Canada Student Financial Assistance Regulations

20 (1) Subject to section 15 and section 9 of the Canada Student Loans Regulations, the Minister may, on application in the prescribed form, 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) to (c);

• (b) the borrower

  • (i) has a permanent 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 the loans referred to in subparagraph 19(1)(b)(i), since the day referred to in subparagraph 19(1)(d)(i), and

    • (B) in respect of the loans referred to in subparagraph 19(1)(b)(ii), since the 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 a permanent 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:

    0.2A

    1.5[((W – Y)) ÷ 100Z+0.01]A

    where

    A

    is the ratio, in relation to all loans referred to in paragraph 19(1)(b) and provincial student loans, of the borrower’s outstanding principal to the borrower’s outstanding principal plus the outstanding principal of those loans for which instalments are due for any 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 loans referred to in paragraph 19(1)(b)(i) and provincial student loans, amortized over a period of the greater of six months and

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

• (b) the outstanding principal of the loans referred to in subparagraph 19(1)(b)(ii) amortized over a period of the greater of six months and

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