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Canada Student Loans Regulations (SOR/93-392)

Regulations are current to 2021-05-04 and last amended on 2020-10-01. Previous Versions

Ceasing to Be a Full-time Student (continued)

[SOR/96-369, s. 2]

 [Repealed, SOR/96-369, s. 4]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
  •  (1) Subject to subsection (8), the outstanding principal and any accrued interest in respect of a guaranteed student loan become payable

    • (a) where the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2) and the borrower does not fulfil the requirements of subsection 3(1) before a judgment is obtained against the borrower and such that the confirmed period on the confirmation of enrolment referred to in paragraph 3(1)(a) begins on or before the last day of the six-month period after the month in which the borrower ceased to be a full-time student, on the day following the last day of that six-month period;

    • (b) where the borrower fails to make a payment pursuant to the borrower's guaranteed student loan agreement or these Regulations and the borrower does not fulfil the requirements of subsection 3(1) before a judgment is obtained against the borrower and such that the confirmed period on the confirmation of enrolment referred to in paragraph 3(1)(a) begins on or before the day that is two months after the day of that failure, on 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, on the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;

    • (d) if the borrower makes a proposal under Division I of Part III of the Bankruptcy and Insolvency Act that is approved by a court under that Act, on the day on which the proposal is approved;

    • (e) if 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, on the day on which the consumer proposal is approved or deemed approved;

    • (f) if the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes a guaranteed student loan or a student loan, on the day on which the order is issued;

    • (g) where the borrower seeks relief under a provincial law relating to the orderly payment of debts, on 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 guaranteed student loan or student loan, found guilty of an offence under any Act of Parliament, on 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) of the Canada Student Financial Assistance Regulations, on 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) [Repealed, SOR/2009-201, s. 8]

    • (k) if the borrower has been granted a reduction of the principal amount of a student loan or guaranteed student loan under section 42.1 of the Canada Student Financial Assistance Regulations, or of a risk-shared loan or a guaranteed student loan that entitled the borrower's lender to a gratuitous payment under section 30.1 of these Regulations or under section 42 of the Canada Student Financial Assistance Regulations, on the day on which the reduction is granted.

  • (2) Where the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable pursuant to paragraph (1)(a) or (b), the lender may, without discharging the liability of the Minister to the lender under the Act,

    • (a) offer to alter, with the consent of the borrower and in writing, in accordance with subsection 8(4), any guaranteed student loan agreement or proposed guaranteed student loan agreement to facilitate the discharge by the borrower of the borrower's obligations; or

    • (b) effect collection of the outstanding balance of the principal amount of the guaranteed student loan and any accrued interest that is payable.

  • (3) Subject to subsection (6), where the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable pursuant to paragraph (1)(a) or (b) and a claim for loss is paid to the lender by the Minister, the Minister shall, effective on the day of that payment,

    • (a) [Repealed, SOR/96-369, s. 8]

    • (b) refuse to grant an interest-free period in respect of all of the borrower's outstanding full-time guaranteed loans;

    • (c) terminate an interest-free period in respect of all of the borrower's outstanding full-time guaranteed loans; and

    • (d) refuse to grant the borrower repayment assistance referred to in section 19 or 20 of the Canada Student Financial Assistance Regulations;

    • (e) refuse to grant the loan forgiveness referred to in subsection 11.1(1) of the Act.

  • (4) Subject to subsection (8), when the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable under any of paragraphs (1)(c) to (i), the Minister shall, effective on the day referred to in that paragraph, terminate an interest-free period in respect of all of the borrower’s outstanding full-time guaranteed loans.

  • (5) When the outstanding balance of the principal amount of a guaranteed student loan and any accrued interest become payable under paragraph (1)(h) or (i), the Minister shall, in addition to the measures taken under subsections (3) and (4), terminate any repayment assistance granted to the borrower under section 19 or 20 of the Canada Student Financial Assistance Regulations and refuse to grant further repayment assistance and the loan forgiveness referred to in subsection 11.1(1) of the Act.

  • (6) Where an event referred to in paragraph (1)(a) or (b) occurs in respect of a borrower's full-time guaranteed loan and, subsequent to that event, the borrower erroneously receives a certificate of eligibility under the Canada Student Financial Assistance Act and at least one disbursement on the basis of that certificate, the measure referred to in paragraph (3)(c) shall take effect on the last day of the period of studies for which that certificate was issued.

  • (7) 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.

  • (8) If the borrower receives a new student loan or an interest-free period to which the borrower is entitled under subsection (7), the measures referred to in subsections (1) and (4) and subsection 15(2) of the Canada Student Financial Assistance Regulations 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) of the Canada Student Financial Assistance Regulations.

  • (9) The Minister shall, effective on the last day of the confirmed period during which the borrower has been a full-time student for 520 weeks, terminate an interest-free period in respect of all of the borrower’s outstanding full-time guaranteed loans.

  • (10) For the purposes of subsection (9), 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 Financial Assistance Act, less the number of weeks determined by the Minister for which the specified educational institution has provided that the borrower, despite subsections 4(3) and 4.1(2), was no longer a full-time student.

  • SOR/95-331, s. 5
  • SOR/96-369, s. 8
  • SOR/2004-121, s. 3
  • SOR/2009-201, s. 8
  • SOR/2009-212, s. 9
  • SOR/2012-254, s. 6
  • SOR/2020-184, s. 3
 
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