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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

Applicable Interest Rates (continued)

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

[SOR/96-369, s. 11]
  •  (1) The annual rate of interest payable by a borrower to a lender on all of the borrower's full-time guaranteed loans, including any interest added to the principal amount of all such loans pursuant to subsection 14(4), for the period commencing on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, is the weighted average, rounded to the nearest one-eighth of one per cent, of

    • (a) the rate set out in the former consolidated guaranteed student loan agreement, where a guaranteed student loan agreement has been previously consolidated,

    • (b) such rate per annum as the lender and the borrower agree to on the day the lender and the borrower enter into a consolidated guaranteed student loan agreement, not greater than the Class "B" rate of interest in effect on that day, where an outstanding guaranteed student loan agreement has been entered into and has not been previously consolidated, and

    • (c) subject to paragraph (a), the Class "B" rate of interest in effect on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, where there is an outstanding guaranteed student loan agreement and the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2).

  • (2) The annual rate of interest payable by a borrower to a lender on a part-time guaranteed loan, for the period commencing on the day specified in subparagraph 8(3)(b)(i), is such rate per annum as the lender and the borrower agree to, which rate shall not be greater than the Class "B" rate of interest in effect on the day on which the lender and the borrower enter into the part-time guaranteed loan agreement.

  • (3) 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 maximum rate of interest prescribed by subsection (1) or (2).

  • SOR/95-330, s. 3
  • SOR/95-331, s. 9

 The annual rate of interest payable by the Minister to a lender pursuant to section 6 of the Act on any day is the Class "A" rate of interest in effect on that day.

  • SOR/95-331, s. 10

Interest Rates Applicable to Lenders under the Canada Student Financial Assistance Act

[SOR/96-369, s. 13]

 Sections 16.2 to 16.5 apply in respect of guaranteed student loans that are held by a lender that is also a lender as defined under the Canada Student Financial Assistance Act.

  • SOR/95-331, s. 10
  •  (1) For the purposes of this section and sections 16.3 to 16.5, the prime rate of interest means the rate of interest expressed as a rate per annum announced by the lender from time to time as the lender's reference rate of interest and used by the lender to determine interest rates charged for Canadian dollar demand commercial loans made by the lender in Canada.

  • (2) For the purposes of sections 16.3 and 16.4, the maximum floating rate of interest shall be the prime rate of interest plus 250 basis points.

  • (3) For the purposes of section 16.4, the maximum fixed rate of interest is the annual rate of interest set and earmarked by the lender in the ordinary course of business from time to time as the lender's prevailing unsecured consumer loan rate for the same repayment term as that agreed to by the borrower and the lender, not exceeding the prime rate of interest plus 500 basis points.

  • SOR/95-331, s. 10
  •  (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 maximum floating 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 16.4(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 full amount of the interest accrued pursuant to subsection (1) 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

    • (a) where the borrower enters into a consolidated guaranteed student loan agreement within the period referred to in subsection 7(1) or (2), on the day on which that agreement is entered into, and thereafter shall be treated as prescribed by section 16.4; or

    • (b) where the borrower fails to enter into a consolidated guaranteed student loan agreement within the period referred to in subsection 7(1) or (2), on the day after the end of that period, and thereafter shall be treated as prescribed by section 16.4.

  • (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 subsection (1) or (2).

  • SOR/95-331, s. 10
  • SOR/96-369, s. 14
  •  (1) The annual rate of interest payable by a borrower to a lender on all of the borrower's full-time guaranteed loans, including any interest added to the principal amount of all such loans pursuant to subsection 16.3(4), for the period beginning on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, is

    • (a) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2), not greater than the maximum floating rate of interest in effect on that day, where the borrower chooses a floating rate of interest upon consolidation;

    • (b) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2), not greater than the maximum fixed rate of interest in effect on that day, where the borrower chooses a fixed rate of interest upon consolidation; or

    • (c) the maximum floating rate of interest in effect on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, where the borrower has an outstanding guaranteed student loan agreement and the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2).

  • (1.1) Notwithstanding subsections (1) and 16.3(2), where a borrower enters into a consolidated guaranteed student loan agreement after the period referred to in subsection 7(1) or (2) or where the borrower and lender agree to revise the repayment provisions of a consolidated guaranteed student loan agreement entered into pursuant to subsection 7(1) or (2), the annual rate of interest payable by the borrower to a lender on all of the borrower's full-time guaranteed loans is

    • (a) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement or a revised consolidated guaranteed student loan agreement, not greater than the maximum floating rate of interest in effect on that day, where the borrower chooses a floating rate of interest; or

    • (b) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement or a revised consolidated guaranteed student loan agreement, not greater than the maximum fixed rate of interest in effect on that day, where the borrower chooses a fixed rate of interest.

  • (2) The annual rate of interest payable by a borrower to a lender on a part-time guaranteed loan, for the period commencing on the day specified in subparagraph 8(3)(b)(i), is such rate per annum as the lender and the borrower agree to, not greater than the maximum floating rate of interest.

  • (3) 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 subsection (1), (1.1) or (2).

  • SOR/95-331, s. 10
  • SOR/96-369, s. 15

 The annual rate of interest payable by the Minister to a lender pursuant to section 6 of the Act on any day is the prime rate of interest in effect on that day.

  • SOR/95-331, s. 10

Repayment Assistance Plan

 Sections 19 to 26 of the Canada Student Financial Assistance Regulations apply to borrowers and lenders.

  • SOR/2000-291, s. 3
  • SOR/2009-212, s. 12
 
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