Canada Student Loans Regulations (SOR/93-392)

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

Repayment Assistance Plan

16.6 Sections 19 to 26 of the Canada Student Financial Assistance Regulations apply to borrowers and lenders.

Loan Forgiveness for Family Physicians, Nurses and Nurse Practitioners

Application

17 Sections 18 and 19 apply to a borrower who does not have any outstanding student loans under the Canada Student Financial Assistance Act and who began to work in an under-served rural or remote community on or after July 1, 2011 as a family physician, nurse or nurse practitioner.

Amount and Duration of Forgiveness

• 18 (1) For the purposes of section 11.1 of the Act, the Minister may, for a year, forgive the lesser of

  • (a) the outstanding principal of the borrower’s guaranteed student loan, and

  • (b) $8,000, in the case of a family physician or $4,000, in the case of a nurse or nurse practitioner, minus any amount that was forgiven for that year under section 9.2 of the Canada Student Financial Assistance Act.

• (2) The maximum number of years in respect of which an amount may be forgiven is five minus the number of years in respect of which the amount referred to in paragraph 28(1)(b) of the Canada Student Financial Assistance Regulations has been forgiven.

Conditions and Effective Date

• 19 (1) To qualify for forgiveness for a year, the borrower must

  • (a) have worked in an under-served rural or remote community as a family physician, nurse or nurse practitioner during the year; and

  • (b) apply to the Minister in the prescribed form no later than 90 days after the end of that year.

• (2) The loan forgiveness takes effect on the day following the end of the year.

20 [Repealed, SOR/2009-212, s. 13]

21 [Repealed, SOR/2009-212, s. 13]

21.1 [Repealed, SOR/2009-212, s. 13]

21.2 [Repealed, SOR/2009-212, s. 13]

Misrepresentation

22 Where an appropriate authority or a lender has reason to believe that an application for a guaranteed student loan or for a certificate of eligibility or other document in respect of a guaranteed student loan contains a false statement or misrepresentation, the appropriate authority or lender shall forthwith report to the Minister any information in support of its belief.

Transfer or Assignment

• 23 (1) In this section and section 23.1,

  assignee lender

  assignee lender means a lender to which a borrower's outstanding guaranteed student loan agreements are assigned in accordance with this section; (prêteur cessionnaire)

  assignor lender

  assignor lender means a lender that assigns a borrower's outstanding guaranteed student loan agreements in accordance with this section. (prêteur cédant)

• (2) Subject to section 23.1, a borrower may request the assignment of all of the borrower's outstanding guaranteed student loan agreements if the following conditions are met:

  • (a) the borrower completes the prescribed form to request an assignment of guaranteed student loan agreements;

  • (b) the borrower submits the completed form to the assignor lender; and

  • (c) the assignee lender accepts the agreements to be assigned.

• (3) Where subsection (2) is complied with, the assignor lender shall sign the assignment agreement and forthwith send to the assignee lender the borrower's guaranteed student loan agreements and all other documentation in respect of those agreements.

• (4) Subject to subsection 23.1(3), on receipt of the agreements and other documentation referred to in subsection (3) and on verification that subsection 23.1(1) has been complied with, the assignee lender shall pay to the assignor lender an amount equal to the aggregate of the outstanding balance of the principal of the guaranteed student loans as of the day of the payment and any unpaid interest accrued on those loans to that day.

• (5) An assignment made in accordance with this section shall take effect on the day before the day of the payment referred to in subsection (4).

• (6) If the assignor lender cannot produce all or part of a document required by subsection (3) to be sent to the assignee lender, the assignor lender shall complete a summary of the disbursements that have been made under the borrower's guaranteed student loan agreements and shall send the summary to the assignee lender.

• (7) The summary must be completed in prescribed form and must include a statement of accounts.

• (8) The assignee lender shall ask the borrower to acknowledge the total value of the borrower's outstanding loan liability by signing the summary.

• (9) After the summary has been signed by the borrower, the summary shall, for the purposes of these Regulations, be treated as if it were the missing document or the missing part of the document.

• 23.1 (1) No assignment of guaranteed student loan agreements shall be made unless the borrower has

  • (a) complied with paragraphs 3(1)(d) and (e), if applicable to the borrower; or

  • (b) paid to the assignor lender all instalments required from the borrower in accordance with the borrower's guaranteed student loan agreements to the date of the request to assign, where none of the provisions referred to in paragraph (a) apply to the borrower.

• (2) Where a borrower has both outstanding guaranteed student loan agreements for which the Minister has not paid a claim for loss and outstanding risk-shared loan agreements, those agreements must be held by the same lender.

• (3) A lender that is not a lender under the Canada Student Financial Assistance Act may refuse to accept an assignment of a borrower's guaranteed loan agreements.

23.2 [Repealed, SOR/96-369, s. 24]

• 23.3 (1) For the purposes of this section,

  transferee branch

  transferee branch means a branch of the lender that holds a borrower's guaranteed student loan agreements that agrees to accept the borrower's outstanding guaranteed student loan agreements that are transferred in accordance with this section; (destinataire du transfert)

  transferor branch

  transferor branch means a branch of the lender that transfers a borrower's outstanding guaranteed student loan agreements in accordance with this section. (auteur du transfert)

• (2) A borrower may request the transfer of all of that borrower's outstanding guaranteed student loan agreements by

  • (a) completing the prescribed form to request a transfer of guaranteed student loan agreements; and

  • (b) submitting the completed form to the transferor branch.

• (3) Subject to subsection (5), if subsection (2) is complied with, the transferor branch shall without delay send to the transferee branch the signed originals of the borrower's guaranteed student loan agreements together with all other documentation in respect of those agreements.

• (4) The lender shall send to the borrower notice of completion of the transfer.

• (5) No transfer shall be made pursuant to this section unless the borrower has

  • (a) complied with paragraphs 3(1)(d) and (e), if applicable to the borrower; or

  • (b) paid to the transferor branch all instalments required from the borrower in accordance with the borrower's guaranteed student loan agreements to the date of the request to transfer, where none of the provisions referred to in paragraph (a) apply to the borrower.

23.4 A branch of a lender shall not, on its own initiative, transfer a borrower's outstanding guaranteed student loan agreements unless written notice of the transfer has been provided to the borrower.

Payment on Death or Disappearance

• 24 (1) Where the lender is entitled to payment pursuant to section 12 of the Act, the lender shall provide to the Minister, as the case may be,

  • (a) evidence of the death of the borrower; or

  • (b) evidence of the circumstances under which the borrower disappeared.

• (2) For the purposes of subsection 12(1) of the Act, the amount that the Minister shall pay to a lender in respect of a guaranteed student loan shall be the amount of the outstanding balance of principal and accrued interest payable by the borrower on the day of the borrower's death.

• (3) For the purposes of subsections 12(2) and (3) of the Act, the amount that the Minister shall pay to a lender in respect of a guaranteed student loan on any day after a borrower’s death or disappearance that the Minister may fix shall be equal to the amount of the outstanding balance of principal and accrued interest payable by the borrower on that day.

• (4) Where the rights of a lender against a borrower are terminated pursuant to section 12 of the Act, any security taken by the lender from the borrower with respect to the guaranteed student loan shall be transferred to the estate of the borrower.

Payment on Severe Permanent Disability

25 For the purposes of subsection 13(1) of the Act, severe permanent disability means any impairment, including a physical, mental, intellectual, cognitive, learning, communication or sensory impairment — or a functional limitation — that prevents a person from performing the daily activities necessary to participate in the labour force in a manner that is substantially gainful, as defined in section 68.1 of the Canada Pension Plan Regulations, and is expected to remain with the person for their expected life. 

26 For the purposes of subsection 13(1) of the Act, the prescribed information is

• (a) a statement signed by a responsible officer of a lender to which the borrower is indebted under the guaranteed student loan, that certifies the amount of principal outstanding on the loan at the time the statement is made, the rate of interest payable on the loan and the date from which such interest is accruing on the loan;

• (b) a statement signed by a qualified medical practitioner that the borrower suffers from a severe permanent disability; and

• (c) a statement signed by or on behalf of the borrower setting out the borrower’s income.

27 If, pursuant to subsection 13(1) of the Act, the Minister is satisfied that a borrower, by reason of a severe permanent disability, is or will never be able to repay a guaranteed student loan, the Minister shall notify

• (a) the borrower; and

• (b) any lender whose rights against the borrower terminate pursuant to that subsection.

Claim for Loss

• 28 (1) A claim by a lender against the Minister in respect of the amount of any loss sustained as a result of a guaranteed student loan shall be made

  • (a) where the rights of a lender against a borrower are terminated pursuant to section 12 of the Act, as soon as evidence of the death or disappearance of the borrower is obtained by the lender;

  • (b) where the rights of the lender against a borrower are terminated pursuant to section 13 of the Act, forthwith on receipt of a notice issued to the lender under paragraph 27(b);

  • (c) subject to subsections (2) and (3), if the borrower is in default in the payment of an instalment, fails to enter into a consolidated guaranteed student loan agreement as required by subsection 7(1) or (2) or fails to comply with subsection 24(3) of the Canada Student Financial Assistance Regulations, within the period beginning on the day that is three months after the day on which the default or failure began and ending 180 days after the day on which the default or failure began; and

  • (d) where the borrower makes a consumer proposal, files an assignment for the benefit of creditors or otherwise becomes subject to the Bankruptcy and Insolvency Act or any regulations made thereunder or any provincial law relating to the orderly payment of debts, within the period beginning on the day on which the consumer proposal is filed or the day on which the borrower files the assignment or otherwise becomes subject to such law, whichever is earliest, and ending 180 days after that day.

• (2) A lender may make a claim for loss after the period referred to in paragraph (1)(c) but, where it does so, the Minister shall not pay any uncollected earned interest that accrues after that period unless, before the expiration of that period, the lender has requested from the Minister and the Minister has authorized an extension of the time during which the lender is permitted to make a claim for loss.

• (3) The maximum extension of a period in respect of which the Minister may make an authorization at one time pursuant to subsection (2) is 180 days.

• (4) The amount of loss sustained by a lender as a result of a guaranteed student loan shall be determined by calculating the aggregate of

  • (a) the unpaid balance of the principal amount of the loan,

  • (b) the uncollected earned interest on the loan as of

    • (i) the day of the death of the borrower, where the rights of the lender against the borrower are terminated under subsection 12(1) of the Act,

    • (ii) such day after the death or disappearance of the borrower as the Minister may fix pursuant to subsection 12(2) of the Act, where the rights of the lender against the borrower are terminated under that subsection,

    • (iii) the day that is 20 days after the day on which a notice referred to in section 27 is sent to the lender, where the rights of the lender against the borrower are terminated under section 13 of the Act,

    • (iv) the day that is 30 days after the beginning of the period referred to in paragraph (1)(d), in the case of a claim made as a result of the circumstances referred to in that paragraph, or

    • (v) the day that is

      • (A) where a lender makes a claim for loss after the period referred to in paragraph (1)(c), 180 days after the day on which the borrower is in default in the payment of an instalment or fails to enter into a consolidated guaranteed student loan agreement, or is the day that is the last day of the extension authorized pursuant to subsection (2), and

      • (B) where a lender makes a claim for loss before the end of the period referred to in paragraph (1)(c), the day on which payment is approved by the Minister,

  • (c) any uncollected and assessed legal fees and disbursements actually incurred by the lender in relation to litigation concerning the collection or protection of the interests of the Minister, in respect of the loan, but not including legal fees and disbursements incurred for the purposes of obtaining a rectification of a guaranteed student loan agreement, and

  • (d) other reasonable disbursements actually incurred by the lender in collecting or endeavouring to collect the outstanding loan or in protecting the interests of the Minister.

  • (e) [Repealed, SOR/95-331, s. 14]

• (5) A claim for loss made in accordance with subsection (1) or 28.1(1) must be substantiated by all of the original documentation held by the lender in respect of the loan, including calculations or recalculations requested by the Minister in accordance with subsection 28.1(2), if any. If the claim for loss is not substantiated in that way, the amount calculated under subsection (4) or subsection 28.1(2) may be reduced by an amount equal to the interest accruing on the loan during the period

  • (a) where the Minister makes a request to the lender for calculations or recalculations in accordance with subsection 28.1(2), beginning on the date of that request and ending on the day on which the Minister receives those calculations or recalculations; and

  • (b) in any other case, beginning on the day on which the claim for loss was received by the Minister and ending on the day on which the Minister receives the required documents.