Canada Student Financial Assistance Regulations

26 (1) Subject to subsection (2), where a special interest-free period has been granted to a borrower, the provisions of any loan agreement or guaranteed student loan agreement that was in effect between the borrower and the lender or between the borrower and the Minister, as the case may be, on the day on which the borrower applied for that special interest-free period shall be suspended until the earliest of

• (a) the day on which a special interest-free period is terminated in accordance with subsection 15(4),

• (b) the end of that special interest-free period, and

• (c) in respect of the borrower's consolidated student loan agreement or consolidated guaranteed student loan agreement, if any, the day on which the borrower again becomes a full-time student in accordance with subsections 6(2) or 7(2).

(2) Where a special interest-free period has been granted to a borrower,

• (a) subject to paragraph 24(1)(c), no interest and no amount on account of interest is payable by the borrower on the borrower's student loans or guaranteed student loans during or in respect of the special-interest free period; and

• (b) the first payment to be made by the borrower after the end of the special interest-free period shall be made one month after the end of that period.