These regulations are the Credit Contracts and Consumer Finance (Student Loan Contract Exemption) Regulations 2010.

These regulations come into force on 4 November 2010.

(1) In these regulations, unless the context otherwise requires, student loan contract means any loan agreement or contract entered into by the lender and a borrower under the student loan scheme on or after 4 November 2010.

(2) Any term or expression that is defined in the Student Loan Scheme Act 1992 and used, but not defined, in these regulations has the same meaning as in the Student Loan Scheme Act 1992.

(1) Student loan contracts are prescribed as a class of credit contract that is exempted from being a consumer credit contract under the Credit Contracts and Consumer Finance Act 2003.

(2) However, the exemption only applies to a student loan contract if the terms and conditions in regulations 5 to 12 are complied with in relation to that contract.

The loan manager must provide a borrower with a copy of the borrower's student loan contract—

• (a) before the contract is entered into; or

• (b) before the day that is 6 working days after the day on which the contract is entered into.

(1) The loan manager or the Commissioner must disclose the information set out in regulation 7 to the borrower under a student loan contract.

(2) The information must—

• (a) be disclosed at least once in each 6-month period following the day on which the contract is entered into; and

• (b) relate to the previous 6-month period.

Each disclosure of information in accordance with regulation 6 must contain as much of the following information as is applicable to the borrower or the student loan contract:

• (a) the opening and closing dates of the period covered by the disclosure (the opening and closing dates); and

• (b) the loan balance on the opening and closing dates; and

• (c) the date and amount, and a description, of each amount advanced to the borrower under the contract during the period covered by the disclosure; and

• (d) the date and amount of any interest charged to the borrower during the period covered by the disclosure; and

• (e) the total interest rate that applies during the period covered by the disclosure; and

• (f) the date and amount, and a description, of each fee charged to the borrower during the period covered by the disclosure; and

• (g) the date and amount, and a description, of each penalty charged to the borrower during the period covered by the disclosure.

(1) Subclause (2) applies if—

• (a) a change is made to a borrower's obligations under a student loan contract; and

• (b) that change increases the borrower's obligations under that contract in a more than minor way, including a change to—

  • (i) the borrower's repayment obligations; or

  • (ii) the repayment percentage; or

  • (iii) the total interest rate; and

• (c) that change is made—

  • (i) without the borrower's prior agreement; or

  • (ii) by, or as a consequence of, an enactment.

(2) Details of the change must be disclosed to the borrower within 7 months after the day on which the change is made.

(1) Disclosure under regulations 6 to 8 must be made—

• (a) by means of information that is printed, typewritten, or otherwise visibly represented, copied, or reproduced on paper and is given by personal delivery or post; or

• (b) by an electronic means, if the person making the disclosure complies with the Electronic Transactions Act 2002, including by email, the Internet (if the borrower for whom the disclosure is intended is directly alerted to it in some manner), or fax.

(2) Despite subclause (1)(b) of this regulation and section 16 of the Electronic Transactions Act 2002, the consent of a borrower is not required in order for disclosure to be made in an electronic form.

(3) However, subclause (1) does not apply if the loan manager or the Commissioner, as applicable, cannot reasonably locate the borrower.

Disclosure under regulation 8 must also be made—

• (a) by providing the information free of charge on an Internet site that allows a borrower to access the information at all reasonable times; and

• (b) by giving public notice that the information is available on that Internet site.

If disclosure is made in accordance with regulations 6 to 10, the requirements to disclose under those regulations are satisfied regardless of whether the borrower receives the information that was disclosed.

A student loan establishment fee charged by the loan manager to a borrower under a student loan contract must not exceed $60.