the minister in accordance with section 10.3;

             (c)  notwithstanding subsection 5.8(3), have a signed consolidated loan agreement;

             (d)  have made the monthly payments required in a previous repayment assistance period;

             (e)  have a monthly affordable payment that is less than the borrower's monthly required payment; and

              (f)  satisfy the eligibility requirements under stage 1 of repayment assistance described in subsection (2) or under stage 2 of repayment assistance described in subsection (3). 

             (2)  To be eligible for stage 1 of repayment assistance, a borrower shall meet all of the following requirements:

             (a)  since the borrower last was a qualifying student, the borrower,

                      (i)  has not received repayment assistance, or

                     (ii)  has received repayment assistance under stage 1 for a total period of time of less than 60 months;

             (b)  less than 10 years has elapsed since the borrower last was a qualifying student;

             (c)  the borrower does not disclose a permanent disability in his or her application for repayment assistance.

             (3)  To be eligible under stage 2 of repayment assistance, a borrower shall meet at least one of the following requirements:

             (a)  since the borrower last was a qualifying student, the borrower has received repayment assistance under stage 1 for 60 months;

             (b)  10 years or more has elapsed since the borrower last was a qualifying student; or

             (c)  the borrower has a permanent disability and discloses, in an application for repayment assistance, his or her disability. 

             (4)  Notwithstanding subsections (1), (2) and (3), a borrower who meets the eligibility requirements in this section shall not be eligible for repayment assistance where the minister has determined that the borrower is ineligible for repayment assistance because the borrower owes money on a prior student loan.

Determination by Canada's Minister of Human Resources and Skills Development

   10.5 (1) For the purpose of determining whether a borrower meets the eligibility requirements of

             (a)  paragraph 10.4(3)(c), the determination of whether a borrower has a  permanent disability; or

             (b)  paragraph 10.4(1)(e), the determination of the borrower’s monthly affordable payment and monthly required payment

shall be made by Canada’s Minister of Human Resources and Skills Development, under the Canada Student Financial Assistance Regulations or Canada Student Loans Regulations.

             (2)  Where a determination referred to in subsection (1) is not applicable, a determination by the minister that a borrower meets the eligibility requirements of

             (a)  paragraph 10.4(3)(c), the determination of whether a borrower has a  permanent disability; or

             (b)  paragraph 10.4(1)(e), the determination of the borrower’s monthly affordable payment and monthly required payment

shall be made on the same basis as if the determination was made under the Canada Student Financial Assistance Regulations or Canada Student Loans Regulations.

Repayment assistance period

   10.6 (1) If a borrower is granted repayment assistance, the 6 month repayment assistance period shall commence at the beginning of the month in which the application for repayment assistance is submitted to the minister.

             (2)  Notwithstanding subsection (1), the minister may,

             (a)  at the request of an applicant, backdate the commencement of the repayment assistance period for up to 6 months if the applicant has failed to make a monthly required payment on his or her outstanding student loan during the months previous to his or her application for repayment assistance; and

             (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.

Suspension of repayment terms in agreement

   10.7 (1) Where a borrower is granted repayment assistance, during the repayment assistance period,

             (a)  the terms of the repayment of the student loan set out in the borrower’s consolidated loan agreement are suspended and of no effect; and

             (b)  instead of the payments required under the consolidated loan agreement, payments shall be made each month on the provincial portion of the borrower’s monthly required payment, as determined under section 10.8.

             (2)  At the end of the repayment assistance period, the suspension of repayment terms in the consolidated loan agreement is lifted, subject to such amendments to the consolidated loan agreement as may be agreed to by the parties. 

             (3)  Subsection (2) does not apply if the borrower is granted a subsequent 6 month period of repayment assistance immediately upon the expiry of a previous repayment assistance period and the suspension of repayment terms is consequently extended. 

Monthly payments during repayment assistance

   10.8 (1) Where a borrower is granted repayment assistance under stage 1, the part of the provincial portion of the borrower’s monthly required payment that is equal to the sum of the following amounts shall be paid each month on the borrower’s outstanding student loan in the following manner:

             (a)  the borrower shall pay to the lender the provincial portion of his or her monthly affordable payment; and

             (b)  the minister shall pay to the lender interest payable as part of the provincial portion of the borrower’s monthly required payment that is not paid by the borrower under paragraph (a).

             (2)  For greater certainty, during stage 1 of repayment assistance, a part of the provincial portion of a borrower’s monthly required payment that is attributable to principal and not covered by the borrower’s payment under paragraph (1)(a) is not payable to the lender.

             (3)  Where a borrower is granted repayment assistance under stage 2, all of the provincial portion of the borrower’s monthly required payment shall be paid each month on the borrower’s outstanding student loan in the following manner:

             (a)  the borrower shall pay to the lender the provincial portion of his or her monthly affordable payment; and

             (b)  the minister shall pay to the lender interest, principal or principal and interest as part of the provincial portion of the borrower’s monthly required payment, that is not paid by the borrower under paragraph (a).

             (4)  A monthly payment made by the borrower under this section shall be made each month at the same time as the monthly amounts otherwise payable under the consolidated loan agreement would have been paid. 

             (5)  A monthly payment made by the borrower under this section shall be applied against the borrower’s outstanding student loan as follows:

             (a)  the full amount of the payment shall be applied first against the part of the provincial portion of the monthly required payment that would be payable on the outstanding principal; and

             (b)  if the amount of the payment exceeds the amount of principal payable as part of the provincial portion of the monthly required payment, the excess amount shall be applied against the interest payable as part of the provincial portion of the monthly required payment.

             (6)  Notwithstanding subsections (1) and (3), the minister is not required to pay an amount under this section in respect of a month during a repayment assistance period if the borrower fails to make a payment as required under this section in respect of that month.

             (7)  For the purpose of this section, where the lender is the corporation, the minister shall be considered to have complied with this section by forgiving, each month, the portion of the borrower’s outstanding student loan that is equal to the payments that the minister is otherwise required to make under this section.

             (8)  Where there is a conflict between a provision of a consolidated loan agreement and this section, this section prevails.

Failure to make payments

   10.9 (1) Where  a borrower fails to make one or more monthly payments that the borrower is required to make during a repayment assistance period, the borrower shall pay all missed payments on or before 30 days after the end of the repayment assistance period.

             (2)  A borrower who fails to pay all the missed monthly payments as required under subsection (1) shall no longer be eligible for repayment assistance unless, after the failure, the borrower

             (a)  pays all arrears of interest owing under the consolidated loan agreement;

             (b)  makes at least 6 consecutive monthly payments under the consolidated loan agreement; and

             (c)  is otherwise eligible for repayment assistance under section 10.4.

Return to school

10.10 Where a borrower receives repayment assistance and subsequently returns to school and becomes a qualifying student once again, the repayment assistance received before the return to school shall not be considered for purposes of determining eligibility for further repayment assistance that the borrower may apply to receive after completing the further period of study.

Transitional

10.11 (1) This section applies to a person whose payment obligations under a consolidated loan agreement were suspended under the payment deferral program on July 31, 2011.

             (2)  On August 1, 2011 a person described in subsection (1), whether or not they have submitted an application as required under paragraph 10.4(1)(b), is eligible for repayment assistance, where the person meets the eligibility requirements under sections 10.4 and 10.5 and subject to the following rules that apply for purposes of determining whether the person meets those eligibility requirements:

             (a)  a month during which a borrower’s payment obligations were suspended under the payment deferral eligibility criteria since the borrower last was a qualifying student is considered to be a month during which the person received repayment assistance; and

             (b)  a month during which the borrower’s payment obligations were suspended under the payment deferral eligibility criteria before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance.

Transitional permanent disability

       10.12  (1) This section applies to a borrower who has a permanent disability and to whom section 10.11 does not apply and who was granted repayment assistance on the borrower's federal student loan between August 1, 2009 and July 31, 2011.

             (2)  On August 1, 2011 a person described in subsection (1), whether or not they have submitted an application as required under paragraph 10.4(1)(b), is eligible for repayment assistance where the person meets the eligibility requirements under sections 10.4 and 10.5 and subject to the following rules that apply for purposes of determining whether the person meets those eligibility requirements:

             (a)  a month during which a borrower’s payment obligations were suspended on the borrower's federal student loan under the repayment assistance eligibility criteria since the borrower last was a qualifying student is considered to be a month during which the person received repayment assistance under stage 2; and

             (b)  a month during which the borrower’s payment obligations were suspended on the borrower's federal student loan under the repayment assistance eligibility criteria before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance.

 

        2. Section 12 of the Regulations is repealed and the following substituted:

Loan forgiveness due to permanent disability or death

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

             (2)  For the period June 29, 2005 to July 31, 2009 where a borrower

             (a)  becomes permanently disabled; or

             (b)  dies

that borrower or borrower's executor or administrator may apply to the minister to have the borrower's student loan forgiven before full repayment of the student loan.

             (3)  The minister may, where the minister considers it to be appropriate and upon the advice of the division, forgive the repayment of a student loan by a borrower referred to in subsection (2).

             (4)  Notwithstanding subsection (2), where the minister becomes aware that a borrower has died, the minister may forgive the student loan of that borrower before full repayment of that loan whether or not an application has been made by the borrower’s executor or administrator under subsection (2).

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

             (6)  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.

             (7)  Where it is determined by Canada’s Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations that the borrower meets the requirements for permanent disability, that borrower will be granted loan forgiveness under this section.

             (8)  Where a determination referred to in subsection (7) is not applicable, a determination by the minister that the borrower meets the requirements for permanent disability shall be made on the same basis as if the determination was made under the Canadian Student Financial Assistance Regulations and the Canada Student Loans Regulations and that the borrower will be granted loan forgiveness.

             (9)  If a student loan is forgiven under this section, the minister shall in a case where the loan is

             (a)  not owned by the corporation, pay the full amount, principal and interest, outstanding on the loan; and

             (b)  owned by the corporation, forgive the full amount, principal and interest, outstanding on the loan.

 

        3. The Regulations are amended by adding immediately after section 12 the following:

Loan forgiveness due to severe permanent disability or death

12.01 (1) In this section, "severe permanent disability" means a functional limitation caused by a physical or mental impairment that prevents a borrower from performing the daily activities necessary to participate in studies at a post-secondary school level and in the labour force and is expected to remain with the person for their expected life.

             (2)  Effective August 1, 2009, where a borrower

             (a)  becomes severely permanently disabled; or

             (b)  dies

that borrower or borrower's executor or administrator may apply to the minister to have the borrower's student loan forgiven before full repayment of the student loan.

             (3)  The minister may, where the minister considers it to be appropriate and upon the advice of the division, forgive the repayment of a student loan by a borrower referred to in subsection (2).

             (4)  Notwithstanding subsection (2) where the minister becomes aware that a borrower has died, the minister may forgive the student loan of that borrower before full repayment of that loan whether or not an application has been made by the borrower's executor or administrator under subsection (2).

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

             (6)  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.

             (7)  Where it is determined by Canada’s Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations that the borrower meets the requirements for severe permanent disability, that borrower will be granted loan forgiveness under this section.

             (8)  Where a determination referred to in subsection (7) is not applicable, a determination by the minister that the borrower meets the requirements for severe permanent disability shall be made on the same basis as if the determination was made under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations and that borrower will be granted loan forgiveness.

             (9)  A borrower who has a severe permanent disability may have his or her loan forgiven where the borrower meets the following criteria:

             (a)  the person is a Canadian citizen or is a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada);

             (b)  the person resides in Canada;

             (c)  the person submits an application to the minister for the severe permanent disability benefit; and

             (d)  the person satisfies the minister that by reason of his or her severe permanent disability, the person is unable to repay the student loan and will never be able to do so.

           (10)  If a student loan is forgiven under this section, the minister shall in a case where the loan is

             (a)  not owned by the corporation, pay the full amount, principal and interest, outstanding on the loan; and

             (b)  owned by the corporation, forgive the full amount, principal and interest, outstanding on the loan.

Schedule repeal

        4. The Schedule to the regulations is repealed.

Commencement

        5. (1) Sections 1 and 4 of these regulations are considered to have come into force on August 1, 2011.

             (2)  Section 2 of these regulations is considered to have come into force on June 29, 2005.

             (3)  Section 3 of these regulations is considered to have come into force on August 1, 2009.