Canada Student Loans Regulations

8 (1) Every guaranteed student loan shall be repaid by instalments that

• (a) repay, in accordance with subsection (3), the principal with interest, at the rate determined in accordance with sections 14 and 15 or sections 16.2 to 16.4, as the case may be; and

• (b) are payable at least once every three months.

(2) All instalments made pursuant to subsection (1) shall be applied first against the interest accrued to the date of payment and then to the principal outstanding.

(3) A period of repayment,

• (a) in respect of a full-time guaranteed loan, shall commence on the first day of the seventh month after the month in which the borrower ceases to be a full-time student; and

• (b) in respect of a part-time guaranteed loan,

  • (i) shall commence on the day on which the borrower receives a disbursement under the loan agreement, and

  • (ii) shall not exceed 24 months.

(4) Where a lender has reason to believe that a borrower is or will be unable to comply with the repayment provisions of a guaranteed student loan agreement, the lender shall, before the day on which the outstanding balance of the principal amount of the loan and any accrued interest becomes payable in accordance with paragraph 9(1)(a) or (b), offer to alter, with the consent of the borrower and in writing, the provisions of the agreement that relate to the period in which the loan is to be repaid and the frequency and the amount of the instalments.

(5) Where an alteration is made to a guaranteed student loan agreement as a result of an offer to alter made pursuant to subsection (4) and the altered guaranteed student loan agreement remains in compliance with the Act and these Regulations, the alteration does not discharge the liability of the Minister to the lender under the Act.

(6) [Repealed, SOR/96-369, s. 7]

(7) The first of the instalments referred to in subsection (1) shall be payable by the borrower not earlier than

• (a) in the case of a full-time guaranteed loan, the last day of the seventh month after the month in which the borrower ceases to be a full-time student; and

• (b) in the case of a part-time guaranteed loan, one month after the day on which the borrower receives a disbursement under the loan agreement.

(8) [Repealed, SOR/96-369, s. 7]

(9) Nothing in these Regulations prevents the lender and the borrower of a part-time guaranteed loan from agreeing at any time to a repayment period that is shorter than the period specified in paragraph (3)(b).

(10) Nothing in these Regulations prevents the borrower from paying, at any time to the lender, any amount of indebtedness with respect to a guaranteed student loan in addition to an instalment.

(11) Any amount paid by or on behalf of the borrower pursuant to subsection (10) shall be applied first pro rata against interest accrued on the borrower's full-time guaranteed loans and risk-shared loans made to the borrower as a full-time student, then pro rata against the principal amount of those loans.

(12) Where part or all of a payment referred to in subsection (11) is applied against the principal amount of a borrower's guaranteed student loans, it shall be applied first against the principal amount of guaranteed student loans to which subsection 4(1) or (3) of the Act applies and then against the principal amount of guaranteed student loans to which subsection 4(2) or (4) of the Act applies.