Canada Student Loans Regulations

14 (1) Whether or not the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), the annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subsection 4(2) or (4) of the Act applies is the Class "A" rate of interest in effect on that day, and is applicable for the period

• (a) commencing on the first day of the month after the month in which the borrower ceased to be a full-time student, and

• (b) ending on the earlier of

  • (i) the last day of the sixth month after the month in which the borrower ceased to be a full-time student, and

  • (ii) the day before the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2).

(2) The annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subparagraph (1)(b)(ii) applies, is the rate of interest determined in accordance with subsection 15(1), and is applicable for the period

• (a) commencing on the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), and

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

(3) Subject to subsection (4), the aggregate amount of the interest accrued pursuant to subsections (1) and (2) shall become payable on the last day of the seventh month after the month in which the borrower ceased to be a full-time student.

(4) Unless the borrower agrees to pay the aggregate amount of the interest accrued pursuant to subsections (1) and (2) on or before the day specified in subsection (3) together with the borrower's first instalment referred to in paragraph 8(7)(a), that interest shall be added to the principal amount of the full-time guaranteed loan on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, and thereafter shall be treated as prescribed by subsection 15(1).

(5) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the rate prescribed by subsections (1) and (2).