Canada Student Loans Regulations

13 (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), subparagraph 20(3)(a)(ii), clause 21.1(2)(c)(i)(B) and subsection 21.1(3), 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(5) and (6) [Repealed, SOR/95-331, s. 7]