New Brunswick MSFAA terms and conditions 2013

Official title: MSFAA terms and conditions for New Brunswick residents –

Part A: Your information

Full name of student and mailing address

Area code and telephone number

Date of birth (YYYY/MM/DD)

Social insurance number

Permanent address and telephone number

Part B: Terms and conditions of your MSFAA-Canada and MSFAA-NB

1. Agreement

This integrated Master Student Financial Assistance Agreement (“MSFAA”) is comprised of two separate loan contracts between you (“you” or “your”), as identified in Part A, and: (1) Her Majesty the Queen in Right of Canada, as represented by the Minister of Human Resources and Skills Development (“Canada”), made pursuant to the CSFAA and called the Master Student Financial Assistance Agreement for Canada ("MSFAA-Canada"); and (2) Her Majesty the Queen in Right of New Brunswick, as represented by the Minister of Post-Secondary Education, Training and Labour (“New Brunswick”), made pursuant to the PSFAA and called the Master Student Financial Assistance Agreement for New Brunswick ("MSFAA-NB").

In consideration of Canada and New Brunswick providing Financial Assistance under the MSFAA-Canada and the MSFAA-NB, and, by signing Part D below, you agree to the Terms and Conditions of each of these loan contracts.

The MSFAA is comprised of:

  • Part A: Your information
  • Part B: Terms and conditions of your MSFAA-Canada and MSFAA-NB
  • Part C: Electronic funds transfer
  • Part D: Your acknowledgement and signature
  • Part E: Definitions
  • Part D: Additional terms and conditions of your MSFAA-Canada and MSFAA-NB

2. Agreement to repay

You promise to pay your total Outstanding Loan Balance in accordance with the Terms and Conditions of each of the MSFAA-Canada and the MSFAA-NB.

3. Certification

You certify that all information provided in your applications(s) for Financial Assistance and on this MSFAA is true and complete to the best of your knowledge.

4. Authorization

Where required by law, you authorize each of Canada and New Brunswick to collect, use and disclose information related to any of your Canada Student Loan(s) or Student Grant(s) or NB Student Loan(s), as applicable, (i) for the purposes of carrying out the administration and enforcement of the CSFAA, the CSLA or the PSFAA, as applicable, or (ii) in accordance with Part F, sections 10(c),10(d) and 10(e) of this MSFAA.

5. Ratification of terms and conditions

At any time, Canada or New Brunswick may amend the Terms and Conditions of the MSFAA-Canada or the MSFAA-NB, respectively. You should review the Terms and Conditions on the MSFAA page upon each application for Financial Assistance. You acknowledge that your acceptance of any disbursement made under this MSFAA will ratify your acceptance of any revised Terms and Conditions.

Part C: Electronic funds transfer

The approved amount of any Financial Assistance disbursed under the MSFAA-Canada and the MSFAA-NB will be electronically deposited into your bank account as entered below, which must be held in your name, solely or jointly. Electronic withdrawals may also be made from this bank account when payment is triggered, as per Part F, section 7(c)(iii), subject to your right of revocation, as per Part F, section 7(e). If you fail to provide your bank account information, disbursement of your Financial Assistance will be delayed and may not proceed.

Name and Address of Financial Institution

Transit Number / Bank ID / Account Number (refer to bottom of your personal cheque)

or attach a void cheque

Part D: Your acknowledgement and signature

This MSFAA is a legal document that outlines your responsibility related to your MSFAA-Canada and MSFAA-NB. This MSFAA does not specify the actual amount(s) that will be disbursed to you or the amount(s) you will be required to repay. The amount(s) that will be disbursed to you under this MSFAA will be determined based on needs assessment(s) of your application(s) for Financial Assistance in accordance with federal and provincial legislation and policies. You will be responsible under this MSFAA for paying your Outstanding Loan Balance.

By signing Part D, you freely provide your consent(s), certification(s) and ratification(s) set out in this MSFAA and you agree to all the Terms and Conditions set out in this MSFAA. You understand that if you fail to sign this MSFAA, you will not receive any Financial Assistance.

Signature

Date (YYYY/MM/DD)

Part E: Definitions

Canada Student Grant” means a grant given under the CSFAA.

Canada Student Loan” means a Direct Loan made under the CSFAA or Student Loan made under the CSFAA or CSLA.

CSFAA ” means the Canada Student Financial Assistance Act and the Canada Student Financial Assistance Regulations, as in effect at any given time.

CSLA ” means the Canada Student Loans Act and the Canada Student Loans Regulations, as in effect at any given time.

Direct Loan” (a) when used in the MSFAA-Canada means any loan made by Canada under section 6.1 of the CSFAA, on or after ; and (b) when used in the MSFAA-NB means any loan made by New Brunswick under section 15(1) of the PSFAA, on or after .

Financial Assistance” (a) when used in the MSFAA-Canada, means Direct Loans, Canada Student Grants, repayment assistance, interest-free periods and any other form of financial assistance provided under the CSFAA, directly or indirectly to you; or (b) when used in the MSFAA-NB, means Direct Loans, bursaries, repayment assistance, interest-free periods and any other form of financial assistance provided under the PSFAA, directly or indirectly to you.

Full-Time Student” status is maintained for a person, (a) (i) who is enrolled in a minimum 60 percent full course load; or (ii) who has a permanent disability, is enrolled in courses that constitute between 40 percent and 60 percent of a full course load and applies to be considered as a Full-Time Student; (b) whose primary occupation is the pursuit of studies in those courses; and (c) when used (i) in the MSFAA-Canada, who otherwise complies with the requirements of the CSFAA and (ii) in the MSFAA-NB, who otherwise complies with the requirements of the PSFAA.

Lender” means a financial institution that is a party to an agreement with Canada or New Brunswick, entered into under the CSFAA, the CSLA, or the PSFAA, as applicable.

NB Student Loan” means a Direct Loan or a Student Loan made under the PSFAA.

NSLSC ” means the National Student Loans Service Centre which administers parts of the Financial Assistance programs on behalf of Canada and New Brunswick.

Outstanding Loan Balance” means: (a) when used in the MSFAA-Canada, the principal amount of your full-time Direct Loans outstanding at any time, including any Canada Student Grant amount(s) converted to a Direct Loan, together with all interest on those amounts; or (b) when used in the MSFAA-NB, the principal amount of your full-time Direct Loans outstanding at any time, together with all interest on those amounts.

Prime Rate” means the variable reference rate of interest as calculated by Canada, based on the average of the middle three of the largest five Canadian financial institutions’ prime rate.

PSFAA ” means the New Brunswick Post-Secondary Student Financial Assistance Act and its regulations, as in effect at any given time.

Student Loan” (a) when used in the MSFAA - Canada and in the definition of Canada Student Loan, means any loan made to you by a Lender under the CSFAA or the CSLA, prior to ; and (b) when used in the MSFAA-NB, means any loan made to you by a Lender under the PSFAA, prior to .

Terms and Conditions” when used in the MSFAA-Canada means the applicable sections found in Parts A, B, C, D, E and F of this MSFAA, and when used in the MSFAA-NB means the applicable sections found in Parts A, B, C, D, E and F of this MSFAA, and as may be amended from time to time in accordance with these agreements. Note certain sections contained in this MSFAA will only form part of your MSFAA-Canada or only form part of your MSFAA-NB, respectively.

Part F: Additional terms and conditions of your MSFAA-Canada and MSFAA-NB

6. General principles

Subject to the Terms and Conditions of each of the MSFAA-Canada the MSFAA-NB, and the requirements of the CSFAA and PSFAA, as applicable, you may be eligible for Financial Assistance (with limits on amount and time), and you are not required to make payments nor will interest accrue on the principal amount of your Outstanding Loan Balance while you are a Full-Time Student.

7. Return of money

  1. Refund of Loan Proceeds: You authorize your educational institution to refund to Canada and New Brunswick, as applicable, any fees that have been paid with the proceeds of your Canada Student Loan or Student Grant or NB Student Loan for credit against any Outstanding Loan Balance you may have.
  2. Early Payment: You may pay all or any part of your Outstanding Loan Balance at any time without notice, penalty or bonus.
  3. Payment Terms: Unless you enter into an agreement to alter payment terms, you agree to pay your Outstanding Loan Balance according to the standard payment terms, which are as follows:
    1. Principal and Interest: your Outstanding Loan Balance;
    2. Interest Rate: simple interest will accrue on the principal amount of your Outstanding Loan Balance at a floating rate equal to the Prime Rate plus two and one-half (2½) percent, accruing daily and calculated monthly, unless you enter into an agreement with a fixed interest rate equal to the Prime Rate plus five (5) percent;
    3. Payment Trigger Date: is the first day of the seventh month following the month in which you cease to be a Full-Time Student;
    4. Loan Payment Due Date: is, at the latest, the last day of each month, starting on the seventh month following the month in which you cease to be a Full- Time Student;
    5. Loan Payment Amount: is the monthly payment amount calculated using these payment terms (with a minimum monthly payment of $25 per month for combined MSFAA-Canada and MSFAA-NB loan payments);
    6. Amortization Period: nine and one-half (9½) years or such lesser period of time as is required to support a minimum monthly loan payment amount of $25;
    7. Payment Allocation: payment amounts under this MSFAA will be allocated proportionately to the Outstanding Loan Balance under each of the MSFAA-Canada and the MSFAA-NB, and may be applied first to interest and then to principal;
    8. Final Lump Sum Payment: any amount of your Outstanding Loan Balance that remains at the end of your Amortization Period; and
    9. Prime Rate Variance: if the Prime Rate changes significantly it may result in: (1) your loan being paid in full early; (2) the lengthening of your Amortization Period (to a maximum of fourteen and one-half (14½) years); or (3) you being required to pay a Final Lump Sum Payment.
  4. Interest up to Payment Trigger Date: Unless you pay the interest that accrues between the end of your Full-Time Student status and the Payment Trigger Date, that interest will be added to the principal amount of your Outstanding Loan Balance.
  5. Personal Pre-Authorized Debit: Unless you otherwise agree in writing, upon the Payment Trigger Date, you authorize Canada and New Brunswick to debit your bank account identified in Part C of this MSFAA or such other bank account as advised in writing in order to collect your Outstanding Loan Balance as follows:

    You grant your revocable authority and direction to Canada and New Brunswick, and any financial institution which holds such a bank account, to:
    1. exchange the financial information necessary to facilitate such Personal Pre-Authorized Debits according to the Canadian Payments Association Rule H1; and
    2. debit the bank account on each Loan Payment Due Date, for the Loan Payment Amount in accordance with the payment terms of each of the MSFAA-Canada and the MSFAA-NB, and to remit that as payment to Canada or New Brunswick, as applicable.
    You waive any requirement to receive written pre-notification of Personal Pre-Authorized Debits. You may revoke your authorization at any time, subject to providing 30 days notice. You have certain recourse and reimbursement rights if any debit does not comply with the terms of this section. To obtain a sample cancellation form, or for more information on your right to revoke this authorization and your recourse rights to dispute or receive reimbursement for any debit that is not authorized or is not consistent with the terms of this section, you may contact your financial institution or visit the Canadian Payments Association website. Revocation of your authorization does not terminate your responsibility to pay your Outstanding Loan Balance; it only terminates the method of payment.
  6. Return of Money to You: Subject to any right of set-off, if you have overpaid $10 or more than your Outstanding Loan Balance under each of the MSFAA-Canada and the MSFAA-NB, respectively, you will be issued a refund. Refunds of less than $10 will only be issued on your request.

8. Interest-free period

Subject to Part F, sections F.8(c), F.8(d), F.8(e), and F.11, and the requirements of the CSFAA and the PSFAA, as applicable :

  1. Interest-Free Period: Interest will not accrue while you are a Full-Time Student.
  2. Interest-Free Period Ends: Interest will start to accrue on the principal amount of your Outstanding Loan Balance on the first day of the month following the month in which you cease to be a Full-Time Student.
  3. Interest-Free Period Upon Return to Full-Time Studies: If you return to Full-Time Student status, and you confirm your enrolment as required by the CSFAA :
    1. you may be returned to interest-free status;
    2. any obligations you have in respect of your Outstanding Loan Balance up to your confirmation of enrolment may be suspended; and
    3. if you are returned to interest-free status, you will not be required to make payments nor will interest accrue on the principal amount of your Outstanding Loan Balance while you remain a Full-Time Student, all as specified under the CSFAA or the PSFAA, as applicable.
  4. Maximum Number of Weeks of Interest-Free Status: You are entitled to no more than the maximum number of weeks of interest-free status, as prescribed by the CSFAA. If you return to Full-Time Student status after you have reached the maximum number of weeks, interest will accrue, but you will not be required to start making payments on your Outstanding Loan Balance until the Payment Trigger Date, and you may not be eligible for certain Financial Assistance.
  5. Interest-Free Period Terminated or Denied: Interest will accrue while you are a Full-Time Student if your interest-free period is terminated or denied. Termination or denial of an interest-free period can result if you do not meet the requirements for interest-free status under the CSFAA.

9. Conversion of Canada Student Grant to loan

You acknowledge that all or a portion of your Canada Student Grant(s), may be converted into a Direct Loan if you withdraw from full-time studies within 30 days after the first day of classes or if you receive a Canada Student Grant disbursement that exceeds your eligibility for that grant, and will be added to your Outstanding Loan Balance which you agree to repay in accordance with all applicable Terms and Conditions of the MSFAA-Canada.

10. Information

  1. Notification: You agree to promptly notify Canada and New Brunswick of any change to your family status, financial situation or Full-Time Student status, or to information you have provided in your application for Financial Assistance or in this MSFAA.
  2. Complete Disclosure: You confirm that, to the best of your knowledge, all information that you have disclosed relating to any previous Canada Student Loan(s) or Student Grant(s) or NB Student Loan(s) is accurate and complete.
  3. Acknowledgment and Consent – MSFAA-Canada : You acknowledge that Canada, and any of its contractors or agents, may collect, use, and retain your personal information directly from you, or indirectly from a third party. Your personal information will only be used for the purpose of administering your Financial Assistance under the MSFAA-Canada, and administering and enforcing the CSFAA or CSLA. Your personal information may be exchanged with and disclosed to New Brunswick, financial institutions, lenders, educational institutions, employers, credit bureaus and Canada Revenue Agency. The collection, use, exchange and disclosure will be undertaken as required and in compliance with the Privacy Act, and Part 4 of the Department of Human Resources and Skills Development Act. Where your consent is required by law to permit the direct or indirect collection, retention, use or disclosure of personal information, by your signature on this agreement, you provide your consent.
  4. Acknowledgement and Consent – MSFAA-NB : You acknowledge that your personal information, whether collected from you or from a third party, will be sued by New Brunswick for the purposes of processing your application, determining and verifying your eligibility for student Financial Assistance, administering any Financial Assistance provided to you, including the repayment and collection thereof, and administering and enforcing the PSFAA and regulations thereunder. Also, your personal information may be disclosed for these purposes to any department of the Province, the government or any other province or territory of Canada, the Government of Canada, service provider(s), educational institution(s), financial institution(s), and other agencies and persons.
  5. Authorization: You authorize any of your current, past or future employers to release to Canada, or its contractors or agents, and New Brunswick, information to locate you including your name, SIN, date of birth, banking information, permanent and alternate address, telephone number, employer, and educational institution address for the purpose of enforcing your obligations pursuant to each of the MSFAA-Canada and the MSFAA-NB.

11. Denial, termination and immediate repayment

You agree that the following events may result in you being denied further Financial Assistance, interest-free status or you being required to immediately pay all or part of your Outstanding Loan Balance:

  1. you fail to make a regularly scheduled loan payment by the Loan Payment Due Date in accordance with the payment terms of each of the MSFAA-Canada and the MSFAA-NB, and that failure continues for two consecutive months;
  2. you fail to make any regularly scheduled loan payment(s) by the Loan Payment(s) Due Date in accordance with the payment terms of each of the MSFAA-Canada and the MSFAA-NB, and Canada or New Brunswick demands that you make the payment(s) and you demonstrably and unequivocally refuse to do so;
  3. you file for or have filed against you any bankruptcy-related proceeding;
  4. you seek relief under a provincial law relating to the orderly payment of debts that includes a Canada Student Loan or a NB Student Loan;
  5. you are found guilty of an offence under any Act of Parliament by reason of your conduct in obtaining or repaying a Student Loan or Financial Assistance; or
  6. you knowingly made a false statement or misrepresentation related to your application(s) or other document and Canada or New Brunswick takes administrative measures under section 17.1(1) or (2) of the CSFAA or under the PSFAA, as applicable, you agree to immediately repay the outstanding amount of your Canada Student Loan(s), Canada Student Grant(s) and NB Student Loan(s), as applicable, obtained as a result of making a false statement or misrepresentation.

12. Survival

The MSFAA-Canada and MSFAA-NB will remain in force notwithstanding your entry into or fulfillment of an agreement to alter payment terms or the full payment by you of your Outstanding Loan Balance, subject to the CSFAA and the PSFAA .

13. Miscellaneous

  1. Ratification: If you have entered into any Canada Student Loan or NB Student Loan agreements while you were a minor, by signing this MSFAA, you ratify those agreements.
  2. Previous Outstanding Student Loan Amounts:
    1. You agree that all amounts you owe on previous Direct Loans will be administered and paid under the Terms and Conditions of the MSFAA-Canada and the MSFAA-NB, respectively, and that all such amounts are consolidated into and form part of your Outstanding Loan Balance, as applicable.
    2. You acknowledge that none of the amounts you owe on any Student Loan will be administered or paid under the Terms and Conditions of the MSFAA- Canada or the MSFAA-NB, and that any such amounts do not any part of your Outstanding Loan Balance.
  3. Death: All your rights and obligations under the each of the MSFAA-Canada and the MSFAA-NB in respect of your Outstanding Loan Balance will terminate upon your death.
  4. Governing Law: Subject to the CSFAA and the CSLA and any laws of Canada, the MSFAA-Canada and the MSFAA-NB will be governed by the laws of New Brunswick.
  5. Limitation Period: You acknowledge that the period for the limitation of actions will be : (i) for Canada, six years, and (ii) for New Brunswick, the later of , or two years from the date of any claim arising under this Direct Loan or a previous Student Loan.
  6. Use of Financial Assistance: You acknowledge that the Financial Assistance provided to you under this MSFAA is for the purpose of providing necessities for your education and maintenance.
  7. Severability: Any provision that becomes void or unenforceable will be severed from this MSFAA, and the validity and enforceability of all other provisions will not be affected.
  8. Interest and Costs: You agree to pay all legal fees and disbursements incurred by Canada or by New Brunswick to collect any amount of your Outstanding Loan Balance owing under the MSFAA-Canada or the MSFAA-NB, and you agree to pay interest, as per Part F, section 7(c)(ii), before and after default and delinquency. You agree to pay interest before and after judgment.

Notice of collection of personal information

Information about you under the control of Canada and New Brunswick will be administered in accordance with the Privacy Act (Canada), or the Right to Information and Projection of Privacy Act (New Brunswick), as applicable.

The personal information is collected and used for the administration of the Canada Student Loans Program (CSLP) under the authority of the CSFAA and the CSLA, and in accordance with the Privacy Act and Part 4 of The Department of Human Resources and Skills Development Act.

Administration and enforcement of the CSLP means development and operation of the program, including investigations into allegations of wrongdoing, audits, and policy analysis, research and evaluation. These activities may involve the matching of various sources of data that are under control of the Government of Canada.

The Social Insurance Number (SIN) is collected by the Minister of Human Resources and Skills Development under the express authority of the CSFAA and in accordance with the Treasury Board Secretariat Directive on Privacy Protection regarding use of the SIN. The SIN will be used for the administration of the CSLP under the CSFAA. The SIN will be used as a file identifier and, along with the other information you provide, will also be used to validate your application, and to administer and enforce the CSLP. You must provide your SIN and the other personal information requested on this form to be considered for the CSLP.

You have the right to the protection of and access to your personal information. It will be retained in Personal Information Bank HRSDC PPU 030. Instructions for obtaining this information are outlined in the government publication entitled Info Source. Info Source may also be accessed on-line at any Service Canada Centre.

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