Student Assistance Act 1973

If the Secretary decides that the student to whom a notice is given under subsection 12R(1) failed to notify the Department under subsection 48(1) that he or she had ceased to be an eligible student within 14 days after he or she so ceased, the Secretary may give written notice of the decision to the student and to the corporation.

If notice is so given, then, unless the decision of the Secretary under subsection (1) is set aside or varied:

the corporation’s rights in respect of the student under the contract that relate to financial supplement paid by the corporation to the student after the end of the date stated in the notice given by the Secretary to the student under subsection 12R(1) and before the end of the period of 4 weeks referred to in paragraph 12R(2)(b) (wrongly paid financial supplement) are assigned to the Commonwealth, by force of this paragraph, at the time when the notice was given to the corporation; and

any actual repayments of financial supplement made by the student before the notice was given to the student are taken to have been made:

first, in or towards repayment of the wrongly paid financial supplement; and

secondly, to the extent (if any) to which the sum of those repayments exceeded the amount of the wrongly paid financial supplement, in or towards repayment of the remainder of the financial supplement paid to the student under the contract; and

the Commonwealth is liable to pay to the corporation in respect of the rights referred to in paragraph (a), the amount of any wrongly paid financial supplement that has not been repaid; and

the student is liable to pay to the Commonwealth an amount equal to the sum of:

the amount that the Commonwealth is liable to pay to the corporation under paragraph (c); and

the part of the total subsidy paid by the Commonwealth to the corporation in respect of the financial supplement paid to the student under the contract that was paid in lieu of interest on the principal sum in respect of the period beginning at the end of the period of 14 days referred to in subsection (1) and ending at the end of the period of 4 weeks referred to in paragraph 12R(2)(b).

Nothing in this section affects the operation of section 12R.