Canada Student Financial Assistance Regulations

15 (1) For the purposes of this section, "applicable day" means

• (a) where the Minister is informed that the borrower has failed to consolidate student loans or guaranteed student loans made to that borrower as a full-time student within six months after the month in which that borrower ceased to be a full-time student and the borrower does not fulfil the requirements of subsection 6(1) or 7(1) before a judgment is obtained against that borrower and such that the beginning of the confirmed period on the confirmation of enrolment referred to in paragraph 6(1)(a) or 7(1)(a) is on or before the last day of that six-month period, the day following the last day of that period;

• (b) where the Minister is informed that the borrower has failed to make a payment required pursuant to the borrower's loan agreement, guaranteed student loan agreement, these Regulations or the Canada Student Loans Regulations and the borrower does not fulfil the requirements of subsection 6(1), 7(1), 12.1(1) or 12.2(1), as applicable to the borrower, before a judgment is obtained against that borrower and such that the beginning of the confirmed period on the confirmation of enrolment referred to in paragraph 6(1)(a), 7(1)(a), 12.1(1)(a) or 12.2(1)(a), as applicable to the borrower, is on or before the day that is two months after the day of that failure, the day following the last day of that two-month period;

• (c) where the borrower makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act to have made an assignment, or is the subject of a receiving order, the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;

• (d) where the borrower makes a proposal under Division I of Part III the Bankruptcy and Insolvency Act that is approved by a court under that Act, the day on which that proposal is approved;

• (e) where the borrower makes a consumer proposal under Division II of Part III of the Bankruptcy and Insolvency Act that is approved or deemed approved by a court under that Act, the date on which the consumer proposal is approved or deemed approved;

• (f) where the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes a student loan or guaranteed student loan, the date on which that order is issued;

• (g) where the borrower seeks relief under a provincial law relating to the orderly payment of debts that includes a student loan or guaranteed student loan, the day on which the document seeking relief is filed;

• (h) where the borrower is, by reason of the borrower's conduct in obtaining or repaying a student loan or guaranteed student loan, found guilty of an offence under any Act of Parliament, the day of the finding of guilt;

• (i) where the borrower fails to comply with paragraph 24(1)(c), the last day of the period referred to in that paragraph;

• (j) where the borrower's student loans commence to be payable in accordance with subsection 17(1), the day on which the borrower ceases to be a full-time student pursuant to section 8; or

• (k) if the borrower has been granted a reduction in the principal amount of a student loan or guaranteed student loan under section 42.1, or of a risk-shared loan or a guaranteed student loan that entitled the borrower's lender to a gratuitous payment under section 42 of these Regulations or section 30.1 of the Canada Student Loans Regulations, the day on which that reduction is granted.

(2) Subject to subsections (5), (6) and (9), if an event referred to in any of paragraphs (1)(a) to (k) occurs, the Minister shall, effective on the applicable day referred to in the paragraph,

• (a) deny a borrower a new certificate of eligibility for any student loan;

• (b) if a certificate of eligibility has been issued to a borrower, deny the borrower a new student loan; and

• (c) terminate,

  • (i) in respect of all outstanding student loans made to the borrower as a full-time student, an interest-free period, and

  • (ii) in respect of an outstanding student loan made to the borrower as a part-time student, an interest-only period.

(3) If an event referred to in paragraph (1)(a) or (b) occurs and the Minister pays a claim for loss in respect of the borrower's guaranteed student loans, the Minister shall, in addition to the measures referred to in subsection (2), refuse to grant to the borrower a special interest-free period in respect of that borrower's student loans.

(4) If an event referred to in paragraph (1)(h), (i) or (k) occurs, the Minister shall, in addition to the measures referred to in subsection (2), terminate a special interest-free period granted to the borrower and refuse to grant another special interest-free period.

(5) If an event referred to in paragraph (1)(b) occurs in respect of either a student loan or a guaranteed student loan made to a borrower as a part-time student, an event referred to in any of paragraphs (1)(h) to (k) has not occurred subsequent to the event referred to in paragraph (1)(b) and a judgment has not been obtained against the borrower in respect of an outstanding student loan or guaranteed student loan,

• (a) the borrower shall be entitled to a new student loan, if a certificate of eligibility has been issued to the borrower as a full-time student in respect of that loan before the day referred to in paragraph (1)(b); and

• (b) the measure referred to in paragraph (2)(c) shall take effect on the last day of the period of studies for which the certificate of eligibility was issued.

(6) Where an event referred to in paragraph (1)(a) or (b) occurs in respect of a student loan made to a borrower as a full-time student and, subsequent to that event, the borrower erroneously receives a certificate of eligibility and at least one disbursement authorized by that certificate of eligibility,

• (a) the borrower shall be entitled to a new student loan authorized by that certificate of eligibility; and

• (b) the measure referred to in paragraph (2)(c) shall take effect at the end of the period of studies for which the certificate of eligibility was issued.

(7) Subsection (2) applies to a borrower who, on the day on which the Act comes into force, is denied a new guaranteed student loan or further interest-free status on a guaranteed student loan in accordance with subsection 9(3) of the Canada Student Loans Regulations.

(8) If an event referred to in any of paragraphs (1)(c) to (g) occurs in respect of either a student loan or a guaranteed student loan made to a borrower as a full-time student, before the last day of the last confirmed period of the program of studies in which the borrower is enrolled at the time the event occurs, the borrower is entitled, if otherwise eligible, to a new student loan or an interest-free period for that program of studies.

(9) If the borrower receives a new student loan or an interest- free period to which the borrower is entitled under subsection (8), the measures referred to in subsection (2) take effect on the earliest of

• (a) the last day of the last confirmed period of the program of studies in which the borrower was enrolled at the time the event occurred,

• (b) the day that is three years after the occurrence of the event or, if that day occurs during a confirmed period, the last day of that period, and

• (c) the last day of the month in which the borrower no longer meets the applicable minimum percentage referred to in the definition "full-time student" in subsection 2(1).