Canada Student Loans Regulations

9 (1) Subject to subsection (8), the outstanding principal and any accrued interest in respect of a guaranteed student loan become payable

• (a) where the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2) and the borrower does not fulfil the requirements of subsection 3(1) before a judgment is obtained against the borrower and such that the confirmed period on the confirmation of enrolment referred to in paragraph 3(1)(a) begins on or before the last day of the six-month period after the month in which the borrower ceased to be a full-time student, on the day following the last day of that six-month period;

• (b) where the borrower fails to make a payment pursuant to the borrower's guaranteed student loan agreement or these Regulations and the borrower does not fulfil the requirements of subsection 3(1) before a judgment is obtained against the borrower and such that the confirmed period on the confirmation of enrolment referred to in paragraph 3(1)(a) begins on or before the day that is two months after the day of that failure, on the day following the last day of that two-month period;

• (c) where the borrower makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act to have made an assignment, or is the subject of a receiving order, on the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;

• (d) if the borrower makes a proposal under Division I of Part III of the Bankruptcy and Insolvency Act that is approved by a court under that Act, on the day on which the proposal is approved;

• (e) if the borrower makes a consumer proposal under Division II of Part III of the Bankruptcy and Insolvency Act that is approved or deemed approved by a court under that Act, on the day on which the consumer proposal is approved or deemed approved;

• (f) if the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes a guaranteed student loan or a student loan, on the day on which the order is issued;

• (g) where the borrower seeks relief under a provincial law relating to the orderly payment of debts, on the day on which the document seeking relief is filed;

• (h) where the borrower is, by reason of the borrower's conduct in obtaining or repaying a guaranteed student loan or student loan, found guilty of an offence under any Act of Parliament, on the day of the finding of guilt;

• (i) where the borrower fails to comply with paragraph 21.1(1)(c), on the last day of the period referred to in that paragraph;

• (j) in the case provided in subsection 11(1), on the day on which the borrower ceases to be a full-time student pursuant to section 4.1; or

• (k) if the borrower has been granted a reduction of the principal amount of a student loan or guaranteed student loan under section 42.1 of the Canada Student Financial Assistance Regulations, or of a risk-shared loan or a guaranteed student loan that entitled the borrower's lender to a gratuitous payment under section 30.1 of these Regulations or under section 42 of the Canada Student Financial Assistance Regulations, on the day on which the reduction is granted.

(2) Where the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable pursuant to paragraph (1)(a) or (b), the lender may, without discharging the liability of the Minister to the lender under the Act,

• (a) offer to alter, with the consent of the borrower and in writing, in accordance with subsection 8(4), any guaranteed student loan agreement or proposed guaranteed student loan agreement to facilitate the discharge by the borrower of the borrower's obligations; or

• (b) effect collection of the outstanding balance of the principal amount of the guaranteed student loan and any accrued interest that is payable.

(3) Subject to subsection (6), where the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable pursuant to paragraph (1)(a) or (b) and a claim for loss is paid to the lender by the Minister, the Minister shall, effective on the day of that payment,

• (a) [Repealed, SOR/96-369, s. 8]

• (b) refuse to grant an interest-free period in respect of all of the borrower's outstanding full-time guaranteed loans;

• (c) terminate an interest-free period in respect of all of the borrower's outstanding full-time guaranteed loans; and

• (d) refuse to grant the borrower a special interest-free period.

(4) Subject to subsection (8), when the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable under any of paragraphs (1)(c) to (k), the Minister shall, effective on the day referred to in that paragraph, terminate an interest-free period in respect of all of the borrower's outstanding full-time guaranteed loans.

(5) When the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable under paragraph (1)(h), (i) or (k), the Minister shall, in addition to the measures taken under subsections (3) and (4), terminate a special interest-free period granted to the borrower and refuse to grant another special interest-free period.

(6) Where an event referred to in paragraph (1)(a) or (b) occurs in respect of a borrower's full-time guaranteed loan and, subsequent to that event, the borrower erroneously receives a certificate of eligibility under the Canada Student Financial Assistance Act and at least one disbursement on the basis of that certificate, the measure referred to in paragraph (3)(c) shall take effect on the last day of the period of studies for which that certificate was issued.

(7) If an event referred to in any of paragraphs (1)(c) to (g) occurs, in respect of either a student loan or a guaranteed student loan made to a borrower as a full-time student, before the last day of the last confirmed period of the program of studies in which the borrower is enrolled at the time the event occurs, the borrower is entitled, if otherwise eligible, to a new student loan or an interest-free period for that program of studies.

(8) If the borrower receives a new student loan or an interest-free period to which the borrower is entitled under subsection (7), the measures referred to in subsections (1) and (4) and subsection 15(2) of the Canada Student Financial Assistance Regulations take effect on the earliest of

• (a) the last day of the last confirmed period of the program of studies in which the borrower was enrolled at the time the event occurred,

• (b) the day that is three years after the occurrence of the event or, if that day occurs during a confirmed period, the last day of that period, and

• (c) the last day of the month in which the borrower no longer meets the applicable minimum percentage referred to in the definition "full-time student" in subsection 2(1) of the Canada Student Financial Assistance Regulations.