Students (Higher Education) Loans

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

(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 “,

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

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.

(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.

(a) if such student has performed unsatisfactorily at his examinations ;

(b) if such student has conducted himself improperly ; or

(c) if such student’s financial condition has improved since the date on which such student’s name was forwarded to such specified bank in terms of subsection (3) of section 3 or since the grant of the loan, as the case may be,

(1) Where a loan has been granted to a student under section 4, the amount of the loan and the interest due thereon shall be recovered by the appropriate specified bank in accordance with the terms and conditions subject to which such loan was granted :

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, upon being informed by such bank of the amount due as such interest, out of the Funds .

For the purpose of this subsection, ” the date of commencement of repayment” shall be a date falling within four months of obtaining employment or Ms leaving the higher educational institution without completing his course of studies,

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

(3) Where such interest or part thereof has been recovered under subsection (2) from the recipient of the loan or the guarantor of the loan, as the case may be, the manger of such bank shall pay to the Deputy Secretary to the Treasury an amount equal to such recovery.

(4) Where an appropriate 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 proviso to subsection (1), and accordingly the manager of such bank shall remit such sum to the Deputy Secretary to the Treasury.

(a) the address of his place of residence and any change in such address which may occur from time to time, within a period of one month from the date of 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 had 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 and address of the employer, the date of commencement of such employment and the remuneration payable therefor, and like wise, in respect of any change of employment which may take place from time to time ;

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

(1) Every employer, shall, within three months of the date of the coming into operation of this Act, circulate a notice to each of his employees who had secured employment on or after October 1, 1969, inquiring whether or not he had been in receipt of any bank loan for the purpose of higher education, and if so, requiring him to furnish particulars of such loan to the employer and to the General Manager of the bank from which such loan was obtained, and it shall be the duty of each such employee to furnish the said particulars within fourteen days of the receipt by him of such notice.

(2) Upon the coming into operation of this Act, every employer shall, before issuing a letter of appointment to any person selected for employment under such employer, by notice sent through registered post, require such person to declare whether or not he had been in receipt of any bank loan for the purpose of higher education, and if so, to furnish particulars of such loan to the employer and to the General Manager of the bank from which such loan was obtained. It shall be the duty of such person to furnish such particulars within thirty days of the receipt by him of such notice. If such person fails to furnish such particulars within the said period of thirty days, the employer shall not issue a letter of appointment to such person.

(3) Within fourteen days of the receipt of any particulars from any employee under subsection (1) or from a person selected for employment under subsection (2), the employer shall communicate such particulars to the General Manager of the bank concerned.

(4) Upon the receipt of a communication under subsection (3) or whore a specified bank has reasonable grounds to believe that an employee has been the recipient of a loan from such bank under this Act, the specified bank shall serve notice, by registered post on such employer that a certain sum of money shall be deducted from the salary of such employee whether in a lumpsum or in instalments and it shall be the duty of the employer, notwithstanding anything to the contrary in any other written Jaw or any contract between him and the employee to deduct such sum or sums in accordance with the requirements of such notice and to remit such sum or sums of money to the manager of such bank.

(5) Any employer, any employee or any person selected for employment, who fails to comply with the requirements of subsection (1) or subsection (2), or who furnishes false or in accurate particulars, shall be guilty of an offence, and shall on conviction by a Magistrate, be liable to a fine not exceeding one thousand rupees or to a term of imprisonment not exceeding six months or to both such fine and imprisonment.

(6) Where any letter or notice is sent through registered post under the provisions of section 8 or subsection (2) or (i) of this section, such letter or notice shall be deemed to have, been received by the addressee within seven days from the that to on which such letter or notice was posted.

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

Provided, however, that the Secretary to the Ministry of the Minister may release such person from such restriction, if the manager of such specified bank is satisfied that the said recipient ban 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 by a Magistrate, be liable to a fine not exceeding one thousand rupees or to a term of imprisonment not exceeding six, months nr to both such fine and imprisonment.

(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 a recipient of a loan under this Act, or to the guarantor of such a loan to plead, in any action, matter or proceeding before any court of law for the recovery of such loan or part thereof or any interest due thereon, the benefit of any of the provisions of the following enactments :-

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

(3) The guarantor of any loan under this Act shall not be entitled to plead the benefits or privileges afforded to a surety under the laws of Sri Lanka, and shall be deemed to be jointly and severally liable with the recipient of the loan for its re payment.

(1) There shall be established with the Treasury, a Fund to be called the Students (Higher Education) Loan Fund.

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

(1) Where any sum of money due to any specified bank in respect of any loan under this Act, is in the opinion of the Board of Directors of such bank, irrecoverable such Board shall inform the Deputy Secretary to the Treasury in writing that the sum of money specified therein is irrecoverable. Upon receipt of such information, the Deputy Secretary to the Treasury shall pay such sum out of the Fund or from such other source as may be determined by him to the General Manager of such specified bank.

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

Provided, however, that where such sum or part thereof is so recovered by such bank, the manager of such bank shall pay to the Deputy Secretary to the Treasury an amount equal to such recovery.

(a) any student of a higher educational institution, or his parent or guardian, has given any false information to the principal executive officer of that institution in connection with the preparation of lists of names of students under subsection (1) of section 3 ;

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

(c) any recipient of a Joan willfully fails to comply with the provisions of section 8 or in so complying gives false information to the manger of a specified bank in question,

(1) The students (Higher Education)Loan Fund Act, No 4 of 1972, is hereby repealed.

(2) Notwithstanding the repeal of the aforesaid Act-

(a) a University means the Council of that University ;

(b) a University College means the Board of Management of the University College ; and

(c) any other institution referred to in paragraph (b) of subsection (1) of section 2, means the Secretary to the Ministry of the Minister in charge of the subject of Higher Education;

(a) a University, Campus of a University or a University College established or deemed to be established under the Universities Act, No. 16 of 1978, and any successor to an eh 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 purpose of this Act;

(a) a University means the Vice-Chancellor of that University;

(b) University College means the Director of that University College ; and

(c) any other institution referred to in paragraph (b) of subsection (1) of section 2, means the Head of that Institution.