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17 The Governor in Council may make regulations

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• (b) prescribing in accordance with paragraph 7(f) the provisions to be included in agreements between borrowers and lenders relating to guaranteed student loans;

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• (e) prescribing, for the purposes of section 6, the rate of interest, or the manner of determining the rate of interest, payable by the Minister on a guaranteed student loan or a class of guaranteed student loans;

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• (g) prescribing, in the event of default in the repayment of a guaranteed student loan, the measures to be taken by the lender and the procedures to be followed for the collection of the amount of the loan outstanding and accrued interest;

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• (j) respecting the subrogation of Her Majesty to the rights of a lender with respect to a guaranteed student loan;

• (k) prescribing the maximum number of periods of studies that may elapse after which, notwithstanding anything in this Act, the principal amount of a guaranteed student loan made to a full-time student and interest thereon shall commence to be payable by the borrower;

• (k.1) respecting the circumstances in which an amount on account of principal or interest is not required to be paid in respect of guaranteed student loans;

• (l) respecting, for the purposes of subparagraph 7(e)(i), criteria, parameters, or the incorporation by reference of such established lender practices as are specified, in respect of the repayment of guaranteed student loans made to full-time students;

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• (n) prescribing the period within which a lender shall make a claim against the Minister in respect of the amount of any loss sustained as a result of a guaranteed student loan and prescribing the amount or proportion by which any amount to be paid by the Minister to a lender pursuant to section 7 shall be reduced where the lender fails to make a claim within the prescribed period;

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• (q) providing for the repayment of guaranteed student loans by borrowers or classes of borrowers on an income-contingent basis;

• (q.1) providing, in respect of student loans made to full-time and part-time students, for the gratuitous payment, including the method of calculating it, whether conditionally or unconditionally, by the Minister to lenders of amounts in respect of those loans, and for the discharge of those loans to the extent of those amounts;

• (q.2) prescribing the amount that may be forgiven in respect of a year under section 11.1 in respect of a guaranteed student loan;

• (q.3) prescribing the maximum number of years in respect of which amounts may be forgiven under section 11.1 in respect of a guaranteed student loan;

• (r) defining the expressions family physician , full-time student, nurse , nurse practitioner , part-time student, responsible officer of a lender and under-served rural or remote community for the purposes of this Act;

• (r.1) prescribing the circumstances in which a borrower ceases to be a full-time student;

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• (s.2) respecting the circumstances in which no amount on account of principal or interest is required to be paid by members of the reserve force in respect of their guaranteed student loans;

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Marginal note:Alternative payment

• 16 (1) Where the government of a province has, at least twelve months before the commencement of a loan year, informed the Minister in writing that a provincial student loan plan will be in operation in that province in that loan year and that no appropriate authority for that province will be designated for that loan year for the purposes of this Act, the Minister shall pay to the province, not later than six months after the end of that loan year, an alternative amount calculated as provided in this section.

• (2) An alternative amount for a province for a loan year beginning before August 1, 1991 is the amount, as determined by the Minister after consultation with the Chief Statistician of Canada, obtained by

  • (a) multiplying

    • (i) subject to subsection (3), the aggregate of all amounts paid by the Minister in that loan year to lenders under sections 6, 7 and 8, paragraph 10(b), as that paragraph read from time to time before April 1, 2023, and sections 12 and 13, and to collection agencies, in respect of guaranteed student loans made on the basis of certificates of eligibility issued or caused to be issued by the appropriate authorities for participating provinces that issued or caused to be issued such certificates in that loan year, minus all amounts collected by or on behalf of His Majesty in that loan year in respect of those loans,

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  • (b) subtracting from the product obtained under paragraph (a) the result obtained when that product is multiplied by the quotient obtained by dividing

    • (i) the total amount of guaranteed student loans authorized by that province in the preceding three years

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    • (ii) the total amount of guaranteed student loans authorized by all participating provinces in the same period.

• Marginal note:Exception

  (3) The amounts described in subparagraph (2)(a)(i) that were paid or collected in respect of a loan made to a part-time student or that were paid under paragraph 10(b), as it read from time to time before April 1, 2023, shall be included in the calculation set out in subparagraph (2)(a)(i) only if the government of the province satisfies the Minister that the provincial student loan plan includes provisions having substantially the same effect as the provisions of this Act relating to loans to part-time students or to the granting of special interest-free periods to borrowers respectively.

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• (5) For the purposes of subparagraph (4)(a)(ii),

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  • (b) the escalator for the first loan year in which a provincial student loan plan will be in operation in the province and no appropriate authority for the province will be designated for the purposes of this Act is a fraction of which

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• (6) In this section,

  net costs

  net costs , for a province for a loan year, means, subject to subsection (7), the amount by which

  • (a) the estimated aggregate of all amounts paid by the Minister in that loan year to lenders under sections 6, 7 and 8, paragraph 10(b), as that paragraph read from time to time before April 1, 2023, and sections 12 and 13, and to collection agencies, in respect of guaranteed student loans made on the basis of certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province

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  total program net costs

  total program net costs , for a loan year, means the amount by which

  • (a) the aggregate of all amounts paid by the Minister in that loan year to lenders under sections 6, 7 and 8, paragraph 10(b), as that paragraph read from time to time before April 1, 2023, and sections 12 and 13, and to collection agencies, in respect of guaranteed student loans made on the basis of certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces

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• Marginal note:Exception

  (7) The amounts described in paragraphs (a) and (b) of the definition net costs in subsection (6) that were paid or received in respect of a loan made to a part-time student or that were paid under paragraph 10(b), as it read from time to time before April 1, 2023, shall be included in the calculation described in that definition only if the government of the province satisfies the Minister that the provincial student loan plan includes provisions having substantially the same effect as the provisions of this Act relating to loans to part-time students or to the granting of special interest-free periods to borrowers respectively.

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Marginal note:Regulations

• 15 (1) The Governor in Council may make regulations

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  • (e) providing for the conditions to be met before a disbursement in respect of a student loan may be made;

  • (e.1) defining the term “financial institutions” for the purposes of section 6.3 and providing for the circumstances under which financial institutions may disburse student loans to qualifying students;

  • (f) prescribing the maximum number of weeks or periods of studies that may elapse after which, notwithstanding anything in this Act, the principal amount of a student loan made to a full-time student, and interest thereon, commence to be payable by the borrower;

  • (f.1) respecting the circumstances in which an amount on account of principal or interest is not required to be paid in respect of student loans;

  • (g) prescribing the circumstances in which a borrower is or ceases to be a full-time student;

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  • (i) prescribing the circumstances under which a loan or a certificate of eligibility may be denied to a student;

  • (j) prescribing student loans to which section 8, 10 or 11 or subsection 12(4) applies;

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  • (k.1) respecting the circumstances in which no fees may be charged to members of the reserve force on their student loans;

  • (k.2) respecting the circumstances in which no amount on account of principal or interest is required to be paid by members of the reserve force in respect of their student loans;

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  • (l) providing, in respect of student loans made to full-time and part-time students, for the gratuitous payment, including the method of calculating it, whether conditionally or unconditionally, by the Minister to lenders of amounts in respect of such loans, and for the discharge of such loans to the extent of those amounts;

  • (m) notwithstanding any other provision of this Act, providing for the operation of a student loan program for part-time students, including the determination of a student’s status, terms of repayment of the loans, the advancement of loan funds and the maximum number of weeks or periods of studies that may elapse after which the principal amounts of the loans commence to be payable by the borrowers;

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  • (o) providing, in respect of any province, for repayment of student loans by borrowers or classes of borrowers on an income-contingent basis, or for the establishment and operation of a student loan program that is financed by Her Majesty in right of Canada or any agent of Her Majesty in right of Canada and that may provide for the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

  • (o.1) prescribing the amount that may be forgiven in respect of a year under section 9.2 in respect of a student loan;

  • (o.2) prescribing the maximum number of years in respect of which amounts may be forgiven under section 9.2 in respect of a student loan;

  • (p) providing for the establishment and operation of grant programs, and additional grant programs for qualifying students whose financial needs are greater than the maximum amount of the financial assistance that may be given to the student, for the classes of persons who are eligible for grants and for the circumstances in which all or part of a grant is to be repaid or converted into a loan;

• Marginal note:Maximum aggregate amount of outstanding student loans

  (1.1) On the Minister’s recommendation with the Minister of Finance’s concurrence, the Governor in Council may make regulations, for the purposes of section 13,

  • (a) prescribing the aggregate amount of outstanding student loans that may not be exceeded; and

  • (b) prescribing the student loans that are to be considered for the purposes of determining, at a given time, the aggregate amount of outstanding student loans.

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Marginal note:Alternative payment

• 14 (1) Where the government of a province has, at least twelve months before the beginning of a loan year, notified the Minister in writing that a provincial student financial assistance plan will be in operation in that province in that loan year and that it does not wish, or no longer wishes, to participate in the plan established by this Act and the regulations, the Minister shall pay to the province, not later than six months after the end of that loan year and each following loan year in which it does not participate in the plan, an alternative amount for the loan year, calculated as provided in this section.

• Marginal note:Non-participating provinces

  (2) The government of a province that, on the coming into force of this section, is not participating in the student loan plan established by the Canada Student Loans Act is deemed to have notified the Minister as described in subsection (1) in respect of the loan year in which this section comes into force.

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• (5) For the purposes of subparagraph (4)(a)(ii),

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  • (b) the escalator for the first loan year in which a provincial student financial assistance plan will be in operation in the province, as stated in the notice under subsection (1), is a fraction of which

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• (6) In this section,

  net costs

  net costs , for a province for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A 

  is the estimated aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and

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  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  C 

  is the estimated aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  total program net costs

  total program net costs , for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A 

  is the aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces, and

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  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  C 

  is the aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

• Marginal note:Exception

  (7) The following amounts shall be included in the calculations described in the definitions net costs and total program net costs in subsection (6) only if the government of the province satisfies the Minister, by written notice received by the Minister before the beginning of the loan year in question, that, in relation to the matter in question, the provincial student financial assistance plan has substantially the same effect as the plan established by this Act and the regulations:

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  • (c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(1)(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis.

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• 7.01 (1) A borrower who ceases to be a full-time student under paragraph 8(1)(c) due to the occurrence of an event referred to in paragraph 15(1)(a), (b) or (i) cannot again become a full-time student unless the requirements in paragraphs 16(1)(a) to (d) are met, in addition to those set out in section 7.

• (2) A borrower who ceases to be a full-time student under paragraph 8(1)(c) due to the occurrence of an event referred to in any of paragraphs 15(1)(c) to (g) cannot again become a full-time student unless one of the requirements in paragraphs 16(2)(a) to (d) is met, in addition to those set out in section 7.

• (3) A borrower who ceases to be a full-time student under paragraph 8(1)(c) due to the occurrence of an event referred to in paragraph 15(1)(h) cannot again become a full-time student unless the requirements in paragraphs 16(3)(a) to (d) are met, in addition to those set out in section 7.

• (4) If a borrower who ceases to be a full-time student under paragraph 8(1)(c) was a minor when they received a risk-shared loan and has refused to ratify that loan, and the Minister has made a payment to the lender pursuant to subparagraph 5(a)(ix) of the Act in respect of that loan, the borrower cannot again become a full-time student unless the requirements in paragraphs 16(4)(a) and (b) are met, in addition to those set out in section 7.

• (5) If a borrower who ceases to be a full-time student under paragraph 8(1)(c) was a minor when they received a direct loan and has refused to ratify that loan, the borrower cannot again become a full-time student unless the requirements in paragraphs 16(4.1)(a) and (b) are met, in addition to those set out in section 7.

• (6) A borrower who ceases to be a full-time student under paragraph 8(1)(c) due to the occurrence of an event referred to in paragraph 15(1)(k) cannot again become a full-time student unless the requirement in subsection 16(4.2) is met, in addition to meeting the requirements set out in section 7.

• (7) If a judgment has been obtained against a borrower, the borrower cannot again become a full-time student unless the requirements in subsection 16(5) are met, in addition to those set out in section 7.

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