This is an official version.

Copyright ©2019: Queen's Printer,
St. John's, Newfoundland and Labrador, Canada

Important Information
(Includes details about the availability of printed and electronic versions of the Statutes.)

Newfoundland and Labrador
Regulation 2019


NEWFOUNDLAND AND LABRADOR REGULATION 26/19 NEWFOUNDLAND REGULATION /99

NEWFOUNDLAND AND LABRADOR
REGULATION 26/19

Student Financial Assistance Regulations (Amendment)
under the
Student Financial Assistance Act, 2019
(O.C. 2019-096)

(Filed April 11, 2019)

Under the authority of section 15 of the Student Financial Assistance Act, 2019, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John's, April 11, 2019.

Krista Quinlan
Deputy Clerk of the Executive Council

REGULATIONS

Analysis


        1.   S.2 Amdt.
Definitions

        2.   S.5 Amdt.
Granting of financial assistance

        3.   S.5.01 Amdt.
Financial assistance for part-time students

        4.   S.5.2 Amdt.
Payment free status

        5.   S.5.8 Amdt.
Consolidation and repayment

        6.   S.5.09 R&S
Repayment

        7.   S.5.9 Amdt.
Obligation to pay interest

        8.   S.5.10 R&S
Application to pre-April, 2004 loans

        9.   S.5.11 Amdt.
Revision of terms

      10.   S.6 Amdt.
Debt reduction grants

      11.   S.7 Amdt.
Debt reduction calculation

      12.   S.10.1 Amdt.
Repayment assistance

      13.   S.10.2 Amdt.
Two stages of repayment assistance

      14.   S.10.8 Amdt.
Monthly payments during repayment assistance

      15.   S.12 Amdt.
Loan forgiveness due to permanent disability or death

      16.   S.12.01 Amdt.
Loan forgiveness due to severe permanent disability or death

      17.   S.12.1 Amdt.
Debts collected by subrogation or under Act

      18.   Commencement


NLR 105/03
as amended

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 (1) Paragraph 2(a) of the Student Financial Assistance Regulations is repealed and the following substituted:

             (a)  "Act", unless the context indicates otherwise means the Student Financial Assistance Act, 2019;

             (2)  Paragraph 2(i) of the regulations is repealed and the following substituted:

              (i)  "service provider" means a person who has entered into an agreement with the minister to provide services with respect to the disbursement, administration, management and recovery of student loans.

 

        2. (1) Paragraph 5(1)(c) of the regulations is repealed and the following substituted:

             (c)  submit the completed student loan agreement to the minister or service provider before the last day of the month of his or her period of study end date; and

             (2)  Subsection 5(2) of the regulations is repealed and the following substituted:

             (2)  Where a person complies with subsection (1), the minister shall issue financial assistance to that person in the amount set out in the notice of financial assistance.

 

        3. (1) Subsection 5.01(1) of the regulations is repealed and the following substituted:

Financial assistance for part-time students

   5.01 (1) Notwithstanding section 5, the minister may issue a non repayable grant to a part time student who has been issued a certificate of eligibility for a federal part time student loan.

             (2)  Subsection 5.01(3) of the regulations is repealed and the following substituted:

             (3)  Where the amount of a part time student's federal part time student loan is increased after the non repayable grant is issued, the minister may issue a further non repayable grant equal to the amount of the increase.

 

        4. Subsection 5.2(8) of the regulations is repealed and the following substituted:

             (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 Crown and, where the minister requests, provide the minister with

             (a)  his or her social insurance number;

             (b)  a list of outstanding student loans;

             (c)  a copy of the posting message; and

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

 

        5. Subsection 5.8(4) of the regulations is repealed and the following substituted:

             (4)  This section does not apply to a borrower who enters into a student loan agreement after July 31, 2012. 

 

        6. Section 5.09 of the regulations is repealed and the following substituted:

Repayment

   5.09 A borrower who enters into a student loan agreement after July 31, 2012 shall, within 6 months after ceasing to be a full time student, discharge all outstanding student loans of that borrower in accordance with the repayment terms established by the lender.

 

        7. Subsections 5.9(1), (2), (2.1), (3), (4) and (4.1) of the regulations are repealed and the following 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 Crown 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)  From August 1, 2007 to July 31, 2009, the interest rate in effect on any day on a student loan owned by the Crown 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.

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

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

             (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 Crown 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.

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

 

        8. Section 5.10 of the regulations is repealed and the following substituted:

Application to pre-April, 2004 loans

   5.10 Section 5.8 and subsection 5.9(1) shall only apply to a student loan owned by the Crown that has not been consolidated or entered into repayment status before April 1, 2004, notwithstanding that contrary terms and conditions of a student loan agreement apply to that loan immediately before that date. 

 

        9. Subsection 5.11(1) of the regulations is repealed and the following substituted:

Revision of terms

   5.11 (1) Where, on April 1, 2004, a student loan owned by the Crown is in repayment status, the following terms and conditions shall be considered to apply to the student loan agreement applicable to that loan, notwithstanding contrary terms and conditions of that agreement immediately before April 1, 2004:

             (a)  interest payable shall be calculated based on the prime rate as defined in these regulations;

             (b)  the amortization period shall be adjusted as required to ensure that a borrowers total monthly payment to repay his or her student loan and his or her direct loan under the federal Act is not greater than the sum of his or her monthly student loan payment and federal direct loan payment immediately before April 1, 2004;

             (c)  where a student loan has, immediately before April 1, 2004, a fixed interest rate and the borrower's direct loan under the federal Act has a floating rate, the interest rate applicable to the student loan shall be a floating rate that is the prime rate plus 2.5% yearly;

             (d)  where a borrower has a student loan with a fixed interest rate and a direct loan under the federal Act with a fixed interest rate that is lower than the fixed interest rate applicable to his or her student loan, the interest rate on his or her student loan shall be reduced to match the fixed interest rate applicable to the borrowers direct loan under the federal Act;

             (e)  the allocation and application of payments between a student loan and a direct loan under the federal Act shall be as agreed upon by the minister and the Government of Canada; and

             (f)  monthly payments on a student loan shall be due and payable on the last day of each month.

 

      10. Subsection 6(3) of the regulations is amended by deleting the word "and" at the end of paragraph (g) and substituting the word "or".

 

      11. Subsection 7(3.1) of the regulations is repealed and the following substituted:

         (3.1)  Where a borrower enters into a student loan agreement after July 31, 2012, a grant to a borrower shall not exceed the principal amount of his or her student loan at the time the repayment terms are established by the lender. 

 

      12. Subsections 10.1(2) and (3) of the regulations are repealed and the following substituted:

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

             (a)  a reduction in the borrowers 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 Crown

             (a)  a reduction in the borrowers 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).

 

      13. Subsection 10.2(5) of the regulations is repealed and the following substituted:

             (5)  For the purpose of this section, where the lender is the Crown, 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.

 

      14. Subsection 10.8(7) of the regulations is repealed and the following substituted:

             (7)  For the purpose of this section, where the lender is the Crown, 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.

 

      15. Subsection 12(9) of the regulations is repealed and the following substituted:

      (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 Crown, pay the full amount, principal and interest, outstanding on the loan; and

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

 

      16. Subsection 12.01(10) of the regulations is repealed and the following substituted:

          (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 Crown, pay the full amount, principal and interest, outstanding on the loan; and

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

 

      17. (1) Subsections 12.1(1) and (2) of the regulations are 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 as a result of the Crown 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 as a result of the Crown fulfilling the obligations of a borrower under that student loan agreement, shall be 0%.

             (2)  Subsection 12.1(4) of the regulations is repealed and the following substituted:

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

Commencement

      18. These regulations come into force on August 1, 2019.