Canada Student Loans Regulations (SOR/93-392)

Removal of Restrictions

• 10 (1) A borrower who has been the subject of a measure taken in accordance with subsection 9(3), (4) or (5) is entitled to an interest-free period, repayment assistance under section 19 or 20 of the Canada Student Financial Assistance Regulations or the loan forgiveness referred to in subsection 11.1(1) of the Act if, on or after the earlier of the day referred to in paragraph 9(1)(a), (b) or (i) and the day on which the measure was taken,

  • (a) the borrower has fulfilled the requirements of section 16 of the Canada Student Financial Assistance Regulations in respect of the borrower's student loans, if any;

  • (b) an event referred to in paragraph 9(1)(h) or subsection 9(9) has not occurred in respect of the borrower’s guaranteed student loans;

  • (c) a judgment has not been obtained against the borrower in respect of those loans;

  • (d) the borrower has, in respect of guaranteed student loan agreements, fulfilled the terms of a repayment arrangement entered into with the lender that is no more onerous to the borrower than six consecutive payments subsequent to a day that are made in accordance with those agreements, and has paid the interest accrued to that day; and

  • (e) the borrower has, in respect of guaranteed student loan agreements, fulfilled the terms of a repayment arrangement entered into with the Minister that is no more onerous to the borrower than six consecutive payments subsequent to a day that are made in accordance with those agreements, and

    • (i) has paid the interest accrued to that day, or

    • (ii) has directed, for the first time under this paragraph, paragraph 16(1)(d) of the Canada Student Financial Assistance Regulations or paragraph 7(1)(b) of the Apprentice Loans Regulations, the addition of the unpaid accrued interest to that day to the outstanding principal.

• (2) Where a borrower is subject to a measure taken in accordance with subsection 9(4) due to the occurrence of an event referred to in any of paragraphs 9(1)(c) to (g), the borrower has the rights referred to in subsection (1) if

  • (a) the borrower has fulfilled the requirements of section 16 of the Canada Student Financial Assistance Regulations in respect of the borrower's student loans, if any;

  • (b) an event referred to in paragraph 9(1)(h) or subsection 9(9) has not occurred in respect of the borrower’s guaranteed student loans;

  • (c) the borrower has complied with paragraph (1)(d), in the case where the consumer proposal has been annulled or deemed annulled or the provincial law relating to the orderly payment of debts no longer applies to the borrower for a reason other than that the borrower's full compliance with that law and an event referred to in paragraph 9(1)(c), (d) or (f) has not occurred;

  • (d) in any case other than that referred to in paragraph (c), the borrower has not been released of the borrower's student loans and guaranteed student loans; and

  • (e) a judgment has not been obtained against the borrower in respect of those loans.

• (3) [Repealed, SOR/2009-212, s. 10]

Payment of Principal and Interest

11 The principal amount of a guaranteed student loan made to the borrower as a full-time student, and any interest, commence to be payable by the borrower on the last day of the seventh month after the day on which the borrower most recently ceased to be a full-time student under section 4.1.

Administration of Guaranteed Student Loans

• 12 (1) A borrower shall attend any meeting called to discuss the borrower's guaranteed student loan, where requested to do so by the lender or Her Majesty or her agents.

• (2) A borrower shall authorize the lender to exchange with consumer credit grantors, credit bureaus and credit reporting agencies information in relation to all guaranteed student loans of the borrower, in accordance with any laws applicable to unsecured loans to which the Act does not apply and which are in effect in a province in which the guaranteed student loan agreement is made, or in a province in which a lender to which the loan agreement is assigned is situated.

• (3) [Repealed, SOR/2009-143, s. 20]

Applicable Interest Rates

Interest Rates Applicable to Lenders that are not Lenders Under the Canada Student Financial Assistance Act

12.1 Sections 13 to 16 apply in respect of guaranteed student loans that are held by a lender that is not also a lender as defined under the Canada Student Financial Assistance Act.

• 13 (1) For the purposes of this section and sections 14 and 16, the Class "A" rate of interest in effect on any day is the aggregate of one per cent and the rate fixed by the Minister for each loan year by calculating, immediately preceding the commencement of that loan year, the simple arithmetic mean of the mid-market yields at the close of business on Wednesday in respect of the six months immediately preceding the commencement of that loan year on all Government of Canada bonds payable in Canadian currency and due to mature in one to five years, as computed and provided by the Bank of Canada, rounded to the nearest one-eighth of one per cent.

• (2) For the purposes of section 15, the Class "B" rate of interest in effect on any day is the aggregate of one per cent and the rate fixed by the Minister for each loan year by calculating, immediately preceding the commencement of that loan year, the simple arithmetic mean of the mid-market yields at the close of business on Wednesday in respect of the six months immediately preceding the commencement of that loan year on all Government of Canada bonds payable in Canadian currency and due to mature in five to ten years as computed and provided by the Bank of Canada, rounded to the nearest one-eighth of one per cent.

• (3) The Minister shall forthwith notify the lenders, in such manner as the Minister sees fit, of the Class "A" and "B" rates of interest for a loan year as determined pursuant to subsections (1) and (2) and shall publish those rates of interest in the Canada Gazette.

• (4) Subject to subsection 14(4), the annual rate of interest applicable in any period for which the borrower or the Minister is liable to pay interest to a lender on a guaranteed student loan shall be calculated using simple interest.

• (5) and (6) [Repealed, SOR/95-331, s. 7]

• 14 (1) Whether or not the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), the annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subsection 4(2) or (4) of the Act applies is the Class "A" rate of interest in effect on that day, and is applicable for the period

  • (a) commencing on the first day of the month after the month in which the borrower ceased to be a full-time student, and

  • (b) ending on the earlier of

    • (i) the last day of the sixth month after the month in which the borrower ceased to be a full-time student, and

    • (ii) the day before the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2).

• (2) The annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subparagraph (1)(b)(ii) applies, is the rate of interest determined in accordance with subsection 15(1), and is applicable for the period

  • (a) commencing on the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), and

  • (b) ending on the last day of the sixth month after the month in which the borrower ceased to be a full-time student.

• (3) Subject to subsection (4), the aggregate amount of the interest accrued pursuant to subsections (1) and (2) shall become payable on the last day of the seventh month after the month in which the borrower ceased to be a full-time student.

• (4) Unless the borrower agrees to pay the aggregate amount of the interest accrued pursuant to subsections (1) and (2) on or before the day specified in subsection (3) together with the borrower's first instalment referred to in paragraph 8(7)(a), that interest shall be added to the principal amount of the full-time guaranteed loan on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, and thereafter shall be treated as prescribed by subsection 15(1).

• (5) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the rate prescribed by subsections (1) and (2).

• 15 (1) The annual rate of interest payable by a borrower to a lender on all of the borrower's full-time guaranteed loans, including any interest added to the principal amount of all such loans pursuant to subsection 14(4), for the period commencing on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, is the weighted average, rounded to the nearest one-eighth of one per cent, of

  • (a) the rate set out in the former consolidated guaranteed student loan agreement, where a guaranteed student loan agreement has been previously consolidated,

  • (b) such rate per annum as the lender and the borrower agree to on the day the lender and the borrower enter into a consolidated guaranteed student loan agreement, not greater than the Class "B" rate of interest in effect on that day, where an outstanding guaranteed student loan agreement has been entered into and has not been previously consolidated, and

  • (c) subject to paragraph (a), the Class "B" rate of interest in effect on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, where there is an outstanding guaranteed student loan agreement and the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2).

• (2) The annual rate of interest payable by a borrower to a lender on a part-time guaranteed loan, for the period commencing on the day specified in subparagraph 8(3)(b)(i), is such rate per annum as the lender and the borrower agree to, which rate shall not be greater than the Class "B" rate of interest in effect on the day on which the lender and the borrower enter into the part-time guaranteed loan agreement.

• (3) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the maximum rate of interest prescribed by subsection (1) or (2).

16 The annual rate of interest payable by the Minister to a lender pursuant to section 6 of the Act on any day is the Class "A" rate of interest in effect on that day.

Interest Rates Applicable to Lenders under the Canada Student Financial Assistance Act

16.1 Sections 16.2 to 16.5 apply in respect of guaranteed student loans that are held by a lender that is also a lender as defined under the Canada Student Financial Assistance Act.

• 16.2 (1) For the purposes of this section and sections 16.3 to 16.5, the prime rate of interest means the rate of interest expressed as a rate per annum announced by the lender from time to time as the lender's reference rate of interest and used by the lender to determine interest rates charged for Canadian dollar demand commercial loans made by the lender in Canada.

• (2) For the purposes of sections 16.3 and 16.4, the maximum floating rate of interest shall be the prime rate of interest plus 250 basis points.

• (3) For the purposes of section 16.4, the maximum fixed rate of interest is the annual rate of interest set and earmarked by the lender in the ordinary course of business from time to time as the lender's prevailing unsecured consumer loan rate for the same repayment term as that agreed to by the borrower and the lender, not exceeding the prime rate of interest plus 500 basis points.

• 16.3 (1) Whether or not the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), the annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subsection 4(2) or (4) of the Act applies is the maximum floating rate of interest in effect on that day, and is applicable for the period

  • (a) commencing on the first day of the month after the month in which the borrower ceased to be a full-time student, and

  • (b) ending on the earlier of

    • (i) the last day of the sixth month after the month in which the borrower ceased to be a full-time student, and

    • (ii) the day before the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2).

• (2) The annual rate of interest payable by a borrower to a lender on any day on a full-time guaranteed loan to which subparagraph (1)(b)(ii) applies is the rate of interest determined in accordance with subsection 16.4(1), and is applicable for the period

  • (a) commencing on the day on which the borrower enters into a consolidated guaranteed student loan agreement pursuant to subsection 7(1) or (2), and

  • (b) ending on the last day of the sixth month after the month in which the borrower ceased to be a full-time student.

• (3) Subject to subsection (4), the aggregate amount of the interest accrued pursuant to subsections (1) and (2) shall become payable on the last day of the seventh month after the month in which the borrower ceased to be a full-time student.

• (4) Unless the borrower agrees to pay the full amount of the interest accrued pursuant to subsection (1) together with the borrower's first instalment referred to in paragraph 8(7)(a), that interest shall be added to the principal amount of the full-time guaranteed loan

  • (a) where the borrower enters into a consolidated guaranteed student loan agreement within the period referred to in subsection 7(1) or (2), on the day on which that agreement is entered into, and thereafter shall be treated as prescribed by section 16.4; or

  • (b) where the borrower fails to enter into a consolidated guaranteed student loan agreement within the period referred to in subsection 7(1) or (2), on the day after the end of that period, and thereafter shall be treated as prescribed by section 16.4.

• (5) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the rate prescribed by subsection (1) or (2).

• 16.4 (1) The annual rate of interest payable by a borrower to a lender on all of the borrower's full-time guaranteed loans, including any interest added to the principal amount of all such loans pursuant to subsection 16.3(4), for the period beginning on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, is

  • (a) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2), not greater than the maximum floating rate of interest in effect on that day, where the borrower chooses a floating rate of interest upon consolidation;

  • (b) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2), not greater than the maximum fixed rate of interest in effect on that day, where the borrower chooses a fixed rate of interest upon consolidation; or

  • (c) the maximum floating rate of interest in effect on the first day of the seventh month after the month in which the borrower ceased to be a full-time student, where the borrower has an outstanding guaranteed student loan agreement and the borrower fails to enter into a consolidated guaranteed student loan agreement in accordance with subsection 7(1) or (2).

• (1.1) Notwithstanding subsections (1) and 16.3(2), where a borrower enters into a consolidated guaranteed student loan agreement after the period referred to in subsection 7(1) or (2) or where the borrower and lender agree to revise the repayment provisions of a consolidated guaranteed student loan agreement entered into pursuant to subsection 7(1) or (2), the annual rate of interest payable by the borrower to a lender on all of the borrower's full-time guaranteed loans is

  • (a) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement or a revised consolidated guaranteed student loan agreement, not greater than the maximum floating rate of interest in effect on that day, where the borrower chooses a floating rate of interest; or

  • (b) such rate per annum as the lender and the borrower agree to on the day on which the lender and the borrower enter into a consolidated guaranteed student loan agreement or a revised consolidated guaranteed student loan agreement, not greater than the maximum fixed rate of interest in effect on that day, where the borrower chooses a fixed rate of interest.

• (2) The annual rate of interest payable by a borrower to a lender on a part-time guaranteed loan, for the period commencing on the day specified in subparagraph 8(3)(b)(i), is such rate per annum as the lender and the borrower agree to, not greater than the maximum floating rate of interest.

• (3) Nothing in this section shall be construed as preventing the lender and the borrower from agreeing to an annual rate of interest that is lower than the rate prescribed by subsection (1), (1.1) or (2).