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Apprentice Loans Regulations (SOR/2014-255)

Regulations are current to 2022-01-12 and last amended on 2021-06-30. Previous Versions

Removal of Restrictions

Marginal note:New loan, interest-free period, repayment assistance

  •  (1) Subject to subsection (6), a borrower who has been subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(a) or (h), is entitled to a new apprentice loan, another interest-free period and further repayment assistance under section 10 or 12 if

    • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans; and

    • (b) the borrower has, in respect of an apprentice loan agreement for which a judgment has not been obtained, fulfilled the terms of a repayment arrangement entered into with the Minister that is no more onerous to the borrower than six consecutive payments subsequent to a day that are made in accordance with this agreement, and

  • Marginal note:Rights in subsection (1) apply

    (2) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) because of the occurrence of an event described in any of paragraphs 6(2)(b) to (f) has the rights referred to in subsection (1) if

    • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans;

    • (b) the borrower has complied with paragraph (1)(b), if the borrower’s consumer proposal has been annulled or deemed annulled or the borrower is no longer subject to a provincial law relating to the orderly payment of debts for a reason other than full compliance with that law, and none of the events described in paragraph 6(2)(b), (c) and (e) has occurred;

    • (c) the borrower has been released from their apprentice loans for any reason other than one described in paragraph (b); or

    • (d) the borrower is released from their apprentice loans by virtue of an absolute order of discharge that has been granted under the Bankruptcy and Insolvency Act and three years have passed since the date of the order.

  • Marginal note:Rights in subsection (1) apply

    (3) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of the event described in paragraph 6(2)(g) has the rights referred to in subsection (1) if

    • (a) an event described in paragraph 6(2)(i) has not occurred in respect of the borrower’s apprentice loans;

    • (b) the borrower has been released from their apprentice loans that were outstanding on the day of the finding of guilt;

    • (c) in the event that the release referred to in paragraph (b) occurs by operation of an order of absolute discharge granted under the Bankruptcy and Insolvency Act, three years have passed since the date of the order; and

    • (d) five years have passed since the day of the finding of guilt or a pardon has been granted in respect of that finding.

  • Marginal note:Rights in subsection (1) apply

    (4) A borrower, who has been the subject of a measure taken under subsection 6(3) or (4), has received an apprentice loan as a minor and has refused to ratify that loan as an adult, has the rights referred to in subsection (1) if

    • (a) the borrower ratifies the loan; and

    • (b) to the extent that they apply, the requirements set out in subsection (1), (2) or (3) are met.

  • Marginal note:Rights in subsection (1) apply

    (5) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(i) has the rights referred to in subsection (1) if the borrower has paid in full the outstanding balance of their apprentice loans.

  • Marginal note:Judgment

    (6) If a judgment has been obtained against a borrower, the borrower is not entitled to the rights referred to in subsection (1) unless, in addition to fulfilling the requirements set out in subsection (1), (2) or (3), the borrower has been released from that judgment.

Apprentice Loan Limit

Marginal note:Maximum amount

 The maximum amount of an apprentice loan for one technical training period is $4,000.

Maximum Aggregate Amount of Outstanding Apprentice Loans

Marginal note:Prescribed amount

 For the purposes of section 11 of the Act, the maximum aggregate amount of apprentice loans outstanding is $1.5 billion.

Repayment Assistance Plan

First Stage

Marginal note:Conditions

  •  (1) Subject to section 6 of these Regulations and section 15 of the Canada Student Financial Assistance Regulations, the Minister must on application in the form determined by the Minister — including the borrower’s social insurance number — provide the first stage of a repayment assistance plan to a borrower for a period of six months if

    • (a) the borrower resides in Canada;

    • (b) no more than 114 months have passed since the later of the day on which interest most recently started accruing and the day on which a restriction was removed under paragraph 7(1)(b); and

    • (c) the borrower’s monthly affordable payment calculated in accordance with subsection (2) is less than their monthly required payment calculated in accordance with subsection (3).

  • Marginal note:Monthly affordable payment

    (2) The monthly affordable payment is equal to

    • (a) $0, if the borrower’s monthly family income is no more than the minimum monthly income threshold for their family size determined in accordance with the table set out in Schedule 2; or

    • (b) otherwise, the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

      0.2A

      1.5[((X – Y)) ÷ 100Z+0.01]A

      where

      A
      is, in relation to apprentice loans, student loans, guaranteed student loans and provincial loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,
      X
      is the borrower’s monthly family income,
      Y
      is the monthly income threshold for the borrower’s family size determined in accordance with the table set out in Schedule 2, and
      Z
      is the monthly increment for the borrower’s family size determined in accordance with the table set out in Schedule 2.
  • Marginal note:Monthly required payment

    (3) The monthly required payment is equal to the sum of

    • (a) the outstanding principal of the apprentice loans made to the borrower for which instalments are due, amortized over a period of the greater of

      • (i) six months, and

      • (ii) 114 months minus the number of months that have passed since the applicable day referred to in paragraph (1)(b) plus the number of months since that day during which the borrower received repayment assistance under this section; and

    • (b) the monthly required payment calculated under

  • Marginal note:Maximum number of months of repayment assistance

    (4) A borrower must not receive more than 60 months, in the aggregate, of repayment assistance under this section since the applicable day referred to in paragraph (1)(b).

Marginal note:Payment of federal portion

  •  (1) A borrower must, no later than the day that is 30 days after a repayment assistance period ends, pay to the Minister the federal portion of the monthly affordable payments calculated in accordance with subsection 10(2) in respect of that period.

  • Marginal note:Reduction of interest

    (2) The amount of interest payable by the borrower for a month during a repayment assistance period on the outstanding principal of apprentice loans is to be reduced by the Minister by the difference between the monthly required payment calculated in accordance with paragraph 10(3)(a) and the portion of monthly affordable payment attributed to apprentice loans calculated in accordance with subsection (4). That reduction is to be made only in relation to the months for which the borrower complies with subsection (1).

  • Definition of federal portion

    (3) In this section, federal portion means

    • (a) if no instalments are due on account of outstanding principal under provincial loans, 100% of the affordable monthly payment; and

    • (b) otherwise, the ratio of outstanding principal in relation to student loans and guaranteed student loans for which instalments are due to the sum of this amount and the outstanding principal amount of provincial loans for which instalments are due.

  • Marginal note:Attribution of payments

    (4) Payments made under this section are to be attributed in proportion to the outstanding principal of each apprentice loan, student loan and guaranteed student loan for which instalments are due.

Second Stage

Marginal note:Conditions

  •  (1) Subject to section 6 of these Regulations and section 15 of the Canada Student Financial Assistance Regulations, the Minister must on application in the form determined by the Minister — including the borrower’s social insurance number — provide the second stage of a repayment assistance plan to a borrower for a period of six months if

    • (a) the borrower resides in Canada;

    • (b) at least one of the following conditions is met:

      • (i) the borrower has a permanent disability, and

      • (ii) the borrower has benefited from a total of 60 months of repayment assistance referred to in section 10 or at least 114 months have passed since the applicable day referred to in paragraph 10(1)(b) in respect of any apprentice loan made to the borrower; and

    • (c) the borrower’s monthly affordable payment calculated in accordance with subsection (2) is less than their monthly required payment calculated in accordance with subsection (3).

  • Marginal note:Monthly affordable payment

    (2) The monthly affordable payment is equal to

    • (a) in the case of a borrower who has a permanent disability

      • (i) $0, if the borrower’s monthly family income, less their monthly disability-related expenses not covered by their provincial health care or private insurance plan, is no more than the monthly income threshold for their family size determined in accordance with the table set out in Schedule 2, or

      • (ii) otherwise, the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

        0.2A

        1.5[((W – Y)) ÷ 100Z+0.01]A

        where

        A
        is, in relation to apprentice loans, student loans, guaranteed student loans and provincial loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,
        W
        is the borrower’s monthly family income less their monthly disability-related expenses not covered by their provincial health care or private insurance plan,
        Y
        is the monthly income threshold for the borrower’s family size determined in accordance with the table set out in Schedule 2, and
        Z
        is the monthly increment for the borrower’s family size determined in accordance with the table set out in Schedule 2; or
    • (b) in any other case, the amount determined in accordance with subsection 10(2).

  • Marginal note:Monthly required payment

    (3) The monthly required payment is equal to the sum of

    • (a) the outstanding principal of the apprentice loans made to the borrower for which instalments are due, amortized over a period of the greater of six months and

      • (i) in the case of a borrower who has a permanent disability, 114 months minus the number of months that have passed since the applicable day referred to in paragraph 10(1)(b), and

      • (ii) in any other case, 174 months minus the number of months that have passed since the applicable day referred to in paragraph 10(1)(b); and

    • (b) the monthly required payment calculated under

Marginal note:Payment of federal portion

  •  (1) A borrower must, no later than the day that is 30 days after a repayment assistance period ends, pay to the Minister the federal portion of the monthly affordable payments calculated in accordance with subsection 12(2) in respect of that period.

  • Marginal note:Reduction of principal and interest

    (2) The amount owing as outstanding principal of apprentice loans and interest on those loans for a month during a repayment assistance period by a borrower is reduced by the Minister by the difference between the monthly required payment calculated in accordance with paragraph 12(3)(a) and the portion of the monthly affordable payment attributed to apprentice loans calculated in accordance with subsection (4). That reduction is made only in relation to the months for which the borrower complies with subsection (1).

  • Definition of federal portion

    (3) In this section, federal portion means

    • (a) if no instalments are due on account of outstanding principal under provincial loans, 100% of the affordable monthly payment; and

    • (b) otherwise, the ratio of outstanding principal in relation to apprentice loans, student loans and guaranteed student loans for which instalments are due to the sum of this amount and the outstanding principal amount of provincial loans for which instalments are due.

  • Marginal note:Attribution of payments

    (4) Payments made under this section are attributed in proportion to the outstanding principal of each apprentice loan, student loan and guaranteed student loan for which instalments are due.

Beginning of Repayment Assistance Period

Marginal note:Beginning of period

 A repayment assistance period begins no earlier than the later of

  • (a) the first day of the month that is six months before the day on which the borrower applies for the assistance, and

  • (b) the day on which the principal amount and interest begin to be payable by the borrower.

Condition

Marginal note:Unpaid accrued interest

 If any accrued interest remains unpaid on the day on which a repayment assistance period begins, the borrower must, on or before 30 days after the day on which the repayment assistance period ends,

  • (a) pay the interest to the Minister; or

  • (b) if they have not already done so, enter into a revised apprentice loan agreement for the payment of up to three months of the interest accrued and pay the Minister any remaining interest accrued.

 
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