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Apprentice Loans Regulations (SOR/2014-255)

Regulations are current to 2020-09-09 and last amended on 2020-08-01. Previous Versions

Repayment Assistance Plan (continued)

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

  • SOR/2019-215, s. 9

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.

Reconsideration of Application

Marginal note:Conditions

  •  (1) The Minister must, on the written request of the borrower and based on documentary evidence provided by the borrower, reconsider a borrower’s application for repayment assistance if

    • (a) the application was rejected for the sole reason that the borrower did not meet the condition set out in paragraph 10(1)(c) or 12(1)(c); and

    • (b) unforeseen and unavoidable circumstances beyond the control of the borrower or their spouse or common-law partner have led to the borrower incurring extraordinary expenses.

  • Marginal note:Notice

    (2) The Minister must provide notice of his or her determination to the borrower.

Borrower Error

Marginal note:Cancellation or reduction of repayment assistance

  •  (1) If repayment assistance is granted based on an error by the borrower in their application for the assistance or for reconsideration, the Minister may cancel the assistance or reduce the amount of assistance.

  • Marginal note:Notice

    (2) The Minister must provide notice of the cancellation or reduction to the borrower, specifying

    • (a) the date of the notice; and

    • (b) the day on which the repayment assistance is to be cancelled or reduced.

  • Marginal note:Obligation of borrower

    (3) The borrower must, within 30 days after the date of the notice,

    • (a) repay to the Minister the amount of repayment assistance that the borrower was not entitled to receive; or

    • (b) enter into a revised apprentice loan agreement for repayment of the amount referred to in paragraph (a).

Effect on Apprentice Loan Agreement

Marginal note:Suspension

 If repayment assistance is provided to a borrower, the apprentice loan agreement in effect between the borrower and the Minister on the day on which the borrower applies for that assistance is suspended until the earlier of

  • (a) the day on which repayment assistance is terminated in accordance with section 6, and

  • (b) the day after the last day of the repayment assistance period.

 
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