Canada Student Financial Assistance Regulations

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• (b) [Repealed, SOR/2012-68, s. 6]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:

  0.2A

  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.