Education Loans Policy

TBC
Education Loans Policy
DepartmentFinance
Creation DateSeptember 30, 2008
Approval DateSeptember 30, 2008

Organizational Scope

Michener staff.

Purpose

The Employee Program for Education Loans has been established to provide all Full-Time non-probationary employees access to interest free education funding above and beyond Michener PD funding.

This policy defines the procedures, requirements and responsibilities of employees who apply to the Employee Program for Education Loans.

Policy

  • To make a financing request, an employee should submit an application form to Finance, along with details of the course including course cost and name of the educational facility chosen. Upon approval, the employee will receive a cheque payable to the educational facility in the amount of the loan. The employee will then have 21 days after receipt of the loan in which to provide proof of enrolment. Deductions will commence the pay period after the cheque is issued.
  •  A promissory note must be completed outlining all terms and conditions, the loan amount, repayment schedule and signatures of the employee and Vice-President, Corporate Services & Strategic Advancement.

Repayment of loans

Repayment for education loans will be through bi-weekly payroll deductions. The following scale sets out the term of repayment schedule based on amount requested.

  • One time loan maximum of $3,000. (Minimum $500.)
  • Loans given in increments of $50.
  • Loans $500 to $1,000 to be repaid in 26 pays (i.e. 1 year)
  • Loans $1,050 to $2,000 to be repaid in 39 pays (i.e. 1.5 years)
  • Loans $2,050 to $3,000 to be repaid in 52 pays (i.e. 2 years)

In accordance with the current tax laws, this plan constitutes an interest free loan and imputed interest must be calculated by Michener at Revenue Canada’s prescribed rate, and declared as a taxable benefit on the employee’s T4 information slip.

 

Revision History

Date Reviewer Change(s) Made Policy Location(s)
January 31, 2011 Robin Darling Transfer to new template