Agreements with Lenders (continued)
Marginal note:Payments in accordance with agreement
6 Subject to this Act and the regulations, the Minister shall pay to a lender, in accordance with any agreement entered into under section 5, any amount that is payable by the Minister to the lender under the agreement.
Government Financing of Student Loans
Marginal note:Agreements with qualifying students
6.1 (1) Subject to subsection (2), the Minister, or any person authorized by order of the Minister to act on the Minister’s behalf, may enter into an agreement with any qualifying student for the purpose of making a student loan.
Marginal note:Financial terms and conditions
(2) Any terms and conditions in the agreement that could have a financial impact on Her Majesty in right of Canada are subject to approval by the Governor in Council, on the recommendation of the Minister with the concurrence of the Minister of Finance.
- 2000, c. 14, s. 17
- 2009, c. 2, s. 359
Marginal note:Agreement with service provider
6.2 (1) The Minister may enter into an agreement with any corporation incorporated under the laws of Canada or a province and carrying on business in Canada (a “service provider”), respecting the administration of student loans made, or other forms of financial assistance provided, by the Minister. An agreement may provide for, but is not limited to, the following matters:
(a) disbursing student loans or other forms of financial assistance on behalf of the Minister;
(b) audits and adjustments in respect of payments made by the Minister under the agreement;
(c) the manner of calculating the interest payable by the Minister to the service provider, including the amount on which interest is to be calculated and the rate of interest or the manner of determining the rate of interest;
(d) the procedures to be followed by the service provider in making, collecting or otherwise dealing with a student loan and other forms of financial assistance;
(e) the making of reports to the Minister respecting student loans and other forms of financial assistance;
(f) the terms and conditions respecting the obligations of the Minister and the service provider under the agreement; and
(g) the payment of compensation by the Minister to the service provider for the administration of student loans and other forms of financial assistance.
Marginal note:Receipt and Deposit of Public Money Regulations, 1997
(2) Despite section 3 of the Receipt and Deposit of Public Money Regulations, 1997, the portion of the following money that is public money and is collected or received electronically by a service provider that has entered into an agreement under subsection (1) shall be paid to the credit of the Receiver General by depositing it, within two business days after the day of collection or receipt, in an account established under subsection 17(2) of the Financial Administration Act:
(a) money collected or received as repayment of financial assistance, as repayment of a guaranteed student loan as defined in subsection 2(1) of the Canada Student Loans Act or as payment of interest owing on that assistance or loan; and
(b) interest received by the service provider on the money referred to in paragraph (a).
Meaning of business day
(3) In this section, business day means a day other than a Saturday or a holiday.
- 2000, c. 14, s. 17
- 2008, c. 28, s. 103
Marginal note:Agreement with financial institutions
6.3 Despite subsection 41(1) of the Financial Administration Act, the Minister may enter into an agreement with any financial institution, as defined in the regulations, with respect to the disbursement of student loans.
- 2000, c. 14, s. 17
Marginal note:Suspension or denial of financial assistance
6.4 The Minister may suspend or deny the provision of financial assistance to all those who are qualifying students in relation to a designated educational institution if the Minister is satisfied that there are compelling reasons to believe that the provision of the financial assistance would
(a) facilitate the commission by the designated educational institution of an offence under this Act or any other Act of Parliament; or
(b) expose the qualifying students or Her Majesty in right of Canada to significant financial risk.
- 2009, c. 2, s. 360
Interest-free and Deferral Periods
Marginal note:Interest-free period
7 (1) Subject to the regulations, no interest is payable by a borrower on a student loan prescribed by regulations made under paragraph 15(1)(j) in respect of any period of studies during which the borrower is a full-time or part-time student, or in respect of any subsequent period ending on
(a) in the case of a student loan that is made to a full-time student, the last day of the sixth month after the month in which the borrower ceases to be a full-time student; and
(b) in the case of a student loan that is made to a part-time student, the last day of the sixth month after the month in which the borrower ceases to be a student, whether a part-time or full-time student.
Marginal note:No fees
(2) No fee of any kind may be charged to a borrower on a student loan in respect of any period of studies, or a subsequent period, referred to in subsection (1).
- 1994, c. 28, s. 7
- 2008, c. 28, s. 110
- 2011, c. 15, s. 18
- 2019, c. 29, s. 325
Marginal note:Payment deferred for full-time students
8 (1) Subject to the regulations, no amount on account of principal or interest in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) that is 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.
Marginal note:Payment deferred for part-time students
(2) Subject to the regulations, no amount on account of principal or interest in respect of a student loan that is made to a part-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 student, whether a part-time or full-time student.
- 1994, c. 28, s. 8
- 2008, c. 28, ss. 104, 110
Marginal note:Agreement to pay interest
9 (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 15(k) or (k.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.
- 1994, c. 28, s. 9
- 1998, c. 21, s. 99
- 2008, c. 15, s. 2
Marginal note:Personal information
9.1 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 15(k), (k.1), (k.2) or (k.3).
- 2008, c. 15, s. 2
Family Physicians, Nurses and Nurse Practitioners in Under-Served Rural or Remote Communities
Marginal note:Portion of loan forgiven
9.2 (1) The Minister may forgive an amount in respect of a 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.
(3) For the purposes of subsection (1), the Minister may enter into an agreement with a lender for the purchase of a student loan made by the lender.
- 2011, c. 24, s. 153
Period — March 30, 2020 to September 30, 2020
Marginal note:Suspension of interest and payments
9.3 During the period that begins on March 30, 2020 and ends on September 30, 2020,
- Date modified: