Budget Implementation Act, 2003 (S.C. 2003, c. 15)

Assented to 2003-06-19

PART 3STUDENT LOANS

1994, c. 28Canada Student Financial Assistance Act

Marginal note:2001, c. 27, s. 219

 Paragraph (a) of the definition “qualifying student” in subsection 2(1) of the Canada Student Financial Assistance Act is replaced by the following:

  • (a) who is a Canadian citizen, a permanent resident within the meaning of subsection 2(1) of the Immigration and Refugee Protection Act or a protected person within the meaning of subsection 95(2) of that Act,

Marginal note:2000, c. 14, s. 19
  •  (1) The definitions “net costs” and “total program net costs” in subsection 14(6) of the Act are replaced by the following:

    “net costs”

    « coût net »

    “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

    • (b) to persons pursuant to regulations made under paragraph 15(p),

    excluding

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

    • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

    B 
    is the estimated aggregate of
    • (a) the amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

    • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

    • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

    • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

    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(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

    • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

    D 
    is the estimated aggregate of
    • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

    • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a).

    “total program net costs”

    « coût net total du programme »

    “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

    • (b) to persons pursuant to regulations made under paragraph 15(p),

    excluding

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

    • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

    B 
    is the aggregate of
    • (a) the estimated amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

    • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

    • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has, in that loan year, cancelled the obligation to pay, in accordance with the regulations, as a result of the death or disability of the borrower, and

    • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

    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(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

    • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

    D 
    is the aggregate of
    • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

    • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a).

  • (2) Subsection 14(7) of the Act is replaced by the following:

    • 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:

      • (a) amounts that are determined as a result of the application of subparagraph 5(a)(viii) or section 7, 10 or 11;

      • (b) amounts in relation to programs established by regulations made under paragraph 15(l), (m), (n) or (p);

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

      • (d) amounts in relation to programs established by regulations made under section 11 of the Canada Student Loans Act.

    • Marginal note:Negative amounts

      (8) If the amount determined by the formula “(A + B) - (C + D)” in subsection (6) would, but for this subsection, be a negative amount, it is deemed to be zero.

 The Act is amended by adding the following after section 16:

Marginal note:Limitation period
  • 16.1 (1) Subject to this section and section 16.2, no action or proceedings shall be taken to recover money owing under a student loan more than six years after the day on which the money becomes due and payable.

  • Marginal note:Deduction and set-off

    (2) Money owing under a student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

  • Marginal note:Acknowledgment of liability

    (3) If a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

  • Marginal note:Types of acknowledgments

    (4) An acknowledgment of liability means

    • (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

    • (b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

    • (c) a part payment by the borrower or his or her agent or other representative of any money owing; or

    • (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

  • Marginal note:Acknowledgment after expiry of limitation period

    (5) If a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (4) after the expiry of the limitation period in respect of the loan, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.

  • Marginal note:Limitation period suspended

    (6) The running of a limitation period in respect of a student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

  • Marginal note:Enforcement proceedings

    (7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

Marginal note:Application
  • 16.2 (1) This section applies only in respect of the recovery of money that became due and payable under a student loan before the coming into force of this section.

  • Marginal note:Limitation period

    (2) Subject to this section, no action or proceedings shall be taken to recover money owing under a student loan more than six years after the day on which the limitation period that applied before the coming into force of this section started to run.

  • Marginal note:Prior acknowledgments

    (3) For the purposes of subsection (2), the day of the most recent acknowledgment of a borrower’s liability in respect of money owing under a student loan is deemed to be the day on which the limitation period started to run if

    • (a) the acknowledgment was made before the coming into force of this section; and

    • (b) under the law applicable at the time of the acknowledgment, the time during which the limitation period ran before the acknowledgment did not count in the calculation of that period.

  • Marginal note:Deduction and set-off

    (4) Money owing under a student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

  • Marginal note:Acknowledgment of liability

    (5) If, on or after the day on which this section comes into force, a borrower’s liability for money owing under a student loan is acknowledged in accordance with subsection (6), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

  • Marginal note:Types of acknowledgments

    (6) For the purposes of subsections (5) and (7), an acknowledgment of liability means

    • (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

    • (b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

    • (c) a part payment by the borrower or his or her agent or other representative of any money owing; or

    • (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

  • Marginal note:Acknowledgment after expiry of limitation period

    (7) If, after the expiry of the limitation period in respect of a student loan — including any limitation period that expired before the coming into force of this section — and on or after the day on which this section comes into force, a borrower’s liability for money owing under the loan is acknowledged in accordance with subsection (6), an action or proceedings to recover the money may, subject to subsections (5) and (8), be brought within six years after the date of the acknowledgment.

  • Marginal note:Limitation period suspended

    (8) The running of a limitation period in respect of a student loan is, commencing on the day on which this section comes into force, suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

  • Marginal note:Statutory bar

    (9) Subject to subsection (7), if the limitation period in respect of a student loan expired before the coming into force of this section, no action or proceeding shall be taken to recover money owing under the loan.

  • Marginal note:Enforcement proceedings

    (10) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.

 
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