Canada Student Financial Assistance Regulations (SOR/95-329)

17 [Renumbered, SOR/2020-182, s. 6]

PART IV.1Maximum Amount of Outstanding Student Loans

• 18 (1) For the purposes of section 13 of the Act, the outstanding aggregate amount of student loans may not exceed 34 billion dollars.

• (2) The student loans that will be taken into consideration for the purposes of determining this amount are

  • (a) direct loans; and

  • (b) risk-shared loans that have been purchased by the Minister under an agreement made pursuant to the Act.

PART VRepayment Assistance Plan

First Stage

• 19 (1) Subject to section 15 of these Regulations, section 9 of the Canada Student Loans Regulations and section 6 of the Apprentice Loans Regulations, the Minister may, on application in the prescribed form containing the prescribed information, provide the first stage of a repayment assistance plan to a borrower for a period of six months if

  • (a) the borrower resides in Canada;

  • (b) [Repealed, SOR/2012-68, s. 6]

  • (c) all of the risk-shared loan agreements and guaranteed student loan agreements are held by a lender, or, in the case where an event referred to in any of paragraphs 15(1)(c) to (g) or paragraphs 9(1)(c) to (g) of the Canada Student Loans Regulations has occurred, by the Minister or a lender;

  • (d) no more than 120 months have elapsed

    • (i) in respect of student loans or guaranteed student loans made to the borrower as a full-time student, since the later of the day on which the borrower most recently ceased to be a full-time student under section 8 or, in the case of a borrower to whom only guaranteed student loans have been made, section 4.1 of the Canada Student Loans Regulations, and the day on which the restriction was removed under paragraph 16(1)(d), and

    • (ii) in respect of student loans made to the borrower as a part-time student, since the later of the day on which the borrower most recently ceased to be a full-time student under section 8 or a part-time student under section 12.3, as the case may be, and the day on which the restriction was removed under paragraph 16(1)(d); and

  • (e) the borrower’s monthly affordable payment calculated under subsection (2) is less than their monthly required payment calculated under subsection (3).

• (2) The monthly affordable payment is equal to

  • (a) $0, if the borrower’s monthly family income is no more than the minimum monthly income threshold for their family size determined in accordance with Schedule 1; or

  • (b) the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

    0.1A

    1.5[((X – Y)) ÷ 100Z+0.01]A

    where

    A

    is, in relation to student loans, guaranteed student loans, provincial loans and apprentice loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,

    X

    is the borrower’s monthly family income,

    Y

    is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1,

    Z

    is the monthly increment for the borrower’s family size determined in accordance with Schedule 1.

• (3) The monthly required payment is equal to

  • (a) the outstanding principal of the student loans, guaranteed student loans and provincial loans made to the borrower as a full-time student, amortized over a period of the greater of

    • (i) six months, and

    • (ii) 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph (1)(d)(i) plus the number of months since that day during which the borrower benefited from any special interest-free periods under section 19 or 20 or section 17 or 18 of the Canada Student Loans Regulations, as they read immediately before the coming into force of this section, or repayment assistance under this section;

  • (b) the outstanding principal of the student loans made to the borrower as a part-time student, amortized over a period of the greater of

    • (i) six months, and

    • (ii) 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph (1)(d)(ii), plus the number of months since that day during which the borrower benefited from any special interest-free periods under section 19 or 20 as they read immediately before the coming into force of this section, or repayment assistance under this section; and

  • (c) the monthly required payment calculated under paragraph 10(3)(a) or 12(3)(a), as the case may be, of the Apprentice Loans Regulations.

• (4) A borrower shall receive no more than 60 months, in the aggregate, of special interest-free periods granted under section 19 or 20 or section 17 or 18 of the Canada Student Loans Regulations, as they read immediately before the coming into force of this section, and repayment assistance under this section

  • (a) in respect of any student loan or guaranteed student loan made to the borrower as a full-time student, since the applicable day referred to in subparagraph (1)(d)(i); and

  • (b) in respect of any student loan made to the borrower as a part-time student, the applicable day referred to in subparagraph (1)(d)(ii).

• (5) The monthly affordable payment set out in a repayment assistance plan of a borrower who was receiving repayment assistance under this section on March 31, 2020 is, for the period described in subsection (6), deemed to be $0 if

  • (a) the borrower’s monthly affordable payment calculated under subsection (2) was greater than $0; and

  • (b) the borrower was not in arrears of any payments under the plan on March 31, 2020.

• (6) The period is equal to the number of months remaining on the borrower’s repayment assistance plan as of March 31, 2020 and it begins on October 1, 2020.

• 19.1 (1) A borrower shall, no later than the day that is 30 days after a repayment assistance period ends, pay to the lender or the Minister, as the case may be, the federal portion of the monthly affordable payments calculated under subsection 19(2) in respect of that period.

• (2) [Repealed, SOR/2023-273, s. 17]

• (3) [Repealed, SOR/2023-273, s. 17]

• (4) In this section, federal portion means the ratio of outstanding principal in relation to student loans and guaranteed student loans to the outstanding principal in relation to those loans and provincial loans.

• (5) Payments made under this section shall be attributed in proportion to the outstanding principal of each student loan, guaranteed student loan and apprentice loan for which instalments are due.

Second Stage

• 20 (1) Subject to section 15 of these Regulations, section 9 of the Canada Student Loans Regulations and section 6 of the Apprentice Loans Regulations, the Minister may, on application in the prescribed form containing the prescribed information, provide the second stage of a repayment assistance plan to a borrower for a period of six months if

  • (a) the borrower meets the conditions set out in paragraphs 19(1)(a) and (c);

  • (b) the borrower

    • (i) has either a permanent disability or a persistent or prolonged disability, or

    • (ii) has received 60 months, in the aggregate, of the periods referred to in subsection 19(4) or at least 120 months has elapsed,

      • (A) in respect of any student loan or guaranteed student loan made to the borrower as a full-time student, since the applicable day referred to in subparagraph 19(1)(d)(i), and

      • (B) in respect of any student loan made to the borrower as a part-time student, since the applicable day referred to in subparagraph 19(1)(d)(ii); and

  • (c) the borrower’s monthly affordable payment calculated under subsection (2) is less than their monthly required payment calculated under subsection (3).

• (2) The monthly affordable payment is equal to

  • (a) in the case of a borrower who has either a permanent disability or a persistent or prolonged disability

    • (i) $0, if the borrower’s monthly family income, less their monthly disability-related expenses not covered by their public health care or private insurance, is no more than the monthly income threshold for their family size determined in accordance with Schedule 1; and

    • (ii) the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

      0.1A

      1.5[((W – Y)) ÷ 100Z+0.01]A

      where

      A

      is, in relation to apprentice loans as well as student loans, guaranteed student loans, provincial loans and apprentice loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,

      W

      is the borrower’s monthly family income less their monthly disability-related expenses not covered by their public health care or private insurance,

      Y

      is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1;

      Z

      is the monthly increment for the borrower’s family size determined in accordance with Schedule 1;

  • (b) in any other case, the amount referred to in subsection 19(2).

• (3) The monthly required payment is equal to

  • (a) the outstanding principal of the student loans, guaranteed student loans and provincial loans made to the borrower as a full-time student, amortized over a period of the greater of six months and

    • (i) in the case of a borrower who has either a permanent disability or a persistent or prolonged disability, 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(i), and

    • (ii) in any other case, 180 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(i);

  • (b) the outstanding principal of the student loans made to the borrower as a part-time student amortized over a period of the greater of six months and

    • (i) in the case of a borrower who has either a permanent disability or a persistent or prolonged disability, 120 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(ii), and

    • (ii) in any other case, 180 months minus the number of months that have elapsed since the applicable day referred to in subparagraph 19(1)(d)(ii); and

  • (c) the monthly required payment calculated under paragraph 10(3)(a) or 12(3)(a), as the case may be, of the Apprentice Loans Regulations.

• 20.1 (1) A borrower shall, no later than the day that is 30 days after a repayment assistance period ends, pay to the lender or the Minister, as the case may be, the federal portion of the monthly affordable payments calculated under subsection 20(2) in respect of that period.

• (2) The amount owing as outstanding principal and interest for a month during a repayment assistance period by a borrower shall be reduced by the lender or Minister, as the case may be, by the federal portion of the difference between the monthly required payment calculated under subsection 20(3) and the monthly affordable payment calculated under subsection 20(2). That reduction shall only be made in relation to the months for which the borrower complies with subsection (1).

• (3) If the reduction referred to in subsection (2) is made by the lender, the Minister, on being notified of the reduction by the lender in the prescribed form, shall reimburse the lender the amount of the reduction.

• (4) In this section, federal portion means the ratio of outstanding principal in relation to student loans and guaranteed student loans to the outstanding principal in relation to those loans and provincial loans.

• (5) Payments made under this section shall be attributed in proportion to the outstanding principal of each student loan, guaranteed student loan and apprentice loan for which instalments are due.

Monthly Income Thresholds

• 20.11 (1) Beginning in 2023, the monthly income thresholds set out in column 2 of the table to Schedule 1 are adjusted on August 1st of each year by the annual percentage increase to the Consumer Price Index for the previous calendar year, rounded to the nearest dollar.

• (2) If the thresholds determined in accordance with subsection (1) are less than those applicable on August 1st of the previous calendar year, no adjustment is to be made and the thresholds applicable on August 1st of the previous calendar year continue to apply.

• (3) For the purpose of subsection (1), the Consumer Price Index is the annual all-items Consumer Price Index for Canada published by Statistics Canada.

Commencement of Repayment Assistance Period

20.2 A repayment assistance period shall begin no earlier than the later of

• (a) the first day of the month that is six months before the day on which the borrower applies for the assistance,

• (b) the day on which the principal amount and any interest commence to be payable by the borrower, and

• (c) the day on which these regulations come into force.

Condition

20.3 If any accrued interest remains unpaid on the day on which repayment assistance begins, the borrower shall, on or before the day that is 30 days after the repayment assistance period ends,

• (a) pay to the lender or the Minister, as the case may be, the unpaid accrued interest; or

• (b) if they have not already done so, enter into a revised agreement for the payment of a period of up to three months of the unpaid accrued interest and pay to the lender or the Minister, as the case may be, any remaining unpaid accrued interest.