Fourth

Session, 45th General Assembly

Elizabeth II, 2007

BILL 13

AN ACT TO AMEND THE

STUDENT FINANCIAL ASSISTANCE ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

JOAN BURKE

Minister of Education

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTE

The purpose of this Bill is to amend

the Student Financial Assistance Act

to allow the making of regulations that would lower the interest rate on

student loans and student loans taken over by the province which are now debts

owed to the Crown and setting the date by which those lower interest rates

would apply.

A BILL

AN ACT TO AMEND THE STUDENT FINANCIAL

ASSISTANCE ACT

Analysis

S.16 Amdt.

Lieutenant-Governor in Council regulations

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2002 cS-29.01

as amended

1. (1) Subsection 16(1) of the Student Financial Assistance Act is

amended by adding immediately after paragraph (

e) the following:

(e.1) setting lower interest rates for student loan

agreements and setting the effective dates for those lowered interest rates,

except where a judgment of the court has been made with respect to a student loan

agreement;

(e.2) setting lower interest rates for debts owed to

the Crown or the corporation as a result of the Crown or the corporation

fulfilling the obligations of a borrower under a student loan agreement and

setting the effective dates for those lowered interest rates, excepting debts

that are owed to the Crown or the corporation as a result of a judgment of a

court;

(2) Section 16 of the Act is amended by adding

immediately after subsection (3) the following:

(4) An interest rate lowered in accordance with

regulations made under paragraphs (1 )( e.1) and (e.2)

applies to a student loan agreement or 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 a student loan agreement notwithstanding that

that lowered interest rate is contrary to a term or condition of the applicable

student loan agreement.

Earl G. Tucker,

Queen's Printer