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

Regulations are current to 2020-06-17 and last amended on 2020-01-01. Previous Versions

PART VRepayment Assistance Plan (continued)

First Stage (continued)

[SOR/96-368, s. 10; SOR/2009-212, s. 4]
  •  (1) A borrower shall, no later than the day that is 30 days after a repayment assistance period ends, pay to the lender or the Minister, as the case may be, the federal portion of the monthly affordable payments calculated under subsection 19(2) in respect of that period.

  • (2) The amount of interest payable by the borrower for a month during a repayment assistance period on the outstanding principal shall be reduced by the lender or the Minister, as the case may be, by the federal portion of the difference between the monthly required payment calculated under subsection 19(3) and the monthly affordable payment calculated under subsection 19(2). That reduction shall only be made in relation to the months for which the borrower complies with subsection (1).

  • (3) If the reduction referred to in subsection (2) is made by the lender, the Minister, on being notified of the reduction by the lender in the prescribed form, shall pay to the lender the amount of the reduction.

  • (4) In this section, federal portion means the ratio of outstanding principal in relation to student loans and guaranteed student loans to the outstanding principal in relation to those loans and provincial loans.

  • (5) Payments made under this section shall be attributed in proportion to the outstanding principal of each student loan, guaranteed student loan and apprentice loan for which instalments are due.

  • SOR/2009-212, s. 4
  • SOR/2012-68, s. 7
  • SOR/2014-255, s. 23

Second Stage

[SOR/96-368, s. 12; SOR/2009-212, s. 4]
  •  (1) Subject to section 15 of these Regulations, section 9 of the Canada Student Loans Regulations and section 6 of the Apprentice Loans Regulations, the Minister may, on application in the prescribed form containing the prescribed information, provide the second stage of a repayment assistance plan to a borrower for a period of six months if

    • (a) the borrower meets the conditions set out in paragraphs 19(1)(a) and (c);

    • (b) the borrower

      • (i) has a permanent disability, or

      • (ii) has received 60 months, in the aggregate, of the periods referred to in subsection 19(4) or at least 120 months has elapsed,

        • (A) in respect of any student loan or guaranteed student loan made to the borrower as a full-time student, since the applicable day referred to in subparagraph 19(1)(d)(i), and

        • (B) in respect of any student loan made to the borrower as a part-time student, since the applicable day referred to in subparagraph 19(1)(d)(ii); and

    • (c) the borrower’s monthly affordable payment calculated under subsection (2) is less than their monthly required payment calculated under subsection (3).

  • (2) The monthly affordable payment is equal to

    • (a) in the case of a borrower who has a permanent disability

      • (i) $0, if the borrower’s monthly family income, less their monthly disability-related expenses not covered by their public health care or private insurance, is no more than the monthly income threshold for their family size determined in accordance with Schedule 1; and

      • (ii) the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

        0.2A

        1.5[((W – Y)) ÷ 100Z+0.01]A

        where

        A
        is, in relation to apprentice loans as well as student loans, guaranteed student loans, provincial loans and apprentice loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,
        W
        is the borrower’s monthly family income less their monthly disability-related expenses not covered by their public health care or private insurance,
        Y
        is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1;
        Z
        is the monthly increment for the borrower’s family size determined in accordance with Schedule 1;
    • (b) in any other case, the amount referred to in subsection 19(2).

  • (3) The monthly required payment is equal to

    • (a) the outstanding principal of the student loans, guaranteed student loans and provincial loans made to the borrower as a full-time student, amortized over a period of the greater of six months and

      • (i) in the case of a borrower who has a permanent disability, 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(i), and

      • (ii) in any other case, 180 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(i);

    • (b) the outstanding principal of the student loans made to the borrower as a part-time student amortized over a period of the greater of six months and

      • (i) in the case of a borrower who has a permanent disability, 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(ii), and

      • (ii) in any other case, 180 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(ii); and

    • (c) the monthly required payment calculated under paragraph 10(3)(a) or 12(3)(a), as the case may be, of the Apprentice Loans Regulations.

  • 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
  • SOR/2009-212, s. 4
  • SOR/2012-68, s. 8
  • SOR/2014-255, ss. 24, 25
  • SOR/2019-214, s. 6
  •  (1) A borrower shall, no later than the day that is 30 days after a repayment assistance period ends, pay to the lender or the Minister, as the case may be, the federal portion of the monthly affordable payments calculated under subsection 20(2) in respect of that period.

  • (2) The amount owing as outstanding principal and interest for a month during a repayment assistance period by a borrower shall be reduced by the lender or Minister, as the case may be, by the federal portion of the difference between the monthly required payment calculated under subsection 20(3) and the monthly affordable payment calculated under subsection 20(2). That reduction shall only be made in relation to the months for which the borrower complies with subsection (1).

  • (3) If the reduction referred to in subsection (2) is made by the lender, the Minister, on being notified of the reduction by the lender in the prescribed form, shall reimburse the lender the amount of the reduction.

  • (4) In this section, federal portion means the ratio of outstanding principal in relation to student loans and guaranteed student loans to the outstanding principal in relation to those loans and provincial loans.

  • (5) Payments made under this section shall be attributed in proportion to the outstanding principal of each student loan, guaranteed student loan and apprentice loan for which instalments are due.

  • SOR/2009-212, s. 4
  • SOR/2012-68, s. 9
  • SOR/2014-255, s. 26

Commencement of Repayment Assistance Period

 A repayment assistance period shall begin no earlier than the later of

  • (a) the first day of the month that is six months before the day on which the borrower applies for the assistance,

  • (b) the day on which the principal amount and any interest commence to be payable by the borrower, and

  • (c) the day on which these regulations come into force.

  • SOR/2009-212, s. 4

Condition

 If any accrued interest remains unpaid on the day on which repayment assistance begins, the borrower shall, on or before the day that is 30 days after the repayment assistance period ends,

  • (a) pay to the lender or the Minister, as the case may be, the unpaid accrued interest; or

  • (b) if they have not already done so, enter into a revised agreement for the payment of a period of up to three months of the unpaid accrued interest and pay to the lender or the Minister, as the case may be, any remaining unpaid accrued interest.

  • SOR/2009-212, s. 4

Administration

[SOR/96-368, s. 14; SOR/2009-212, s. 4]
  •  (1) With the written authorization of the Minister, a lender

    • (a) who holds a borrower’s risk-shared loan agreement may exercise the powers given to the Minister under subsections 15(3) and (4) and sections 19 and 20; and

    • (b) who holds a borrower’s guaranteed student loan agreement may exercise the powers given to the Minister under sections 19 and 20 and subsections 9(4) and (5) of the Canada Student Loans Regulations.

  • (2) The Minister shall provide the lender any information that is necessary to enable the lender to act under subsection (1).

  • SOR/2000-290, s. 16
  • SOR/2009-212, s. 4
 
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