Canada Student Financial Assistance Regulations
SOR/95-329
CANADA STUDENT FINANCIAL ASSISTANCE ACT
Registration 1995-07-17
Regulations Respecting the Making of Loans and the Provision of Other Forms of Financial Assistance to Students
P.C. 1995-1121 1995-07-17
His Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Immigration and the Treasury Board, pursuant to section 15 of the Canada Student Financial Assistance ActFootnote *, is pleased hereby to make the annexed Regulations respecting the making of loans and the provision of other forms of financial assistance to students, effective August 1, 1995.
Return to footnote *S.C. 1994, c. 28
Short Title
1 These Regulations may be cited as the Canada Student Financial Assistance Regulations.
Interpretation
2 (1) In the Act and these Regulations,
- borrower
borrower means a person to whom a loan is made pursuant to the Act; (emprunteur)
- consolidated student loan agreement
consolidated student loan agreement means a consolidated risk-shared loan agreement or a consolidated direct loan agreement, except in section 5 of the Act where it means a consolidated risk-shared loan agreement only; (contrat de prêt consolidé)
- course
course means formal instruction or training that constitutes, or is determined by a designated educational institution to be equivalent to, an essential element of a program of studies at a post-secondary school level at that institution, but does not include any formal instruction or practical training required for acceptance in a professional corporation or for the practice of any trade or profession unless that formal instruction or practical training is necessary to obtain a degree, certificate or diploma from that designated educational institution; (cours)
- family income
family income means the aggregate income of the borrower and the spouse or common-law partner of the borrower, including income from employment, social programs, investments and monetary gifts;(revenu familial)
- financial assistance
financial assistance means any form of financial aid provided under the Act, including student loans; (aide financière)
- financial institution
financial institution means
(a) a bank or authorized foreign bank within the meaning of the Bank Act,
(b) a credit union, caisse populaire or other cooperative credit society,
(c) a company within the meaning of the Trust and Loans Company Act, or
(d) Canada Post Corporation; (institution financière)
- full-time student
full-time student means a person
(a) who, during a confirmed period within a period of studies, is enrolled in courses that constitute
(i) at least 40 per cent and less than 60 per cent of a course load recognized by the designated educational institution as constituting a full course load, in the case of a person who has a permanent disability and elects to be considered as a full-time student, or
(ii) at least 60 per cent of a course load recognized by the designated educational institution as constituting a full-time course load, in any other case,
(b) whose primary occupation during the confirmed periods within that period of studies is the pursuit of studies in those courses, and
(c) who complies with the requirements of subsection 5(1), 6(1) or 7(1), as the case may be; (étudiant à temps plein)
- loan year
loan year means the period commencing on August 1 in any year and ending on July 31 in the following year; (année de prêt)
- part-time student
part-time student means a person
(a) who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 20 per cent and less than 60 per cent of a course load recognized by the designated educational institution as constituting a full course load and, where that person has a permanent disability and is enrolled in courses that constitute at least 40 per cent of such a full course load, elects to be considered as a part-time student, and
(b) who complies with the requirements of subsection 12(1), 12.1(1) or 12.2(1), as the case may be; (étudiant à temps partiel)
- period of studies
period of studies means the length of time that a designated educational institution considers to be a normal school year for the program of studies in which the qualifying student or the borrower is enrolled and that, where the period between the day on which that person ceased to be a full-time student pursuant to section 8 or a part-time student pursuant to section 12.3, as the case may be, and the first day of the first confirmed period of the current school year is less than six months, includes that period; (période d'études)
- permanent disability
permanent disability means a functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in studies at a post-secondary school level or the labour force and is expected to remain with the person for the person's expected life; (invalidité permanente)
- post-secondary school level
post-secondary school level means education at a university or college level, including education of a technical or vocational nature; (niveau postsecondaire)
- program of studies
program of studies means the series of periods of studies
(a) that is considered by the designated educational institution to be necessary to obtain a degree, certificate or diploma,
(b) that is recognized by the appropriate authority which designated that institution under the Act or the Canada Student Loans Act, or any successor to that authority, and
(c) the aggregate of which is at least 12 weeks within a period of 15 consecutive weeks; (programme d'études)
- student loan
student loan means a risk-shared loan or a direct loan except
(a) in sections 5, 10 and 11 and paragraph 15(l) of the Act, where it means a risk-shared loan only, and
(b) in subsection 14(2) of the Act, where it means a guaranteed student loan; (prêt d'études)
- student loan agreement
student loan agreement means a contract entered into before August 1, 2000 between a qualifying student and a lender pursuant to subparagraph 12(1)(d)(i) or 12.1(1)(e)(i) and
(a) that is in the prescribed form, and
(b) that includes the student's social insurance number. (contrat de prêt simple)
(2) In these Regulations,
- Act
Act means the Canada Student Financial Assistance Act; (Loi)
- common-law partner
common-law partner in relation to a borrower, means a person who is cohabiting with a borrower in a conjugal relationship, having so cohabited for a period of at least one year; (conjoint de fait)
- confirmation of enrolment
confirmation of enrolment means a prescribed form, which may or may not form part of a certificate of eligibility, and where it does not, includes the qualifying student's or borrower's social insurance number; (confirmation d'inscription)
- confirmed period
confirmed period means a period of studies, or part thereof, which is at least six consecutive weeks and which
(a) in the case of a confirmation of enrolment forming part of a certificate of eligibility, begins on the first day of the month specified by the designated educational institution and ends on the last day of the last month of the period of studies specified by the appropriate authority, and
(b) in the case of a confirmation of enrolment not forming part of a certificate of eligibility, begins on the first day of the month specified by, and ends on the last day of the other month specified by, the designated educational institution; (période confirmée)
- consolidated direct loan agreement
consolidated direct loan agreement means a contract that is entered into between the Minister and a borrower who has ceased to be a full-time student pursuant to section 8 and who is indebted to the Minister under any full-time direct loan agreement
(a) that is in the prescribed form,
(b) that includes the borrower's social insurance number,
(c) in which the outstanding principal amount is the aggregate of the principal amounts under those agreements,
(d) that replaces those agreements, and
(e) that includes the terms and conditions of repayment of the principal amount of the loan and the interest payable thereunder; (contrat de prêt direct consolidé)
- consolidated guaranteed student loan agreement
consolidated guaranteed student loan agreement has the same meaning as subsection 2(2) of the Canada Student Loans Regulations; (contrat de prêt garanti consolidé)
- consolidated risk-shared loan agreement
consolidated risk-shared loan agreement means a contract that is entered into between a borrower who has ceased to be a full-time student pursuant to section 8 and the lender to whom the borrower is indebted under any full-time risk-shared loan agreement and
(a) that is in the prescribed form,
(b) that includes the borrower's social insurance number,
(c) in which the principal amount is the aggregate of the outstanding principal amounts under those agreements,
(d) that replaces those agreements, and
(e) that includes the terms and conditions of repayment of the principal amount of the loan and the interest payable thereunder; (contrat de prêt à risque partagé consolidé)
- direct loan
direct loan means a debt obligation incurred by a qualifying student on entering into a direct loan agreement and which is owed to Her Majesty in right of Canada, as represented by the Minister; (prêt direct)
- direct loan agreement
direct loan agreement means a full-time direct loan agreement, a direct student loan agreement or a consolidated direct loan agreement; (contrat de prêt direct)
- direct student loan agreement
direct student loan agreement means a contract entered into after July 31, 2000 between a qualifying student and the Minister pursuant to subparagraph 12(1)(d)(ii) or 12.1(1)(e)(ii) and that
(a) is in the prescribed form, and
(b) includes the student's social insurance number; (contrat de prêt direct simple)
- full-time direct loan agreement
full-time direct loan agreement means a contract that is entered into after July 31, 2000 between a qualifying student and the Minister pursuant to subparagraphs 5(1)(d)(ii) or 6(1)(f)(ii) and
(a) that is in the prescribed form,
(b) that includes the student's social insurance number, and
(c) where the contract is entered into pursuant to subparagraph 6(1)(f)(ii),
(i) that replaces any previous direct loan agreements entered into as a full-time student, provided that the contract so provides, and
(ii) in which the principal amount is the aggregate of the outstanding principal amounts under the agreements referred to in subparagraph (i) and the principal amount of the further direct loan received pursuant to section 6, provided that the contract so provides; (contrat de prêt direct à temps plein)
- full-time loan agreement
full-time loan agreement[Repealed, SOR/2000-290, s. 1]
- full-time risk-shared loan agreement
full-time risk-shared loan agreement means a contract that is entered into before August 1, 2000 between a qualifying student and a lender pursuant to subparagraph 5(1)(d)(i) or 6(1)(f)(i) and
(a) that is in the prescribed form,
(b) that includes the student's social insurance number, and
(c) where the contract is entered into pursuant to subparagraph 6(1)(f)(i),
(i) that replaces any previous risk-shared loan agreements entered into as a full-time student, provided that the contract so provides, and
(ii) in which the principal amount is the aggregate of the outstanding principal amounts under the agreements referred to in subparagraph (i) and the principal amount of the further risk-shared loan received pursuant to section 6, provided that the contract so provides; (contrat de prêt à risque partagé à temps plein)
- guaranteed student loan
guaranteed student loan has the same meaning as under the Canada Student Loans Act; (prêt garanti)
- guaranteed student loan agreement
guaranteed student loan agreement has the same meaning as under the Canada Student Loans Regulations; (contrat de prêt garanti)
- loan agreement
loan agreement means a risk-shared loan agreement or a direct loan agreement; (contrat de prêt)
- officer of the designated educational institution
officer of the designated educational institution means a person authorized by a designated educational institution to sign confirmations of enrolment on behalf of the institution and who
(a) is the registrar of that institution or a person authorized by the registrar to act on behalf of the registrar,
(b) is a student aid officer in that institution, or
(c) has the de facto capacity of the registrar of or a student aid officer in that institution; (agent de l'établissement agréé)
- participating province
participating province means a province other than one that has chosen not to participate in the financial assistance plan in accordance with section 14 of the Act; (province participante)
- part-time guaranteed loan agreement
part-time guaranteed loan agreement has the same meaning as in subsection 2(2) of the Canada Student Loans Regulations; (contrat de prêt garanti à temps partiel)
- part-time loan agreement
part-time loan agreement[Repealed, SOR/2000-290, s. 1]
- risk-shared loan
risk-shared loan means a debt obligation incurred by a qualifying student on entering into a risk-shared loan agreement and which is owed to a lender or Her Majesty in right of Canada, as represented by the Minister; (prêt à risque partagé)
- risk-shared loan agreement
risk-shared loan agreement means a full-time risk-shared loan agreement, a student loan agreement or a consolidated risk-shared loan agreement and includes agreements entered into under subsection 14(3) of the Regulations, whatever the date they are entered into; (contrat de prêt à risque partagé)
- spouse
spouse[Repealed, SOR/2001-230, s. 1]
(3) [Repealed, SOR/2000-290, s. 1]
- SOR/96-368, s. 1
- SOR/98-402, s. 1
- SOR/2000-290, s. 1
- SOR/2001-230, s. 1
- SOR/2004-120, s. 1
Certificate of Eligibility
3 A certificate of eligibility issued pursuant to subsection 12(1) of the Act shall include
(a) a statement that the qualifying student named in that certificate qualifies for the issuance of that certificate under the Act and these Regulations as a full-time student or part-time student;
(b) a statement to the effect that, on signing the consent and certification portion of the certificate of eligibility, the qualifying student authorizes the designated educational institution attended by the student to forward
(i) to the lender any refund of fees that have been paid with the proceeds of a risk-shared loan authorized by that certificate for credit against any risk-shared loans or guaranteed student loans of the student that are held by the lender, or
(ii) to the Minister any refund of fees that have been paid with the proceeds of a direct loan authorized by that certificate for credit against any direct loans of the student;
(c) a statement to the effect that, on signing the consent and certification portion of the certificate of eligibility, the qualifying student ratifies any student loans made to that student while a minor; and
(d) the signature of the appropriate authority.
- SOR/96-368, s. 2
- SOR/2000-290, s. 2
4 Where a qualifying student does not enrol or ceases to be enrolled at the designated educational institution or in the program of studies referred to in the certificate of eligibility issued to that student and that student obtains a confirmation of enrolment from another designated educational institution for all or part of the period of studies referred to in that certificate, the qualifying student shall obtain from the appropriate authority written authorization that a student loan may be made to that student on the basis of the student's enrolment at that other designated educational institution.
- SOR/96-368, s. 2
PART IStudent Loans Made to Full-Time Students
Obtaining an Initial Student Loan
5 (1) Subject to section 15, in order to obtain a student loan, a qualifying student to whom a certificate of eligibility as a full-time student has been issued and who has no outstanding student loan or guaranteed student loan made to that student as a full-time student shall
(a) obtain, on the confirmation of enrolment portion of that certificate of eligibility, the signature of an officer of the designated educational institution at which the student is enrolled or the signature of the appropriate authority that issued the certificate of eligibility, where the designated educational institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization;
(b) sign the consent and certification portion;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the certificate of eligibility and, where section 4 applies, the written authorization referred to in that section,
(i) in order to obtain a risk-shared loan,
(A) to the branch of the lender to which the student is indebted under any student loan agreement or guaranteed student loan agreement entered into as a part-time student, if any, or
(B) to a lender of the student's choice, in any other case,
(ii) in order to obtain a direct loan,
(A) to the Minister, and
(B) to the branch of the lender to which the student is indebted under any student loan agreement or guaranteed student loan agreement entered into as a part-time student, if any,
(d) enter into
(i) a full-time risk-shared loan agreement with the lender, or
(ii) a full-time direct loan agreement with the Minister.
(2) A qualifying student who meets the requirements set out in subsection (1) becomes a full-time student on the day on which the full-time risk-shared loan agreement or the full-time direct loan agreement, as the case may be, is entered into.
- SOR/96-368, s. 2
- SOR/2000-290, s. 3
Obtaining a Further Student Loan
6 (1) Subject to section 15, in order to obtain a student loan, a qualifying student to whom a certificate of eligibility as a full-time student has been issued and who has an outstanding student loan or guaranteed student loan made to that student as a full-time student shall
(a) obtain the signature of an officer of the designated educational institution at which the student is enrolled or the signature of the appropriate authority that issued that certificate of eligibility, where the designated educational institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization,
(i) in the case of a first disbursement authorized by the certificate of eligibility, on the confirmation of enrolment portion of that certificate, and
(ii) in the case of a second disbursement authorized by the certificate of eligibility, on a confirmation of enrolment not forming part of that certificate;
(b) sign the consent and certification portion;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the certificate of eligibility and, where section 4 applies, the written authorization referred to in that section,
(i) in order to obtain a risk-shared loan, to the branch of the lender to which the student is indebted under any risk-shared loan agreement or guaranteed student loan agreement, or
(ii) in order to obtain a direct loan,
(A) to the Minister, and
(B) to the branch of the lender to which the student is indebted under any risk-shared loan agreement or guaranteed student loan agreement, if any;
(d) subject to subsection (3), where more than six months have elapsed between the day on which the student ceased to be a full-time student pursuant to section 8 and the first day of the current confirmed period,
(i) if the student is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, pay to the lender any interest accrued under those agreements to the day before the first day of the confirmed period, and
(ii) if the student is indebted under any full-time direct loan agreement, pay to the Minister any interest accrued under that agreement to the day before the first day of the confirmed period;
(e) subject to subsection (3), where the qualifying student submits the confirmation of enrolment later than six months after the day the student ceased to be a full-time student pursuant to section 8 but before the last day of the confirmed period that started within the six-month period,
(i) if the student is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, either
(A) pay to the lender the interest accrued under those agreements from the day on which that student ceased to be a full-time student to the day before the day on which the qualifying student enters into a full-time risk-shared loan agreement pursuant to subparagraph (f)(i) or a full-time direct loan agreement pursuant to subparagraph (f)(ii), or
(B) enter into a consolidated risk-shared loan agreement or a consolidated guaranteed student loan agreement with the lender in which the unpaid accrued interest referred to in clause (A) is added to the principal amount;
(ii) if the student is indebted under any full-time direct loan agreement, either
(A) pay to the Minister the interest accrued under that agreement from the day on which that student ceased to be a full-time student to the day before the day on which the qualifying student enters into a full-time direct loan agreement pursuant to subparagraph (f)(ii), or
(B) enter into a consolidated direct loan agreement with the Minister in which the unpaid accrued interest referred to in clause (A) is added to the principal amount; and
(f) enter into
(i) a full-time risk-shared loan agreement with the lender, or
(ii) a full-time direct loan agreement with the Minister.
(2) Where the qualifying student referred to in subsection (1) meets the requirements set out in that subsection,
(a) that student again becomes a full-time student on the day on which that student meets those requirements, where paragraph (1)(d) or (e) applies in respect of that student; and
(b) that student continues to be a full-time student on and after the day following the day on which that student would otherwise have ceased to be a full-time student, in any other case.
(3) Paragraphs (1)(d) and (e) do not apply where the qualifying student has complied with section 7 in respect of the confirmed period specified in the confirmation of enrolment referred to in those paragraphs.
- SOR/96-368, s. 2
- SOR/2000-290, s. 4
- SOR/2002-233, s. 1
Continuation and Reinstatement
7 (1) Subject to sections 6 and 15, a borrower shall, in order to continue to be or again become a full-time student,
(a) obtain, on a confirmation of enrolment, the signature of an officer of the designated educational institution at which the borrower is enrolled or the signature of the appropriate authority for the province in which that institution is located, where that institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization;
(b) sign the consent and certification portion, which includes a statement to the effect that the borrower ratifies any student loans made to that borrower while a minor, of the confirmation of enrolment;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the confirmation of enrolment
(i) to the branch of the lender to which the borrower is indebted under any risk-shared loan agreement or guaranteed student loan agreement, or
(ii) to the Minister, if the borrower is indebted under any direct loan agreement;
(d) where more than six months have elapsed between the day on which the borrower ceased to be a full-time student pursuant to section 8 and the first day of the current confirmed period,
(i) if the borrower is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, pay to the lender any interest accrued under those agreements to the day before the first day of the confirmed period, and
(ii) if the borrower is indebted under any full-time direct loan agreement, pay to the Minister any interest accrued under that agreement to the day before the first day of the confirmed period;
(e) where the borrower submits the confirmation of enrolment later than six months after the day the borrower ceased to be a full-time student pursuant to section 8 but before the last day of the confirmed period that started within the six-month period,
(i) if the borrower is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, either
(A) pay to the lender the interest accrued under those agreements from the day on which the borrower ceased to be a full-time student, or
(B) enter into a consolidated risk-shared loan agreement or a consolidated guaranteed student loan agreement with the lender in which the unpaid accrued interest referred to in clause (A) is added to the principal amount;
(ii) if the borrower is indebted under any full-time direct loan agreement, either
(A) pay to the Minister the interest accrued under that agreement from the day on which the borrower ceased to be a full-time student, or
(B) enter into a consolidated direct loan agreement with the Minister in which the unpaid accrued interest referred to in clause (A) is added to the principal amount.
(2) Where the borrower referred to in subsection (1) meets the requirements set out in that subsection,
(a) that borrower again becomes a full-time student on the day on which the borrower meets those requirements, where paragraph (1)(d) or (e) applies in respect of that borrower; and
(b) that borrower continues to be a full-time student on and after the day following the day on which the borrower would otherwise have ceased to be a full-time student, in any other case.
- SOR/96-368, s. 2
- SOR/2000-290, s. 5
- SOR/2002-233, s. 2
Ceasing to be a Full-time Student
8 Subject to paragraphs 6(2)(b) and 7(2)(b), a borrower ceases to be a full-time student on the earliest of
(a) the last day of the last confirmed period,
(b) the last day of the month in which the borrower no longer meets the applicable minimum percentage referred to in the definition full-time student in subsection 2(1), and
(c) the applicable day on which the borrower’s interest-free period is terminated in accordance with section 15.
- SOR/96-368, s. 2
Application of Certain Provisions of the Act
9 (1) Sections 7, 8, 10 and 11 and subsection 12(4) of the Act apply in respect of risk-shared loans made to full-time students.
(2) Sections 7 and 8 and subsection 12(4) of the Act apply in respect of direct loans made to full-time students.
- SOR/96-368, s. 2
- SOR/2000-290, s. 6
Student Loan Limit
10 For the purposes of paragraph 12(4)(a) of the Act, the amount for any province is $210 per week.
- SOR/96-368, s. 2
- SOR/2005-152, s. 5
Prescribed Percentage
11 For the purposes of subparagraph 12(4)(b)(ii) of the Act, the prescribed percentage, for any province, is sixty per cent.
- SOR/96-368, s. 2
PART IIStudent Loans Made to Part-Time Students
Obtaining an Initial Student Loan
12 (1) Subject to section 15, in order to obtain a student loan, a qualifying student to whom a certificate of eligibility as a part-time student has been issued and who has no outstanding student loan or guaranteed student loan made to that student as a part-time student shall
(a) obtain, on the confirmation of enrolment portion of that certificate of eligibility, the signature of an officer of the designated educational institution at which the student is enrolled or the signature of the appropriate authority that issued that certificate of eligibility, where the designated educational institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization;
(b) sign the consent and certification portion;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the certificate of eligibility and, where section 4 applies, the written authorization referred to in that section,
(i) in order to obtain a risk-shared loan,
(A) to the branch of the lender to which the student is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, if any, or
(B) to a lender of the student’s choice, in any other case;
(ii) in order to obtain a direct loan,
(A) to the Minister, and
(B) to the branch of the lender to which the student is indebted under any full-time risk-shared loan agreement or guaranteed student loan agreement entered into as a full-time student, if any;
(d) enter into
(i) a student loan agreement with the lender, or
(ii) a direct student loan agreement with the Minister.
(2) A qualifying student who meets the requirements set out in subsection (1) becomes a part-time student on the day on which the student loan agreement or the direct student loan agreement, as the case may be, is entered into.
- SOR/96-368, s. 2
- SOR/2000-290, s. 7
Obtaining a Further Student Loan
12.1 (1) Subject to section 15, in order to obtain a student loan, a qualifying student to whom a certificate of eligibility as a part-time student has been issued and who has any outstanding student loan or guaranteed student loans made to that student as a part-time student shall
(a) obtain, on the confirmation of enrolment portion of the certificate of eligibility issued to that student, the signature of an officer of the designated educational institution at which the student is enrolled or the signature of the appropriate authority that issued that certificate of eligibility, where the designated educational institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization;
(b) sign the consent and certification portion;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the certificate of eligibility and, where section 4 applies, the written authorization referred to in that section,
(i) in order to obtain a risk-shared loan, to the branch of the lender to which the student is indebted under any risk-shared loan agreement or guaranteed student loan agreement,
(ii) in order to obtain a direct loan,
(A) to the Minister, and
(B) to the branch of the lender to which the student is indebted under any risk-shared loan agreement or guaranteed student loan agreement, if any;
(d) pay
(i) to the lender, at the lender's request, any interest accrued under a student loan agreement or a guaranteed student loan agreement entered into as a part-time student, if any, to the day before the first day of the confirmed period and any other interest accrued to the day on which the student submits the certificate of eligibility and
(ii) to the Minister, at the Minister's request, any interest accrued under a direct student loan agreement, if any, to the day before the first day of the confirmed period and any other interest accrued to the day on which the student submits the certificate of eligibility; and
(e) enter into
(i) a student loan agreement with the lender, or
(ii) a direct student loan agreement with the Minister.
(2) A qualifying student that meets the requirements set out in subsection (1)
(a) again becomes a part-time student on the day on which that student meets those requirements, where more than six months have elapsed between the last day of the previous confirmed period and the first day of the current confirmed period; and
(b) continues to be a part-time student on and after the day following the last day of the previous confirmed period, where not more than six months have elapsed between the last day of that period and the first day of the current confirmed period.
(3) Where a student is indebted to
(a) a lender under a student loan agreement, a further risk-shared loan made to that student as a part-time student in accordance with this section shall be a revision to, and form a part of, that agreement; and
(b) the Minister under a direct student loan agreement, a further direct loan made to that student as a part-time student in accordance with this section shall be a revision to, and form a part of, that agreement.
- SOR/96-368, s. 2
- SOR/2000-290, s. 8
Continuation and Reinstatement
12.2 (1) Subject to sections 12.1 and 15, a borrower shall, in order to continue to be or again become a part-time student,
(a) obtain, on a confirmation of enrolment, the signature of an officer of the designated educational institution at which the borrower is enrolled or the signature of the appropriate authority for the province in which that institution is located, where that institution has authorized that authority to act as an agent of that institution for such a purpose and has notified the Minister of that authorization;
(b) sign the consent and certification portion, which includes a statement to the effect that the borrower ratifies any student loans made to that borrower as a minor, of the confirmation of enrolment;
(c) within 30 days after the signing of the confirmation of enrolment but before the end of the confirmed period, submit the confirmation of enrolment
(i) to the branch of the lender to which the borrower is indebted under any risk-shared loan agreement or guaranteed student loan agreement, or
(ii) to the Minister; if the borrower is indebted under any direct loan agreement;
(d) pay
(i) to the lender, at the lender's request, any interest accrued under a student loan agreement or a guaranteed student loan agreement entered into as a part-time student, if any, to the day before the first day of the confirmed period and any other interest accrued to the day on which the borrower submits the confirmation of enrolment, and
(ii) to the Minister, at the Minister's request, any interest accrued under a direct student loan agreement, if any, to the day before the first day of the confirmed period and any other interest accrued to the day on which the borrower submits the confirmation of enrolment.
(2) A borrower that meets the requirements set out in subsection (1)
(a) again becomes a part-time student on the day on which that borrower meets those requirements, where more than six months have elapsed between the last day of the previous confirmed period and the first day of the current confirmed period; and
(b) continues to be a part-time student on and after the day following the last day of the previous confirmed period, where not more than six months have elapsed between the last day of that period and the first day of the current confirmed period.
- SOR/96-368, s. 2
- SOR/2000-290, s. 9
Ceasing to be a Part-time Student
12.3 Subject to paragraphs 12.1(2)(b) and 12.2(2)(b), a borrower ceases to be a part-time student on the earliest of
(a) the last day of the last confirmed period,
(b) the last day of the month in which the borrower no longer meets the applicable minimum percentage referred to in the definition part-time student in subsection 2(1), and
(c) the applicable day on which the borrower’s interest-only period is terminated in accordance with section 15.
- SOR/96-368, s. 2
Application of Section 11 of the Act
12.4 Section 11 of the Act applies in respect of risk-shared loans made to part-time students.
- SOR/96-368, s. 2
- SOR/2000-290, s. 10
Student Loan Limit
12.5 The maximum amount, for any province, for the purposes of subsection 12(6) of the Act is $4,000 less the aggregate principal amount of all outstanding part-time guaranteed loans.
- SOR/96-368, s. 2
PART IIIAssignments and Transfers
Assignment of Agreements
13 (1) In this section and section 14,
- assignee lender
assignee lender means a lender to which a borrower’s outstanding risk-shared loan agreements are assigned in accordance with this section; (prêteur cessionnaire)
- assignor lender
assignor lender means a lender that assigns a borrower’s outstanding risk-shared loan agreements in accordance with this section. (prêteur cédant)
(2) Subject to section 14, a borrower may request the assignment of all of that borrower’s outstanding risk-shared loan agreements if the following conditions are met:
(a) the borrower completes the prescribed form to request an assignment of risk-shared loan agreements,
(b) the borrower submits the completed form to the assignor lender, and
(c) the assignee lender accepts the agreements to be assigned.
(3) Where subsection (2) is complied with, the assignor lender shall sign the assignment agreement and forthwith send to the assignee lender the borrower’s risk-shared loan agreements and all other documentation in respect of those agreements.
(4) Subject to subsection 14(3), on receipt of the agreements and other documentation referred to in subsection (3) and on verification that subsection 14(1) has been complied with, the assignee lender shall pay to the assignor lender an amount equal to the aggregate of the outstanding balance of the principal of the risk-shared loans as of the day referred to in subsection (5) and any unpaid interest accrued on those loans to that day, less five per cent of the outstanding principal amount of any risk-shared loans made to the borrower for which a risk premium was paid to a lender pursuant to subparagraph 5(a)(v) of the Act.
(5) An assignment made in accordance with this section shall take effect on the day before the day of the payment referred to in subsection (4).
- SOR/96-368, s. 3
- SOR/2000-290, s. 11
14 (1) No assignment of risk-shared loan agreements shall be made unless the borrower has
(a) complied with subparagraphs 6(1)(d)(i) and (e)(i) or 7(1)(d)(i) and (e)(i) or 12.1(1)(d)(i) or 12.2(1)(d)(i), where applicable to the borrower, or
(b) paid to the assignor lender all instalments required from the borrower in accordance with that borrower’s risk-shared loan agreements to the date of the request to assign, where none of the provisions referred to in paragraph (a) apply to the borrower.
(2) A risk-shared loan agreement in respect of which a judgment has been obtained shall not be assigned.
(3) An assignee lender may require that the borrower enter into new agreements with the lender in the form approved by the Minister for that lender and, where such a requirement is imposed, the assignment shall take effect on the day those agreements are entered into.
- SOR/96-368, s. 4
- SOR/2000-290, s. 11
Transfer of Agreements
14.1 (1) The definitions in this subsection apply in this section.
- transferee branch
transferee branch means a branch of the lender to which a borrower’s outstanding risk-shared loan agreements are transferred in accordance with this section; (destinataire du transfert)
- transferor branch
transferor branch means a branch of the lender that transfers a borrower’s outstanding risk-shared loan agreements in accordance with this section. (auteur du transfert)
(2) Subject to subsection (5) a borrower may request the transfer of all of the borrower’s outstanding risk-shared loan agreements if the following conditions are met:
(a) the borrower completes the prescribed form to request a transfer of risk-shared loan agreements,
(b) the borrower submits the completed form to the transferor branch, and
(c) the transferee branch accepts the agreements to be transferred.
(3) Where subsection (2) is complied with and subject to subsection (5), the transferor branch shall forthwith send to the transferee branch the borrower’s risk-shared loan agreements and all other documentation in respect of those agreements.
(4) The lender shall send to the borrower notice of completion of the transfer.
(5) No transfer of risk-shared loan agreements shall be made unless the borrower has
(a) complied with subparagraphs 6(1)(d)(i) and (e)(i) or 7(1)(d)(i) and (e)(i) or 12.1(1)(d)(i) or 12.2(1)(d)(i), where applicable to the borrower, or
(b) paid to the transferor branch all instalments required from the borrower in accordance with that borrower’s risk-shared loan agreements to the date of the request to transfer, where none of the provisions referred to in paragraph (a) apply to the borrower.
- SOR/96-368, s. 5
- SOR/2000-290, s. 11
14.2 A branch of a lender shall not, on its own initiative, transfer a borrower’s risk-shared loan agreements unless written notice of the transfer has been provided to the borrower.
- SOR/96-368, s. 5
- SOR/2000-290, s. 11
PART IVRestrictions on Financial Assistance
Denial and Termination
14.3 The circumstances for denying a certificate of eligibility to an individual are that the individual
(a) is 22 years of age or more when applying for the first time for financial assistance;
(b) in the 36 months before making the application, has had at least three instances when an instalment on three or more loans or other debts each of which is higher than $1,000 was more than 90 days overdue; and
(c) had control over the circumstances that led to the overdue instalments.
- SOR/98-402, s. 2
- SOR/2001-462, s. 1
15 (1) For the purposes of this section, "applicable day" means
(a) where the Minister is informed that the borrower has failed to consolidate student loans or guaranteed student loans made to that borrower as a full-time student within six months after the month in which that borrower ceased to be a full-time student and the borrower does not fulfil the requirements of subsection 6(1) or 7(1) before a judgment is obtained against that borrower and such that the beginning of the confirmed period on the confirmation of enrolment referred to in paragraph 6(1)(a) or 7(1)(a) is on or before the last day of that six-month period, the day following the last day of that period;
(b) where the Minister is informed that the borrower has failed to make a payment required pursuant to the borrower's loan agreement, guaranteed student loan agreement, these Regulations or the Canada Student Loans Regulations and the borrower does not fulfil the requirements of subsection 6(1), 7(1), 12.1(1) or 12.2(1), as applicable to the borrower, before a judgment is obtained against that borrower and such that the beginning of the confirmed period on the confirmation of enrolment referred to in paragraph 6(1)(a), 7(1)(a), 12.1(1)(a) or 12.2(1)(a), as applicable to the borrower, is on or before the day that is two months after the day of that failure, the day following the last day of that two-month period;
(c) where the borrower makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act to have made an assignment, or is the subject of a receiving order, the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;
(d) where the borrower makes a proposal under Division I of Part III the Bankruptcy and Insolvency Act that is approved by a court under that Act, the day on which that proposal is approved;
(e) where the borrower makes a consumer proposal under Division II of Part III of the Bankruptcy and Insolvency Act that is approved or deemed approved by a court under that Act, the date on which the consumer proposal is approved or deemed approved;
(f) where the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes a student loan or guaranteed student loan, the date on which that order is issued;
(g) where the borrower seeks relief under a provincial law relating to the orderly payment of debts that includes a student loan or guaranteed student loan, the day on which the document seeking relief is filed;
(h) where the borrower is, by reason of the borrower's conduct in obtaining or repaying a student loan or guaranteed student loan, found guilty of an offence under any Act of Parliament, the day of the finding of guilt;
(i) where the borrower fails to comply with paragraph 24(1)(c), the last day of the period referred to in that paragraph;
(j) where the borrower's student loans commence to be payable in accordance with subsection 17(1), the day on which the borrower ceases to be a full-time student pursuant to section 8; or
(k) if the borrower has been granted a reduction in the principal amount of a student loan or guaranteed student loan under section 42.1, or of a risk-shared loan or a guaranteed student loan that entitled the borrower's lender to a gratuitous payment under section 42 of these Regulations or section 30.1 of the Canada Student Loans Regulations, the day on which that reduction is granted.
(2) Subject to subsections (5), (6) and (9), if an event referred to in any of paragraphs (1)(a) to (k) occurs, the Minister shall, effective on the applicable day referred to in the paragraph,
(a) deny a borrower a new certificate of eligibility for any student loan;
(b) if a certificate of eligibility has been issued to a borrower, deny the borrower a new student loan; and
(c) terminate,
(i) in respect of all outstanding student loans made to the borrower as a full-time student, an interest-free period, and
(ii) in respect of an outstanding student loan made to the borrower as a part-time student, an interest-only period.
(3) If an event referred to in paragraph (1)(a) or (b) occurs and the Minister pays a claim for loss in respect of the borrower's guaranteed student loans, the Minister shall, in addition to the measures referred to in subsection (2), refuse to grant to the borrower a special interest-free period in respect of that borrower's student loans.
(4) If an event referred to in paragraph (1)(h), (i) or (k) occurs, the Minister shall, in addition to the measures referred to in subsection (2), terminate a special interest-free period granted to the borrower and refuse to grant another special interest-free period.
(5) If an event referred to in paragraph (1)(b) occurs in respect of either a student loan or a guaranteed student loan made to a borrower as a part-time student, an event referred to in any of paragraphs (1)(h) to (k) has not occurred subsequent to the event referred to in paragraph (1)(b) and a judgment has not been obtained against the borrower in respect of an outstanding student loan or guaranteed student loan,
(a) the borrower shall be entitled to a new student loan, if a certificate of eligibility has been issued to the borrower as a full-time student in respect of that loan before the day referred to in paragraph (1)(b); and
(b) the measure referred to in paragraph (2)(c) shall take effect on the last day of the period of studies for which the certificate of eligibility was issued.
(6) Where an event referred to in paragraph (1)(a) or (b) occurs in respect of a student loan made to a borrower as a full-time student and, subsequent to that event, the borrower erroneously receives a certificate of eligibility and at least one disbursement authorized by that certificate of eligibility,
(a) the borrower shall be entitled to a new student loan authorized by that certificate of eligibility; and
(b) the measure referred to in paragraph (2)(c) shall take effect at the end of the period of studies for which the certificate of eligibility was issued.
(7) Subsection (2) applies to a borrower who, on the day on which the Act comes into force, is denied a new guaranteed student loan or further interest-free status on a guaranteed student loan in accordance with subsection 9(3) of the Canada Student Loans Regulations.
(8) If an event referred to in any of paragraphs (1)(c) to (g) occurs in respect of either a student loan or a guaranteed student loan made to a borrower as a full-time student, before the last day of the last confirmed period of the program of studies in which the borrower is enrolled at the time the event occurs, the borrower is entitled, if otherwise eligible, to a new student loan or an interest-free period for that program of studies.
(9) If the borrower receives a new student loan or an interest- free period to which the borrower is entitled under subsection (8), the measures referred to in subsection (2) take effect on the earliest of
(a) the last day of the last confirmed period of the program of studies in which the borrower was enrolled at the time the event occurred,
(b) the day that is three years after the occurrence of the event or, if that day occurs during a confirmed period, the last day of that period, and
(c) the last day of the month in which the borrower no longer meets the applicable minimum percentage referred to in the definition "full-time student" in subsection 2(1).
- SOR/96-368, s. 6
- SOR/2000-290, s. 12
- SOR/2004-120, s. 2
Removal of Restrictions
16 (1) Subject to subsection (5), where a borrower is subject to a measure taken in accordance with subsection 15(2), (3) or (4) due to the occurrence of an event referred to in paragraph 15(1)(a), (b) or (i), the borrower is entitled to a new student loan, a new certificate of eligibility, another interest-free period or another special interest-free period if
(a) an event referred to in paragraph 15(1)(h), (j) or (k) has not occurred in respect of the borrower's student loans or guaranteed student loans;
(b) [Repealed, SOR/2004-120, s. 3]
(c) the borrower has, in respect of risk-shared loan agreements and guaranteed student loan agreements for which a judgment has not been obtained and that are held by a lender, paid the interest accrued to a day and fulfilled the terms of a repayment arrangement entered into with that lender that is no more onerous to the borrower than six consecutive payments subsequent to that day that are made in accordance with those agreements; and
(d) the borrower has, in respect of direct loan agreements, risk-shared loan agreements and guaranteed student loan agreements held by the Minister, for which a judgment has not been obtained, paid the interest accrued to a day and 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 that day that are made in accordance with those agreements.
(2) Subject to subsection (5), where a borrower is subject to a measure taken in accordance with subsection 15(2) due to the occurrence of an event referred to in any of paragraphs 15(1)(c) to (g), the borrower has the rights referred to in subsection (1) if
(a) an event referred to in paragraph 15(1)(h), (j) or (k) has not occurred in respect of the borrower's student loans or guaranteed student loans;
(b) the borrower has complied with paragraph (1)(c) or (d), as the case may be, in the case where 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 an event referred to in paragraph 15(1)(c), (d) or (f) has not occurred;
(c) the borrower has been released of the borrower's student loans and guaranteed student loans, in any case other than a case described in paragraph (b); and
(d) if the borrower is released from the borrower's student loans and guaranteed student loans by reason that an absolute order of discharge is granted under the Bankruptcy and Insolvency Act, three years have passed since the date of the order.
(3) Subject to subsection (5), where a borrower is subject to a measure taken in accordance with subsection 15(2) or (4) due to the occurrence of the event referred to in paragraph 15(1)(h), the borrower shall have the rights referred to in subsection (1) if
(a) an event referred to in paragraph 15(1)(j) or (k) has not occurred in respect of the borrower's student loans or guaranteed student loans;
(b) the borrower has been released from that borrower's student loans and guaranteed student loans that were outstanding on the day of the finding of guilt;
(c) where 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 that order; and
(d) either five years have passed since the day of the finding of guilt or a pardon has been granted in respect of that finding.
(4) Where a borrower, who has been the subject of a measure taken in accordance with subsection 15(2), (3) or (4), has received a risk-shared loan as a minor and has refused to ratify that loan and the Minister has made a payment to the lender pursuant to subparagraph 5(a)(ix) of the Act in respect of that loan, the borrower shall have the rights referred to in subsection (1) if
(a) the borrower ratifies that loan; and
(b) the requirements of subsection (1), (2) or (3) are met, as is applicable in the circumstances.
(4.1) Where a borrower, who has been the subject of a measure taken in accordance with subsection 15(2), (3) or (4), has received a direct loan as a minor and has refused to ratify that loan, the borrower shall have the rights referred to in subsection (1) if
(a) the borrower ratifies that loan; and
(b) the requirements of subsection (1), (2) or (3) are met, as is applicable in the circumstances.
(4.2) Subject to subsection (5), where a borrower is subject to a measure taken in accordance with subsection 15(2) or (4) due to the occurrence of the event referred to in paragraph 15(1)(k), the borrower has the rights referred to in subsection (1) if the borrower has paid in full the outstanding balance of the student loans or guaranteed student loans.
(5) Where a judgment has been obtained against a borrower, that borrower shall not be entitled to the rights referred to in subsection (1) unless, in addition to meeting the requirements of subsection (1), (2) or (3), the borrower has been released from that judgment.
- SOR/2000-290, s. 13
- SOR/2004-120, s. 3
Maximum Weeks
17 (1) The principal amount of a student loan made to the borrower as a full-time student, and any interest thereon, commence to be payable by the borrower on the last day of the seventh month after the month in which the borrower ceased to be a full-time student pursuant to section 8, where the number of weeks calculated on the applicable day referred to in that section and in accordance with subsection (3) exceeds
(a) 520 weeks,
(i) in the case of a full-time student with a permanent disability, or
(ii) in the case of a full-time student to whom a guaranteed student loan has been made as a full-time student, whether or not that loan is outstanding; or
(b) subject to subsection (2), 340 weeks, in any other case.
(2) Where a full-time student referred to in paragraph (1)(b) has exceeded the number of weeks referred to in that paragraph, that number of weeks shall be increased by 60 weeks if that student is enrolled in a doctoral program of studies.
(3) For the purposes of subsections (1) and (2), the number of weeks is the aggregate of the number of weeks corresponding to the borrower's confirmed periods as a full-time student, or the equivalent thereof, under the Act and the Canada Student Loans Act, less the number of weeks determined by the Minister for which the designated educational institution has provided that the borrower was no longer a full-time student.
- SOR/96-368, s. 8
18 [Repealed, SOR/96-368, s. 9]
PART VSpecial Interest-Free Period
Eligibility Criteria
19 Subject to section 15, the Minister may grant a special interest-free period to a borrower if
(a) the borrower resides in Canada;
(b) the borrower has signed, in respect of
(i) risk-shared loans, guaranteed student loans or direct loans made to the borrower as a full-time student, a consolidated risk-shared loan agreement, a consolidated guaranteed student loan agreement or a consolidated direct loan agreement, as the case may be, and
(ii) risk-shared loans, guaranteed student loans or direct loans made to the borrower as a part-time student, a student loan agreement, a part-time guaranteed loan agreement or a direct student loan agreement, as the case may be;
(c) all of the risk-shared loan agreements and guaranteed student loan agreements referred to in paragraph (b) are held by a lender, or, in the case where an event referred to in any of paragraphs 15(1)(c) to (g) has occurred, by the Minister or a lender;
(d) the borrower applies, in the prescribed form, for a special interest-free period in respect of all of that borrower's loans referred to in paragraph (b); and
(e) the borrower's monthly family income is equal to or less than the applicable amount indicated in Schedule 1 taking into consideration
(i) the number of persons comprising the borrower, the borrower's spouse or common-law partner and their dependants, and
(ii) the total amount of all monthly instalments required from the borrower and, if applicable, the borrower's spouse or common-law partner, in accordance with their outstanding student loan agreements and guaranteed loan agreements.
(f) [Repealed, SOR/96-368, s. 11]
- SOR/96-368, s. 11
- SOR/2000-290, s. 14
- SOR/2001-230, s. 2
- SOR/2004-120, s. 4
- SOR/2005-152, s. 6
Timing
20 (1) [Repealed, SOR/2004-120, s. 5]
(2) Subject to subsection (2.01), the aggregate of the special interest-free periods — including any special interest-free period in respect of which section 24 does not apply that has been granted to a borrower and for which the Minister paid interest under the Act or the Canada Student Loans Act or any regulations made under those Acts — shall not exceed 30 months.
(2.01) If a borrower has already been granted 30 months of special interest-free periods, the Minister may, subject to subsection (2.02), grant the borrower further special interest-free periods if
(a) in the case of a student loan with a repayment period of 15 years or more, the borrower is unable to make the instalment payments due; or
(b) in the case of a student loan with a repayment period of less than 15 years, the borrower would not be able to make the instalment payments due even if the repayment period were extended to 15 years.
(2.02) The Minister shall not grant a further special interest-free period if 60 months have elapsed since the day on which a borrower ceased to be a full-time student or a part-time student, as that day was identified in the borrower's first application for a special interest-free period.
(2.1) For the purposes of subsections (2) to (2.02),
(a) where the aggregate of all special interest-free periods granted to the borrower under the Canada Student Loans Act and any regulations made thereunder before August 1, 1995 does not equal a complete number of months, the Minister shall not count the fraction of a month; and
(b) where the borrower's special interest-free period ends due to a circumstance referred to in paragraph 26(1)(a) or (c) or is terminated pursuant to section 24, the Minister shall consider as a full month any part of a month
(i) for which the Minister paid interest to the lender due to that special interest-free period, or
(ii) for which the borrower was granted a special interest-free period.
(3) and (4) [Repealed, SOR/98-402, s. 3]
- SOR/96-368, s. 13
- SOR/97-250, s. 1
- SOR/98-402, s. 3
- SOR/2000-290, s. 15
- SOR/2004-120, s. 5
Administration
21 (1) A lender that holds a borrower's risk-shared loan agreements may, pursuant to a prior written authorization from the Minister, exercise the powers and duties described in subsections 15(3) and (4) and section 19.
(2) Where a lender is authorized in accordance with subsection (1), the Minister shall provide the lender such information as is necessary to enable the lender to act pursuant to that subsection.
- SOR/2000-290, s. 16
22 (1) Subject to section 22.1, where an application is made for a special interest-free period in respect of a risk-shared loan,
(a) the lender, if authorized in accordance with subsection 21(1), shall, forthwith after making a decision in respect of the application, give notice of the decision to the borrower and the Minister; or
(b) the Minister, if a lender is not authorized in accordance with subsection 21(1), shall, forthwith after making a decision in respect of the application, give notice of the decision to the borrower and to the lender that holds that borrower's risk-shared loan.
(2) The notice referred to in subsection (1) shall set out
(a) the day on which the special interest-free period begins, which day shall not be before the latest of
(i) the first day of the sixth month preceding the month in which the borrower applies for that special interest-free period,
(ii) in the case of a student loan made to a borrower as a full-time student, the first day of the seventh month after the month in which the borrower ceased to be a full-time student pursuant to section 8,
(ii.1) in the case of a student loan made to a borrower as a part-time student, the first day of the month following the month in which the borrower received that loan under the student loan agreement or direct student loan agreement, as the case may be, and
(iii) the first day of the month in which the borrower meets the criterion set out in paragraph 19(e);
(b) the day on which that special interest-free period ends which shall be the earlier of the day that is six months after the day determined in accordance with paragraph (a) and the first day of the month in which the borrower ceases to meet the condition referred to in paragraph 19(e); and
(c) that the decision to grant the special interest-free period is subject to the condition set out in subsection (3).
(3) A decision to grant a special interest-free period is subject to the condition that, where any accrued interest in respect of the risk-shared loan remains unpaid on the day determined in accordance with paragraph (2)(a), the borrower shall, on or before the day determined in accordance with paragraph (2)(b),
(a) if the borrower has unpaid accrued interest under a consolidated risk-shared loan agreement, pay to the lender or the Minister, as the case may be, all of that unpaid accrued interest;
(a.1) if the borrower has not previously done so, enter into a revised consolidated risk-shared loan agreement, effective on the day determined in accordance with paragraph (2)(a), in which the unpaid interest accrued during the three-month period immediately before that day is added to the principal amount of the borrower's risk-shared loan;
(a.2) pay to the lender or the Minister, as the case may be, any unpaid interest accrued before the three-month period referred to in paragraph (a.1); and
(b) if the borrower has unpaid interest accrued pursuant to a student loan agreement, pay to the lender that unpaid accrued interest.
- SOR/96-368, s. 15
- SOR/97-250, s. 2
- SOR/98-402, s. 4
- SOR/2000-290, s. 17
- SOR/2004-120, s. 6
22.1 (1) Where an application is made for a special interest-free period in respect of a direct loan or a direct loan in combination with a risk-shared loan or a guaranteed student loan, the Minister shall, forthwith after making a decision in respect of the application, give notice of the decision
(a) to the borrower when the application is made in respect of a direct loan, or
(b) to the borrower and the lender when the application is made in respect of a direct loan in combination with a risk-shared loan or a guaranteed student loan.
(2) The notice referred to in subsection (1) shall set out
(a) the day on which the special interest-free period begins, which day shall not be before the latest of
(i) the first day of the sixth month preceding the month in which the borrower applies for that special interest-free period,
(ii) in the case of a student loan made to a borrower as a full-time student, the first day of the seventh month after the month in which the borrower ceased to be a full-time student pursuant to section 8,
(ii.1) in the case of a student loan made to a borrower as a part-time student, the first day of the month following the month in which the borrower received that loan under the student loan agreement or direct student loan agreement, as the case may be, and
(iii) the first day of the month in which the borrower meets the criterion set out in paragraph 19(e);
(b) the day on which that special interest-free period ends which is the earlier of the day that is six months after the day determined in accordance with paragraph (a) and the first day of the month in which the borrower ceases to meet the condition referred to in paragraph 19(e); and
(c) that the decision to grant the special interest-free period is subject to the condition set out in subsection (3).
(3) A decision to grant a special interest-free period is subject to the condition that, where any accrued interest in respect of the direct loan, the risk-shared loan or the guaranteed student loan remains unpaid on the day determined in accordance with paragraph (2)(a), the borrower shall, on or before the day determined in accordance with paragraph (2)(b),
(a) if the borrower has unpaid accrued interest under a consolidated direct loan agreement, pay to the Minister all of that unpaid accrued interest;
(a.1) if the borrower has not previously done so, enter into a revised consolidated direct loan agreement, effective on the day determined in accordance with paragraph (2)(a), in which the unpaid interest accrued during the three-month period immediately before that day is added to the principal amount of the borrower's direct loan;
(a.2) pay to the Minister any unpaid interest accrued before the three-month period referred to in paragraph (a.1); and
(b) if the borrower has unpaid interest accrued pursuant to a direct student loan agreement, pay to the Minister that unpaid accrued interest;
(c) if the borrower has unpaid accrued interest under a consolidated risk-shared loan agreement, pay to the lender or the Minister, as the case may be, all of that unpaid accrued interest;
(c.1) if the borrower has not previously done so, enter into a revised consolidated risk-shared loan agreement, effective on the day determined in accordance with paragraph (2)(a), in which the unpaid interest accrued during the three-month period immediately before that day is added to the principal amount of the borrower's risk-shared loan;
(c.2) pay to the lender or the Minister, as the case may be, any unpaid interest accrued before the three-month period referred to in paragraph (c.1); and
(d) if the borrower has unpaid interest accrued pursuant to a student loan agreement, pay to the lender that unpaid accrued interest;
(e) if the borrower has unpaid accrued interest under a consolidated guaranteed student loan agreement, pay to the lender or the Minister, as the case may be, all of that unpaid accrued interest,
(e.1) if the borrower has not previously done so, enter into a revised consolidated guaranteed student loan agreement, effective on the day determined in accordance with paragraph (2)(a), in which the unpaid interest accrued during the three-month period immediately before that day is added to the principal amount of the borrower's guaranteed student loan;
(e.2) pay to the lender or the Minister, as the case may be, any unpaid interest accrued before the three-month period referred to in paragraph (e.1); and
(f) if the borrower has unpaid interest accrued pursuant to a part-time guaranteed loan agreement, pay to the lender that unpaid accrued interest.
- SOR/2000-290, s. 18
- SOR/2004-120, s. 7
Reconsideration
23 (1) The Minister shall reconsider a borrower's application for a special interest-free period if
(a) the borrower's application has been rejected for the sole reason that the borrower did not meet the criterion set out in paragraph 19(e);
(b) the borrower makes a request to the Minister in writing for that reconsideration; and
(c) the borrower provides documentary proof that unforeseen and unavoidable circumstances beyond the control of the borrower and, if applicable, the borrower's spouse or common-law partner, have caused the borrower to incur exceptional expenses.
(2) Where the Minister reconsiders an application in accordance with subsection (1), the Minister, after taking into consideration the value of the expenses referred to in paragraph (1)(c) and the monthly instalments referred to in subparagraph 19(e)(ii), shall make a decision and provide notice in accordance with section 22 or 22.1, as the case may be.
- SOR/96-368, s. 17
- SOR/2000-290, s. 19
- SOR/2001-230, s. 3
Error by Borrower
24 (1) Where the Minister determines that a special interest-free period was granted because of an error made by the borrower in applying for the special interest-free period or that the borrower's income no longer meets the criterion set out in paragraph 19(e),
(a) the Minister shall provide a notice of the determination to the borrower, in the case of a direct loan, and to the borrower and the lender, in all other cases, specifying
(i) the date of the notice, and
(ii) the day on which the special interest-free period is terminated;
(b) forthwith after receiving the notice referred to in paragraph (a), the lender shall repay to the Minister any amount of interest paid by the Minister in respect of the period beginning on the day on which the special interest-free period is terminated; and
(c) the borrower shall, within 30 days after the date of the notice referred to in subparagraph (a)(i),
(i) in respect of the borrower's consolidated risk-shared loan agreement, if any,
(A) pay to the lender any accrued interest payable, including any amount repaid by the lender in accordance with paragraph (b), or
(B) enter into a revised consolidated risk-shared loan agreement in which the unpaid accrued interest on the day on which the borrower and the lender enter into that agreement, including any amount repaid by the lender in accordance with paragraph (b), is added to the principal amount of the borrower's risk-shared loan,
(ii) in respect of the borrower's student loan agreement, if any, pay to the lender any accrued interest payable, including any amount repaid by the lender in accordance with paragraph (b),
(iii) in respect of the borrower's consolidated direct loan agreement, if any,
(A) pay to the Minister any accrued interest payable, or
(B) enter into a revised consolidated direct loan agreement in which the unpaid accrued interest on the day on which the borrower and the Minister enter into that agreement is added to the principal amount of the borrower's direct loan, and
(iv) in respect of the borrower's direct student loan agreement, if any, pay to the Minister any accrued interest payable,
(v) in respect of the borrower's consolidated guaranteed student loan agreement, if any,
(A) pay to the lender any accrued interest payable, including any amount repaid by the lender in accordance with paragraph (b), or
(B) enter into a revised consolidated guaranteed student loan agreement in which the unpaid accrued interest on the day on which the borrower and the lender enter into that agreement, including any amount repaid by the lender in accordance with paragraph (b), is added to the principal amount of the borrower's guaranteed student loan,
(vi) in respect of the borrower's part-time guaranteed loan agreement, pay to the lender any accrued interest payable, including any amount repaid by the lender in accordance with paragraph (b).
(2) Where the borrower fails to comply with paragraph (1)(c), any unpaid accrued interest on the day that is thirty days after the date of the notice referred to in subparagraph (1)(a)(i), including any amount repaid by the lender in accordance with paragraph (1)(b), shall be payable at the end of that thirty-day period.
- SOR/96-368, s. 18
- SOR/2000-290, s. 20
25 [Repealed, SOR/96-368, s. 18]
Effect on Loan Agreement
26 (1) Subject to subsection (2), where a special interest-free period has been granted to a borrower, the provisions of any loan agreement or guaranteed student loan agreement that was in effect between the borrower and the lender or between the borrower and the Minister, as the case may be, on the day on which the borrower applied for that special interest-free period shall be suspended until the earliest of
(a) the day on which a special interest-free period is terminated in accordance with subsection 15(4),
(b) the end of that special interest-free period, and
(c) in respect of the borrower's consolidated student loan agreement or consolidated guaranteed student loan agreement, if any, the day on which the borrower again becomes a full-time student in accordance with subsections 6(2) or 7(2).
(2) Where a special interest-free period has been granted to a borrower,
(a) subject to paragraph 24(1)(c), no interest and no amount on account of interest is payable by the borrower on the borrower's student loans or guaranteed student loans during or in respect of the special-interest free period; and
(b) the first payment to be made by the borrower after the end of the special interest-free period shall be made one month after the end of that period.
- SOR/96-368, s. 19
- SOR/2000-290, s. 21
27. to 33 [Repealed, SOR/96-368, s. 20]
PART VICanada Study Grants
Grants for the Accommodation of Students with Permanent Disabilities
34 (1) An appropriate authority, or a body authorized by the Minister for a province, may make a Canada study grant to a qualifying student if that student
(a) has a permanent disability;
(b) meets the criteria set out in subsection 12(1) of the Act;
(c) is not denied further student loans in accordance with section 15;
(d) is in need of exceptional education-related services or equipment that are required for the student to perform the daily activities necessary to participate in studies at a post-secondary school level and that are indicated in the List of Eligible Exceptional Education-related Services and Equipment, as amended from time to time, published in the Canada Gazette Part I; and
(e) has used the proceeds of all previous grants made to the student under this section for the purpose for which they were intended.
(2) In order to receive a grant under this section, a qualifying student shall
(a) submit a duly completed application for a grant in the prescribed form to the appropriate authority or other body;
(b) provide, with that application, proof of the student's permanent disability in the form of
(i) a medical certificate,
(ii) a psycho-educational assessment, or
(iii) documentation proving receipt of federal or provincial disability assistance; and
(c) provide, with that application, written confirmation that the student is in need of exceptional education-related services or equipment from a person qualified to determine such need.
(3) The amount of all grants made under this section to a qualifying student in a loan year shall not exceed $8,000.
- SOR/96-368, s. 22
- SOR/98-402, s. 5
- SOR/2002-219, ss. 1, 6
34.1 [Repealed, SOR/2005-152, s. 8]
35 [Repealed, SOR/98-402, s. 6]
Grants for Females Pursuing Doctoral Studies
36 (1) An appropriate authority, or a body authorized by the Minister for a province, may make a Canada study grant to a qualifying student if that student
(a) is a female who is qualified for enrolment or is enrolled as a full-time student in a doctoral program of studies in a field of studies
(i) included in the List of Doctoral Fields of Studies, as amended from time to time, published in the Canada Gazette Part I, and that takes into consideration whether women comprised less than 35 per cent of total enrolment in that field during the last seven years for which statistics are available, as determined by the Minister after consultation with the Chief Statistician of Canada, or
(ii) that was previously included in the list referred to in subparagraph (i) but that is no longer so included, and for which the qualifying student received a grant in the past pursuant to this section;
(b) meets the criteria set out in subsection 12(1) of the Act;
(c) is not denied further student loans in accordance with section 15; and
(d) has not received a grant pursuant to this section in any three previous loan years.
(2) In order to receive a grant under this section, a qualifying student shall submit a duly completed application for a grant in prescribed form to the appropriate authority or other body.
(3) The amount of all grants made pursuant to this section to a qualifying student in a loan year shall not exceed the lesser of
(a) the qualifying student's need, and
(b) $3,000.
- SOR/96-368, s. 24
- SOR/2002-219, s. 6
37 [Repealed, SOR/98-402, s. 7]
Grants for High-need Part-time Students
38 (1) An appropriate authority, or a body authorized by the Minister for a province, may make a Canada study grant to a qualifying student if that student
(a) is qualified for enrolment or is enrolled as a part-time student;
(b) demonstrates to the satisfaction of the appropriate authority or other body that the student is unable to qualify for enrolment in at least 60 per cent of a course load recognized by the designated educational institution as a full course load;
(c) meets the criteria set out in subsection 12(1) of the Act;
(c.1) has successfully completed all courses in respect of which a grant was previously made to the student under this section;
(d) has an annual family income that is equal to or less than the applicable income threshold indicated in the Income Threshold Table, as amended from time to time, published in the Canada Gazette Part I, taking into consideration the number of persons comprising the borrower, the borrower's spouse or common-law partner and their dependants; and
(e) is not denied further student loans in accordance with section 15.
(2) In order to receive a grant under this section, a qualifying student shall submit a duly completed application for a grant in prescribed form to the appropriate authority or other body.
(3) The amount of all grants made pursuant to this section to a qualifying student in a loan year shall not exceed the lesser of
(a) the qualifying student's need, and
(b) $1,200.
- SOR/96-368, s. 26
- SOR/2001-230, s. 4
- SOR/2002-219, s. 6
Grants for Students with Dependants
38.1 (1) An appropriate authority, or a body authorized by the Minister for a province, may make a Canada study grant to a qualifying student if the student
(a) is a full-time student, has one or more dependants and has an assessed need in excess of $275 per week;
(b) meets the criteria set out in subsection 12(1) of the Act; and
(c) is not denied further student loans in accordance with section 15.
(2) The amount of all grants made under this section to a qualifying student in a loan year shall not exceed the least of
(a) the qualifying student's assessed need,
(b) $40 per week of study in a loan year if the student has one or two dependants,
(c) $60 per week of study in a loan year if the student has three or more dependants, and
(d) $3,120.
- SOR/98-402, s. 8
- SOR/2002-219, s. 6
38.2 (1) An appropriate authority or a body authorized by the Minister for a province may make a Canada study grant to a qualifying student if the student
(a) is a part-time student, has one or more dependants and has an assessed need in excess of the aggregate of
(i) the maximum amount payable under subsection 38(3) as a grant for high-need part-time students, and
(ii) the maximum amount payable under section 12.5 as a loan for part-time students;
(b) meets the criteria set out in subsection 12(1) of the Act; and
(c) is not denied further student loans in accordance with section 15.
(2) The amount of all grants made pursuant to this section to a qualifying student in each loan year shall not exceed the lesser of
(a) the qualifying student's need,
(b) $40 per week of study in a loan year if the student has one or two dependants,
(c) $60 per week of study in a loan year if the student has three or more dependants, and
(d) $1,920.
- SOR/98-402, s. 8
- SOR/2002-219, s. 6
38.3 [Repealed, SOR/2005-47, s. 1]
39 [Repealed, SOR/98-402, s. 9]
Administration of Canada study Grants
40 (1) The Minister shall pay to the appropriate authority or other body authorized by the Minister for a province the amount it requires to make Canada Study Grants to qualifying students for a loan year under this Part.
(2) Each appropriate authority or other body shall provide to the Minister at the end of each loan year, or on request of the Minister during a loan year, an accounting of all grants made to qualifying students by that appropriate authority or other body during that loan year or other period identified by the Minister.
(3) An appropriate authority or other body shall repay to the Minister any money provided for a loan year that is not given as grants in accordance with this Part. The overpayment shall become a debt due to Her Majesty in right of Canada on the day after the last day of that loan year.
- SOR/96-368, s. 28
- SOR/98-402, s. 10
- SOR/2002-219, s. 5
- SOR/2005-47, s. 2
PART VI.1Canada Access Grants
Canada Access Grant for Students with Permanent Disabilities
40.01 (1) The Minister, an appropriate authority or a body authorized by the Minister for a province, may make a Canada access grant to a qualifying student if the student
(a) has a permanent disability;
(b) meets the criteria set out in subsection 12(1) of the Act; and
(c) is not denied further student loans under section 15.
(2) To receive a grant under this section, a qualifying student shall provide, with the loan application, proof of their permanent disability in the form of
(a) a medical certificate;
(b) a psycho-educational assessment; or
(c) documentation proving receipt of federal or provincial disability assistance.
(3) The amount of all grants made under this section to a qualifying student in a loan year shall not exceed the lesser of
(a) the qualifying student's assessed need, and
(b) $2,000.
- SOR/2005-152, s. 9
Canada Access Grant for Students from Low-income Families
40.02 (1) The Minister, an appropriate authority or a body authorized by the Minister for a province, may make a Canada access grant to a qualifying student if the student
(a) meets the criteria set out in subsection 12(1) of the Act;
(b) is enrolled as a full-time student;
(c) is enrolled, within 4 years after leaving secondary school, in their first year in a program of studies of at least two years that leads to a degree, certificate or diploma at a designated educational institution;
(d) has never previously been enrolled in a program of studies; and
(e) is a person in respect of whom a national child benefit supplement, or a special allowance under the Children's Special Allowances Act, is payable or would be payable if the person was less than 18 years of age.
(2) The amount of a grant made under this section to a qualifying student in a loan year shall not exceed the least of
(a) the qualifying student's assessed need;
(b) 50% of the student's tuition; and
(c) $3,000.
(3) In this section, national child benefit supplement means that portion of a child tax benefit determined under the description of C in subsection 122.61(1) of the Income Tax Act.
- SOR/2005-152, s. 9
Administration of Canada access grants
40.03 (1) The Minister shall pay to the appropriate authority or other body authorized by the Minister for a province the amount the authority or other body requires to make Canada access grants to qualifying students for a loan year under this Part.
(2) Each appropriate authority or other body shall provide to the Minister at the end of each loan year, or on request of the Minister during a loan year, an accounting of all grants made to qualifying students by that appropriate authority or other body during that loan year or other period identified by the Minister.
(3) An appropriate authority or other body shall repay to the Minister any money provided for a loan year that is not given as grants in accordance with this Part. The overpayment becomes a debt due to Her Majesty in right of Canada on the day after the last day of that loan year.
- SOR/2005-152, s. 9
PART VIIGeneral
Subrogation
40.1 (1) Where the Minister makes a payment to a lender pursuant to subparagraph 5(a)(viii) or (ix) of the Act in respect of a risk-shared loan, Her Majesty in right of Canada is subrogated in and to all the rights of the lender in respect of the risk-shared loan and, without limiting the generality of the foregoing, all rights and powers of the lender in respect of
(a) the risk-shared loan;
(b) any judgment obtained by the lender in respect of the risk-shared loan; and
(c) any security held by the lender for the repayment of the risk-shared loan.
(2) Her Majesty in right of Canada is entitled to exercise all the rights, powers and privileges that the lender had or may exercise in respect of the loan, judgment or security, including the right to commence or continue any action or proceeding, to execute any release, transfer, sale or assignment, or in any way collect, realize or enforce the loan, judgment or security.
- SOR/96-368, s. 29
- SOR/2000-290, s. 22
41 [Repealed, 2005, c. 34, s. 78]
Gratuitous Payments
42 (1) If, on the application of a borrower who is not indebted to the Minister under any direct loan, a lender has reduced, on a prorata basis, the amount of the outstanding principal of all the borrower's risk-shared loans and guaranteed student loans, the lender is entitled to a gratuitous payment by the Minister in respect of the reduction in an amount calculated in accordance with this section if, at the time the application for reduction was made,
(a) the borrower was not subject to a measure taken in accordance with subsection 15(2) due to the occurrence of an event referred to in paragraph 15(1)(a),(b), (h) or (i);
(b) the borrower had ceased to be a full-time or part-time student at least 60 months before making the application;
(b.1) for a borrower that had previously been granted a reduction in the principal amount of a student loan or a guaranteed student loan under section 42.1 or a risk-shared loan or a guaranteed student loan that entitled the borrower's lender to a gratuitous payment under this section or section 30.1 of the Canada Student Loans Regulations,
(i) at least 12 months had elapsed since the day on which that previous reduction had been granted,
(ii) the borrower had ceased to be a full-time or part-time student at least 60 months before making the application,
(iii) the monthly payment made by the borrower after the last reduction in the principal amount of the student loan or guaranteed student loan was at least $25 unless the Minister concludes that the borrower, under a repayment arrangement entered into with the Minister or the lender, made a monthly payment of less than $25 on the basis that the borrower could not pay that amount owing to the borrower's family income; and
(iv) since the previous reduction was granted, an event referred to in paragraph 15(1)(a), (b), (h) or (i) has not occurred in respect of the borrower's student loans or guaranteed student loans.
(c) the borrower had been granted all of the special interest-free periods that may be granted;
(d) the borrower has not been granted more than two reductions in the principal amount of
(i) a risk-shared loan or a guaranteed student loan that entitled the lender to a gratuitous payment under this section or section 30.1 of the Canada Student Loans Regulations, or
(ii) a student loan or a guaranteed student loan under section 42.1;
(e) the monthly payment on the loans is greater than the monthly payment corresponding to the borrower's monthly family income as indicated in the Debt Reduction in Repayment Income Table in Schedule 2; and
(f) the borrower resided in Canada.
(2) Subject to subsection (4), the amount of the gratuitous payment shall be determined in accordance with the following formula, rounded to the nearest dollar:
A × [1-(B/C)]
where
- A
- is the principal amount owing in respect of the loans;
- B
- is the monthly payment corresponding to the borrower's monthly family income — minus any monthly payment required for student loans or guaranteed student loans of the borrower's spouse or common-law partner — as indicated in the Debt Reduction in Repayment Income Table in Schedule 2; and
- C
- is, in respect of a first reduction, the monthly payment that would be due on the loans if the repayment period was 15 years.
(3) In determining the amount of the gratuitous payment in respect of a second or third reduction, the monthly payment due on the loans as this amount is calculated in C of the formula set out in subsection (2) is based on the portion of the 15 year period remaining after the previous reduction.
(4) The gratuitous payment shall not exceed
(a) $10,000, in the case of a first reduction in the principal amount of a student loan or a guaranteed student loan;
(b) $10,000, in the case of a second reduction in the principal amount of a student loan or a guaranteed student loan; or
(c) $6,000, in the case of a third reduction in the principal amount of a student loan or a guaranteed student loan.
(5) [Repealed, SOR/2004-120, s. 9]
(6) The Minister, on being notified of the reduction by the lender in the prescribed form, shall pay to the lender the amount of the gratuitous payment that has been calculated in accordance with this section.
- SOR/98-402, s. 11
- SOR/2000-290, s. 25
- SOR/2004-120, s. 9
- SOR/2005-152, ss. 10, 13
Reduction of debt
42.1 (1) In each province participating in the student loan program established by the Act and that is financed by the government, the Minister may, on the application of a borrower who is indebted to the Minister under any direct loans, reduce the amount of the outstanding principal of all of the borrower's student loans and guaranteed student loans in an amount calculated in accordance with this section if, at the time the application for reduction is made,
(a) the borrower is not subject to a measure taken in accordance with subsection 15(2) due to the occurrence of an event referred to in paragraph 15(1)(a),(b), (h) or (i);
(b) the borrower has ceased to be a full-time or part-time student at least 60 months before making the application;
(b.1) if the borrower has previously been granted a reduction in the principal amount of a student loan or a guaranteed student loan under this section, or a risk-shared loan or guaranteed student loan that entitled the borrower's lender to a gratuitous payment under section 42 of these Regulations or section 30.1 of the Canada Student Loans Regulations,
(i) at least 12 months has elapsed since the day on which that previous reduction has been granted,
(ii) the borrower ceased to be a full-time or part-time student at least 60 months before making the application,
(iii) the monthly payment made by the borrower after the last reduction in the principal amount of the student loan or guaranteed student loan was at least $25 unless the Minister concludes that the borrower, under a repayment arrangement entered into with the Minister or the lender, made a monthly payment of less than $25 on the basis that the borrower could not pay that amount owing to the borrower's family income, and
(iv) since the previous reduction was granted, an event referred to in paragraph 15(1)(a), (b), (h) or (i) has not occurred in respect of the borrower's student loans or guaranteed student loans;
(c) the borrower has been granted all of the special interest- free periods that may be granted;
(d) the borrower has not been granted more than two reductions in the principal amount of
(i) a risk-shared loan or a guaranteed student loan that entitled the lender to a gratuitous payment under section 42 of these Regulations or section 30.1 of the Canada Student Loans Regulations, or
(ii) a student loan or a guaranteed student loan under this section;
(e) the monthly payment on the loans is greater than the monthly payment corresponding to the borrowers monthly family income as indicated in the Debt Reduction in Repayment Income Table in Schedule 2; and
(f) the borrower resides in Canada.
(2) Subject to subsection (3), the amount of the reduction shall be determined in accordance with the formula set out in subsection 42(2) and rounded to the nearest dollar.
(3) The reduction shall not exceed
(a) $10,000, in the case of a first reduction in the principal amount of a student loan or a guaranteed student loan;
(b) $10,000, in the case of a second reduction in the principal amount of a student loan or a guaranteed student loan; or
(c) $6,000, in the case of a third reduction in the principal amount of a student loan or a guaranteed student loan.
- SOR/2000-290, s. 26
- SOR/2004-120, s. 10
- SOR/2005-152, ss. 11, 13
42.2 (1) Where a borrower, who has made an application under subsection 42.1(1) and whose application for debt reduction has been approved, has outstanding direct loans and outstanding risk-shared loans or guaranteed student loans, the reduction in the borrower's loans principal shall be distributed on a prorata basis between the direct loans, the risk-shared loans and the guaranteed student loans.
(2) Where the Minister reduces any of the borrower's risk-shared loans or guaranteed student loans pursuant to subsection 42.1(1), the lender is entitled to a gratuitous payment by the Minister in respect of that reduction in an amount calculated in accordance with subsection 42.1(2), which amount is to be applied to the borrower's risk-shared loans or guaranteed student loans on a prorata basis.
- SOR/2000-290, s. 26
- SOR/2004-120, s. 11(F)
Reconsideration
43 (1) The Minister may, on the request of the borrower, make a gratuitous payment to a lender pursuant to section 42 or reduce a borrower's student loans or guaranteed student loans pursuant to section 42.1 when the criterion set out in paragraph 42(1)(e) or 42.1(1)(e), as the case may be, has not been met if the Minister determines, based on documentary evidence provided by the borrower, that
(a) 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; and
(b) the borrower is able to make the instalments on the reduced debt.
(2) The Minister shall provide a notice of the determination to the borrower in the case of the reduction of the principal amount of a direct loan, and to the borrower and the lender in all other cases.
- SOR/98-402, s. 11
- SOR/2000-290, s. 27
- SOR/2001-230, s. 5
Termination of the Minister's Rights
43.1 (1) In each province participating in the student loan program established by the Act and that is financed by the government, all rights of the Minister terminate in respect of a borrower
(a) who is indebted under a direct loan entered into as a full-time student, if the borrower dies before the end of the month in which the borrower would have otherwise ceased to be a full-time student; or
(b) who is indebted under a direct loan, if the Minister is satisfied that the borrower, by reason of the borrower's permanent disability, is or will be unable to repay the loan without exceptional hardship, taking into account the borrower's family income.
(2) In the circumstances set out in subsection (1), the Minister shall cancel the obligation to pay the principal and interest of the loan.
(3) For the purposes of subsection (1), the permanent disability must occur
(a) in the case of a borrower indebted under a direct loan entered into as a full-time student, before the first 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 borrower indebted under a direct loan entered into as a part-time student, before the day on which the lender and the borrower enter into the direct student loan agreement.
- SOR/2000-290, s. 28
SCHEDULE 1(Paragraph 19 (e))
Special Interest-Free Period Income Table
| Total Monthly Instalments required from borrower and borrower’s spouse or common-law partner in accordance with their loan agreement and guaranteed student loan agreement ($). | Where the borrower has obtained student financial assistance in a province that has entered into an Integration Agreement for the Harmonization and Administration of Federal and Provincial Student Loans Programs, total monthly instalments ($) required from a borrower and a borrower’s spouse or common-law partner in accordance with their loan agreements, guaranteed student loan agreements, and any agreements entered into with the provincial authority for the purpose of receiving student financial assistance. | Monthly Family Income in Relation to Family Size ($) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Number of Persons Comprising Borrower, Borrower’s Spouse or Common-law Partner and Their Dependants | |||||||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | ||
| 0 -25.00 | 0 - 35.00 | 1,684 | 2,631 | 3,399 | 4,009 | 4,569 | 5,084 | 5,545 | 5,934 | 6,252 | 6,493 |
| 25.01 - 50.00 | 35.01 - 70.00 | 1,717 | 2,678 | 3,441 | 4,053 | 4,615 | 5,132 | 5,595 | 5,985 | 6,306 | 6,549 |
| 50.01 - 75.00 | 70.01 - 105.00 | 1,755 | 2,723 | 3,482 | 4,096 | 4,662 | 5,180 | 5,647 | 6,036 | 6,360 | 6,605 |
| 75.01 - 100.00 | 105.01 - 140.00 | 1,792 | 2,770 | 3,523 | 4,140 | 4,707 | 5,229 | 5,697 | 6,090 | 6,413 | 6,661 |
| 100.01 - 125.00 | 140.01 - 175.00 | 1,830 | 2,806 | 3,565 | 4,183 | 4,753 | 5,278 | 5,749 | 6,144 | 6,470 | 6,718 |
| 125.01 - 150.00 | 175.01 - 210.00 | 1,871 | 2,840 | 3,608 | 4,226 | 4,800 | 5,328 | 5,801 | 6,197 | 6,526 | 6,776 |
| 150.01 - 175.00 | 210.01 - 245.00 | 1,912 | 2,877 | 3,648 | 4,270 | 4,847 | 5,377 | 5,853 | 6,262 | 6,582 | 6,832 |
| 175.01 - 200.00 | 245.01 - 280.00 | 1,951 | 2,917 | 3,691 | 4,314 | 4,894 | 5,426 | 5,904 | 6,317 | 6,638 | 6,891 |
| 200.01 - 225.00 | 280.01 - 315.00 | 1,993 | 2,958 | 3,735 | 4,360 | 4,941 | 5,476 | 5,956 | 6,369 | 6,696 | 6,949 |
| 225.01 - 250.00 | 315.01 - 350.00 | 2,034 | 2,998 | 3,777 | 4,405 | 4,988 | 5,524 | 6,007 | 6,423 | 6,753 | 7,008 |
| 250.01 - 275.00 | 350.01 - 385.00 | 2,075 | 3,039 | 3,822 | 4,451 | 5,036 | 5,573 | 6,061 | 6,475 | 6,810 | 7,067 |
| 275.01 - 300.00 | 385.01 - 420.00 | 2,116 | 3,079 | 3,867 | 4,497 | 5,084 | 5,624 | 6,114 | 6,529 | 6,867 | 7,124 |
| 300.01 - 325.00 | 420.01 - 455.00 | 2,158 | 3,119 | 3,912 | 4,542 | 5,132 | 5,674 | 6,168 | 6,584 | 6,925 | 7,184 |
| 325.01 - 350.00 | 455.01 - 490.00 | 2,201 | 3,159 | 3,956 | 4,589 | 5,179 | 5,725 | 6,223 | 6,638 | 6,981 | 7,244 |
| 350.01 - 375.00 | 490.01 - 525.00 | 2,246 | 3,200 | 4,002 | 4,634 | 5,227 | 5,775 | 6,278 | 6,696 | 7,040 | 7,303 |
| 375.01 - 400.00 | 525.01 - 560.00 | 2,289 | 3,240 | 4,047 | 4,681 | 5,276 | 5,826 | 6,333 | 6,753 | 7,098 | 7,363 |
| 400.01 - 425.00 | 560.01 - 595.00 | 2,334 | 3,280 | 4,092 | 4,727 | 5,326 | 5,878 | 6,386 | 6,810 | 7,157 | 7,424 |
| 425.01 - 450.00 | 595.01 - 630.00 | 2,378 | 3,319 | 4,136 | 4,772 | 5,375 | 5,930 | 6,442 | 6,867 | 7,215 | 7,484 |
| 450.01 - 475.00 | 630.01 - 665.00 | 2,423 | 3,360 | 4,182 | 4,818 | 5,425 | 5,982 | 6,496 | 6,925 | 7,274 | 7,544 |
| 475.01 - 500.00 | 665.01 - 700.00 | 2,469 | 3,401 | 4,226 | 4,866 | 5,474 | 6,035 | 6,552 | 6,981 | 7,334 | 7,606 |
| 500.01 - 525.00 | 700.01 - 735.00 | 2,515 | 3,443 | 4,271 | 4,912 | 5,524 | 6,088 | 6,609 | 7,040 | 7,393 | 7,668 |
| 525.01 - 550.00 | 735.01 - 770.00 | 2,563 | 3,484 | 4,316 | 4,959 | 5,574 | 6,140 | 6,664 | 7,098 | 7,454 | 7,730 |
| 550.01 - 575.00 | 770.01 - 805.00 | 2,610 | 3,525 | 4,362 | 5,006 | 5,625 | 6,194 | 6,720 | 7,157 | 7,515 | 7,792 |
| 575.01 - 600.00 | 805.01 - 840.00 | 2,660 | 3,566 | 4,407 | 5,054 | 5,675 | 6,248 | 6,777 | 7,215 | 7,576 | 7,855 |
| 600.01 - 625.00 | 840.01 - 875.00 | 2,709 | 3,608 | 4,451 | 5,102 | 5,726 | 6,303 | 6,832 | 7,273 | 7,636 | 7,918 |
| 625.01 - 650.00 | 875.01 - 910.00 | 2,759 | 3,649 | 4,497 | 5,150 | 5,777 | 6,357 | 6,890 | 7,333 | 7,698 | 7,981 |
| 650.01 - 675.00 | 910.01 - 945.00 | 2,794 | 3,691 | 4,541 | 5,199 | 5,829 | 6,411 | 6,947 | 7,392 | 7,760 | 8,044 |
| 675.01 - 700.00 | 945.01 - 980.00 | 2,827 | 3,734 | 4,586 | 5,248 | 5,880 | 6,468 | 7,005 | 7,452 | 7,821 | 8,108 |
| 700.01 - 725.00 | 980.01 - 1015.00 | 2,861 | 3,777 | 4,631 | 5,295 | 5,934 | 6,524 | 7,061 | 7,512 | 7,883 | 8,172 |
| 725.01 - 750.00 | 1015.01 - 1050.00 | 2,901 | 3,819 | 4,677 | 5,345 | 5,986 | 6,581 | 7,120 | 7,571 | 7,946 | 8,236 |
| 750.01 - 775.00 | 1050.01 - 1085.00 | 2,941 | 3,863 | 4,721 | 5,393 | 6,038 | 6,638 | 7,178 | 7,631 | 8,009 | 8,301 |
| 775.01 - 800.00 | 1085.01 - 1120.00 | 2,981 | 3,906 | 4,766 | 5,443 | 6,090 | 6,696 | 7,237 | 7,692 | 8,072 | 8,366 |
| 800.01 - 825.00 | 1120.01 - 1155.00 | 3,022 | 3,951 | 4,811 | 5,494 | 6,144 | 6,753 | 7,295 | 7,754 | 8,136 | 8,432 |
| 825.01 - 850.00 | 1155.01 - 1190.00 | 3,062 | 3,995 | 4,856 | 5,544 | 6,197 | 6,810 | 7,353 | 7,816 | 8,201 | 8,508 |
| 850.01 - 875.00 | 1190.01 - 1225.00 | 3,102 | 4,039 | 4,900 | 5,594 | 6,252 | 6,867 | 7,412 | 7,877 | 8,265 | 8,573 |
| 875.01 - 900.00 | 1225.01 - 1260.00 | 3,142 | 4,080 | 4,946 | 5,645 | 6,306 | 6,926 | 7,470 | 7,940 | 8,329 | 8,639 |
| 900.01 - 925.00 | 1260.01 - 1295.00 | 3,182 | 4,121 | 4,991 | 5,695 | 6,361 | 6,984 | 7,530 | 8,003 | 8,393 | 8,707 |
| 925.01 - 950.00 | 1295.01 - 1330.00 | 3,222 | 4,165 | 5,036 | 5,746 | 6,417 | 7,042 | 7,589 | 8,066 | 8,458 | 8,773 |
| 950.01 - 975.00 | 1330.01 - 1365.00 | 3,264 | 4,209 | 5,081 | 5,796 | 6,471 | 7,101 | 7,648 | 8,129 | 8,523 | 8,840 |
| 975.01 or more | 1365.01 - 1400.00 | 3,305 | 4,255 | 5,126 | 5,846 | 6,526 | 7,161 | 7,708 | 8,192 | 8,588 | 8,907 |
- SOR/2005-152, s. 12
SCHEDULE 2(Sections 42 and 42.1)Debt Reduction in Repayment Income Table
| Column 1 | Column 2 | |||||
|---|---|---|---|---|---|---|
| Monthly Family Income Ceilings ($) in Relation to Family Size | ||||||
| Monthly Payment($) | 1 | 2 | 3 | 4 | 5 | 6 + |
| 10 | 539 | 1,180 | 1,396 | 1,612 | 1,815 | 2,012 |
| 15 | 912 | 1,486 | 1,783 | 2,080 | 2,371 | 2,658 |
| 20 | 1,105 | 1,645 | 1,984 | 2,324 | 2 ,660 | 2,994 |
| 25 | 1,291 | 1,798 | 2,178 | 2,558 | 2,938 | 3,318 |
| 50 | 1,399 | 1,905 | 2,285 | 2,623 | 3,003 | 3,383 |
| 75 | 1,506 | 2,012 | 2,392 | 2,688 | 3,068 | 3,448 |
| 100 | 1,613 | 2,119 | 2,499 | 2,753 | 3,133 | 3,513 |
| 125 | 1,720 | 2,226 | 2,564 | 2,818 | 3,198 | 3,578 |
| 150 | 1,827 | 2,334 | 2,630 | 2,884 | 3,264 | 3,643 |
| 175 | 1,934 | 2,441 | 2,695 | 2,949 | 3,329 | 3,709 |
| 200 | 2,041 | 2,506 | 2,760 | 3,014 | 3,394 | 3,774 |
| 225 | 2,148 | 2,571 | 2,825 | 3,079 | 3,459 | 3,839 |
| 250 | 2,256 | 2,636 | 2,890 | 3,144 | 3,524 | 3,904 |
| 275 | 2,363 | 2,701 | 2,955 | 3,209 | 3,589 | 3,969 |
| 300 | 2,470 | 2,766 | 3,020 | 3,274 | 3,654 | 4,034 |
| 325 | 2,535 | 2,832 | 3,086 | 3,340 | 3,720 | 4,099 |
| 350 | 2,600 | 2,897 | 3,151 | 3,405 | 3,785 | 4,165 |
| 375 | 2,665 | 2,962 | 3,216 | 3,470 | 3,850 | 4,230 |
| 400 | 2,730 | 3,027 | 3,281 | 3,535 | 3,915 | 4,295 |
| 425 | 2,795 | 3,092 | 3,346 | 3,600 | 3,980 | 4,360 |
| 450 | 2,861 | 3,157 | 3,411 | 3,665 | 4,045 | 4,425 |
| 475 | 2,926 | 3,222 | 3,476 | 3,730 | 4,094 | 4,490 |
| 500 | 2,991 | 3,288 | 3,542 | 3,796 | 4,142 | 4,555 |
| 525 | 3,056 | 3,353 | 3,607 | 3,861 | 4,191 | 4,621 |
| 550 | 3,121 | 3,418 | 3,672 | 3,926 | 4,239 | 4,686 |
| 575 | 3,186 | 3,483 | 3,737 | 3,991 | 4,288 | 4,751 |
| 600 | 3,251 | 3,548 | 3,802 | 4,056 | 4,337 | 4,816 |
| 625 | 3,317 | 3,613 | 3,867 | 4,121 | 4,385 | 4,881 |
| 650 | 3,382 | 3,678 | 3,932 | 4,186 | 4,434 | 4,946 |
| 675 | 3,447 | 3,744 | 3,998 | 4,235 | 4,482 | 5,011 |
| 700 | 3,512 | 3,809 | 4,063 | 4,284 | 4,531 | 5,077 |
- SOR/2004-120, s. 12
- SOR/2005-152, s. 12
- Date modified: