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

Search

Canada Student Loans Regulations (SOR/93-392)

Regulations are current to 2021-04-20 and last amended on 2020-10-01. Previous Versions

Removal of Restrictions

[SOR/96-369, s. 9]
  •  (1) A borrower who has been the subject of a measure taken in accordance with subsection 9(3), (4) or (5) is entitled to an interest-free period, repayment assistance under section 19 or 20 of the Canada Student Financial Assistance Regulations or the loan forgiveness referred to in subsection 11.1(1) of the Act if, on or after the earlier of the day referred to in paragraph 9(1)(a), (b) or (i) and the day on which the measure was taken,

    • (a) the borrower has fulfilled the requirements of section 16 of the Canada Student Financial Assistance Regulations in respect of the borrower's student loans, if any;

    • (b) an event referred to in paragraph 9(1)(h) or subsection 9(9) has not occurred in respect of the borrower’s guaranteed student loans;

    • (c) a judgment has not been obtained against the borrower in respect of those loans;

    • (d) the borrower has, in respect of guaranteed student loan agreements, fulfilled the terms of a repayment arrangement entered into with the lender 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 has paid the interest accrued to that day; and

    • (e) the borrower has, in respect of guaranteed student loan agreements, 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

  • (2) Where a borrower is subject to a measure taken in accordance with subsection 9(4) due to the occurrence of an event referred to in any of paragraphs 9(1)(c) to (g), the borrower has the rights referred to in subsection (1) if

    • (a) the borrower has fulfilled the requirements of section 16 of the Canada Student Financial Assistance Regulations in respect of the borrower's student loans, if any;

    • (b) an event referred to in paragraph 9(1)(h) or subsection 9(9) has not occurred in respect of the borrower’s guaranteed student loans;

    • (c) the borrower has complied with paragraph (1)(d), in the case where the consumer proposal has been annulled or deemed annulled or the provincial law relating to the orderly payment of debts no longer applies to the borrower for a reason other than that the borrower's full compliance with that law and an event referred to in paragraph 9(1)(c), (d) or (f) has not occurred;

    • (d) in any case other than that referred to in paragraph (c), the borrower has not been released of the borrower's student loans and guaranteed student loans; and

    • (e) a judgment has not been obtained against the borrower in respect of those loans.

  • (3) [Repealed, SOR/2009-212, s. 10]

  • SOR/95-331, s. 5
  • SOR/2004-121, s. 4
  • SOR/2009-201, s. 9
  • SOR/2009-212, s. 10
  • SOR/2012-254, s. 7
  • SOR/2019-216, s. 1

Payment of Principal and Interest

 The principal amount of a guaranteed student loan made to the borrower as a full-time student, and any interest, commence to be payable by the borrower on the last day of the seventh month after the day on which the borrower most recently ceased to be a full-time student under section 4.1.

  • SOR/95-331, s. 5
  • SOR/2008-187, s. 2
  • SOR/2009-201, s. 10

Administration of Guaranteed Student Loans

  •  (1) A borrower shall attend any meeting called to discuss the borrower's guaranteed student loan, where requested to do so by the lender or Her Majesty or her agents.

  • (2) A borrower shall authorize the lender to exchange with consumer credit grantors, credit bureaus and credit reporting agencies information in relation to all guaranteed student loans of the borrower, in accordance with any laws applicable to unsecured loans to which the Act does not apply and which are in effect in a province in which the guaranteed student loan agreement is made, or in a province in which a lender to which the loan agreement is assigned is situated.

  • (3) [Repealed, SOR/2009-143, s. 20]

  • SOR/96-369, s. 10
  • SOR/2009-143, s. 20

Applicable Interest Rates

Interest Rates Applicable to Lenders that are not Lenders Under the Canada Student Financial Assistance Act

[SOR/96-369, s. 11]

 Sections 13 to 16 apply in respect of guaranteed student loans that are held by a lender that is not also a lender as defined under the Canada Student Financial Assistance Act.

  • SOR/95-331, s. 6
  •  (1) For the purposes of this section and sections 14 and 16, the Class "A" rate of interest in effect on any day is the aggregate of one per cent and the rate fixed by the Minister for each loan year by calculating, immediately preceding the commencement of that loan year, the simple arithmetic mean of the mid-market yields at the close of business on Wednesday in respect of the six months immediately preceding the commencement of that loan year on all Government of Canada bonds payable in Canadian currency and due to mature in one to five years, as computed and provided by the Bank of Canada, rounded to the nearest one-eighth of one per cent.

  • (2) For the purposes of section 15, the Class "B" rate of interest in effect on any day is the aggregate of one per cent and the rate fixed by the Minister for each loan year by calculating, immediately preceding the commencement of that loan year, the simple arithmetic mean of the mid-market yields at the close of business on Wednesday in respect of the six months immediately preceding the commencement of that loan year on all Government of Canada bonds payable in Canadian currency and due to mature in five to ten years as computed and provided by the Bank of Canada, rounded to the nearest one-eighth of one per cent.

  • (3) The Minister shall forthwith notify the lenders, in such manner as the Minister sees fit, of the Class "A" and "B" rates of interest for a loan year as determined pursuant to subsections (1) and (2) and shall publish those rates of interest in the Canada Gazette.

  • (4) Subject to subsection 14(4), the annual rate of interest applicable in any period for which the borrower or the Minister is liable to pay interest to a lender on a guaranteed student loan shall be calculated using simple interest.

  • (5) and (6) [Repealed, SOR/95-331, s. 7]

  • SOR/95-330, s. 1
  • SOR/95-331, s. 7
  • SOR/2009-212, s. 11
  •  (1) Whether or not the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), the annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subsection 4(2) or (4) of the Act applies is the Class "A" rate of interest in effect on that day, and is applicable for the period

    • (a) commencing on the first day of the month after the month in which the borrower ceased to be a full-time student, and

    • (b) ending on the earlier of

      • (i) the last day of the sixth month after the month in which the borrower ceased to be a full-time student, and

      • (ii) the day before the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2).

  • (2) The annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subparagraph (1)(b)(ii) applies, is the rate of interest determined in accordance with subsection 15(1), and is applicable for the period

    • (a) commencing on the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), and

    • (b) ending on the last day of the sixth month after the month in which the borrower ceased to be a full-time student.

  • (3) Subject to subsection (4), the aggregate amount of the interest accrued pursuant to subsections (1) and (2) shall become payable on the last day of the seventh month after the month in which the borrower ceased to be a full-time student.

  • (4) Unless the borrower agrees to pay the aggregate amount of the interest accrued pursuant to subsections (1) and (2) on or before the day specified in subsection (3) together with the borrower's first instalment referred to in paragraph 8(7)(a), that interest shall be added to the principal amount of the full-time guaranteed loan on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, and thereafter shall be treated as prescribed by subsection 15(1).

  • (5) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the rate prescribed by subsections (1) and (2).

  • SOR/95-330, s. 2
  • SOR/95-331, s. 8
 
Date modified: