Canada Student Financial Assistance 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 in respect of the loans referred to in paragraph 19(1)(b) 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 of the loans referred to in paragraph 19(1)(b) to the outstanding principal of the loans referred to in that paragraph and any provincial student loans.

(5) Payments made under this section shall be attributed in proportion to the outstanding principal of each loan referred to in paragraph 19(1)(b).