Canada Student Financial Assistance Regulations (SOR/95-329)

PART IVRestrictions on Financial Assistance

Denial and Termination

14.3 A certificate of eligibility is to be denied to a qualifying student who is qualified for enrolment or is enrolled as a part-time student and who has a family income that is more than the applicable annual income threshold for their family size in accordance with Table 1 of Schedule 4.

• 15 (1) For the purposes of this section, applicable day means

  • (a) if the Minister is informed that the borrower has failed to consolidate risk-shared loans or guaranteed student loans made to them as a full-time student within six months after the month in which they ceased to be a full-time student and they do not fulfil the requirements of subsection 5(1) or 7(1) before a judgment is obtained against them and such that the beginning of the last confirmed period is on or before the last day of that six-month period, the day following the last day of that confirmed period;

  • (b) if the Minister is informed that the borrower has failed to make a required payment within the two-month period after the payment was required under their loan agreement, guaranteed student loan agreement, these Regulations or the Canada Student Loans Regulations and they do not fulfil the requirements of subsection 5(1), 7(1), 12.1(1) or 12.2(1), as the case may be, within that period, the day following the last day of that 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) if the borrower fails to comply with subsection 19.1(1) or 20.1(1), section 20.3 or subsection 24(3), the 30th day after the end of the applicable repayment assistance period or after the day of the notice, as the case may be;

  • (j) the last day of the confirmed period during which the borrower has been a full-time student for

    • (i) in the case of a full-time student with either a permanent disability or a persistent or prolonged disability or 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, 520 weeks,

    • (ii) in the case of a student enrolled in a doctoral program of studies, 400 weeks, or

    • (iii) in any other case, 340 weeks;

  • (k) if the borrower has been granted repayment assistance under subparagraph 20(1)(b)(ii), the day on which the repayment assistance begins; or

  • (l) the day on which, as the case may be, the obligations referred to in section 11 of the Act or the rights referred to in section 11.1 of the Act or section 13 of the Canada Student Loans Act, are terminated.

• (1.1) For the purposes of paragraph (1)(j), 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, 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, despite subsections 7.1(3) and 8(2), was no longer a full-time student.

• (2) Subject to subsections (5), (6) and (9),

  • (a) if an event referred to in any of paragraphs (1)(a) to (l) occurs, the Minister shall, effective on the applicable day referred to in that paragraph,

    • (i) deny a borrower a new certificate of eligibility for any student loan, and

    • (ii) if a certificate of eligibility has been issued to a borrower, deny the borrower a new student loan; and

  • (b) if an event referred to in any of paragraphs (1)(a) to (j) occurs, the Minister shall terminate, effective on the applicable day referred to in that paragraph, in respect of an outstanding student loan made to the borrower as a part-time student, the period during which no amount on account of principal or interest is required to be paid by the borrower.

• (3) If an event referred to in paragraph (1)(a) or (b) occurs, the Minister shall refuse to grant to the borrower

  • (a) any repayment assistance under section 19 or 20 if the Minister pays a claim for loss in respect of the borrower’s guaranteed student loan; and

  • (b) the loan forgiveness referred to in subsection 9.2(1) of the Act.

• (4) If an event referred to in paragraph (1)(h) or (i) occurs, the Minister shall terminate any repayment assistance granted under section 19 or 20 and refuse to grant to the borrower further repayment assistance or the loan forgiveness referred to in subsection 9.2(1) of the Act.

• (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)(b) 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)(b) 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 for that program of studies.

• (9) If the borrower receives a new student loan 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’s course load no longer meets the minimum percentage set out in subparagraph (a)(i) of the definition full-time student in subsection 2(1) or, in the case of a person who elects to be considered as a full-time student under section 2.1, the minimum percentage set out in that section.

• (10) Student loans and guaranteed student loans shall be denied if

  • (a) the borrower is subject to an event under paragraph 6(2)(a) or (h) of the Apprentice Loans Regulations;

  • (b) the borrower is subject to a bankruptcy-related event referred to in any of paragraphs 6(2)(b) to (f) of the Apprentice Loans Regulations;

  • (c) the borrower has been found guilty of an offence under the Apprentice Loans Act; or

  • (d) the Minister has taken a measure under subsection 20(1) of the Apprentice Loans Act.

Removal of Restrictions

• 16 (1) Subject to subsection (5), a borrower who has been 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) is entitled to a new student loan, a new certificate of eligibility, further repayment assistance under section 19 or 20, the loan forgiveness referred to in subsection 9.2(1) of the Act or, in respect of a student loan made to a borrower as a part-time student, a new period during which no amount on account of principal or interest is required to be paid if

  • (a) in the case of a measure taken in accordance with subsection 15(2), an event referred to in paragraph 15(1)(j) has not occurred in respect of the borrower’s student loans or guaranteed student loans;

  • (b) an event referred to in paragraph 15(1)(h) or (k) has not occurred in respect of the borrower’s student loans or guaranteed student loans;

  • (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 given 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, 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 a day that are made in accordance with those agreements, and

    • (i) has paid the interest accrued to that day, or

    • (ii) has directed, for the first time under this paragraph, paragraph 10(1)(d) of the Canada Student Loans Regulations or paragraph 7(1)(b) of the Apprentice Loans Regulations, the addition of the unpaid accrued interest to that day to the outstanding principal.

• (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); or

  • (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) in the case of a measure taken in accordance with subsection 15(2), an event referred to in paragraph 15(1)(j) has not occurred in respect of the borrower’s student loans or guaranteed student loans; and

  • (a.1) an event referred to in paragraph 15(1)(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 the borrower has been released from that judgment and the requirements of subsection (1), (2) or (3) are met, as is applicable in the circumstances.