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Canada Student Loans Regulations (SOR/93-392)

Regulations are current to 2019-06-20 and last amended on 2013-01-01. Previous Versions

Applicable Interest Rates (continued)

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

[SOR/96-369, s. 13]
  •  (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

Loan Forgiveness for Family Physicians, Nurses and Nurse Practitioners

Application

 Sections 18 and 19 apply to a borrower who does not have any outstanding student loans under the Canada Student Financial Assistance Act and who began to work in an under-served rural or remote community on or after July 1, 2011 as a family physician, nurse or nurse practitioner.

  • SOR/2012-254, s. 8

Amount and Duration of Forgiveness

  •  (1) For the purposes of section 11.1 of the Act, the Minister may, for a year, forgive the lesser of

    • (a) the outstanding principal of the borrower’s guaranteed student loan, and

    • (b) $8,000, in the case of a family physician or $4,000, in the case of a nurse or nurse practitioner, minus any amount that was forgiven for that year under section 9.2 of the Canada Student Financial Assistance Act.

  • (2) The maximum number of years in respect of which an amount may be forgiven is five minus the number of years in respect of which the amount referred to in paragraph 28(1)(b) of the Canada Student Financial Assistance Regulations has been forgiven.

  • SOR/2012-254, s. 8

Conditions and Effective Date

  •  (1) To qualify for forgiveness for a year, the borrower must

    • (a) have worked in an under-served rural or remote community as a family physician, nurse or nurse practitioner during the year; and

    • (b) apply to the Minister in the prescribed form no later than 90 days after the end of that year.

  • (2) The loan forgiveness takes effect on the day following the end of the year.

  • SOR/2012-254, s. 8

 [Repealed, SOR/2009-212, s. 13]

 [Repealed, SOR/2009-212, s. 13]

 [Repealed, SOR/2009-212, s. 13]

 [Repealed, SOR/2009-212, s. 13]

Misrepresentation

 Where an appropriate authority or a lender has reason to believe that an application for a guaranteed student loan or for a certificate of eligibility or other document in respect of a guaranteed student loan contains a false statement or misrepresentation, the appropriate authority or lender shall forthwith report to the Minister any information in support of its belief.

Transfer or Assignment

[SOR/98-287, s. 1(F)]
  •  (1) In this section and section 23.1,

    assignee lender

    assignee lender means a lender to which a borrower's outstanding guaranteed student loan agreements are assigned in accordance with this section; (prêteur cessionnaire)

    assignor lender

    assignor lender means a lender that assigns a borrower's outstanding guaranteed student loan agreements in accordance with this section. (prêteur cédant)

  • (2) Subject to section 23.1, a borrower may request the assignment of all of the borrower's outstanding guaranteed student loan agreements if the following conditions are met:

    • (a) the borrower completes the prescribed form to request an assignment of guaranteed student loan agreements;

    • (b) the borrower submits the completed form to the assignor lender; and

    • (c) the assignee lender accepts the agreements to be assigned.

  • (3) Where subsection (2) is complied with, the assignor lender shall sign the assignment agreement and forthwith send to the assignee lender the borrower's guaranteed student loan agreements and all other documentation in respect of those agreements.

  • (4) Subject to subsection 23.1(3), on receipt of the agreements and other documentation referred to in subsection (3) and on verification that subsection 23.1(1) has been complied with, the assignee lender shall pay to the assignor lender an amount equal to the aggregate of the outstanding balance of the principal of the guaranteed student loans as of the day of the payment and any unpaid interest accrued on those loans to that day.

  • (5) An assignment made in accordance with this section shall take effect on the day before the day of the payment referred to in subsection (4).

  • (6) If the assignor lender cannot produce all or part of a document required by subsection (3) to be sent to the assignee lender, the assignor lender shall complete a summary of the disbursements that have been made under the borrower's guaranteed student loan agreements and shall send the summary to the assignee lender.

  • (7) The summary must be completed in prescribed form and must include a statement of accounts.

  • (8) The assignee lender shall ask the borrower to acknowledge the total value of the borrower's outstanding loan liability by signing the summary.

  • (9) After the summary has been signed by the borrower, the summary shall, for the purposes of these Regulations, be treated as if it were the missing document or the missing part of the document.

  • SOR/95-331, s. 12
  • SOR/96-369, s. 22
  • SOR/98-287, s. 2
  • SOR/2000-291, s. 4
  •  (1) No assignment of guaranteed student loan agreements shall be made unless the borrower has

    • (a) complied with paragraphs 3(1)(d) and (e), if applicable to the borrower; or

    • (b) paid to the assignor lender all instalments required from the borrower in accordance with the borrower's guaranteed student loan agreements to the date of the request to assign, where none of the provisions referred to in paragraph (a) apply to the borrower.

  • (2) Where a borrower has both outstanding guaranteed student loan agreements for which the Minister has not paid a claim for loss and outstanding risk-shared loan agreements, those agreements must be held by the same lender.

  • (3) A lender that is not a lender under the Canada Student Financial Assistance Act may refuse to accept an assignment of a borrower's guaranteed loan agreements.

  • SOR/95-331, s. 12
  • SOR/96-369, s. 23
  • SOR/2000-291, s. 5
  • SOR/2009-143, s. 22(F)
 
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