NLR 105/03 - Student Financial Assistance Regulations under the Student Financial Assistance Act - Point in Time - From Gazette Date March 28, 2013 to July 31, 2014

Short title

1. These regulations may be cited as the Student Financial Assistance Regulations .

Definitions

2. In these regulations

(a) "Act", unless the context indicates otherwise, means the Student Financial Assistance Act ;

(a.1) "consolidated loan agreement" means an agreement entered into between a lender and a borrower to establish the terms and conditions of the repayment of the borrower's student loan;

(a.2) "designated operation" means an operation that is designated under paragraph 247.5(1)(a) of the Canada Labour Code ;

(b) "division" means the Student Financial Services Division of the department;

(d) "full course load" means the maximum number of courses that an educational institution usually requires a person to complete during a period of study in his or her program of study;

(e) "full time student" means a qualifying student who is enrolled in 80% of a full course load or who qualifies to receive financial assistance under subsection 3(3) or (4) of the Student Financial Assistance Administration Regulations or who is a member of the reserve force who interrupts his or her program of studies to serve on a designated operation until

(i) the last day of the month in which his or her service on the designated operation ends, or is considered to have ended under subsection 5.2(7), or

(ii) the date determined under subsection 5.2(10) that is the earlier of the day

(A) on which it is determined by Canada's Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations that the injury or disease, or the aggravation of the injury or disease, no longer precludes the borrower from returning to a program of studies, and

(B) that is 2 years after the day on which the borrower's service on the designated operation ended;

(f) "partner", with respect to a borrower, means a person

(i) to whom the borrower is married, or

(ii) with whom the borrower is cohabiting and has cohabited with in a conjugal relationship for at least 12 consecutive months, or

(iii) with whom the borrower has filed his or her most recent income tax return as a common law partner;

(g) "period of study" means a period of study at an educational institution that is not fewer than 12 weeks in length within a period of not fewer than 15 weeks and not more than 52 consecutive weeks in length;

(g.1) "prime rate" means, for any day, the variable reference rate of interest as calculated by Canadas Minister of Human Resources and Skills Development based upon the variable reference rates of interest declared on the previous business day by the largest 5 Canadian institutions as their prime rate, calculated by ignoring both the highest and lowest of those 5 rates and taking the average of the remaining 3 rates;

(h) "program of study" means a series of periods of study, the successful completion of which, if all requirements are met, qualifies the person for a degree, diploma or certificate; and

(i) "service provider" means a person who has entered into an agreement with the minister or the corporation to provide services with respect to the disbursement, administration, management and recovery of student loans.

105/03 s2; 29/04 s1; 66/09 s1; 67/09 s1; 61/11 s1

Application

2.1 These regulations apply to all student loans unless otherwise is expressly stated.

29/04 s2

Educational institution designation

3. (1) In order to qualify as an educational institution under the Act an institution that offers a program of study in the province shall be

(a) a college or university as defined in the Memorial University Act ;

(b) the college as defined in the Colleges Act , 1996; or

(2) An institution in another province or territory of Canada , including an institution that offers distance education courses to residents of the province, may be designated as an educational institution where that institution has been designated for student financial assistance purposes by the appropriate authority in the province or territory of Canada in which it is located.

(3) An institution referred to in subsection (2) that is also a private training institution shall not be designated as an educational institution unless it is registered under an Act of another province or territory of Canada that is equivalent to the Private Training Institutions Act.

(4) An institution that is in the United States of America that is accredited by an accrediting agency approved by the United States Secretary of Education and is defined as an institution of higher education in accordance with the publication of the U.S. Department of Education: The Federal Financial Aid Handbook may be designated as an educational institution.

(5) An institution that is outside Canada and the United States of America that

(a) offers programs that lead to an associate, undergraduate, graduate or professional degree or is at least 2 years in duration and is acceptable for full credit towards an undergraduate degree; or

(b) where the Lieutenant-Governor in Council considers the circumstances to be exceptional, a non-degree granting institution that is recognized by the country in which it is located as an accredited post-secondary educational institution that provides programs that lead to a certificate or diploma,

may be designated as an educational institution.

(6) An application made by an institution to be designated as an educational institution by the minister shall be in the form and contain the information required by the minister.

(7) A designation of an institution as an educational institution by the minister shall be in writing.

(8) In order to qualify for and maintain a designation as an educational institution, that institution must

(a) provide information and counselling to students with respect to their eligibility for financial assistance;

(b) collect and report information to the division as required by the minister;

(d) where applicable, comply with the requirements of the Private Training Institutions Act ;

(e) have a grade 12 or equivalent entrance requirement or a mature student policy in place that is acceptable to the minister;

(f) have a default prevention plan that is acceptable to the minister;

(g) adhere to all specified administrative requirements of the minister; and

(h) comply with all other requirements that the minister may by policy establish.

(9) Where an educational institution designated under the Act fails to comply with the requirements to maintain that designation, the minister may, with the approval of the Lieutenant-Governor in Council, cancel its designation as an educational institution.

105/03 s3; 61/11 s1

Amount of financial assistance

4. (1) Financial assistance shall not be issued in an amount that is less than $67.

(2) Financial assistance issued to a qualifying student shall be issued in the manner and amounts as follows:

(a) first, an amount of not more than $60 per week of a period of study in student loan; and

(b) second,

(i) an amount of not more than $80 per week of a period of study in a non repayable grant, or

(ii) where the qualifying student is enrolled in medical school at Memorial University of Newfoundland, an amount of not more than $90 per week of a period of study in a non repayable grant; and

(c) third, where the qualifying student is enrolled in medical school at Memorial University of Newfoundland, a further amount of not more than $50 per week of a period of study in student loan.

82/07 s1; 67/09 s2; 36/13 s1

Granting of financial assistance

5. (1) A person to whom a notice of financial assistance has been issued shall

(a) be enrolled as a full time student as confirmed by an official of the educational institution;

(b) sign a student loan agreement in which he or she agrees to repay his or her student loan in accordance with the terms and conditions of that agreement and these regulations;

(c) submit the completed student loan agreement to the corporation or service provider before the last day of the month of his or her period of study end date; and

(d) sign those consents, authorizations and certificates that the minister may require.

(2) Where a person complies with subsection (1), the corporation shall issue financial assistance to that person in the amount set out in the notice of financial assistance.

36/13 s2

Loan and grant disbursement

5.1 (1) A student loan or a grant issued under section 4 shall not be disbursed before the borrowers period of study start date or after the last day of the month of the borrowers period of study end date.

(2) Notwithstanding subsection (1), with the written approval of the minister, a student loan or a grant issued under section 4 may be disbursed in a manner that does not comply with the disbursement requirements of subsection (1).

82/07 s2

Payment free status

5.2 (1) Where a student loan is issued to a borrower, that student loan has payment free status during the period

(a) commencing on the period of study start date as confirmed by his or her educational institution; and

(b) ending 6 months after the last day of the month of the borrower's period of study end date as confirmed by his or her educational institution.

(2) Payments are not required on a student loan during the period that the student loan has payment free status.

(2.1) Payments are not required on a student loan until the last day of the

(a) seventh month after the last day of the borrowers period of study end date as confirmed by his or her educational institution; or

(b) first month after payment free status under subsection (6) or (10) ended.

(3) A borrower who is not issued a student loan for a current period of study and

(a) who is enrolled in at least 60% of a full course load; or

(b) meets the requirements of subsection 3(4) of the Student Financial Assistance Administration Regulations ,

may apply to the minister for payment free status on his or her student loan.

(4) An application under subsection (3) must include or be accompanied by the information that the minister may require.

(5) Where the minister receives an application under subsection (3), and is satisfied that the borrower has complied with these regulations, the minister may grant payment free status to the borrowers student loan.

(6) Subject to subsections (7) and (11), when a student loan is issued to a borrower who is a member of the reserve force and who interrupts his or her program of studies to serve on a designated operation, that student loan has payment free status until 6 months after the last day of the month in which his or her service on the designated operation ends.

(7) Where, as a result of the date on which his or her service on the designated operation ends, the borrower is unable to continue in a program of studies within 6 months after that date, the minister may, on application, defer by up to 6 months the date on which the service on the designated operation is considered to have ended.

(8) A borrower referred to in subsection (6) must, no later than 30 days after receipt of his or her posting message provided by Canadas Department of National Defence, unless circumstances beyond the control of the borrower necessitate a longer period, notify the minister in the prescribed form that he or she will be serving on the designated operation and must provide the minister with a list of outstanding student loans not owned by the corporation and, where the minister requests, provide the minister with

(a) his or her social insurance number;

(b) a list of outstanding student loans;

(d) information that is necessary to assess whether the borrower meets the requirements of subsection (6), (7), (10) or (12).

(9) The minister may consider one or more of the requirements of subsection (8) of these regulations to be satisfied where a borrower has provided a notification and information to Canada 's Minister of Human Resources and Skills Development in compliance with subsection 8(3) of the Canada Student Financial Assistance Regulations .

(10) Where a borrower referred to in subsection (6) is unable to continue full-time in a program of studies as a result of an injury or disease that is attributable to or was incurred during the designated operation, or the aggravation of an injury or disease, if the aggravation was attributable to or was incurred during the designated operation, the borrower will be granted payment free status until 6 months after the earlier of the day

(a) on which it is determined by Canadas Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations that the injury or disease, or the aggravation of the injury or disease, no longer precludes the borrower from returning to a program of studies; and

(b) that is 2 years after the day on which the borrowers service on the designated operation ended.

(11) Where it is determined by Canadas Minister of Human Resources and Skills Development under subsection 8(2) or (4) of the Canada Student Financial Assistance Regulations that the date when the borrower ceases to be a full time student under those regulations will be delayed for the purpose of those regulations, then the borrower will be granted payment free status until 6 months after that date for the purpose of subsections (7) and (10) of these regulations.

(12) Where a determination referred to in subsection (11) is not applicable, a determination by the minister of eligibility in subsections (7) and (10) shall be made on the same basis as if the determination was made under subsection 8(2) or (4) of the Canada Student Financial Assistance Regulations .

67/09 s3; 36/13 s3

Rules respecting payment free status

5.3 (1) Where the period of study end date shown on a borrowers application under subsection 5.2(3) changes to another date, his or her student loan payment free status ends 6 months after the last day of the month of the new period of study end date.

(2) Notwithstanding subsections 5.2(2) and (3) a borrower is not entitled to payment free status on his or her student loan where that borrower is in arrears on interest payments on his or her student loan.

(3) The minister may terminate a payment free status where

(a) the borrower to whom that status applies or his or her spouse, parent or sponsor has provided false or misleading information to the minister; or

(b) the borrower fails to comply with a provision of the Act or regulations made under the Act.

(4) Notwithstanding that the last day of the month of the period of study end date as confirmed by his or her educational institution has been reached, the student loan to which it applied retains its payment free status during the period between the previous period of study end date and the last day of the month of the next period of study end date as confirmed by his or her educational institution where

(a) the period between the last day of the month of the previous period of study end date and next period of study start date as confirmed by his or her educational institution is less than 6 months; and

(b) that borrower delivers his or her confirmation of enrolment to the minister within the 6 month period referred to in paragraph (a).

67/09 s4; 36/13 s4

Notification

5.4 A borrower shall promptly notify the lender or service provider of any change in his or her

(a) marital or family status;

(b) status as a full time student at an educational institution;

(d) financial resources

that occurs during the period of study for which the student loan referred to in the student loan agreement is made.

29/04 s3

Required provisions

5.5 A student loan agreement made on or after April 1, 2004 shall include provisions that state the following:

(a) any refund of fees paid to an educational institution by the borrower of

(i) financial assistance, or

(ii) funds intended as financial assistance

as provided under the Act shall be paid by the educational institution to the borrower's lender for credit against a student loan received under the Act by the borrower;

(b) the borrower shall ratify all student loans made to him or her while he or she was a minor;

(c) interest on a student loan is payable before and after a default, acceleration or judgement with respect to that student loan; and

(d) the borrower shall pay all legal fees incurred by the lender to collect the student loan.

29/04 s3; 61/11 s3

Amendment to prevent default

5.6 A lender and a borrower may amend the terms of repayment if the borrower notifies the lender that the terms of repayment are such that he or she will be in default and if the lender considers that an amendment will enable the borrower to meet his or her obligations.

36/13 s5

Student loan default

5.7 (1) A borrower is in default of his or her obligation to repay a student loan if

(a) he or she refuses to repay all or part of that loan;

(b) he or she does not make a regularly scheduled payment and the failure to make the required payment continues for 2 months; or

(c) the borrower becomes subject to or takes advantage of a law relating to bankruptcy and insolvency or seeks relief under a provincial law relating to the orderly payment of debts that includes a student loan.

(2) Where a borrower is in default of his or her obligation to repay all or part of his or her student loan, the loan is due and payable on the following dates:

(a) if the default occurs because the borrower refuses to repay all or part of his or her student loan, on the date of the refusal;

(b) if the default occurs because the borrower does not make a regularly scheduled payment to repay his or her student loan, on the day on which a regularly scheduled payment has been outstanding for 2 consecutive months; or

(c) the date on which the borrower becomes subject to or takes advantage of a law relating to bankruptcy or insolvency or seeks relief under a provincial law relating to the orderly payment of debts that includes a student loan.

36/13 s6

Consolidation and repayment

5.8 (1) A borrower who enters into one or more student loan agreements shall enter into a consolidated loan agreement with the lender after the borrower ceases to be a full time student.

(2) A consolidated loan agreement shall include the amount and duration of the payments to be made to discharge all outstanding student loans.

(3) If a borrower does not enter into a consolidated loan agreement within 6 months after ceasing to be a full time student, he or she shall be considered to have entered into a consolidated loan agreement and the lender shall establish the amount and duration of the payments to be made to discharge all outstanding student loans of that borrower unless the borrower subsequently enters into a consolidated loan agreement.

(4) This section does not apply to a borrower who enters into a student loan agreement with the corporation after July 31, 2012.

67/09 s5; 36/13 s7

Repayment

5.09 A borrower who enters into a student loan agreement with the corporation after July 31, 2012 shall, within 6 months after ceasing to be a full time student, discharge all outstanding student loans of that borrower in accordance with the repayment terms established by the lender.

36/13 s8

Obligation to pay interest

5.9 (1) Before August 1, 2007 the interest in effect on any day on a student loan owned by the corporation shall be

(a) the prime rate on that day plus 2.5% yearly; or

(b) after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 5% yearly.

(2) From August 1, 2007 to July 31, 2009 , the interest rate in effect on any day on a student loan owned by the corporation shall be

(a) the prime rate on that day yearly; or

(b) after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

(2.1) After July 31, 2009 , the interest rate in effect on any day on a student loan owned by the corporation is 0%.

(3) Before August 1, 2007 the interest rate on any day on a student loan not owned by the corporation shall be in accordance with the student loan agreement relating to that student loan.

(4) From August 1, 2007 to July 31, 2009 , the interest rate in effect on any day on a student loan not owned by the corporation shall be

(a) the prime rate on that day yearly; or

(b) after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

(4.1) After July 31, 2009 , the interest rate in effect on any day on a student loan not owned by the corporation is 0%.

(5) Notwithstanding paragraph 2(g.1), in subsection (4), "prime rate" shall be the prime rate established under the student loan agreement relating to the student loan.

(6) [Rep. by 67/09 s6]

(7) Interest on a student loan shall accrue commencing on the first day of the month following the last day on which the borrower under that student loan ceases to be full time student.

(8) Upon consolidation of a student loan, interest on that loan shall accrue daily and shall be calculated and payable monthly.

(9) Interest accruing on a student loan for 6 months immediately after interest commencement under subsection (7) shall accrue daily and be payable on the first day of the seventh month after interest commencement and where the interest amount is not paid as required, that amount shall be capitalized and form part of the principal owed on that student loan.

(10) Notwithstanding another provision of this section, interest calculated under this section shall be calculated as simple interest and shall not be compounded.

82/07 s3; 67/09 s6; 61/11 s4

Application to pre-April, 2004 loans

5.10 Section 5.8 and subsection 5.9(1) shall only apply to a student loan owned by the corporation that has not been consolidated or entered into repayment status before April 1, 2004 , notwithstanding that contrary terms and conditions of a student loan agreement apply to that loan immediately before that date.

29/04 s3

Revision of terms

5.11 (1) Where, on April 1, 2004, a student loan owned by the corporation is in repayment status, the following terms and conditions shall be considered to apply to the student loan agreement applicable to that loan, notwithstanding contrary terms and conditions of that agreement immediately before April 1, 2004:

(a) interest payable shall be calculated based on the prime rate as defined in these regulations;

(b) the amortization period shall be adjusted as required to ensure that a borrowers total monthly payment to repay his or her student loan and his or her direct loan under the federal Act is not greater than the sum of his or her monthly student loan payment and federal direct loan payment immediately before April 1, 2004;

(c) where a student loan has, immediately before April 1, 2004 , a fixed interest rate and the borrowers direct loan under the federal Act has a floating rate, the interest rate applicable to the student loan shall be a floating rate that is the prime rate plus 2.5% yearly;

(d) where a borrower has a student loan with a fixed interest rate and a direct loan under the federal Act with a fixed interest rate that is lower than the fixed interest rate applicable to his or her student loan, the interest rate on his or her student loan shall be reduced to match the fixed interest rate applicable to the borrowers direct loan under the federal Act;

(e) the allocation and application of payments between a student loan and a direct loan under the federal Act shall be as agreed upon among the minister, the corporation and the Government of Canada; and

(f) monthly payments on a student loan shall be due and payable on the last day of each month.

(2) Paragraphs (1)(b) to (e) shall apply to a borrowers student loan if that borrower has a direct loan under the federal Act.

(3) In this section, "direct loan" has the same meaning as under the federal Act.

(4) Subsections (1) and (2) shall cease to apply where a borrower enters into an agreement to revise the terms and conditions of his or her student loan agreement or consolidated loan agreement.

29/04 s3

Debt reduction grants

6. (1) A borrower who has

(a) graduated from a program of study in the province that is not fewer than 80 weeks in duration; and

(b) borrowed more than $165 per week, including assistance under the Act and the federal Act for a period of study; and

(c) in accordance with the standards of the educational institution attended, passed 80% of a full course load in the period of study referred to in paragraph (b); and

(d) applied for and been considered eligible to receive financial assistance under the Act or the federal Act for not less than 50% of the required length of his or her program of study determined by not including time the borrower spent in a work term during which he or she did not receive financial assistance,

is eligible for a debt reduction grant to reduce the student loan amounts repayable by that borrower.

(2) Notwithstanding paragraph (1)(c), a borrower approved to enrol in less than 80% of a full course load in accordance with subsection 3(2), (3) or (4) of the Student Financial Assistance Administration Regulations must successfully complete 100% of that course load in order to qualify for a grant under subsection (1)

(3) Notwithstanding paragraph (1)(a), the minister may determine that a program of study attended outside the province qualifies under this section for a grant where

(a) the borrowers program of study was not offered in the province;

(b) the borrower was enrolled in graduate studies;

(d) the borrower did not meet the minimum entry requirement for his or her program of study in the province but met the requirements for substantially the same program outside the province;

(e) the borrower applied to do his or her program of study in the province but was denied entry due to limited spaces in that program;

(f) the borrower received transfer credits toward advanced standing into his or her program of study, resulting in a reduced length of time for that program;

(g) the borrowers partner has undertaken studies outside the province that qualify him or her for debt reduction grants under one or more of paragraphs (a) to (f); and

(h) for another reason that the minister considers to be appropriate.

(4) Where

(a) 10 or more years have elapsed since a borrower commenced his or her program of study; or

(b) 2 or more years have elapsed since a borrower graduated from his or her program of study,

that borrower no longer qualifies for a grant under this section.

105/03 s6; 29/04 s4; 90/06 s1

Debt reduction calculation

7. (1) Where the issuance of a grant under section 6 is approved, that grant shall

(a) for a borrower who has passed a full course load, be equal to the amount borrowed that is in excess of the amount referred to in paragraph 6(1)(b); and

(b) for a borrower who passes 80% of his or her full course load, be equal to 50% of the amount borrowed that is in excess of the amount referred to in paragraph 6(1)(b),

and shall be applied directly against the borrowers student loan received by way of financial assistance under the Act and these regulations.

(2) Notwithstanding subsection (1), where the balance owed on a borrower's student loan is less than the amount of a grant to which he or she is entitled, the remaining balance of the grant shall be paid to the borrower.

(3) Where a borrower entered into a student loan agreement on or before July 31, 2012, a grant to a borrower shall not exceed the principal amount of his or her student loan at the time of its consolidation.

(3.1) Where a borrower entered into a student loan agreement with the corporation after July 31, 2012, a grant to a borrower shall not exceed the principal amount of his or her student loan at the time the repayment terms are established by the lender.

(4) Notwithstanding another provision of this section, the grant issued to a borrower

(a) before August 1, 2005 shall not exceed $110 per week of study;

(b) between August 1, 2005 and July 31, 2007 shall not exceed $140 per week of study;

(d) on or after August 1, 2009 shall not exceed $60 per week of study.

(5) Notwithstanding another provision of this section, a borrower who graduated between August 1, 2002 and August 1, 2004 shall receive the greater of the benefit to which they were entitled under this section or section 8 during that period.

105/03 s7; 29/04 s4; 61/11 s5; 36/13 s9

Student loan remission

8. (1) Until July 31, 2004 , a borrower may apply to the minister for student loan remission to reduce the amount of his or her student loan that is to be repaid.

(2) An application made under subsection (1) shall be made not more than 12 months after he or she has graduated from his or her program of study.

(3) A borrower may qualify for student loan remission under this section where he or she

(a) has graduated from a program of study offered by an educational institution that is not fewer than 80 weeks in duration; and

(b) has graduated from a program of study within the time normally specified for the completion of that program plus one academic year; and

(i) $22,016 for a program of study of 128 or fewer weeks, or

(ii) $172 per week times the total number of borrowing weeks for a program of study that is more than 128 weeks; and

(d) has completed his or her program of study in the province.

(4) Notwithstanding paragraph (3)(d), where a borrower completed his or her program of study outside the province, the minister may determine that the borrower qualifies for student loan remission if

(a) one or more of paragraphs 6(3)(a), (b), (c), (d), (e) and (h) apply to that borrower; or

(b) his or her partner undertook studies outside the province and qualified for student loan remission.

105/03 s8; 29/04 s4

Early childhood education grants

9. (1) A borrower who

(a) has graduated from an early childhood education program offered in the province; and

(b) has completed the program referred to in paragraph (a) within the time scheduled by the institution attended for that program, plus one academic year;

(c) has borrowed more than $165 per week, including financial assistance under the Act and the federal Act, for the period of study pertaining to the approved early childhood education program; and

(d) is employed as an early childhood educator, at the time

(i) of its consolidation, where the borrower entered into a student loan agreement on or before July 31, 2012; or

(ii) the repayment terms are established by the lender, where the borrower entered into a student loan agreement after July 31, 2012

is eligible for an early childhood education grant to reduce the student loan amounts payable by that borrower.

(2) Where the issuance of a grant in accordance with this section is approved, that grant shall be applied directly against the borrowers student loan received by way of financial assistance under the Act and these regulations.

(3) Notwithstanding subsection (1), where the balance owed on the borrowers student loan received by way of financial assistance is less than the amount of the grant to which he or she is entitled, the remaining balance of the grant shall be paid to the borrower.

(4) A grant received under this section shall not exceed the principal amount of the student loan owing by the borrower at the time

(a) of its consolidation, where the borrower entered into a student loan agreement on or before July 31, 2012; or

(b) the repayment terms are established by the lender, where the borrower entered into a student loan agreement after July 31, 2012.

(5) Where a borrower has received an overaward of financial assistance under the Act, that overaward shall be deducted from grant amounts awarded under this section.

105/03 s9; 29/04 s5; 36/13 s10

Definitions

10. In this section and in sections 10.1 to 10.12

(a) "federal student loan" means a loan made by the Government of Canada under the Canada Student Financial Assistance Act (Canada ) or the Canada Student Loans Act (Canada );

(b) "monthly affordable payment" means the amount that a borrower can reasonably afford to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 10.5;

(c) "monthly required payment" means the amount that a borrower would be required to pay on all his or her federal and provincial student loans on a monthly basis as determined under section 10.5;

(d) "permanent disability" means a functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in studies at a post-secondary school level or the labour force and is expected to remain with the person for the person's expected life;

(e) "provincial portion" means, in relation to the monthly required payment or the monthly affordable payment, the portion of the payment of all of the borrower's federal and provincial student loan that is equal to the provincial student loan;

(f) "provincial student loan" means a student loan made under the Act; and

(g) "repayment assistance" means repayment assistance provided for under section 10.1 to 10.12.

30/12 s1

Repayment assistance

10.1 (1) A borrower under a consolidated loan agreement who is having difficulty making payments under the student loan agreement may apply for repayment assistance.

(2) Repayment assistance available includes, for a loan owned by the corporation

(a) a reduction in the borrowers monthly payments on the student loan; or

(b) assistance from the minister in forgiving an outstanding student loan by forgiving monthly payments on the loan.

(3) Repayment assistance available includes, for a loan not owned by the corporation

(a) a reduction in the borrowers monthly payments on the student loan; or

(b) assistance from the minister in paying off the borrower's outstanding student loan by making monthly payments on the loan in the amount of the reduction under paragraph (a).

(4) The amount of assistance provided by the minister, under subsections (2) and (3), shall be determined so that,

(a) in the case of a person receiving repayment assistance other than a person described in paragraph (b), the borrowers student loan is repaid in full within 15 years from the day the borrower last was a qualifying student; and

(b) in the case of a person with a permanent disability who is receiving repayment assistance and who, in an application for repayment assistance, discloses his or her disability, the borrowers student loan is paid in full within 10 years from the day the borrower last was a qualifying student.

30/12 s1

Two stages of repayment assistance

10.2 (1) Repayment assistance is provided in 2 stages as follows:

(a) during stage 1, the monthly assistance provided by the minister relates to payments payable on account of interest owing and payments deferred on account of principal owing on the outstanding student loan; and

(b) during stage 2, the monthly assistance provided by the minister relates to payments payable on account of principal and interest owing on the outstanding student loan as are required so as to ensure that the student loan is repaid in full within the time period specified in subsection 10.1(4).

(2) Subject to subsection (4), the two stages of repayment assistance are consecutive and a borrower shall receive stage 1 for the full period of time for which it is available under subsection (3) before the borrower is entitled to stage 2 repayment assistance.

(3) A borrower may receive repayment assistance under stage 1 for a period of up to 60 months, subject to sections 10.10 and 10.11.

(4) Notwithstanding subsection (3), a borrower who meets the eligibility requirements specified in subsection 10.4(1) and in either paragraph (b) or (c) of subsection 10.4 (3) is eligible for repayment assistance at stage 2 without having received stage 1 of repayment assistance.

(5) For the purpose of this section, where the lender is the corporation, the minister shall be considered to have complied with this section by forgiving, each month, the portion of the borrowers outstanding student loan that is equal to the payments that the minister is otherwise required to make under this section.

30/12 s1

Application and approval process

10.3 (1) A borrower who wishes to receive repayment assistance shall submit an application to the minister.

(2) The application shall be in the form approved by the minister and shall provide the information relating to the applicants family status, number of family members and family income, and other information as may be required to determine eligibility for the repayment assistance.

(3) Where the minister determines that the applicant meets the eligibility requirements under sections 10.4 and 10.5, the borrower shall be entitled to receive repayment assistance for a period of six months.

(4) If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, the borrower shall submit an application for the assistance to the minister no later than 30 days after the end of the six month period.

(5) Subsections (2), (3) and (4) apply with necessary modifications to every successive application for repayment assistance made under subsection (1) until the borrowers student loan is repaid in full.

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Eligibility requirements

10.4 (1) To be eligible for repayment assistance, a borrower shall

(a) reside in Canada ;

(b) submit an application to the minister in accordance with section 10.3;

(d) have made the monthly payments required in a previous repayment assistance period;

(e) have a monthly affordable payment that is less than the borrower's monthly required payment; and

(f) satisfy the eligibility requirements under stage 1 of repayment assistance described in subsection (2) or under stage 2 of repayment assistance described in subsection (3).

(2) To be eligible for stage 1 of repayment assistance, a borrower shall meet all of the following requirements:

(a) since the borrower last was a qualifying student, the borrower,

(i) has not received repayment assistance, or

(ii) has received repayment assistance under stage 1 for a total period of time of less than 60 months;

(b) less than 10 years has elapsed since the borrower last was a qualifying student;

(3) To be eligible under stage 2 of repayment assistance, a borrower shall meet at least one of the following requirements:

(a) since the borrower last was a qualifying student, the borrower has received repayment assistance under stage 1 for 60 months;

(b) 10 years or more has elapsed since the borrower last was a qualifying student; or

(c) the borrower has a permanent disability and discloses, in an application for repayment assistance, his or her disability.

(4) Notwithstanding subsections (1), (2) and (3), a borrower who meets the eligibility requirements in this section shall not be eligible for repayment assistance where the minister has determined that the borrower is ineligible for repayment assistance because the borrower owes money on a prior student loan.

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Determination by Canada 's Minister of Human Resources and Skills Development

10.5 (1) For the purpose of determining whether a borrower meets the eligibility requirements of

(a) paragraph 10.4(3)(c), the determination of whether a borrower has a permanent disability; or

(b) paragraph 10.4(1)(e), the determination of the borrowers monthly affordable payment and monthly required payment

shall be made by Canada s Minister of Human Resources and Skills Development, under the Canada Student Financial Assistance Regulations or Canada Student Loans Regulations .

(2) Where a determination referred to in subsection (1) is not applicable, a determination by the minister that a borrower meets the eligibility requirements of

(a) paragraph 10.4(3)(c), the determination of whether a borrower has a permanent disability; or

(b) paragraph 10.4(1)(e), the determination of the borrowers monthly affordable payment and monthly required payment

shall be made on the same basis as if the determination was made under the Canada Student Financial Assistance Regulations or Canada Student Loans Regulations .

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Repayment assistance period

10.6 (1) If a borrower is granted repayment assistance, the 6 month repayment assistance period shall commence at the beginning of the month in which the application for repayment assistance is submitted to the minister.

(2) Notwithstanding subsection (1), the minister may,

(a) at the request of an applicant, backdate the commencement of the repayment assistance period for up to 6 months if the applicant has failed to make a monthly required payment on his or her outstanding student loan during the months previous to his or her application for repayment assistance; and

(b) capitalize all or a part of the accrued interest owing on that student loan and that capitalized accrued interest shall form a part of the principal owed on that student loan.

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Suspension of repayment terms in agreement

10.7 (1) Where a borrower is granted repayment assistance, during the repayment assistance period,

(a) the terms of the repayment of the student loan set out in the borrowers consolidated loan agreement are suspended and of no effect; and

(b) instead of the payments required under the consolidated loan agreement, payments shall be made each month on the provincial portion of the borrowers monthly required payment, as determined under section 10.8.

(2) At the end of the repayment assistance period, the suspension of repayment terms in the consolidated loan agreement is lifted, subject to such amendments to the consolidated loan agreement as may be agreed to by the parties.

(3) Subsection (2) does not apply if the borrower is granted a subsequent 6 month period of repayment assistance immediately upon the expiry of a previous repayment assistance period and the suspension of repayment terms is consequently extended.

30/12 s1

Monthly payments during repayment assistance

10.8 (1) Where a borrower is granted repayment assistance under stage 1, the part of the provincial portion of the borrowers monthly required payment that is equal to the sum of the following amounts shall be paid each month on the borrowers outstanding student loan in the following manner:

(a) the borrower shall pay to the lender the provincial portion of his or her monthly affordable payment; and

(b) the minister shall pay to the lender interest payable as part of the provincial portion of the borrowers monthly required payment that is not paid by the borrower under paragraph (a).

(2) For greater certainty, during stage 1 of repayment assistance, a part of the provincial portion of a borrowers monthly required payment that is attributable to principal and not covered by the borrowers payment under paragraph (1)(a) is not payable to the lender.

(3) Where a borrower is granted repayment assistance under stage 2, all of the provincial portion of the borrowers monthly required payment shall be paid each month on the borrowers outstanding student loan in the following manner:

(a) the borrower shall pay to the lender the provincial portion of his or her monthly affordable payment; and

(b) the minister shall pay to the lender interest, principal or principal and interest as part of the provincial portion of the borrowers monthly required payment, that is not paid by the borrower under paragraph (a).

(4) A monthly payment made by the borrower under this section shall be made each month at the same time as the monthly amounts otherwise payable under the consolidated loan agreement would have been paid.

(5) A monthly payment made by the borrower under this section shall be applied against the borrowers outstanding student loan as follows:

(a) the full amount of the payment shall be applied first against the part of the provincial portion of the monthly required payment that would be payable on the outstanding principal; and

(b) if the amount of the payment exceeds the amount of principal payable as part of the provincial portion of the monthly required payment, the excess amount shall be applied against the interest payable as part of the provincial portion of the monthly required payment.

(6) Notwithstanding subsections (1) and (3), the minister is not required to pay an amount under this section in respect of a month during a repayment assistance period if the borrower fails to make a payment as required under this section in respect of that month.

(7) For the purpose of this section, where the lender is the corporation, the minister shall be considered to have complied with this section by forgiving, each month, the portion of the borrowers outstanding student loan that is equal to the payments that the minister is otherwise required to make under this section.

(8) Where there is a conflict between a provision of a consolidated loan agreement and this section, this section prevails.

30/12 s1

Failure to make payments

10.9 (1) Where a borrower fails to make one or more monthly payments that the borrower is required to make during a repayment assistance period, the borrower shall pay all missed payments on or before 30 days after the end of the repayment assistance period.

(2) A borrower who fails to pay all the missed monthly payments as required under subsection (1) shall no longer be eligible for repayment assistance unless, after the failure, the borrower

(a) pays all arrears of interest owing under the consolidated loan agreement;

(b) makes at least 6 consecutive monthly payments under the consolidated loan agreement; and

30/12 s1

Return to school

10.10 Where a borrower receives repayment assistance and subsequently returns to school and becomes a qualifying student once again, the repayment assistance received before the return to school shall not be considered for purposes of determining eligibility for further repayment assistance that the borrower may apply to receive after completing the further period of study.

30/12 s1

Transitional

10.11 (1) This section applies to a person whose payment obligations under a consolidated loan agreement were suspended under the payment deferral program on July 31, 2011.

(2) On August 1, 2011 a person described in subsection (1), whether or not they have submitted an application as required under paragraph 10.4(1)(b), is eligible for repayment assistance, where the person meets the eligibility requirements under sections 10.4 and 10.5 and subject to the following rules that apply for purposes of determining whether the person meets those eligibility requirements:

(a) a month during which a borrowers payment obligations were suspended under the payment deferral eligibility criteria since the borrower last was a qualifying student is considered to be a month during which the person received repayment assistance; and

(b) a month during which the borrowers payment obligations were suspended under the payment deferral eligibility criteria before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance.

30/12 s1

Transitional permanent disability

10.12 (1) This section applies to a borrower who has a permanent disability and to whom section 10.11 does not apply and who was granted repayment assistance on the borrower's federal student loan between August 1, 2009 and July 31, 2011.

(2) On August 1, 2011 a person described in subsection (1), whether or not they have submitted an application as required under paragraph 10.4(1)(b), is eligible for repayment assistance where the person meets the eligibility requirements under sections 10.4 and 10.5 and subject to the following rules that apply for purposes of determining whether the person meets those eligibility requirements:

(a) a month during which a borrowers payment obligations were suspended on the borrower's federal student loan under the repayment assistance eligibility criteria since the borrower last was a qualifying student is considered to be a month during which the person received repayment assistance under stage 2; and

(b) a month during which the borrowers payment obligations were suspended on the borrower's federal student loan under the repayment assistance eligibility criteria before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance.

30/12 s1

Deferred bursary

11. Where a borrower qualified for a deferred grant under section 9 of the Student Allowances Regulations that grant shall not be available to that borrower after July 31, 2004 .

105/03 s11

Loan forgiveness due to permanent disability or death

12 (1) In this section, "permanent disability" means a functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in studies at a post-secondary school level or the labour force and is expected to remain with the person for the person's expected life.

(2) For the period June 29, 2005 to July 31, 2009 where a borrower

(a) becomes permanently disabled; or

(b) dies

that borrower or borrower's executor or administrator may apply to the minister to have the borrower's student loan forgiven before full repayment of the student loan.

(3) The minister may, where the minister considers it to be appropriate and upon the advice of the division, forgive the repayment of a student loan by a borrower referred to in subsection (2).

(4) Notwithstanding subsection (2), where the minister becomes aware that a borrower has died, the minister may forgive the student loan of that borrower before full repayment of that loan whether or not an application has been made by the borrowers executor or administrator under subsection (2).

(5) A decision made by the minister under this section is not eligible for review or appeal.

(6) The minister may, for the purpose of making a determination under this section require the expertise and opinion of a medical practitioner to review documentation submitted with respect to an application and to determine the nature and extent of the applicants disability.

(7) Where it is determined by Canada s Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations that the borrower meets the requirements for permanent disability, that borrower will be granted loan forgiveness under this section.

(8) Where a determination referred to in subsection (7) is not applicable, a determination by the minister that the borrower meets the requirements for permanent disability shall be made on the same basis as if the determination was made under the Canadian Student Financial Assistance Regulations and the Canada Student Loans Regulations and that the borrower will be granted loan forgiveness.

(9) If a student loan is forgiven under this section, the minister shall in a case where the loan is

(a) not owned by the corporation, pay the full amount, principal and interest, outstanding on the loan; and

(b) owned by the corporation, forgive the full amount, principal and interest, outstanding on the loan.

30/12 s2

Loan forgiveness due to severe permanent disability or death

12.01 (1) In this section, "severe permanent disability" means a functional limitation caused by a physical or mental impairment that prevents a borrower from performing the daily activities necessary to participate in studies at a post-secondary school level and in the labour force and is expected to remain with the person for their expected life.

(2) Effective August 1, 2009, where a borrower

(a) becomes severely permanently disabled; or

(b) dies

that borrower or borrower's executor or administrator may apply to the minister to have the borrower's student loan forgiven before full repayment of the student loan.

(3) The minister may, where the minister considers it to be appropriate and upon the advice of the division, forgive the repayment of a student loan by a borrower referred to in subsection (2).

(4) Notwithstanding subsection (2) where the minister becomes aware that a borrower has died, the minister may forgive the student loan of that borrower before full repayment of that loan whether or not an application has been made by the borrower's executor or administrator under subsection (2).

(5) A decision made by the minister under this section is not eligible for review or appeal.

(7) Where it is determined by Canada s Minister of Human Resources and Skills Development under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations that the borrower meets the requirements for severe permanent disability, that borrower will be granted loan forgiveness under this section.

(8) Where a determination referred to in subsection (7) is not applicable, a determination by the minister that the borrower meets the requirements for severe permanent disability shall be made on the same basis as if the determination was made under the Canada Student Financial Assistance Regulations and the Canada Student Loans Regulations and that borrower will be granted loan forgiveness.

(9) A borrower who has a severe permanent disability may have his or her loan forgiven where the borrower meets the following criteria:

(a) the person is a Canadian citizen or is a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada );

(b) the person resides in Canada ;

(d) the person satisfies the minister that by reason of his or her severe permanent disability, the person is unable to repay the student loan and will never be able to do so.

(10) If a student loan is forgiven under this section, the minister shall in a case where the loan is

(a) not owned by the corporation, pay the full amount, principal and interest, outstanding on the loan; and

(b) owned by the corporation, forgive the full amount, principal and interest, outstanding on the loan.

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Debts collected by subrogation or under Act

12.1 (1) Notwithstanding the interest rate applicable to a student loan under the terms of the student loan agreement, from August 1, 2007 to July 31, 2009 the interest rate in effect on any day for a debt owed to the Crown or the corporation as a result of the Crown or the corporation fulfilling the obligations of a borrower under that student loan agreement, shall be

(a) the prime rate on that day yearly; or

(b) after consolidation of a student loan under section 5.8 and where requested by the borrower, the prime rate upon the date that the borrower made the request, plus 2.5% yearly.

(2) Notwithstanding the interest rate applicable to a student loan under the terms of the student loan agreement, after July 31, 2009 the interest rate in effect on any day for a debt owed to the Crown or the corporation as a result of the Crown or the corporation fulfilling the obligations of a borrower under that student loan agreement, shall be 0%.

(3) Notwithstanding paragraph 2(g.1), in subsection (1), "prime rate" shall be the prime rate established under the student loan agreement relating to the student loan.

(4) Subsections (1) and (2) shall not apply to debts owed to the Crown or the corporation as a result of a judgment of the court.

67/09 s8

Commencement

13. These regulations shall be considered to have come into force on August 1, 2002 .

105/03 s13

Schedule - [Rep. by 30/12 s4]

30/12 s4