Canada Student Financial Assistance Act (S.C. 1994, c. 28)

Marginal note:Payment deferred for full-time students

• 8 (1) Subject to the regulations, no amount on account of principal or interest in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) that is made to a full-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a full-time student.

• Marginal note:Payment deferred for part-time students

  (2) Subject to the regulations, no amount on account of principal or interest in respect of a student loan that is made to a part-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a student, whether a part-time or full-time student.

Marginal note:Agreement to pay interest

• 9 (1) The Minister may enter into an agreement with a lender respecting the payment of interest, or a province respecting the payment of interest on provincial student loans, by borrowers who are referred to in a regulation that is made under paragraph 15(1)(k.2).

• Marginal note:Payment on behalf of reservist

  (2) If there is no agreement, the Minister may pay the interest on behalf of those borrowers.

Marginal note:Personal information

9.1 Personal information, as defined in section 3 of the Privacy Act, that is under the control of a government institution, as defined in that section, shall, on request, be made available to the Minister for the purposes of a regulation that is made under paragraph 15(1)(k.1), (k.2) or (k.3).

Family Physicians, Nurses and Nurse Practitioners in Under-Served Rural or Remote Communities

Marginal note:Portion of loan forgiven

• 9.2 (1) The Minister may forgive an amount in respect of a student loan to a borrower who begins to work in an under-served rural or remote community as a family physician, nurse or nurse practitioner, if the borrower meets the prescribed conditions.

• Marginal note:Effective date of forgiveness

  (2) The forgiveness takes effect on the prescribed day.

• Marginal note:Agreement

  (3) For the purposes of subsection (1), the Minister may enter into an agreement with a lender for the purchase of a student loan made by the lender.

Period — March 30, 2020 to September 30, 2020

Marginal note:Suspension of interest and payments

9.3 During the period that begins on March 30, 2020 and ends on September 30, 2020,

• (a) no interest is payable by a borrower on a student loan prescribed by regulations made under paragraph 15(1)(j); and

• (b) no amount on account of principal and interest in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) is required to be paid by the borrower.

Period — April 1, 2021 to March 31, 2023

Marginal note:Suspension of interest

9.4 During the period that begins on April 1, 2021 and ends on March 31, 2023, no interest is payable by a borrower on a student loan.

Death or Disability of Borrower

Marginal note:Death of borrower

• 10 (1) All obligations of a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the borrower dies, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

• Marginal note:Death of borrower before this subsection in force

  (2) If a borrower dies before this subsection comes into force, then all obligations of that borrower in respect of such a student loan terminate on the day on which this subsection comes into force.

Marginal note:Death of borrower — section 6.1 loan

• 10.1 (1) All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the borrower dies.

• Marginal note:Death of borrower before this section in force

  (2) If a borrower dies before this section comes into force, then all obligations of that borrower in respect of such a loan terminate on the day on which this section comes into force.

Marginal note:Severe permanent disability

11 All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the student loan and will never be able to repay it, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

Marginal note:Severe permanent disability — section 6.1 loan

11.1 All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the loan and will never be able to repay it.

Certificates of Eligibility

Marginal note:Issue of certificates

• 12 (1) Subject to the regulations, the appropriate authority for a province designated under paragraph 3(1)(a) may, on application of a qualifying student, issue or cause to be issued a certificate of eligibility in the prescribed form, for a period of studies at a designated educational institution in or outside Canada, to or in respect of the student if that authority considers the student

  • (a) to have attained a satisfactory scholastic standard; and

  • (b) to be in need of financial assistance.

• Marginal note:Amount needed

  (2) Where the appropriate authority considers that a qualifying student meets the criteria set out in paragraphs (1)(a) and (b), it shall determine the amount the student needs, taking into consideration

  • (a) the program of studies in which the qualifying student is registered;

  • (b) the cost of books and other course-related supplies; and

  • (c) whether the qualifying student is enrolled in an institution outside the province of residence of the student.

• Marginal note:Contents

  (3) A certificate of eligibility must set out the social insurance number of the qualifying student and the maximum amount of the financial assistance that may be given to the student.

• Marginal note:Maximum amount for certain full-time students

  (4) In the case of a full-time student, the maximum amount, for a province, of a student loan prescribed by regulations made under paragraph 15(1)(j), and in respect of which a certificate of eligibility is issued, is the lesser of

  • (a) the amount prescribed for that province, and

  • (b) the product obtained by multiplying

    • (i) the amount determined under subsection (2) for the student

    by

    • (ii) the percentage prescribed for that province.

• Marginal note:Escalator

  (5) The amount referred to in paragraph (4)(a) may be adjusted annually by an escalator determined in accordance with the prescribed formula.

• Marginal note:Maximum amount for part-time students

  (6) In the case of a part-time student, the maximum amount, for a province, of a student loan in respect of which a certificate of eligibility is issued is the prescribed amount.

• Marginal note:Maximum amount

  (7) The maximum amount of financial assistance in respect of which a certificate of eligibility is issued, other than a loan to which subsection (4) or (6) applies, is the prescribed amount, or the amount calculated in accordance with the prescribed formulas.

• Marginal note:Idem

  (8) The maximum amount of financial assistance in respect of which a certificate of eligibility is not required is the prescribed amount, or the amount calculated in accordance with the prescribed formulas.

Maximum Amount of Outstanding Student Loans

Marginal note:Maximum amount

13 The aggregate amount of student loans made under this Act that are outstanding may not exceed the prescribed amount.

Alternative Payments

Marginal note:Alternative payment

• 14 (1) Where the government of a province has, at least twelve months before the beginning of a loan year, notified the Minister in writing that a provincial student financial assistance plan will be in operation in that province in that loan year and that it does not wish, or no longer wishes, to participate in the plan established by this Act and the regulations, the Minister shall pay to the province, not later than six months after the end of that loan year and each following loan year in which it does not participate in the plan, an alternative amount for the loan year, calculated as provided in this section.

• Marginal note:Non-participating provinces

  (2) The government of a province that, on the coming into force of this section, is not participating in the student loan plan established by the Canada Student Loans Act is deemed to have notified the Minister as described in subsection (1) in respect of the loan year in which this section comes into force.

• Marginal note:Opting in, or opting back in

  (3) The government of a province that is not participating in the plan established by this Act and the regulations but later wishes to participate may do so by so notifying the Minister in writing at least six months, or such shorter period as the Minister may fix, before the beginning of the loan year in which it wishes to participate.

• Marginal note:Calculation of alternative amount

  (4) The alternative amount for a province for a loan year (in this subsection referred to as the “current loan year”) is the amount, as determined by the Minister after consultation with the Chief Statistician of Canada, obtained by

  • (a) multiplying

    • (i) the net per capita costs for participating provinces for the loan year beginning on August 1, 1990,

    by

    • (ii) the product obtained by multiplying the estimated number of persons in that province who, on the first day of the current loan year, have attained eighteen years of age and have not attained twenty-five years of age by the escalator determined under subsection (5), for each loan year in the period beginning on August 1, 1991 and ending on July 31 of the current loan year; and

  • (b) subtracting from the product obtained under paragraph (a) the net costs for that province for the current loan year.

• Marginal note:Escalator

  (5) For the purposes of subparagraph (4)(a)(ii),

  • (a) subject to paragraph (b), the escalator for a loan year is a fraction of which

    • (i) the numerator is the net per capita costs for participating provinces for that loan year, and

    • (ii) the denominator is the net per capita costs for participating provinces for the previous loan year; and

  • (b) the escalator for the first loan year in which a provincial student financial assistance plan will be in operation in the province, as stated in the notice under subsection (1), is a fraction of which

    • (i) the numerator is the net per capita costs for participating provinces for that first loan year, and

    • (ii) the denominator is the net per capita costs for the previous loan year for provinces that are participating provinces in that first loan year.

• Marginal note:Definitions

  (6) In this section,

  net costs

  net costs, for a province for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A

  is the estimated aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province, and

  • (b) to persons pursuant to regulations made under paragraph 15(1)(p),

  excluding

  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

  B

  is the estimated aggregate of

  • (a) the amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

  • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

  • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

  C

  is the estimated aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

  D

  is the estimated aggregate of

  • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

  • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a). (coût net)

  net per capita costs

  net per capita costs, for participating provinces for a loan year, means a fraction of which

  • (a) the numerator is the amount by which the total program net costs for that loan year exceed the aggregate of the net costs for that loan year for all provinces that are not participating provinces in that loan year, and

  • (b) the denominator is the estimated number of persons in the participating provinces who, on the first day of the loan year, have attained eighteen years of age and have not attained twenty-five years of age; (coût net par tête)

  total program net costs

  total program net costs, for a loan year, means the amount determined by the formula

  (A + B) - (C + D)

  where

  A

  is the aggregate of all amounts paid by the Minister in that loan year

  • (a) to lenders, service providers or financial institutions under this Act, the regulations or an agreement entered into under section 5, 6.2 or 6.3, to lenders under the Canada Student Loans Act or the regulations made under that Act, and to collection agencies, in respect of student loans or guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces, and

  • (b) to persons pursuant to regulations made under paragraph 15(1)(p),

  excluding

  • (c) any amounts paid pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (d) any provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii),

  B

  is the aggregate of

  • (a) the estimated amount of interest calculated in that loan year in respect of outstanding loans referred to in the description of A made under an agreement entered into under section 6.1, at the rate of interest fixed or determined in accordance with subsection 20(2),

  • (b) the amount by which the outstanding principal in respect of all loans referred to in paragraph (a) has been reduced in that loan year in accordance with the regulations,

  • (c) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that loan year as a result of the death or disability of the borrower, and

  • (d) the amount of the outstanding principal and interest in respect of all loans referred to in paragraph (a) for which the Minister has commenced collection action in that loan year, minus the amount of the outstanding principal and interest in respect of loans referred to in that paragraph for which the Minister has ended collection action in that loan year due to the occurrence of an event set out in the regulations that resulted in the removal of restrictions to financial assistance,

  C

  is the aggregate of all amounts received by or on behalf of Her Majesty in right of Canada in that loan year, including any amount received pursuant to the Financial Administration Act, in respect of loans referred to in the description of A, other than loans made under an agreement entered into under section 6.1, excluding

  • (a) any amounts received pursuant to paragraph 5(e) or pursuant to regulations made under paragraph 15(1)(o) that provide for the repayment of student loans by borrowers on an income-contingent basis, and

  • (b) any amounts received by or on behalf of Her Majesty in right of Canada in respect of a provincial share paid pursuant to an agreement or arrangement made under subparagraph 18(b)(ii), and

  D

  is the aggregate of

  • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that loan year in respect of loans referred to in the description of A that were made under an agreement entered into under section 6.1, and

  • (b) any amounts received in that loan year pursuant to collection action taken by the Minister in respect of loans referred to in paragraph (a). (coût net total du programme)

• Marginal note:Exception

  (7) The following amounts shall be included in the calculations described in the definitions net costs and total program net costs in subsection (6) only if the government of the province satisfies the Minister, by written notice received by the Minister before the beginning of the loan year in question, that, in relation to the matter in question, the provincial student financial assistance plan has substantially the same effect as the plan established by this Act and the regulations:

  • (a) amounts that are determined as a result of the application of subparagraph 5(a)(viii), section 7, as that section read from time to time before April 1, 2023, or section 10 or 11;

  • (b) amounts in relation to programs established by regulations made under paragraph 15(1)(l), (m) or (p); and

  • (c) in respect of loans made under an agreement entered into under section 6.1, amounts in relation to a termination of a borrower’s obligations under section 10.1 or 11.1 or to a reduction in the outstanding principal resulting from the operation of regulations made under paragraph 15(1)(o), other than regulations that provide for the repayment of student loans by borrowers on an income-contingent basis.

  • (d) [Repealed, 2022, c. 19, s. 159]

• Marginal note:Negative amounts

  (8) If the amount determined by the formula “(A + B) - (C + D)” in subsection (6) would, but for this subsection, be a negative amount, it is deemed to be zero.