Canada Student Financial Assistance Act

Marginal note:Agreements

5 The Minister may, if the Minister considers it appropriate, with the concurrence of the Minister of Finance, enter into an agreement with any lender respecting the making of student loans or the provision of other forms of financial assistance to students by the lender, and such an agreement may, without limiting the generality of the foregoing, provide for

• (a) the payment by the Minister to the lender of all or a portion of

  • (i) amounts equivalent to interest on a student loan made by the lender in respect of the period for which no interest is payable by the borrower pursuant to subsection 7(1),

  • (ii) amounts equivalent to interest on a student loan made by the lender in respect of any period for which no interest is payable by the borrower pursuant to regulations made under paragraph 15(1)(n),

  • (iii) principal and interest on a student loan made by the lender to a borrower whose obligations in respect of the loan are terminated in the circumstances set out in section 10 or 11,

  • (iv) amounts in respect of a student loan made by the lender that are paid under regulations made under paragraph 15(1)(l),

  • (v) a risk premium for lending risks on a student loan made by the lender,

  • (vi) amounts necessary for the purchase of a student loan made by the lender that is payable and on which no payment has been made by the borrower in at least one year, and a percentage of amounts recovered by the Minister in respect of that loan,

  • (vii) adjusted amounts in respect of principal and interest on a student loan, where an inadvertent error concerning the rate of interest or the amount to be repaid is made by the lender in drawing up the consolidated student loan agreement or the student loan agreement,

  • (viii) amounts in respect of the loss suffered by the lender on a student loan made to a full-time student who, before the month following the month in which the borrower ceases to be a full-time student,

    • (A) makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act, by reason of circumstances occurring before that following month, to have made an assignment, or is the subject of a bankruptcy order made under that Act,

    • (B) makes a proposal under Division I or II of Part III of that Act that is approved or deemed to be approved by a court under that Act,

    • (C) is granted a consolidation order under Part X of that Act, or

    • (D) is granted relief under a provincial law relating to the orderly payment of debts, and

  • (ix) any other amounts that the Minister considers appropriate in respect of a student loan made, or other financial assistance provided, by the lender;

• (b) audits and adjustments in respect of payments made to the lender by the Minister;

• (c) subject to the regulations, the circumstances in which the lender is, on application, required to provide financial assistance to a qualifying student in an amount not exceeding the maximum amount determined in accordance with section 12;

• (d) the manner of calculating the interest payable by a borrower to the lender on a student loan made by the lender, including the amount on which interest is to be calculated and the rate of interest or the manner of determining the rate of interest;

• (e) the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

• (f) the provisions to be included in an agreement between a borrower and the lender relating to a student loan, the making of amendments to the agreement, and the conditions and consequences of making an amendment;

• (g) the procedures to be followed by the lender in making, collecting or otherwise dealing with a student loan;

• (h) the making of reports to the Minister respecting student loans; and

• (i) the terms and conditions respecting the obligations of the Minister and the lender under the agreement.