STUDENTS (HIGHER EDUCATION) LOANS ACT

Arrangement of Sections

1. Short title.

PART I

GRANT OF LOANS TO STUDENTS

2. Grant of loans.

3. Preparation of list of student eligible for loans.

4. To whom appropriate specified bank may grant loans and the terms of such loans.

5. Interest chargeable from students.

6. Refusal or suspension of loan.

7. Recovery of loans and interest by an appropriate specified bank.

8. Duties of recipients of loans.

9. Duties of an employer of any recipient of a loan under this Act.

10. Implied consent for the recovery of outstanding debts.

11. Recovery of money from minor.

12. Loans from guarantor.

13. Specified bank to fee deemed to be principal creditor.

14. Restriction on Recipient of loan leaving Sri Lanka.

15. Recipient or guarantor of a loan not to plead the benefits of certain enactments.

PART II

OPERATION OF THE FUND

16. Establishment of the students (Higher Education) Loan Fund.

17. Irrecoverable loans.

18. Sums to be paid into the Fund.

19. Payments out of the fund.

PART III

GENERAL

20. Officers, employees deemed to be public servants.

21. Offences and penalties.

22. Repeal and savings.

23. Recovery of loans granted under Act No 4 of 1972.

24. Interpretation.

50 of 1983.

AN ACT to provide for the grant of loans to Students of Higher Educational Institutions, for the repeal of the Students (Higher Education) loan fund Act, no. 4 of 1972 and for matters connected therewith or incidental thereto.

[Date of Commencement: 13th December, 1983]

1. Short title.

This Act may be cited as the Students (Higher Education) Loans Act.

PART I

Grant of Loans to Students

2. Grant of loans.

(1) Subject to the provisions of this Act, it shall be the duty of a specified bank to grant loans to students of the following higher educational institutions—

(a) all Universities, Campuses of a University or University Colleges, established or deemed to be established under the Universities Act, No. 16 of 1978, and any successor to such University, Campus or University College; and

(b) any institution providing higher education maintained wholly or partly by Government grant and approved by the Minister for the purposes of this Act.

(2) The Minister may, from time to time, by Notification published in the Gazette, specify the Bank of Ceylon or the People's Bank or any other bank which consents to be a specified bank for the purposes of this Act. Any bank so specified is hereafter in this Act referred to as a "specified bank”.

(3) The Deputy Secretary to the Treasury shall, in consultation with each specified bank, determine which of such specified banks will consent to grant loans to students in any year. Any specified bank so determined shall hereinafter be referred to as the "appropriate specified bank”.

3. Preparation of list of student eligible for loans.

(1) The Minister may give general written directions to the principal executive officer of a higher educational institution in respect of—

(a) the conditions subject to which students shall be eligible for the grant of loans;

(b) the procedure to be followed by such principal executive officer in the preparation of lists of names of students who are eligible for the grant of loans; and

(c) any other matter which in the opinion of the Minister, is connected with or incidental to the grant of loans,

and it shall be the duty of such principal executive officer to comply with such written directions.

(2) The principal executive officer of each higher educational institution shall, in accordance with the provisions of sub section (1), prepare or cause to be prepared, from time to time lists of names of students who are eligible to receive loans under this Act, including the amount of loan recommended to each such student, and shall submit such lists to the governing authority of that higher educational institution.

(3) The governing authority of a higher educational institution may, in consultation with the Managers of the specified banks and having regard to such general written directions given by the Minister under subsection (1), approve such lists as have been submitted to such authority under subsection (2), with such additions, deletions or modifications as may be necessary, and forward such lists to the Manager of the appropriate specified bank.

4. To whom appropriate specified bank may grant loans and the terms of such loans.

(1) The Manager of the appropriate specified bank who receives a list of names of students sent to him under the provisions subsection (3) of section 3 may, subject to the provisions of this Act, grant loans to any or all such students.

(2) A loan granted to any student under subsection (1) shall be upon a written undertaking given by such student to repay such loan, together with a guarantee given by the parent or guardian of such student or any other person to repay such loan.

(3) The written undertaking referred to in subsection (2) shall include a promissory note granted to, and the loan application made to, the appropriate specified bank.

(4) The terms and conditions subject to which the appropriate specified bank may grant loans under subsection (1) other than the conditions referred to in subsections (2) and (3) shall be determined by such bank.

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