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

Act current to 2020-11-17 and last amended on 2020-03-25. Previous Versions

Periods Free of Interest or Repayment (continued)

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

Marginal note:Regulations

 The Governor in Council may make regulations providing for the establishment and operation of a program to provide special interest-free or interest-reduced periods to borrowers or classes of borrowers, including the terms and conditions of the granting or termination of the periods, the making, continuation or alteration of agreements between borrowers and lenders when the periods are granted or terminated and the authorization of lenders to grant or terminate the periods and otherwise administer the program.

  • R.S., 1985, c. S-23, s. 11
  • 1993, c. 12, s. 7
  • 1994, c. 28, s. 25
  • 2008, c. 28, s. 111

Family Physicians, Nurses and Nurse Practitioners in Under-Served Rural or Remote Communities

Marginal note:Portion of loan forgiven

  •  (1) The Minister may forgive an amount in respect of a guaranteed student loan to a borrower who begins to work in an under-served rural or remote community as a family physician, nurse or nurse practitioner, if the borrower meets the prescribed conditions.

  • Marginal note:Effective date of forgiveness

    (2) The forgiveness takes effect on the prescribed day.

  • Marginal note:Agreement

    (3) For the purposes of subsection (1), the Minister may enter into an agreement with a lender for the purchase of a guaranteed student loan made by the lender.

  • 2011, c. 24, s. 157

Period — March 30, 2020 to September 30, 2020

Marginal note:Suspension of interest and payments

 During the period that begins on March 30, 2020 and ends on September 30, 2020,

  • (a) no interest is payable by a borrower on a guaranteed student loan; and

  • (b) no amount on account of principal and interest in respect of a guaranteed student loan is required to be paid by the borrower.

  • 2020, c. 5, s. 52

Death or Disability of Borrower

Marginal note:Death of borrower

  •  (1) All obligations of a borrower in respect of a guaranteed student loan terminate if the borrower dies, and the Minister shall pay to any lender whose rights against the borrower are terminated under this section the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on the day of the borrower’s death.

  • Marginal note:Undisclosed death of borrower

    (2) If the borrower dies and notice of the borrower’s death is not received by the lender within 30 days after the day of death, then, despite subsection (1), the day on which the amount is determined in the prescribed manner to have been payable is a day that is fixed by the Minister in accordance with the regulations.

  • Marginal note:Disappearance of borrower

    (3) If a borrower disappears under circumstances that, in the opinion of the Minister, raise a presumption that the borrower is dead, then all the borrower’s obligations in respect of a guaranteed student loan terminate on the day on which the Minister forms that opinion, and the Minister shall pay to any lender whose rights against the borrower are terminated under this subsection the amount of principal and interest determined in the prescribed manner to have been payable by the borrower on a day that is fixed by the Minister in accordance with the regulations.

  • Marginal note:Death of borrower before this subsection comes into force

    (4) If, before the day on which this subsection comes into force, a borrower dies or the Minister forms an opinion under paragraph (2)(b) as it read immediately before that day, then all the borrower’s obligations in respect of a guaranteed student loan terminate on that day.

  • Marginal note:Date fixed is after this subsection comes into force

    (5) However, if the Minister fixes a day under subsection (2) — as it read immediately before this subsection comes into force — that is later than the day on which this subsection comes into force, then the day that is fixed is the day on which the amount of principal and interest is determined in the prescribed manner to be payable under subsection (2) or (3).

  • R.S., 1985, c. S-23, s. 12
  • 2009, c. 2, s. 365
 
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