Canada Student Loans Regulations

15 (1) The annual rate of interest payable by a borrower to a lender on all of the borrower's full-time guaranteed loans, including any interest added to the principal amount of all such loans pursuant to subsection 14(4), for the period commencing on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, is the weighted average, rounded to the nearest one-eighth of one per cent, of

• (a) the rate set out in the former consolidated guaranteed student loan agreement, where a guaranteed student loan agreement has been previously consolidated,

• (b) such rate per annum as the lender and the borrower agree to on the day the lender and the borrower enter into a consolidated guaranteed student loan agreement, not greater than the Class "B" rate of interest in effect on that day, where an outstanding guaranteed student loan agreement has been entered into and has not been previously consolidated, and

• (c) subject to paragraph (a), the Class "B" rate of interest in effect on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, where there is an outstanding guaranteed student loan agreement and the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2).

(2) The annual rate of interest payable by a borrower to a lender on a part-time guaranteed loan, for the period commencing on the day specified in subparagraph 8(3)(b)(i), is such rate per annum as the lender and the borrower agree to, which rate shall not be greater than the Class "B" rate of interest in effect on the day on which the lender and the borrower enter into the part-time guaranteed loan agreement.

(3) 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 maximum rate of interest prescribed by subsection (1) or (2).