Canada Student Financial Assistance Regulations

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 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 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 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, 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 a permanent 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 a permanent 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.