Procedures for the Allocation, Repayment and Cancellation of a Study Loan from the Resources of the State Budget

Issued pursuant to
Section 78, Paragraph one, Clause 2, Section 79, Paragraph two and
Section 82, Paragraph one of the Law On Institutions of Higher Education and
Section 12, Paragraph three and Section 14, Clause 4 of the Education Law

I. General Provisions

1. This Regulation prescribes the procedures for the allocation, repayment and cancellation of a study loan from the resources of the State budget (hereinafter - credit).

2. The procedures provided for in this Regulation shall be applicable to students who according to a contract between an institution of higher education and a student are studying for a fee, and Paragraphs 13, 16.¹, 28.¹, 28.², 29 and 48, as well as Chapters VII and IX of this Regulation shall also be applicable to full-time students of a doctoral study programme who have been assigned a scholarship considered as equivalent to a loan for the acquisition of a scientific degree and who have discontinued studies due to personal reasons or have not met other obligations of the contract entered into with the institution of higher education.

[21 January 2003]

II. Loan Recipients

3. Students - citizens of the Republic of Latvia and persons who have a non-citizen passport of the Republic of Latvia - may apply for receipt of a loan if they are successful in acquisition of State accredited study programmes.

4. Loans may be received for the consecutive acquisition of not more than one bachelor degree, one master's degree, one doctoral degree or higher professional qualification and professional degrees of higher vocational education, besides, the period of time shall not be longer than that intended for the acquisition of the relevant study programme.

5. In order to receive a loan, each semester of the academic year a student must acquire not less than 75 per cent of the credit points intended in a study programme for the relevant semester.

6. The persons referred to in Paragraph 3 of this Regulation may receive a loan for studies in foreign states - for the acquisition of study programmes recognised (accredited) by the relevant state.

III. Issuer of a Loan and Financial Resources

7. A loan shall be issued and serviced by the Study and Science Administration - a direct administration authority subordinate to the Ministry of Education and Science.

[17 August 2004; 25 June 2009]

8. A study loan shall be issued from the State basic budget according to the law on the State budget for the current year and from special purpose contributions for particular study programmes. Resources from the State basic budget shall be loaned to the Study and Science Administration according to a loan contract between the Treasury and the Study and Science Administration.

[2 December 2003; 25 June 2009]

9. The Study and Science Administration shall issue loans from the resources of the State basic budget loaned for study loans and from special purpose contributions for a particular study programme. The Study and Science Administration shall administer loans, as well as recover loans and loan interest. The Study and Science Administration shall ensure the circulation and accounting of financial resources, as well as prepare reports on the utilisation of financial resources.

[25 June 2009]

10. The Ministry of Education and Science shall be responsible for recovery and transfer of loans and loan interest to the Treasury within the determined period of time. The Ministry of Education and Science shall delegate the carrying out of the referred-to functions to the Study and Science Administration.

[25 June 2009]

11. Division of loan resources according to study programmes shall be determined by the Ministry of Education and Science in conformity with proposals of such ministries which supervise institutions of higher education.

12. Each year upon preparing proposals for a draft law on the State budget the Ministry of Education and Science shall provide for resources for study loans. The amount of resources assigned for study loans shall be determined in the law on the State budget for the current year.

13. The Study and Science Administration shall transfer the repaid principal amounts of loans, loan interest, as well as amount of contractual penalties to the State budget. The Ministry of Education and Science shall provide for the resources for ensuring activities of the Study and Science Administration, as well as resources necessary in order to cover the difference between the loan of the Study and Science Administration from the State basic budget and the interest rate of the loans issued by the Study and Science Administration in the budget programmes of the ministry.

[25 June 2009]

IV. Conditions for Issuing a Loan

14. The amount of a loan for one student shall not exceed the fee specified for studies. The Ministry of Education and Science shall determine the maximum amount of a loan for each study programme on the basis of the standards of costs of study programmes drawn up by the Ministry of Education and Science.

15. The amount of a loan for the acquisition of such study programmes which are not implemented in institutions of higher education of Latvia shall be determined by the committee of the Study and Science Administration.

[25 June 2009]

16. The loan shall be interest-free during studies. The calculation of loan interest shall be commenced from the twelfth month after completion of the relevant study programme or from the third month after discontinuation of studies, applying an interest rate of five per cent a year. Loan interest shall be calculated each month from the balance of the total amount of the loan.

[27 September 2005]

16.¹ The calculation of interest for a scholarship considered as equivalent to a loan shall be commenced from the third month after exmatriculation for non-fulfilment of the contractual obligations or from the third month after the time period until which the applicant has not acquired scientific degree after matriculation in doctoral studies. Loan interest shall be calculated each month from the balance of the total amount of the loan, applying an interest rate of five per cent a year.

[21 January 2003]

17. A loan contract shall be entered into between the Study and Science Administration and the student, providing for disbursement of the loan throughout the study period. If acquisition of a study programme has not been successful and it is confirmed by the committee allocating loans of the institution of higher education (hereinafter - committee of the institution of higher education) after an examination period, the Study and Science Administration shall discontinue disbursement of the loan.

[25 June 2009]

18. The Study and Science Administration shall transfer the amounts of a loan to the settlement account of the relevant institution of higher education within the time period indicated in the loan contract which has been entered into by and between the student and the Study and Science Administration.

[25 June 2009]

19. Disbursement of a loan shall be discontinued during a sabbatical year, and it may be renewed in the subsequent study year, if the student continues studies successfully. The Study and Science Administration shall discontinue disbursement of the loan if the student is excluded from the list of students.

[25 June 2009]

V. Procedures for Allocating a Loan

20. Student requests for allocating of a loan shall be reviewed by the committee of an institution of higher education, the composition of which includes representatives of the administration, academic staff and student's self-governance of the institution of higher education. The proportion of students in the committee of the institution of higher education shall not be less than 20 per cent.

21. Requests for allocating of a loan for studies in foreign states shall be reviewed by the committee established by the Study and Science Administration, the composition of which includes representatives of the student's self-governance, the Study and Science Administration and the ministries which supervise the relevant institutions of higher education.

[25 June 2009]

22. A student shall indicate the necessary amount of a loan in the request, which shall not exceed the amount of the study fee approved in a statement of the institution of higher education attached to the request.

23. After reviewing the submitted requests the committee of the institution of higher education shall issue a confirmation to each student regarding allocation of a loan within the scope of the loan resources allocated for study programmes. A confirmation regarding allocation of a loan shall be issued once a semester after the relevant examination period, taking into account the results of examinations. A confirmation regarding allocation of a study loan shall be issued to first-year students until the first examination period, taking into account the results of entrance examinations. Information regarding the issued confirmations as regards allocation of a loan shall be open.

24. If two or more students who wish to receive a loan have the same indicators of success, the committee of the institution of higher education shall first and foremost allocate the loan to disabled persons, orphans and persons left without parental care, as well as to students from needy and large families.

25. The committee of the institution of higher education shall fill out a form, the sample of which has been approved by the Minister for Education and Science. Information regarding the issued confirmations for granting loans shall be provided in the form. The Study and Science Administration shall enter into loan contracts with students after verification of the relevant information. The Study and Science Administration shall also enter into loan contracts with such students who have been confirmed in relation to allocating a loan by the committee of the Study and Science Administration. In order to enter into a loan contract, the student must present a personal identification document - passport.

[25 June 2009]

VI. Procedures for Provision of Reports

26. The Study and Science Administration shall once a quarter inform the committee of the institution of higher education in writing regarding loan contracts entered into.

[25 June 2009]

27. The committee of the institution of higher education shall once a semester notify the Study and Science Administration in writing regarding amendments to the list of loan recipients or confirm that there have been no changes. The students studying abroad shall provide information to the Study and Science Administration once a year but not later than until 1 September.

[25 June 2009]

28. The committee of the institution of higher education shall fill out the form drawn up by the Study and Science Administration once a year but not later than until 15 October. Information regarding the number of loan recipients in study programmes shall be provided in the form.

[25 June 2009]

28.¹ An institution of higher education shall once a year but not later than until 1 November fill out the form drawn up by the Study and Science Administration for full-time students of a doctoral study programme who have entered into a contract with the institution of higher education regarding receipt of a scholarship equivalent to a loan for the acquisition of scientific degree, and lodge the filled-out form to the Study and Science Administration.

[21 January 2003; 25 June 2009]

28.² Within a month after exmatriculation or after the term laid down in the contract for the acquisition of scientific degree the institution of higher education shall submit a list to the Study and Science Administration in which such full-time students of a doctoral study programme are indicated who have been exmatriculated from the institution of higher education due to non-fulfilment of contractual obligations or personal reasons or who have not acquired scientific degree in doctoral studies within the time period after matriculation laid down in the contract. In such case the institution of higher education shall lodge certified copies of the relevant contracts to the Study and Science Administration.

[21 January 2003; 25 June 2009]

29. The Study and Science Administration shall carry out accounting of credit resources and lodge a report to the Ministry of Education and Science in accordance with the procedures laid down in the by-law of the fund on the loans issued, repayment of loans and loan interest, as well as on overdue loans and loan interest payments.

[25 June 2009]

VII. Procedures for Repayment of a Loan

[27 September 2005]

30. Repayment of a loan shall be commenced not later than:

30.1. from the third month after discontinuation of studies;

30.2. from the twelfth month after completion of the relevant study programme;

30.3. from the third month after the term laid down in the contract for acquisition of a scientific degree, if a doctoral students has not acquired scientific degree.

31. If a loan recipient has acquired several study programmes referred to in Paragraph 4 of this Regulation in succession and a break between the end of one study programme and the beginning of the other study programme does not exceed 11 months, repayment of the loans taken for the studies shall be commenced from the twelfth month after completion of the last study programme.

32. If a loan recipient has acquired several study programmes referred to in Paragraph 4 of this Regulation in succession and a break between the end of one study programme and the beginning of the other study programme does not exceed 11 months, repayment of the loans taken for the studies of the last study programme shall be commenced from the twelfth month after completion of such study programme, but the loans received for the acquisition of the previous study programmes - from the third month after completion of the last study programme.

33. Repayment of the principal amount of the loan and of the interest shall be administered by the Study and Science Administration, and it shall take place according to an agreement regarding repayment schedule of the loan which is entered into by and between the loan recipient and the Study and Science Administration prior to the beginning of repayment of the loan. The need for an agreement shall be determined in the contract entered into by the doctoral student with the institution of higher education.

[25 June 2009]

33.¹ A loan recipient shall repay the loan to the Study and Science Administration within 10 years, paying every year one tenth of the total loan amount and loan interest. Payments shall be made each month.

[25 June 2009]

33.² A loan recipient may repay a loan and loan interest before the term laid down in the loan contract. The amounts repaid before the term laid down in the loan contract shall be transferred for repayment of the principal amount. If a loan recipient does not make payments after the referred-to payment before term, the interest calculated for each subsequent month shall be deducted from the referred-to payment before term, increasing the balance of the principal amount accordingly. A loan may be repaid by a loan recipient or another natural or legal person.

[11 January 2011]

33.³ It shall be determined in a loan contract that for each day of delay a loan recipient shall pay contractual penalty in the amount of 0.1 per cent from the amount not paid on time and contractual penalty in the amount of one percent from the unpaid loan amount, if the loan recipient does not provide information regarding being on maternity leave, being on child care leave up to one and a half years of age (if does not work full time), continuation of studies for the acquisition of bachelor, master's, doctoral degree or qualification of higher vocational education, vocational degree or studies in residency.

[11 January 2011]

33.⁴ If a court adjudication regarding debt recovery has entered into lawful effect and a bailiff has issued an executive document back to the Study and Science Administration and an act in which it is indicated that the loan recipient does not have property or income for directing recovery, the liabilities of the Study and Science Administration regarding repayment of the loan to the Treasury shall be cancelled from the resources of the State budget according to the sum to be recovered indicated in the court adjudication. The Study and Science Administration shall register the loan, interest and contractual penalty debts referred to in this Paragraph for 10 years after receiving back the executive document.

[25 June 2009]

33.⁵ The Study and Science Administration shall supervise the financial standing of such loan recipient for 10 years against whom debt recovery has been directed, requesting once a year information from the State Revenue Service regarding tax payments made by the loan recipient. If tax payments have been made, the Study and Science Administration shall send an executive document to a bailiff for carrying out of recovery. If tax payments have not been made for a long period of time, the Study and Science Administration shall once in five years send an execution document to the bailiff for re-enforcement. The Study and Science Administration shall transfer the recovered amounts of loan debt into the account indicated by the Treasury.

[6 January 2009; 25 June 2009]

33.⁶ The amount of contractual penalty to be recovered from a loan recipient for non-fulfilment of the obligations stipulated in the credit contract shall not exceed 100 per cent from the credit amount issued.

[11 January 2011]

VIII. Cancellation of Loan

34. Loan recipients who according to the academic or vocational education acquired become employees in State or local government institutions, as well as in medical treatment institutions providing health care services paid from the State budget, institutions of non-governmental sector which fulfil a State or local government order in the provision of social services, as well as in private pre-school education institutions may apply for cancellation of a loan from the resources of the State budget. The list of professions and the number of specialists shall be approved by an order of the Cabinet each year, taking into account the proposition of the relevant ministries.

[6 January 2009]

35. The ministries shall prepare and submit to the Ministry of Education and Science proposals regarding the number of such specialists for whom cancellation of a loan must be commenced in the relevant year. In preparing the referred-to proposals, the ministries shall take into account the proposals submitted by local governments regarding specialists working in the institutions of local governments, as well as evaluate provision with specialists in each profession.

36. Each year the Ministry of Education and Science shall prepare a draft order of the Cabinet regarding cancellation of loans, taking into account the proposals of the ministries. Each year the Cabinet shall approve the list of professions and the number of specialists for whom cancellation of a loan will be commenced from the resources of the State budget in the relevant professions.

37. Taking into account the number of specialists approved by the Cabinet, for whom cancellation of a loan from the resources from the State budget will be commenced, the ministries shall prepare and submit proposals for reviewing in the Committee for Cancellation of Loans regarding the number of the relevant specialists and work places.

38. The Committee for Cancellation of Loans shall be established by the Minister for Education and Science. The committee shall include delegated representatives of the relevant sectoral ministries, as well as representatives of the Study and Science Administration.

[25 June 2009]

39. The Committee for Cancellation of Loans shall evaluate whether proposals of the ministries regarding the number of specialists and work places conform to the list of professions and number of specialists approved by the Cabinet, and approve the list of work places and the number of specialists for which cancellation of a loan shall be commenced from the resources of the State budget (hereinafter - list).

40. The ministries shall send the list to the institutions of higher education, which prepare the relevant specialists, as well as to the institutions of State and local government, where the work places referred to in the list are located.

41. If it is necessary to make amendments in relation to the work places referred to in the list (maintaining the same number of specialists determined in the list), the ministries shall co-ordinate amendments with the Committee for Cancellation of Loans.

42. Upon confirmation of an application regarding cancellation of a loan 10 per cent from the total amount of the loan shall be cancelled for a loan recipient for each year worked in the relevant profession after completing studies. If a loan recipient is working part-time, but not less than half of the regular working hours, part of the loan amount to be repaid in the relevant year in proportion to the working hours shall be cancelled for him or her for each year worked in the relevant profession after completing studies.

[11 January 2011]

43. Loan recipients for whom cancellation of a loan from the resources of the State budget will be commenced in the relevant year shall be determined by competition procedures. The competition shall be announced by the State and local government institutions in which the work places referred to in the list are located. Conditions and criteria for the competition, by which the specialists are evaluated, shall be determined by the announcer of a competition, providing that the main criteria are appropriate academic or vocational education and work experience in the relevant profession.

44. A loan recipient shall lodge a statement (Annex) to the Committee for Cancellation of Loans and provide information regarding amount of the loan received and repaid and amount of interest.

45. The Committee for Cancellation of Loans shall review the documents referred to in Paragraph 44 of this Regulation and within a month of the date of lodging thereof shall provide an opinion in writing to the submitter and the Committee for Cancellation of Loans.

[25 June 2009]

46. The Ministry of Education and Science shall transfer the resources necessary for cancellation of loans to the Treasury account once a quarter according to the list lodged by the Committee for Cancellation of Loans and approved.

47. Each year in preparing proposals for a draft law on the State budget the Ministry of Education and Science shall provide for resources for the cancellation of study loans. The amount of resources assigned for the cancellation of study loans shall be determined in the law on the State budget for the current year.

48. Loans, loan interests and contractual penalty shall be cancelled, if a loan recipient is dead or has become the first or second group disabled person.

[27 September 2005]

IX. Extending the Time Period for Repayment of a Loan

49. The time period for repaying a loan shall be extended and interest shall not be accounted for the time period while a loan recipient:

49.1. [11 January 2011];

49.2. is on maternity leave;

49.3. is on parental leave up to the age of one and half years and does not work full time;

49.4. continues studies for the acquisition of bachelor, master's, doctoral degree or qualification of higher vocational education, vocational degree and studies in residency.

[2 December 2003]

50. If the status of an unemployed person has been granted to a loan recipient, the period of time for repayment of a loan shall be extended for the actual time period of unemployment, but not more than two years.

[11 January 2011]

51. The Study and Science Administration shall extend the time period for repayment of a loan on the basis of documents lodged by a loan recipient, which attest the justification for extending the time period for repayment of a loan determined in Paragraphs 49 and 50 of this Regulation.

[25 June 2009]

X. Closing Provisions

52. The procedures for the cancellation of loans, which have been laid down in Paragraphs 37, 39, 40, 41 and 43 of this Regulation shall come into force from 1 January 2002.

53. Loan contracts with students shall be entered into until 31 July 2001.

54. Until expiry of term of operation of the loan contracts entered into disbursement and repayment of such loans shall be continued according to the loan contracts entered into.

54.¹ The Cabinet order referred to in Paragraph 34 of this Regulation, by which the list of professions and the number of specialists is approved, for whom cancellation of a loan from the resources of the State budget will be commenced in the relevant year, shall be prepared, as well as the activities referred to in Paragraphs 35, 36 and 37 of this Regulation shall be carried out by ministries starting from January 2013.

[11 January 2011]

55. Cabinet Regulation No. 86 of 9 March 1999, Regulations Regarding Study Loans (Latvijas Vēstnesis, 1999, No. 75/78, No. 313/315), is repealed.

Prime Minister A. Bērziņš

Minister for Education K. Greiškalns

Annex
Cabinet Regulation No. 219
29 May 2001

Statement Regarding Principal Place of Work of Loan Recipient

Minister for Education K. Greiškalns

Translation © 2014 Valsts valodas centrs (State Language Centre)