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Canada Student Loans Act (R.S.C., 1985, c. S-23)

Act current to 2021-11-17 and last amended on 2021-06-29. Previous Versions

Canada Student Loans Act

R.S.C., 1985, c. S-23

An Act to facilitate the making of loans to students

Short Title

Marginal note:Short title

 This Act may be cited as the Canada Student Loans Act.

  • R.S., c. S-17, s. 1

Interpretation

Marginal note:Definitions

  •  (1) In this Act,

    appropriate authority

    appropriate authority for a province means such person, body or authority as may be designated by the lieutenant governor in council of that province as the appropriate authority for that province for the purposes of this Act; (autorité compétente)

    borrower

    borrower means a person to whom a loan is made by a lender under this Act; (emprunteur)

    certificate of eligibility

    certificate of eligibility means a certificate in prescribed form issued or caused to be issued by an appropriate authority pursuant to section 14; (certificat d’admissibilité)

    guaranteed student loan

    guaranteed student loan means a loan made in accordance with the requirements of section 7; (prêt garanti)

    lender

    lender means

    • (a) a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act,

    • (b) a credit union, caisse populaire or other cooperative credit society that is designated by the Minister on the application of that society as a lender for the purposes of this Act, or

    • (c) a company within the meaning of the Trust and Loan Companies Act, or a company, society or provincial company within the meaning of the Insurance Companies Act, that is designated by the Minister on the application of that company, society or provincial company as a lender for the purposes of this Act; (prêteur)

    loan year

    loan year means the period commencing on August 1 in any year and ending on July 31 in the following year; (année de prêt)

    Minister

    Minister means the Minister of Employment and Social Development; (ministre)

    period of studies

    period of studies means a period of studies at a specified educational institution in a course that is recognized by that educational institution and the appropriate authority for the province to be equivalent to a course that may be taken by a full-time student at that institution as part of a program of studies of at least twelve consecutive weeks duration; (période d’études)

    prescribed

    prescribed, in the case of a form or the information to be given on a form, means prescribed by the Minister and, in any other case, means prescribed by the regulations; (Version anglaise seulement)

    qualifying student

    qualifying student means a person

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

    • (b) who is qualified for enrolment or is enrolled at a specified educational institution as a full-time or part-time student for a period of studies at a post-secondary school level, and

    • (c) who intends to attend at a specified educational institution as a full-time or part-time student for a period of studies described in paragraph (b) if it is financially possible for that person to do so; (étudiant admissible)

    specified educational institution

    specified educational institution means an institution of learning, whether within or outside a province, that offers courses at a post-secondary school level and that is designated by the lieutenant governor in council of that province, either particularly or as a member of a class, as a specified educational institution within the meaning of this Act. (établissement d’enseignement agréé)

  • Marginal note:Territories

    (2) In its application to Yukon, the Northwest Territories and Nunavut, the expression lieutenant governor in council in this Act means the Commissioner of Yukon, the Northwest Territories or Nunavut, acting after consultation with the Legislative Assembly of Yukon, the Northwest Territories or Nunavut, as the case may be.

  • R.S., 1985, c. S-23, s. 2
  • 1991, c. 47, s. 746
  • 1993, c. 12, s. 2, c. 28, s. 78
  • 1996, c. 11, s. 95
  • 1999, c. 28, s. 177
  • 2001, c. 27, s. 220
  • 2002, c. 7, s. 113
  • 2005, c. 34, s. 80
  • 2013, c. 40, s. 238
  • 2014, c. 2, s. 28

Application

Marginal note:Certificates of eligibility

  • 1994, c. 28, s. 21

Guaranteed Student Loans

Marginal note:Maximum amount of loan

  •  (1) Subject to this Act and the regulations, a guaranteed student loan may be made by a lender to a qualifying student for a period of studies in an amount not exceeding

    • (a) in the case of a full-time student, one hundred dollars per week; or

    • (b) in the case of a part-time student, an amount that results in the aggregate of outstanding principal of guaranteed student loans made to that borrower as a part-time student being equal to two thousand five hundred dollars.

  • Marginal note:Adjustment of maximum

    (2) For any loan year, the Minister may adjust the amount of one hundred dollars per week referred to in paragraph (1)(a) or the amount of two thousand five hundred dollars referred to in paragraph (1)(b), or both of those amounts, by multipliers equal to or smaller than the multipliers calculated in accordance with formulas prescribed to reflect annual changes in the average cost to students of pursuing in Canada studies at a post-secondary school level.

  • Marginal note:Publication of maximum

    (3) The Minister shall cause to be published in the Canada Gazette, before the commencement of each loan year, the amounts referred to in subsection (2) as adjusted pursuant to that subsection for that loan year.

  • R.S., c. S-17, s. 3
  • R.S., c. 42(1st Supp.), s. 2
  • 1972, c. 15, Sch. (Fin.) vote 1
  • 1974-75-76, c. 36, Sch. (Fin.) vote 1d
  • 1980-81-82-83, c. 49, s. 2, c. 155, s. 2

Periods Free of Interest or Repayment

Marginal note:Interest-free period for full-time students

  •  (1) Subject to the regulations, no interest is payable by a borrower on a guaranteed student loan made before August 1, 1993 to a full-time student in respect of

    • (a) any period of studies during which the borrower is a full-time student; or

    • (b) any subsequent period ending on the last day of the sixth month after the month in which the borrower ceases to be a full-time student.

  • Marginal note:Idem

    (2) Subject to the regulations, no interest is payable by a borrower on a guaranteed student loan made on or after August 1, 1993 to a full-time student in respect of

    • (a) any period of studies during which the borrower is a full-time student; or

    • (b) any subsequent period ending on the last day of the sixth month after the month in which the borrower ceases to be a full-time student.

  • Marginal note:Idem

    (3) Notwithstanding subsection (1) but subject to the regulations, where a borrower has ceased to be a full-time student as described in that subsection and thereafter again becomes a full-time student, no interest is payable by the borrower on a guaranteed student loan made and consolidated before August 1, 1993 in respect of the period commencing on the prescribed day and ending on the last day of the sixth month after the month in which the borrower again ceases to be a full-time student.

  • Marginal note:Idem

    (4) Despite subsection (1) but subject to the regulations, if a borrower has ceased to be a full-time student as described in that subsection and subsequently becomes a full-time student again, no interest is payable by the borrower on a guaranteed student loan made before August 1, 1993 and consolidated after that day in respect of the period commencing on the prescribed day and ending on the last day of the sixth month after the month in which the borrower again ceases to be a full-time student.

Marginal note:Payment deferred for full-time students

 Subject to the regulations, no amount on account of principal or interest in respect of a guaranteed student loan made to a full-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a full-time student.

  • R.S., c. S-17, s. 5
  • 1980-81-82-83, c. 49, s. 2, c. 155, s. 3

Marginal note:Agreement to pay interest

  •  (1) The Minister may enter into an agreement with a lender respecting the payment of interest — or a province respecting the payment of interest on provincial student loans — by borrowers who are referred to in a regulation that is made under paragraph 17(s.1) or (s.2).

  • Marginal note:Payment on behalf of reservist

    (2) If there is no agreement, the Minister may pay the interest on behalf of those borrowers.

  • 2008, c. 15, s. 4

Marginal note:Personal information

 Personal information as defined in section 3 of the Privacy Act — that is under the control of a government institution as defined in that section — shall, on request, be made available to the Minister for the purposes of a regulation that is made under paragraph 17(s.1), (s.2) or (s.3).

  • 2008, c. 15, s. 4

Liability of the Minister

Marginal note:Interest payable by Minister

  •  (1) The Minister shall pay to a lender, in respect of each guaranteed student loan made by that lender to a full-time student, interest at the prescribed rate in respect of any period or periods described in section 4 in respect of which no interest is payable by the borrower on the loan.

  • Marginal note:Idem

    (2) No interest is payable by the Minister to a lender pursuant to subsection (1) in respect of a guaranteed student loan, in respect of any period before the obligation of the borrower to that lender in respect of the loan has commenced or after that obligation has ceased.

  • R.S., 1985, c. S-23, s. 6
  • 1993, c. 12, s. 4

Marginal note:Guarantee by Minister

 Subject to this Act and the regulations, the Minister is liable to pay to a lender the amount of any loss sustained by it as a result of a loan made to a qualifying student if

  • (a) the loan was made pursuant to an application to a lender, signed by the borrower, stating that the borrower has not received any other loan pursuant to the certificate of eligibility referred to in paragraph (b), or pursuant to any other certificate of eligibility relating to the period of studies specified in the certificate of eligibility referred to in paragraph (b), except any such loan the amount of which, when added to the amount of the loan applied for, did not exceed the applicable loan limit set out in section 3 for that period of studies;

  • (b) the loan was made to a borrower who filed with the lender making the loan a document that purported to be and was accepted by a responsible officer of that lender, in good faith, as a certificate of eligibility issued or caused to be issued by an appropriate authority relating to that borrower for the period of studies specified in that certificate;

  • (c) the amount of the loan did not exceed the lesser of the amount set out in the certificate of eligibility and the applicable loan limit set out in section 3 for the relevant period of studies;

  • (d) no fee, service charge or charge of any kind, other than interest calculated in the prescribed manner and on the prescribed amount and not exceeding the prescribed rate, was by the terms of the loan payable in respect of the loan, except as provided in the regulations in any case where the borrower is in default;

  • (e) the loan was repayable in full by the terms thereof

    • (i) in the case of a loan made to a full-time student, subject to the regulations, in accordance with practices of the lender in respect of repayment, subject to the right of the borrower to repay at any time all or any part of the principal amount of the loan outstanding at that time and any interest then accrued, and

    • (ii) in the case of a loan made to a part-time student, within a period of not more than two years after the loan was made, subject to the right of the borrower to repay at any time all or any part of the principal amount of the loan outstanding at that time and any interest then accrued; and

  • (f) the loan was made in accordance with an agreement in prescribed form between the borrower and the lender making the loan, containing

    • (i) in the case of a loan made to a full-time student, provisions respecting payment of the principal amount of the loan and interest thereon by the borrower as described in sections 4 and 5, and such other provisions as may be prescribed, or

    • (ii) in the case of a loan made to a part-time student, such provisions as may be prescribed.

  • R.S., 1985, c. S-23, s. 7
  • 1993, c. 12, s. 5
  • 1996, c. 18, s. 62

Marginal note:Payments in respect of errors

 Subject to the regulations, the Minister may pay to a lender the amount of the loss sustained by it as a result of a loan made to a qualifying student if an error concerning the rate of interest or the amount to be repaid was made by the lender in drawing up the agreement for the loan and the Minister considers that the error was inadvertent and that the loss was not affected by the error.

  • 1994, c. 28, s. 22

Marginal note:Payment to lenders for collection

 The Minister may pay to a lender a prescribed amount in respect of any sum collected by the lender on behalf of Her Majesty from a borrower after any payment is made by the Minister to the lender pursuant to section 7, in respect of a guaranteed student loan made to that borrower.

  • R.S., c. S-17, s. 9
  • 1980-81-82-83, c. 49, s. 4

Special Interest-free Periods

 [Repealed, 1994, c. 28, s. 23]

Marginal note:Special interest-free periods

 Where a special interest-free period is granted under any regulations made pursuant to section 11,

  • (a) the borrower may, during that period, be required to pay only a portion of the interest in respect of that period; and

  • (b) the Minister shall pay to a lender, in respect of that period, interest at the rate prescribed or determined pursuant to paragraph 17(e).

  • (c) [Repealed, 1998, c. 21, s. 101]

  • R.S., 1985, c. S-23, s. 10
  • 1994, c. 28, s. 24
  • 1998, c. 21, s. 101
 
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