Students unable to complete a Student Loan Contract
Signing the contract
A student wishing to access a Student Loan is normally required to sign and date the Student Loan Contract as a Student Loan is provided via a contract between the student and the Crown.
Temporary inability to sign the contract
If the student is temporarily unable to sign and date the contract it can be deferred until they are able to do so.
However if deferral prevents them from commencing study, the Student Loan Contract may be completed by a third party on the applicant's behalf, using the agents form.
Permanent inability to sign the contract
If a student is permanently unable to sign and date the contract the Student Loan Contract may be completed by a third party on the applicant's behalf, using the agents form. This would generally apply in situations where a student has a physical or intellectual incapacity to complete the contract themselves.
For more information see:
Mental incapacity
For students, whose mental incapacity means they are unable to make decisions and manage their own property affairs, an agent can act as a property manager under part 4 of the Protection of Personal and Property Rights Act 1988, or as an attorney in relation to property, acting under an enduring power of attorney under Part 9 of that Act.
MSD responsibilities
MSD are responsible for ensuring we address any questions or issues we are aware of that suggest a student may not have the necessary understanding to enter into a Student Loan Contract.
If a question about the capability or understanding of a student about the nature, implications and obligations of a Student Loan Contract were to be tested in court, a contract may be determined to be unenforceable.
If you have any concerns or questions about a student's understanding of the terms of the contract, or the activities or role of an agent, seek advice from your manager.
