Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Canada Student Loans Regulations (SOR/93-392)

Regulations are current to 2019-07-29 and last amended on 2013-01-01. Previous Versions

Continuation and Reinstatement

  •  (1) Subject to section 9, 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 specified 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 guaranteed student loans made to the 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 to the branch of the lender that holds the borrower's outstanding guaranteed student loans;

    • (d) pay to the lender any interest accrued to the day before the beginning of the confirmed period, where more than six months have elapsed between the day on which a borrower ceased to be a full-time student pursuant to section 4.1 and the beginning of the current confirmed period; and

    • (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 4.1 but before the last day of the confirmed period that started within the six-month period, either

      • (i) pay to the lender any interest accrued from the day on which the borrower ceased to be a full-time student, or

      • (ii) enter into a consolidated guaranteed student loan agreement in which the unpaid accrued interest referred to in subparagraph (i) is added to the principal amount.

  • (2) Where the borrower referred to in subsection (1) meets the requirements set out in that subsection,

    • (a) the 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 the borrower; and

    • (b) the 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.

  • (3) Where a borrower continues to be or again becomes a full-time student in accordance with subsection (2), the lender shall suspend the obligations of the borrower with respect to principal and interest

    • (a) subject to subsections 4(1) and (3) of the Act and section 15, in respect of any guaranteed student loan made and consolidated before August 1, 1993, for the period beginning on the applicable day referred to in subsection (2) and ending on the last day of the sixth month after the month in which the borrower again ceases to be a full-time student; and

    • (b) subject to subsections 4(2) and (4) of the Act and sections 14 and 15, in respect of any guaranteed student loan made before, on or after August 1, 1993 and consolidated after that date, for the period beginning on the applicable day referred to in subsection (2) and ending on the last day of the month in which the borrower again ceases to be a full-time student.

  • SOR/95-331, s. 2
  • SOR/96-369, s. 2
  • SOR/2002-234, s. 1

 [Repealed, SOR/96-369, s. 2]

Ceasing to Be a Full-time Student

[SOR/96-369, s. 2]
  •  (1) Subject to paragraph 3(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 day on which the borrower's interest-free period is terminated in accordance with subsection 9(4).

  • (2) Despite subsection (1), a borrower who is a member of the reserve force and who interrupts their program of studies to serve on a designated operation ceases to be a full-time student on the last day of the month in which their service on the designated operation ends. However, if, as a result of the date on which their service on the designated operation ends, the borrower is unable to continue in a program of studies within six months after that date, the Minister may, on application, delay by up to six months the date on which the borrower ceases to be a full-time student.

  • (3) A borrower referred to in subsection (2) must, no later than 30 days after receipt of their posting message provided by the Department of National Defence unless circumstances beyond the control of the borrower necessitate a longer period, notify the Minister in the prescribed form that they will be serving on the designated operation and provide the Minister with

    • (a) their social insurance number;

    • (b) a list of their outstanding student loans, guaranteed student loans, provincial student loans with lenders and other provincial student loans;

    • (c) a copy of the posting message; and

    • (d) at the request of the Minister, any information that is necessary to enable the Minister to assess whether the borrower meets the requirements of subsection (2).

  • (4) If a borrower referred to in subsection (2) is unable to continue full-time in a program of studies as a result of an injury or disease that was attributable to or was incurred during the designated operation or the aggravation of an injury or disease, if the aggravation was attributable to or was incurred during the designated operation, the borrower ceases to be a full-time student on the earlier of the day

    • (a) on which the Minister determines that the injury or disease, or the aggravation of the injury or disease, no longer precludes the borrower from returning to a program of studies; and

    • (b) that is 2 years after the day on which the borrower’s service on the designated operation ended.

  • (5) The following definitions apply in this section:

    designated operation

    designated operation means an operation that is designated under paragraph 247.5(1)(a) of the Canada Labour Code; (opération désignée)

    reserve force

    reserve force has the same meaning as in subsection 2(1) of the National Defence Act. (force de réserve)

  • SOR/95-331, s. 2
  • SOR/96-369, s. 3
  • SOR/2004-121, s. 2
  • SOR/2008-187, s. 1

 [Repealed, SOR/96-369, s. 4]

Consolidation

  •  (1) Subject to subsection (2), the borrower of a full-time guaranteed loan shall, before the first day of the seventh month after the month in which the borrower ceases to be a full-time student, enter into a consolidated guaranteed student loan agreement with the lender to which the borrower is indebted.

  • (2) Where a borrower who has entered into a consolidated guaranteed student loan agreement again becomes a full-time student and the borrower's obligations are suspended in accordance with subsection 3(3), the borrower shall, whether or not an additional full-time guaranteed loan is made to the borrower, before the first day of the seventh month after the month in which the borrower again ceases to be a full-time student, enter into a new consolidated guaranteed student loan agreement with the lender in place of the former consolidated guaranteed student loan agreement.

  • (3) A consolidated guaranteed student loan agreement entered into in accordance with subsection (1) or (2) shall set out, in accordance with section 8, the principal amount of the loan and the period and frequency of the payments to be made to discharge that amount and the interest thereon calculated at the rate determined in accordance with sections 14 and 15 or sections 16.2 to 16.4, as the case may be.

  • (4) Repayment provisions included in a consolidated guaranteed student loan agreement entered into in accordance with subsection (1) or (2) shall be consistent with the lender's standard practices in relation to unsecured consumer loans and shall take into account the borrower's capacity to pay instalments as they become due.

  • SOR/95-331, s. 3
  • SOR/96-369, s. 5

Guaranteed Student Loan Agreements and Alterations

[SOR/96-369, s. 6]
  •  (1) Every guaranteed student loan shall be repaid by instalments that

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

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

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

  • (3) A period of repayment,

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

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

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

      • (ii) shall not exceed 24 months.

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

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

  • (6) [Repealed, SOR/96-369, s. 7]

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

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

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

  • (8) [Repealed, SOR/96-369, s. 7]

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

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

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

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

  • SOR/95-331, ss. 4, 17
  • SOR/96-369, s. 7
  • SOR/2000-291, s. 2
  • SOR/2009-212, s. 8
 
Date modified: