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Canada Student Financial Assistance Act

Version of section 11 from 2002-12-31 to 2009-07-31:

Marginal note:Permanent disability of borrower

  •  (1) All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(j) terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided to the Minister by or on behalf of the borrower, that the borrower, by reason of the borrower’s permanent disability, is or will be unable to repay the student loan without exceptional hardship, taking into account the borrower’s family income, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

  • Marginal note:Time of disability

    (2) For the purposes of subsection (1), the permanent disability must occur

    • (a) in the case of a full-time student, before the first day of the seventh month after the month in which the borrower ceases to be a full-time student; and

    • (b) in the case of a part-time student, before the day on which the lender and the borrower enter into the student loan agreement.

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