STUDENTS (HIGHER EDUCATION) LOAN FUND

(1) There shall be established with the Treasury, for the purposes of this Act, a fund called the Students (Higher Education) Loan Fund, hereafter in this Act referred to as the ” Loan Fund “.

(2) A general account for the Loan Fund shall be opened and kept at the Treasury in such manner as the Deputy Secretary to the Treasury may direct.

(1) The object of the Loan Fund shall be to facilitate the grant of loans by banks specified under subsection (2), to students of the following educational institutions:-

(2) The Minister may, by Notification published in the Gazette, specify any bank for the purposes of this Act. Any bank so specified is hereafter in this Act referred to as a” specified bank”.

(3) Each of the educational institutions referred to in paragraphs (a), (b) and (c) of subsection (1) is hereafter in this Act referred to as an ” approved institution “.

(1) The administrative authority of each approved institution shall, from time to time, prepare lists of names of students who shall be eligible for receiving loans under this Act, including the amount of loan recommended to each student, and shall forward such lists to the Secretary or any other person or body of persons nominated by the Secretary for the purposes of this Act, and hereafter in this Act referred to as the ” Secretary’s nominee “.

(2) The Minister may give written directions to any approved institution in respect of-

(3) The Secretary or the Secretary’s nominee may, having regard to the moneys available in the Loan Fund and the written directions given by the Minister under subsection (2), approve such lists as have been sent to him under subsection (1) with such additions, deletions, or modifications as he may deem necessary. Where such a list is approved by the Secretary or the Secretary’s nominee, he shall send such list to the manager of any specified bank.

(1) The manager of a specified bank who receives a list of names of students sent to him under the provisions of subsection (3) of section 4, may, subject to the provisions of this Act, grant loans under this Act 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 specified bank.

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

Provided, however, that such bank, shall not charge from any such student a rate of interest higher than the rate fixed for the purposes of this subsection by the Minister with the concurrence of the Minister in charge of the subject of Finance.

(1) Where a loan has been granted to a student under this Act, the amount of the loan and interest due thereon shall be recovered by the specified bank in accordance with the terms of the grant of the loan:

Provided, however, that the interest due on such loan between the date of the grant of the loan and the date of commencement of repayment of such loan shall be paid to such bank annually by the Deputy Secretary to the Treasury out of the Loan Fund.

(2) The receipt by such bank of any interest under the provisions of the proviso to subsection (1) shall not be deemed to preclude such bank from recovering such interest from the recipient of the loan, or the guarantor of the loan, as the case may be.

(3) Where such interest or part thereof has been recovered from the recipient of the loan or the guarantor of the loan, as the case may be, under subsection (2), the manager of such bank shall pay to the Deputy Secretary to the Treasury to be credited to the Loan Fund an amount equal to such recovery, less any legal costs incurred by the bank in such recovery.

(4) Where any specified bank has recovered any sum of money in respect of a loan granted under this Act such sum shall first be applied in liquidation of the liability to repay to the Deputy Secretary to the Treasury the interest received by the bank under the provisions of the proviso to subsection (1), and accordingly, the manager of such bank shall remit such sum to the Deputy Secretary to the Treasury to be credited to the Loan Fund.

(a) the address of his place of residence, with immediate effect, and, any changes in such address that may occur from time to time, within a period of one month from the date of each such change;

(b) where he changes his name, within one month of the date of such change, his new name and the date and manner in which such change has been effected ;

(c) where he engages in any employment, within one month of the date of commencement of such employment, the nature of the employment, the name of the employer, the date of commencement of such employment and the remuneration payable therefor, and likewise, in respect of any changes of employment that may take place from time to time; and

(d) any other information which such manager may consider necessary for the purpose of the recovery of the loan, within such time as the manager may specify in a notice calling for such information from such recipient of the loan.

(1) Where a specified bank serves a notice by registered letter sent through the post, on the employer of a recipient or guarantor of a loan under this Act that a certain sum of money shall be deducted from the salary of the recipient or guarantor of the loan, whether in a lump sum or in installments, it shall be the duty of the employer, notwithstanding anything to the contrary in any other law or any contract between him and the recipient or guarantor of the loan, to deduct such sum or sums in accordance with the requirements of that notice and remit such sum or sums to the manager of such bank.

(2) Where any registered letter is sent through the post in pursuance of the provisions of section 8 or of subsection (1) of this section, such letter shall be deemed to have been received by the addressee within seven days from the date of posting of such letter.

(1) No person who is a recipient of a loan under this Act from a specified bank shall, so long as any sum of money in respect of such loan remains due from him to the said bank, leave Sri Lanka:

Provided, however, that the Secretary may release such person from the preceding restriction if the Secretary is satisfied that the said recipient has furnished good and sufficient security to the satisfaction of such bank.

(2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence under this Act and shall, upon conviction after summary trial by a Magistrate, be liable to a fine not exceeding one thousand rupees.

(3) The provisions of this section shall be in addition to and not in derogation of the provisions of any other written law relating to persons leaving Sri Lanka.

(1) It shall not be open to the recipient of a loan under this Act or the guarantor of such a loan to plead, in any action, matter or proceeding before any court of taw for the recovery of such loan or part thereof or any interest due thereon, the benefit of any of the following statutory provisions:-

(2) The provisions of subsection (1) shall be deemed to be a condition of the grant of a loan under this Act.

(3) Guarantors under this Act shall not be entitled to plead the benefits or privileges afforded to male or female sureties under the law of Sri Lanka and shall be deemed to be jointly and severally liable with the recipient of the loan.

(1) The Deputy Secretary to the Treasury may from time to time lend such sums of money as he deems necessary from the Loan Fund to any specified bank.

(2) In respect of any moneys lent to any specified bank under subsection (1), such bank shall pay interest to the Deputy Secretary to the Treasury to be credited to the Loan Fund at such rate as may be fixed by the Minister in charge of the subject of Finance.

(1) Where any sum of money due to any specified bank in respect of any loan given under this Act is, in the opinion of the general manager of such bank, irrecoverable, the Deputy Secretary to the Treasury shall, upon receiving a notice specifying the sum in question from such general manager, pay such sum out of the Loan Fund to the manager of such bank.

(2) Any such payment by the Deputy Secretary to the Treasury shall not prejudice the rights of such bank to recover such sum of money according to due process of law:

Provided that where such sum or part thereof is so recovered by such bank, the manager of such bank shall pay such sum, less any legal costs incurred by such bank in such recovery, to the Deputy Secretary to the Treasury to be credited to the Loan Fund.

(a) such sums of money as may from time to time, be voted for the purpose by Parliament;

(b) all such sums of money as may be received by way of donations, gifts or grants from any source whatsoever;

(c) all such sums of money as may be received by the Deputy Secretary to the Treasury under the provisions of subsection (3) of section 7;

(d) all such sums of money as may be received by the Deputy Secretary to the Treasury under the provisions of subsection (2) of section 15 ; and

(e) all such sums of money as may be received by the Deputy Secretary to the Treasury under the provisions of the proviso to subsection (2) of section 16.

(a) all such sums of money as may be payable to any specified bank under the provisions of the proviso to subsection (1) of section 7 ;

(b) all such sums of money as are lent to any specified bank under the provisions of subsection (1) of section 15; and

(c) all such sums of money as are payable to any specified bank under the provisions of subsection (1) of section 16.

(a) any student in an approved institution, or his parent or guardian, gives any false information to the administrative authority of that institution in connexion with the preparation of lists of names of students under subsection (1) of section 4; or

(b) any recipient of a loan or his parent or guardian or any other person gives any false information to the manager of a specified bank in connexion with a loan granted or to be granted under this Act; or

(c) any person willfully fails to comply with the provisions of section 8 or, in so complying, gives false information to the manager of the specified bank in question ; or

(d) any person willfully fails to comply with the provisions of subsection (1) of section 9, such person shall be deemed to have committed an offence under this Act, and shall, upon conviction after summary trial by a Magistrate, be liable to a fine not exceeding one thousand rupees :

(a) in relation to a University, means the Vice-Chancellor of that University, and

(b) in relation to any other educational institution, means the Principal or Director of that institution, as the case may be;