Student Loan Contracts – Institution Designations

Scheduled – On Demand – On Site – Online | Register – Order – Contact Us

Presenter: John Boon J.D. – HKMK Law Canada

This training product will be of interest students, institutions and stakeholders that want to know more about student loan systems – especially those impacted by institution designations.

Current loan systems are challenged. There are only so many dollars to lend. Concerns about defaults in certain sectors are often based on an incomplete understanding of real causes. Education service delivery costs continue to rise. Free or even heavily subsidized education is not practical without major system innovations that are slow coming because of the dominance of status quo forces.

Loan and designation systems were not designed for systems that now feature greater numbers of and more diverse public and private education service providers and service products. These trends will accelerate given service demand and more dispersed technical and expertise capacity.

1. The general lack of provincial student loan legislation and system reliance on the federal statute that exists to enhance education access and federal-provincial agreements on institution designation.
2. How loan contracts (private instruments governed by the private law of contract) are relevant to institution designations because they are the source of default risk for lenders. No declared reason for default excuses students from repayment.
3. Government studies that show how student factors impact defaults more than institution factors.
4. The failure of regulators to understand and resolve the real reasons for default.

5. How some institutions get blamed for defaults even though all they control is the education service they provide and even though the vast majority of students do well and don’t default.
6. Unjustified actions of regulators to punish institutions for defaults not of their making.
7. How and why – in our systems of law – we only hold a party responsible or only restrict their actions if they cause or contribute to targeted risks.
8. Factors relied on for institution designation and obligations of lenders and institutions.

9. Flawed loan default data – access to files – evidence of default – the need to verify data.
10. Program finance alternatives to loan programs.
11. Flawed regulatory actions that mix up education service, lending, immigration, job results and other risks – resulting in faulty findings of cause and effect and needless restrictions.
12. How institution efforts to bring down defaults rates often hurts the parties most in need of financial assistance and targeted by the federal CSFAA for support.

13. Failure of upfront risk screens, post-studies risk management (collections) and loan forfeitures.
14. BC judicial review of institution de-designations where the BC Supreme Court held that: the BC government acted in a grossly unfair manner; the federal CSFAA must be adhered to; it would hear additional arguments in the future.
15. Why the same issues remain in BC because changes have not been significant and new laws do not address loan designations.
16. Problems with blank check systems where private party decisions can trigger public expenditures or restrict public decisions and actions.