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Ministry of Training, Colleges and Universities Act
Loi sur le ministère de la Formation et des Collèges et Universités

ONTARIO REGULATION 268/01

ONTARIO STUDENT LOANS MADE AFTER JULY 31, 2001

Historical version for the period August 1, 2010 to September 2, 2010.

Last amendment: O. Reg. 123/10.

This Regulation is made in English only.

CONTENTS

Application and Interpretation

1.

Application

2.

Definitions

The Student Loan Process

3.

Obtaining and repaying a student loan

3.1

Period of loan

Applying for a Certificate of Loan Approval

4.

Applying for a certificate of loan approval

5.

Prerequisites for certificate

6.

Residency requirement

7.

Approved program of study

8.

Approved institutions

9.

Minimum required course load

Certificate of Loan Approval

10.

Issuance of certificate and criteria for issuance

11.

Education costs of an individual

12.

Expected contributors to an individual’s education costs

13.

Financial resources of an individual

14.

Grounds for refusing to issue a certificate

15.

Restrictions on issuance of certificate

15.1

Further restrictions re: bankruptcy

16.

Scope and duration of certificate

17.

Maximum amount of loan approved by a certificate

18.

Replacement certificate

Obtaining a Student Loan

19.

Applying for a student loan

20.

Student loan agreement

21.

Restriction on advances

22.

Duty to give notice of material change in circumstances

22.1

Change of address

Maintaining Status as a Qualifying Student

23.

Qualifying student

24.

Confirmation of enrolment by institution

25.

Confirmation of enrolment by Minister

26.

Effect of status as qualifying student

27.

Ceasing to be a qualifying student

Consolidated Loan Agreement and Repayment Terms

28.

Requirement for a consolidated loan agreement

29.

Arrangement if there is no consolidated loan agreement

30.

Obligation to pay interest

31.

Repayment terms

32.

Amendment to prevent default

Initial Reduction of Principal

33.

Ontario Student Opportunity Grant

34.

Repayment to Minister

Suspension of Payments

35.

Application for relief from obligation to make payments

36.

Eligibility for relief

37.

Decision to grant relief

38.

Effect of granting relief

39.

Criteria for granting extended relief

39.1

Where individual returns to school

40.

Revocation of suspension

Subsequent Reductions in Principal

40.1

Application for reduction

40.2

Ontario debt reduction in repayment program

Medical Loan Forgiveness Program

40.3

Application for medical loan forgiveness

40.4

Termination of loan payment

40.5

Limitation on relief

Default on a Student Loan

41.

What constitutes default

42.

Consequences of default

Restrictions on Future Eligibility for Student Loans and other Benefits under this Regulation

42.1

Minister’s determination

General

43.

Subrogation of the Crown

44.

Payments by lenders to the Minister

45.

Effect of false statements

46.

Officers authorized to issue certificates

47.

Authority of service providers

Application and Interpretation

Application

1. This Regulation applies with respect to student loans made after July 31, 2001. O. Reg. 268/01, s. 1.

Definitions

2. (1) In this Regulation,

“approved institution” means an institution described in section 8;

“approved program of study” means a program of study approved in accordance with subsection 7 (1);

“consolidated loan agreement” means an agreement described in section 28;

“expected contributor” means, in relation to an individual, another individual described in section 12;

“lender” means a financial institution that, under a student loan agreement, makes a student loan to an individual or, if the Minister makes a student loan to an individual, the Minister;

“period of study” means, in relation to a program of study, a period described in subsection 7 (2);

“qualifying student” means a student described in section 23;

“service provider” means a person or entity who has entered into an agreement with the Minister, or an agreement approved by the Minister, to provide services with respect to the disbursement, administration, management or delivery of student loans;

“spouse” means either of two persons who,

(a) are married to each other,

(b) have together in good faith entered into a marriage that is voidable or void,

(c) have lived together in a conjugal relationship outside marriage continuously for a period of not less than three years, or

(d) have lived together in a conjugal relationship outside marriage in a relationship of some permanence, if they are the natural or adoptive parents of a child;

“student loan agreement” means an agreement entered into under section 20. O. Reg. 268/01, s. 2; O. Reg. 168/04, s. 1 (1, 2); O. Reg. 119/07, s. 1.

(2) For the purposes of this Regulation, an individual enters into a recognized arrangement for debt settlement when any of the following events occurs:

1. A proposal made by the individual under Division I of Part III of the Bankruptcy and Insolvency Act (Canada) is approved by a court under that Act.

2. A consumer proposal made by the individual under Division II of Part III of the Bankruptcy and Insolvency Act (Canada) is approved or deemed to be approved by a court under that Act.

3. A consolidation order is made under Part X of the Bankruptcy and Insolvency Act (Canada) in relation to any debts of the individual, including any student loans that the individual may have received under the Act.

4. A document seeking relief has been filed by the individual under a law in a province or territory in Canada outside of Ontario for the orderly payment of debts, including any student loans that the individual may have received under the Act. O. Reg. 168/04, s. 1 (3).

The Student Loan Process

Obtaining and repaying a student loan

3. (1) An individual who wishes to obtain a student loan must obtain a certificate of loan approval from the Minister in accordance with sections 4 to 17, give the certificate to a service provider while the certificate is valid and negotiate the loan in accordance with sections 19 and 20. O. Reg. 268/01, s. 3 (1).

(2) The terms of the student loan are set out in section 20 and in the student loan agreement that the individual enters into. O. Reg. 268/01, s. 3 (2).

(3) While the individual remains a qualifying student, the individual is not required to repay the student loan. O. Reg. 268/01, s. 3 (3).

(4) After the individual ceases to be a qualifying student, he or she is required to enter into an agreement under section 28 to consolidate all of his or her student loans made after July 31, 2001. O. Reg. 268/01, s. 3 (4).

(5) The repayment of the student loan is governed by sections 30 to 40.5 and by the terms of the consolidated loan agreement. O. Reg. 268/01, s. 3 (5); O. Reg. 168/04, s. 2.

Period of loan

3.1 (1) A student loan may be made for no more than one period of study in the approved program of study in which the student is or will be enrolled. O. Reg. 119/07, s. 2.

(2) An individual who wishes to obtain student loans for more than one period of study must follow the application process set out in subsection 3 (1) for each period of study. O. Reg. 119/07, s. 2.

Applying for a Certificate of Loan Approval

Applying for a certificate of loan approval

4. (1) An individual who wishes to obtain a student loan must apply to the Minister for a certificate of loan approval, and the application must specify the period of study for which the loan is needed as well as the approved institution and approved program of study in which the individual intends to enrol. O. Reg. 268/01, s. 4 (1); O. Reg. 119/07, s. 3.

(2) The application must be made on a form approved by the Minister. O. Reg. 268/01, s. 4 (2).

Prerequisites for certificate

5. (1) An individual is eligible to receive a certificate of loan approval only if,

(a) he or she is

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

(ii) in the case of an individual who is applying for a certificate of loan approval in respect of a period of study that begins on or after August 1, 2004, a protected person within the meaning of subsection 95 (2) of the Immigration and Refugee Protection Act (Canada);

(b) he or she meets the residency requirement set out in section 6;

(c) he or she is enrolled in an approved program of study at an approved institution;

(d) he or she is taking at least the minimum required course load for the period of study of the approved program of study; and

(e) at the time of the application for the certificate of loan approval, he or she is not ineligible to receive the certificate as a result of a determination made by the Minister under section 42.1. O. Reg. 168/04, s. 3; O. Reg. 119/07, s. 4 (1).

(2) An individual who is enrolled or intends to enrol in a program of study taught in American Sign Language (ASL) or Quebec Sign Language (QSL) at an approved institution outside Canada is eligible to receive a certificate of loan approval only if he or she is deaf or hard-of-hearing. O. Reg. 119/07, s. 4 (2); O. Reg. 123/10, s. 1.

Residency requirement

6. (1) An individual meets the residency requirements for a certificate of loan approval if, on or before the day the period of study of the approved program of study in which the individual is enrolled begins, either the individual or one of his or her expected contributors,

(a) has resided in Ontario for a period of at least 12 consecutive months; and

(b) has not resided in another province or territory in Canada for a period of at least 12 consecutive months since completing the 12-month period of residency in Ontario required under clause (a). O. Reg. 168/04, s. 4; O. Reg. 119/07, s. 5 (1).

(2) In determining whether an individual or his or her spouse has resided in Ontario or in another province or territory of Canada for 12 consecutive months for the purposes of subsection (1), the time that the individual or spouse spent in full-time studies at a post-secondary institution shall not be included. O. Reg. 168/04, s. 4.

(3) Despite subsection (1), an individual who does not meet the residency requirements described in that subsection shall be deemed to meet the residency requirements for the purposes of issuing a certificate of loan approval if,

(a) neither the individual, nor any of his or her other expected contributors, has resided in any province or territory of Canada other than Ontario for at least 12 consecutive months; and

(b) the individual is or will be attending an approved institution in Ontario on a full-time basis and, as of the day the application for the certificate of loan approval is made, the individual resides in Ontario. O. Reg. 168/04, s. 4.

(4) Subsection (3) applies to an individual only if he or she applies for a certificate of loan approval with respect to a period of study that begins on or after August 1, 2004. O. Reg. 168/04, s. 4; O. Reg. 119/07, s. 5 (2).

Approved program of study

7. (1) The Minister may approve a program of study as a program of study for which students may be eligible to receive a student loan if the program,

(a) is provided at an approved institution;

(b) consists of one or more periods of study of no less than 12 weeks and no more than 52 weeks; and

(c) leads to the granting of a certificate, degree or diploma upon the successful completion of the program. O. Reg. 119/07, s. 6.

(2) For the purposes of clause (1) (b), the period of study of an approved program of study is the period of time that the approved institution considers to be the normal school year for that particular program, as determined by that institution for academic purposes, which may include one or more academic terms. O. Reg. 119/07, s. 6.

(3) The Minister may approve a program of study for deaf or hard of hearing students at an approved institution referred to in paragraph 2.1 of subsection 8 (2) only if,

(a) the program meets the requirements of subsection (1); and

(b) the only or principle language of instruction used in the program is American Sign Language (ASL) or Quebec Sign Language (QSL). O. Reg. 119/07, s. 6; O. Reg. 123/10, s. 2.

(4) The Minister may withdraw his or her approval for a program of study if the program ceases to meet the requirements established under the Act, terms established by the Minister or terms established in any agreement entered into for the purposes of the Minister’s approval. O. Reg. 119/07, s. 6.

Approved institutions

8. (1) The following institutions are approved institutions for the purposes of student loans:

1. Every public university in Ontario, including any post-secondary educational institution that is affiliated or federated with such a university.

2. Every college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002.

3. University of Guelph - Campus d’Alfred.

3.1 University of Guelph - Kemptville Campus.

3.2 University of Guelph - Ridgetown Campus.

4. The Law Society of Upper Canada.

5. The Niagara Parks Commission School of Horticulture. O. Reg. 268/01, s. 8 (1); O. Reg. 168/04, s. 5 (1); O. Reg. 119/07, s. 7 (1).

(2) An institution described in one of the following paragraphs is an approved institution for the purpose of student loans if it is approved by the Minister for that purpose:

1. A public post-secondary institution in Canada that is not described in subsection (1).

2. A private post-secondary educational institution that is authorized under the Post-secondary Education Choice and Excellence Act, 2000 to operate as a university or to offer a program leading to a degree.

2.1 A post-secondary institution outside of Canada at which one or more programs of study that meet the requirements of subsection 7 (3) are provided for deaf or hard-of-hearing students.

3. A private career college registered in Ontario under the Private Career Colleges Act.

4. A private post-secondary institution in Ontario, other than one described in paragraph 2 or 3.

5. A private career college operating in another Canadian jurisdiction that is authorized by that jurisdiction to operate as a private career college or as an analogous type of school. O. Reg. 268/01, s. 8 (2); O. Reg. 168/04, s. 5 (2); O. Reg. 119/07, s. 7 (2, 3).

(3) Revoked: O. Reg. 168/04, s. 5 (3).

Minimum required course load

9. An individual enrolled in an approved program of study at an approved institution is taking the minimum required course load for the purposes of student loans,

(a) if he or she is enrolled in at least 60 per cent of what the institution considers to be a full course load for the period of study in question, in the case of an individual who is not a person with a disability;

(b) if he or she is enrolled in at least 40 per cent of what the institution considers to be a full course load for the period of study in question, in the case of an individual who is a person with a disability. O. Reg. 268/01, s. 9; O. Reg. 119/07, s. 8.

Certificate of Loan Approval

Issuance of certificate and criteria for issuance

10. (1) The Minister may issue a certificate of loan approval to an individual, if the Minister considers that the individual needs a student loan in order to pursue an approved program of study at an approved institution for a particular period of study. O. Reg. 268/01, s. 10 (1); O. Reg. 119/07, s. 9.

(2) When deciding whether an individual needs a student loan, the Minister shall consider the individual’s education costs and financial resources and may consider other factors that are relevant in the Minister’s opinion. O. Reg. 268/01, s. 10 (2).

Education costs of an individual

11. For the purposes of a student loan, the following are an individual’s education costs for an approved program of study at an approved institution for a particular period of study:

1. The tuition and other compulsory fees payable to the institution.

2. The estimated cost allowance established by the Minister for books and other instructional supplies.

3. The estimated weekly cost allowance established by the Minister for personal and living needs.

4. The estimated cost allowance established by the Minister for such other expenses as the Minister considers relevant in the circumstances. O. Reg. 268/01, s. 11; O. Reg. 119/07, s. 10.

Expected contributors to an individual’s education costs

12. The Minister may expect one or more of the following individuals to contribute toward the education costs of another individual (the “student”) for a period of study in an approved program of study at an approved institution:

1. The student’s parents.

2. An individual who is the student’s sponsor within the meaning of the regulations made under the Immigration and Refugee Protection Act (Canada).

3. The individual who, on the last day of the month in which classes normally begin during that period of study at that institution, is the student’s spouse. O. Reg. 268/01, s. 12; O. Reg. 168/04, s. 6; O. Reg. 119/07, s. 11.

Financial resources of an individual

13. (1) For the purposes of a student loan, the amount of an individual’s financial resources for a particular period of study in an approved program of study at an approved institution is the amount of money that the Minister expects the individual and his or her expected contributors, if any, to contribute toward the individual’s education costs for the period. O. Reg. 268/01, s. 13 (1); O. Reg. 119/07, s. 12 (1).

(2) The Minister shall determine the individual’s financial resources having regard to the following matters:

1. The individual’s total income from all sources, including earnings from summer and other part-time or full-time employment, investment income and other income including gifts.

2. Any academic awards and government assistance that the individual is receiving or is entitled to receive.

3. The assets of the individual and, if the individual has a spouse, the assets of the spouse.

4. If the individual has expected contributors, their total income from all sources.

5. If the individual has expected contributors, their personal income tax payments and employment insurance and pension plan contributions.

6. The number of other individuals that, in the opinion of the Minister, are dependants of the individual or his or her expected contributors, if any.

7. Any other resources, assets or deductions of the individual and his or her expected contributors, if any, that the Minister considers to be relevant in the circumstances. O. Reg. 268/01, s. 13 (2); O. Reg. 168/04, s. 7.

(3) The Minister shall not have regard to the following benefits received by an individual in determining the individual’s financial resources under subsection (2):

1. The Universal Child Care Benefit.

2. The Ontario Child Benefit.

3. The Canada Child Tax Benefit.

4. The Ontario Child Benefit Equivalent.

5. A housing allowance or financial supplement received under the Rental Opportunities for Ontario Families Program. O. Reg. 123/10, s. 3.

Grounds for refusing to issue a certificate

14. (1) The Minister may refuse to issue a certificate of loan approval to an individual in any of the following circumstances relating to the individual’s finances and financial resources:

1. The individual or his or her spouse owns, possesses or controls real or personal property that, in the opinion of the Minister, constitutes sufficient financial resources to meet the individual’s education costs.

2. The individual is entitled to receive student financial assistance from the Government of Canada or from the government of another province or territory of Canada or of another country.

3. After considering the contents of a consumer report of the individual’s current debts, the Minister is of the opinion that the individual will not repay a student loan. O. Reg. 268/01, s. 14 (1); O. Reg. 168/04, s. 8 (1); O. Reg. 119/07, s. 13 (1).

(2) The Minister may refuse to issue a certificate of loan approval to an individual if the Minister considers, after consulting with the approved institutions at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study. O. Reg. 268/01, s. 14 (2); O. Reg. 168/04, s. 8 (2); O. Reg. 119/07, s. 13 (2).

(3) The Minister may refuse to issue a certificate of loan approval to an individual in any of the following circumstances relating to actions of the individual:

1. The individual has not made arrangements that are satisfactory to the Minister to repay, or has not repaid, a student loan or any other amount required to be paid to the Crown in respect of a loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.

2. The individual has not given the Minister all of the information and documents required by the Minister to administer the program of award, grants or student loans which the individual has received under the Act, including information about the individual’s academic status, financial status or family status during a period of study.

3. The individual has given the Minister incorrect information relating to a student loan, or has not informed the Minister promptly about any change to information previously given to the Minister.

4. The individual has been convicted of an offence under the Ministry of Training, Colleges and Universities Act, the Canada Student Loans Act or the Canada Student Financial Assistance Act or an offence under the Criminal Code (Canada) involving fraud or theft in respect of any student assistance program or a loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory. O. Reg. 268/01, s. 14 (3); O. Reg. 168/04, s. 8 (3).

Restrictions on issuance of certificate

15. (1) The Minister shall not issue a certificate of loan approval to an individual if the individual has received loans under the Act or Ontario Access Grants under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act, or both, in respect of previous periods of study totalling more than,

(a) 340 weeks for an individual who is enrolled in a program of study other than a doctoral program; or

(b) 400 weeks for an individual who is enrolled in a doctoral program. O. Reg. 119/07, s. 14.

(2) The Minister may, in order to accommodate an individual who is a person with a disability, issue a certificate of loan approval to an individual who would otherwise not be issued the certificate under subsection (1). O. Reg. 119/07, s. 14.

(3) The Minister shall not issue a certificate of loan approval to an individual who,

(a) was granted, under section 40.2 or under section 9.4 of Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001) made under the Act, a reduction of the principal amount outstanding under a consolidated loan agreement respecting a previous period of study; and

(b) has not repaid all amounts due under that agreement. O. Reg. 123/10, s. 4.

Further restrictions re: bankruptcy

15.1 (1) This section applies with respect to an application for a certificate of loan approval made by an individual who, at any time prior to the day of the application, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement. O. Reg. 168/04, s. 9.

(2) The Minister shall not issue a certificate of loan approval to an individual referred to in subsection (1) who has previously received a student loan under the Act unless the individual otherwise satisfies the requirements of this Regulation for a certificate of loan approval and, at the time of the application,

(a) there are no amounts of principal or interest outstanding on any student loans previously received by the individual; or

(b) if the individual was released from the obligation of repaying any student loans previously received by reason of an order of absolute discharge granted under the Bankruptcy and Insolvency Act (Canada), three years have elapsed since the day the order of absolute discharge was made. O. Reg. 168/04, s. 9.

(3) The Minister shall not issue a certificate of loan approval to an individual who became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) and who, at the time of the application for the certificate of loan approval, has not received an order of absolute discharge under that Act unless the individual satisfied the Minister that any student loans made to the individual after a certificate of loan approval is granted to the individual will not be seized to repay the individual’s creditors. O. Reg. 168/04, s. 9.

(4) Despite subsection (2), the Minister may issue a certificate of loan approval to an individual who was a qualifying student enrolled in an approved program of study at the time an event described in subsection (1) occurred even though the individual does not satisfy the requirements of clause (2) (a) or (b) if,

(a) the individual continues to be enrolled in the approved program of study in which he or she was enrolled at the time the event occurred;

(b) the individual otherwise satisfies the requirements of this Regulation for a certificate of loan approval; and

(c) the certificate of loan approval is issued for a period of study referred to in subsection (5). O. Reg. 168/04, s. 9; O. Reg. 119/07, s. 15 (1).

(5) The Minister may issue a certificate of loan approval to an individual under subsection (4) for any period of study that begins before the earlier of,

(a) the day that is three years after the day the event described in subsection (1) occurred;

(b) the day the individual completes the approved program of study he or she was enrolled in at the time the event described in subsection (1) occurred; or

(c) the day the individual ceases to be enrolled in the approved program of study he or she was enrolled in at the time the event described in subsection (1) occurred. O. Reg. 168/04, s. 9; O. Reg. 119/07, s. 15 (2).

(6) Subsections (4) and (5) apply with respect to any event described in subsection (1) that occurred on or after May 11, 2004. O. Reg. 168/04, s. 9.

Scope and duration of certificate

16. (1) A certificate of loan approval authorizes a student loan to be made to a particular individual for all or part of a period of study in an approved program of study at an approved institution, all of which shall be specified in the certificate. O. Reg. 119/07, s. 16 (1).

(2) A certificate of loan approval is valid for 30 days after an official of the institution completes a form confirming the individual’s enrolment in the approved program of study for the period of study specified in the certificate. O. Reg. 268/01, s. 16 (2); O. Reg. 119/07, s. 16 (2).

Maximum amount of loan approved by a certificate

17. (1) A certificate of loan approval issued to an individual who is a single student cannot approve a loan that is greater than $170 for each week of the individual’s anticipated enrolment in the approved program of study for the period of study specified in the certificate. O. Reg. 268/01, s. 17 (1); O. Reg. 119/07, s. 17 (1).

(2) A certificate of loan approval issued to any other individual cannot approve a loan that is greater than $395 for each week of the individual’s anticipated enrolment in the approved program of study for the period of study specified in the certificate. O. Reg. 268/01, s. 17 (2); O. Reg. 119/07, s. 17 (2).

(3) In this section,

“single student” means an individual who does not have a spouse or dependent child on the last day of the month in which classes for the period of study normally begin. O. Reg. 268/01, s. 17 (3); O. Reg. 168/04, s. 10; O. Reg. 119/07, s. 17 (3).

Replacement certificate

18. (1) If a certificate of loan approval is lost or stolen, the individual to whom it was issued may apply to the Minister for a replacement certificate. O. Reg. 268/01, s. 18 (1).

(2) The Minister may issue a replacement certificate if he or she is satisfied that the original has been lost or stolen. O. Reg. 268/01, s. 18 (2).

Obtaining a Student Loan

Applying for a student loan

19. (1) If an individual to whom a certificate of loan approval has been issued wishes to obtain a student loan, he or she must give the certificate to a service provider and complete an application for a student loan. O. Reg. 268/01, s. 19 (1).

(2) The application must be made on a form approved by the Minister. O. Reg. 268/01, s. 19 (2).

(3) In the application, the individual must declare all loans made for educational purposes that have previously been made to him or her by any lender under the Ministry of Training, Colleges and Universities Act, the Canada Student Loans Act and the Canada Student Financial Assistance Act. O. Reg. 268/01, s. 19 (3).

Student loan agreement

20. (1) If the service provider is satisfied that an individual who applies for a student loan is entitled to one and has a certificate of loan approval, the service provider may enter into a student loan agreement with him or her on behalf of a lender. O. Reg. 268/01, s. 20 (1).

(2) The service provider is not permitted to enter into a student loan agreement with an individual for an amount greater than the amount specified in the individual’s certificate of loan approval. O. Reg. 268/01, s. 20 (2).

(3) An agreement that purports to make a student loan for a greater amount shall be deemed not to be a student loan agreement to the extent of the excess, and the amount of the excess shall be deemed not to be a student loan for the purposes of this Regulation. O. Reg. 268/01, s. 20 (3).

Restriction on advances

21. (1) A service provider or lender is not permitted to make an advance in respect of a student loan to an individual before the service provider receives the individual’s certificate of loan approval and application for the student loan. O. Reg. 268/01, s. 21 (1).

(2) If an advance in respect of a student loan is made, the service provider shall promptly distribute the copies of the application for the loan in accordance with the instructions on the form. O. Reg. 268/01, s. 21 (2).

Duty to give notice of material change in circumstances

22. (1) An individual who enters into a student loan agreement is required to promptly notify the Minister or such person or entity as may be designated by the Minister for the purposes of this section of any material change in his or her circumstances that occurs during the period of study for which the loan is made. O. Reg. 268/01, s. 22 (1); O. Reg. 168/04, s. 11 (1).

(2) A material change in circumstances includes,

(a) a change in the individual’s marital or family status;

(b) a change of address;

(c) a change in his or her enrolment;

(d) a change in education costs described in section 11; and

(e) a change in financial resources described in section 13. O. Reg. 168/04, s. 11 (2).

Change of address

22.1 An individual who enters into a student loan agreement shall promptly notify the service provider or such person or entity as may be designated by the Minister for the purposes of this section of any change of address that occurs after the person ceases to be a qualifying student under section 27 but before the repayment in full of the principal amount of the student loan and of any outstanding interest on that amount. O. Reg. 168/04, s. 12.

Maintaining Status as a Qualifying Student

Qualifying student

23. (1) An individual is a qualifying student during a period of study for which he or she receives a student loan or a grant under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act. O. Reg. 119/07, s. 18.

(2) An individual may be a qualifying student during a period of study for which he or she does not receive a student loan or a grant under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act, if the requirements set out in section 24 or 25 are met. O. Reg. 119/07, s. 18.

(3) If an individual ceases to be a qualifying student for a period of less than six months, the individual shall be deemed to have been a qualifying student throughout that period. O. Reg. 268/01, s. 23 (3).

Confirmation of enrolment by institution

24. (1) An individual who wishes to be a qualifying student during a period of study for which he or she does not receive a student loan or a grant under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act must comply with this section. O. Reg. 268/01, s. 24 (1); O. Reg. 119/07, s. 19 (1).

(1.1) The individual must continue to meet the requirements of clause 5 (1) (a). O. Reg. 123/10, s. 5.

(2) The individual must obtain a document from the institution at which he or she is enrolled, confirming,

(a) that he or she is enrolled in an approved program of study at an approved institution for the period of study in question, and that he or she is taking at least the minimum required course load;

(b) that he or she is enrolled at a secondary school within the meaning of the Education Act and that he or she is taking at least the minimum course load required under subsection (2.1);

(c) that he or she is enrolled at a designated institution as defined in the Canada Student Financial Assistance Act and that he or she is taking at least the minimum course load required under subsection (2.1); or

(d) that he or she is enrolled at an educational institution not described in clause (a), (b) or (c) that is approved by the Minister for the purposes of this section and that he or she is taking at least the minimum course load required under subsection (2.1). O. Reg. 268/01, s. 24 (2); O. Reg. 168/04, s. 13 (1); O. Reg. 119/07, s. 19 (2).

(2.1) For the purposes of clauses (2) (b), (c) and (d), the minimum course load that an individual who is enrolled in a program of study at an institution described in one of those clauses must take in order to maintain his or her status as a qualifying student during the relevant period of study is,

(a) a course load that is at least 60 per cent of what the institution considers to be a full course load for the period of study, in the case of an individual who is not a person with a disability; and

(b) a course load that is at least 40 per cent of what the institution considers to be a full course load for the period of study, in the case of an individual who is a person with a disability. O. Reg. 168/04, s. 13 (2); O. Reg. 119/07, s. 19 (3, 4).

(3) The confirmation of enrolment must be given on a form approved by the Minister and must be certified by the institution at which the individual is enrolled. O. Reg. 268/01, s. 24 (3).

(4) The individual must give the service provider the confirmation of enrolment form promptly upon becoming enrolled as described in subsection (2). O. Reg. 268/01, s. 24 (4).

(5) Subject to subsection 25 (2), the individual is a qualifying student under this section beginning on the date on which the service provider receives the confirmation of enrolment form. O. Reg. 268/01, s. 24 (5).

Confirmation of enrolment by Minister

25. (1) Even though an individual does not comply with section 24, the individual is a qualifying student during a period of study for which he or she does not receive a student loan or a grant under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act if he or she establishes to the satisfaction of the Minister that,

(a) the individual was unable to obtain a confirmation of enrolment form under section 24; and

(b) the circumstances that are required in order to obtain a confirmation of enrolment under clause 24 (2) (a), (b), (c) or (d) exist.

(c) Revoked: O. Reg. 168/04, s. 14.

O. Reg. 268/01, s. 25 (1); O. Reg. 168/04, s. 14; O. Reg. 119/07, s. 20.

(2) The individual must obtain from the Minister a confirmation of enrolment form under this section and must give it to the service provider promptly. O. Reg. 268/01, s. 25 (2).

(3) Subject to section 27, the individual is a qualifying student under this section beginning on the date on which the service provider receives the confirmation of enrolment form. O. Reg. 268/01, s. 25 (3).

Effect of status as qualifying student

26. (1) While an individual is a qualifying student, his or her obligations to pay principal and interest under a student loan agreement and under a consolidated loan agreement, if any, are suspended. O. Reg. 268/01, s. 26 (1).

(2) If the individual owes interest to the lender under the student loan agreement or the consolidated loan agreement, if any, for a period during which he or she was not a qualifying student, and if the lender asks the individual to pay the accrued interest for that period, subsection (1) does not apply until the individual pays the accrued interest. O. Reg. 268/01, s. 26 (2).

(3) The individual is not permitted to pay the accrued interest by means of a promissory note. O. Reg. 268/01, s. 26 (3).

Ceasing to be a qualifying student

27. (1) An individual ceases to be a qualifying student in any of the following circumstances:

1. The individual ceases to be enrolled in the approved program of study in respect of which his or her most recent certificate of loan approval was issued.

2. The individual reduces his or her course load below the minimum required course load for the period of study in the approved program of study.

3. The individual withdraws from the applicable educational institution.

4. The program of study in which the individual is enrolled at the approved institution ceases to be an approved program of study.

5. The institution at which the individual is enrolled ceases to be an approved institution or to be described by clause 24 (2) (b), (c) or (d).

6. The period of study for which the individual received a student loan or an Ontario Access Grant under Ontario Regulation 118/07 (Ontario Access Grants) made under the Act ends and the number of weeks in respect of which the individual has received a student loan or an Ontario Access Grant during his or her lifetime is equal to or greater than,

i. 340 weeks for an individual who is enrolled in a program of study other than a doctoral program, or

ii. 400 weeks for an individual who is enrolled in a doctoral program.

7. Subject to subsections (2) and (3), the individual became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into another recognized arrangement for debt settlement and, if the event occurred during a period of study, the period of study ends. O. Reg. 268/01, s. 27; O. Reg. 168/04, s. 15 (1); O. Reg. 119/07, s. 21 (1-4).

(2) Despite paragraph 7 of subsection (1), an individual shall continue to be a qualifying student after the end of the period of study during which he or she became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into another recognized arrangement for debt settlement until such time as is determined under subsection (3) if,

(a) the individual is issued a certificate of loan approval under section 15.1; or

(b) the individual meets the requirements of section 24 or 25. O. Reg. 168/04, s. 15 (2).

(3) An individual may continue to be a qualifying student under subsection (2) until the earlier of,

(a) the day that is,

(i) three years after the day the event described in paragraph 7 of subsection (1) occurred, or

(ii) if the three year period described in subclause (i) ends during a period of study, the last day of the period of study;

(b) the day the individual completes the approved program of study he or she was enrolled in at the time the event described in paragraph 7 of subsection (1) occurred; or

(c) the day the individual ceases to be enrolled in the approved program of study he or she was enrolled in at the time the event described in paragraph 7 of subsection (1) occurred. O. Reg. 168/04, s. 15 (2); O. Reg. 119/07, s. 21 (5).

(4) Paragraph 7 of subsection (1) and subsections (2) and (3) only apply to events described in paragraph 7 of subsection (1) that occurred on or after May 11, 2004. O. Reg. 168/04, s. 15 (2).

Consolidated Loan Agreement and Repayment Terms

Requirement for a consolidated loan agreement

28. (1) Every individual who enters into one or more student loan agreements shall enter into a consolidated loan agreement with the lender after the individual ceases to be a qualifying student. O. Reg. 268/01, s. 28 (1).

(2) If the individual does not enter into a consolidated loan agreement within six months after ceasing to be a qualifying student, section 29 applies until he or she does enter into such an agreement. O. Reg. 268/01, s. 28 (2).

(3) The consolidated loan agreement must establish the amount and duration of the repayments to be made to discharge the principal amount of all outstanding student loans made after July 31, 2001 and the interest on the outstanding balance from time to time, and the agreement may provide for other matters. O. Reg. 268/01, s. 28 (3).

(4) If the individual enters into a consolidated loan agreement and then becomes a qualifying student again, he or she is required to enter into a new consolidated loan agreement after ceasing to be a qualifying student, and the new agreement supersedes the old agreement. O. Reg. 268/01, s. 28 (4).

(5) If the individual does not enter into the new consolidated loan agreement within six months after ceasing to be a qualifying student, section 29 applies until he or she does enter into such an agreement. O. Reg. 268/01, s. 28 (5).

Arrangement if there is no consolidated loan agreement

29. (1) If an individual does not enter into a consolidated loan agreement within six months after ceasing to be a qualifying student, the lender may establish the amount and duration of the repayments to be made to discharge the principal amount of all outstanding student loans made after July 31, 2001 and the interest on the outstanding balance from time to time. O. Reg. 268/01, s. 29.

(2) If an individual does not enter into a consolidated loan agreement within six months after ceasing to be a qualifying student or does not provide the lender with a void cheque, a bank account number or with such other information or documents as may be necessary in order to collect payments in accordance with the terms of a consolidated loan agreement, the lender may require a financial institution to make payments on the individual’s student loans from an account at the institution that the individual has identified to the lender. O. Reg. 168/04, s. 16.

(3) The payments made by a financial institution under subsection (2) shall be made in accordance with the repayment terms set out in the consolidated loan agreement, if any, or, if none, in accordance with the repayment terms established by the lender under subsection (1). O. Reg. 168/04, s. 16.

Obligation to pay interest

30. (1) An individual is not required to pay interest under a student loan agreement or under a consolidated loan agreement until the first day of the seventh month immediately following the month in which the individual ceased to be a qualifying student. O. Reg. 268/01, s. 30 (1); O. Reg. 123/10, s. 6.

(2) The interest rate in effect on any day under a student loan agreement or a consolidated loan agreement is the prime rate on that day plus 1 per cent. O. Reg. 268/01, s. 30 (2).

(3) In this section,

“prime rate” means the average variable reference rate of interest as calculated monthly based upon the average variable reference rates of interest for the month by each of the Bank of Montreal, the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Royal Bank of Canada and TD Canada Trust as their rate for Canadian dollar consumer demand loans, calculated without reference to the highest and the lowest of those five rates and calculated by averaging the remaining three rates. O. Reg. 268/01, s. 30 (3); O. Reg. 168/04, s. 17.

Repayment terms

31. (1) The term for the repayment of a student loan is to be determined by the lender in consultation with the borrower. O. Reg. 268/01, s. 31 (1).

(2) The borrower is entitled to repay all or part of the student loan, without notice or bonus to the lender, before the period for repayment specified in the consolidated loan agreement expires. O. Reg. 268/01, s. 31 (2).

(3) The obligation to repay a student loan terminates upon the death of the borrower. O. Reg. 123/10, s. 7.

(4) Revoked: O. Reg. 168/04, s. 18.

(5) Instalments of the repayment of a student loan are to be applied first to interest accrued to the date of the payment and then to the outstanding principal. O. Reg. 268/01, s. 31 (5).

Amendment to prevent default

32. The lender and borrower may amend their consolidated loan agreement if the borrower notifies the lender that the terms of the agreement are such that he or she will be in default and if the lender considers that an amendment to the agreement will enable the borrower to meet his or her obligations under the agreement. O. Reg. 268/01, s. 32.

Initial Reduction of Principal

Ontario Student Opportunity Grant

33. (1) This section applies if an individual receives (and is entitled to receive) student loans under the Act or loans under the Canada Student Financial Assistance Act for at least two academic terms during a 12-month period that begins on or after August 1, 2001. O. Reg. 123/10, s. 8 (1).

(2) In the case of a 12-month period that begins on or after August 1, 2001 but before August 1, 2010, after the 12-month period expires, the principal amount of the loans given to the individual for all academic terms that began during the period is reduced by the amount, if any, greater than zero that is calculated using the formula,

(A + B) – ($3,500 × C)

in which,

“A” is the total principal amount of the student loans that the individual received and was entitled to receive under the Act for all academic terms that began during the 12-month period,

“B” is the total principal amount of the loans that the individual received and was entitled to receive under the Canada Student Financial Assistance Act for all academic terms that began during the 12-month period, and

“C” is the number of academic terms that began during the 12-month period and in respect of which the individual received a student loan under the Act or a loan under the Canada Student Financial Assistance Act.

O. Reg. 268/01, s. 33 (2); O. Reg. 119/07, s. 22 (1); O. Reg. 123/10, s. 8 (2).

(3) Despite subsection (2) and subject to subsection (4), if the individual described in that subsection is granted a scholarship under subsection 27 (1) of the Budget Implementation Act, 1998 (Canada) for one or more of the academic terms that begin during the 12-month period, the principal amount of the student loans given to the individual for all academic terms that begin during that period is reduced by the amount that is the greater of,

(a) $25; or

(b) the amount calculated by adding $500 to the amount calculated in accordance with the formula set out in subsection (2). O. Reg. 268/01, s. 33 (3).

(4) Subsection (3) does not apply if the amount calculated under clause (3) (b) is less than zero. O. Reg. 268/01, s. 33 (4).

(4.1) In the case of a 12-month period that begins on or after August 1, 2010, after the 12-month period expires, the principal amount of the loans given to the individual for all academic terms that began during the period is reduced by the amount, if any, greater than zero that is calculated using the formula,

(A + B) – ($3,650 × C)

in which,

“A” is the total principal amount of the student loans that the individual received and was entitled to receive under the Act for all academic terms that began during the 12-month period,

“B” is the total principal amount of the loans that the individual received and was entitled to receive under the Canada Student Financial Assistance Act for all academic terms that began during the 12-month period, and

“C” is the number of academic terms that began during the 12-month period and in respect of which the individual received a student loan under the Act or a loan under the Canada Student Financial Assistance Act.

O. Reg. 123/10, s. 8 (3).

(5) If the individual withdrew or was expelled from one or more academic terms during the 12-month period before completing the term, the term is not considered for the purposes of this section and any loan or scholarship the individual received for the term must not be included in the calculations under subsections (2), (3) and (4.1). O. Reg. 268/01, s. 33 (5); O. Reg. 123/10, s. 8 (4).

(6) The Minister may determine that subsection (5) does not apply with respect to an individual’s academic term, after the Minister considers the particular facts and the special circumstances of the individual. O. Reg. 268/01, s. 33 (6).

(7) For the purposes of this section, the number of academic terms during a 12-month period is determined using the following Table, and is based on the number of weeks during the 12-month period in which the individual is enrolled in an approved program of study at an approved institution.

TABLE

Number of Weeks of Enrolment

Number of Academic Terms

Less than 12 weeks

0

12 weeks or more, up to 21 weeks

1

21 weeks or more, up to 41 weeks

2

41 weeks or more, up to and including 52 weeks

3

O. Reg. 268/01, s. 33 (7); O. Reg. 119/07, s. 22 (2).

(8) Despite subsections (1), (2) and (4.1), the principal amount of student loans given to an individual for all academic terms that begin during the 12-month period shall not be reduced under this section until,

(a) the individual and his or her expected contributors file with the Canada Revenue Agency an income tax return with respect to the period in question; and

(b) the Minister has verified with the Canada Revenue Agency the financial information provided by the individual and his or her expected contributors in the individual’s application for a certificate of loan approval for that period. O. Reg. 168/04, s. 19 (2); O. Reg. 123/10, s. 8 (5).

(9) An individual who receives a reduction under section 40.2 before the requirements of clauses (8) (a) and (b) are met shall not receive a reduction under this section. O. Reg. 168/04, s. 19 (2).

(9.1) An individual who fails to meet the requirements under clauses (8) (a) and (b) within six years of the end of the 12-month period during which the individual received student loans is not entitled to a reduction under this section. O. Reg. 123/10, s. 8 (6).

(10) An individual who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement shall not be entitled to a reduction under this section of any principal amount of a student loan received by the individual that was outstanding at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 168/04, s. 19 (2).

Repayment to Minister

34. If the total principal amount owing on an individual’s student loans under a consolidated loan agreement is reduced by an amount greater than the amount required by section 33, the Minister may require the individual to pay the difference to the Minister of Finance. O. Reg. 268/01, s. 34.

Suspension of Payments

Application for relief from obligation to make payments

35. (1) An individual who wishes to suspend his or her obligation to make payments under a consolidated loan agreement may apply for relief from the obligation. O. Reg. 268/01, s. 35 (1).

(2) The application must be made on a form approved by the Minister and must be given to a service provider. O. Reg. 268/01, s. 35 (2).

Eligibility for relief

36. (1) An individual is eligible for the suspension of his or her obligation to make payments respecting a student loan,

(a) if he or she has entered into a consolidated loan agreement respecting the loan;

(b) if he or she resides in Canada; and

(c) if, in the opinion of the Minister, he or she is unable to make the payments without incurring exceptional hardship, taking into account his or her gross income and that of his or her spouse, if any, from all sources, except the Universal Child Care Benefit, and the obligations of the individual and his or her spouse to a child or other person who is wholly dependent on either of them. O. Reg. 268/01, s. 36 (1); O. Reg. 168/04, s. 20 (1); O. Reg. 119/07, s. 23.

(2) If the individual’s obligations have been suspended for a cumulative period of 30 months, the individual’s eligibility for further relief is determined under section 39. O. Reg. 268/01, s. 36 (2).

(3) An individual who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement is not eligible for a suspension of his or her obligation to make payments respecting any student loans that were outstanding at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 168/04, s. 20 (2).

Decision to grant relief

37. (1) The service provider, acting on behalf of the Minister, may suspend an individual’s obligation to make payments under a consolidated loan agreement and shall notify the individual of the suspension. O. Reg. 268/01, s. 37 (1).

(2) The suspension takes effect on the date specified in the notice of suspension given to the individual (the “effective date”), and the notice may specify that the suspension be made retroactive to a date that is not earlier than the date that is the later of,

(a) the first day of the sixth month before the month in which the individual applied for the suspension; or

(b) the last day of the sixth month after the month in which the individual ceased to be a qualifying student. O. Reg. 268/01, s. 37 (2); O. Reg. 168/04, s. 21 (1).

(3) Despite subsection (2), the suspension does not take effect until the individual does one of the following things:

1. Pays all of the unpaid interest under the consolidated loan agreement that has accrued up to the effective date.

2. Unless the individual is disqualified from doing so under subsection (4.1),

i. enters into a revised consolidated loan agreement in which up to three months of any unpaid interest that has accrued up to the effective date has been capitalized, and

ii. pays any unpaid interest that has accrued up to the effective date and that remains after the capitalization of interest under subparagraph i. O. Reg. 268/01, s. 37 (3); O. Reg. 168/04, s. 21 (2).

(4) The individual is not permitted to pay the accrued interest referred to in paragraph 2 of subsection (3) by means of a promissory note. O. Reg. 268/01, s. 37 (4).

(4.1) An individual is disqualified from taking advantage of paragraph 2 of subsection (3) when applying for a suspension of payment obligations under a consolidated loan agreement if he or she took advantage of paragraph 2 of subsection (3) in relation to a previous suspension of payment obligations under a consolidated loan agreement, whether under the same consolidated loan agreement or under a previous consolidated loan agreement. O. Reg. 168/04, s. 21 (3).

(5) Notice given by the service provider to the individual also constitutes notice to the lender for the purposes of the consolidated loan agreement. O. Reg. 268/01, s. 37 (5).

Effect of granting relief

38. (1) When a notice of suspension is issued under section 37, the lender shall suspend the individual’s obligations under the consolidated loan agreement as of the date indicated in the notice. O. Reg. 268/01, s. 38 (1).

(2) The suspension of the individual’s obligations continues for six months after the last day of the month of the effective date. O. Reg. 268/01, s. 38 (2).

(3) An individual is not required to pay interest under a consolidated loan agreement in respect of any period during which his or her obligations are suspended. O. Reg. 268/01, s. 38 (3).

Criteria for granting extended relief

39. (1) If an individual’s obligations under a consolidated loan agreement have been suspended for a cumulative period of 30 months, the Minister may suspend the individual’s obligations for one or more further periods if the Minister is satisfied that the conditions of exceptional hardship still exist. O. Reg. 268/01, s. 39 (1).

(2) Section 38 applies with respect to a suspension authorized by subsection (1). O. Reg. 268/01, s. 39 (2).

(3) A suspension authorized by subsection (1) cannot extend beyond the date that is 60 months after the date on which the individual ceased to be a qualifying student. O. Reg. 268/01, s. 39 (3).

Where individual returns to school

39.1 (1) This section applies to an individual who,

(a) receives student loans, ceases to be a qualifying student and enters into a first consolidated loan agreement;

(b) is granted one or more suspensions of payment obligations under the first consolidated loan agreement; and

(c) receives additional student loans, again ceases to be a qualifying student and enters into a second consolidated loan agreement. O. Reg. 168/04, s. 22.

(2) Despite sections 36 and 39, an individual who does not repay all amounts of principal and interest outstanding under the first consolidated loan agreement before entering into the second consolidated loan agreement shall not be entitled to a suspension of payment obligations under the second agreement unless he or she meets the requirements for relief set out in subsection 36 (1) and,

(a) the cumulative period for which the individual’s payment obligations under a consolidated loan agreement have been suspended previously, including those suspensions that were granted with respect to payment obligations under the first consolidated loan agreement, does not exceed 30 months; or

(b) if the cumulative period of suspension referred to in clause (a) is equal to 30 months, the individual qualifies for extended relief under subsection 39 (1) and it has not been more than 60 months since the day the individual ceased to be a qualifying student for the first time. O. Reg. 168/04, s. 22.

(3) Despite subsection 37 (4.1), an individual may take advantage of paragraph 2 of subsection 37 (3) in relation to a suspension of payment obligations granted under the second consolidated loan agreement, even though he or she took advantage of that paragraph in relation to a previous suspension granted under the first consolidated loan agreement, if the individual repaid all amounts of principal and interest outstanding under the first consolidated loan agreement before entering into the second consolidated loan agreement. O. Reg. 168/04, s. 22.

(4) An individual who takes advantage of paragraph 2 of subsection 37 (3) in accordance with subsection (3) in relation to the suspension of payment obligation under the second consolidated loan agreement may do so no more than once. O. Reg. 168/04, s. 22.

(5) This section applies with necessary modifications in any case where the number of times an individual ceases to be a qualifying student and subsequently re-enrols in an approved program of study and becomes a qualifying student once again is two or more. O. Reg. 168/04, s. 22; O. Reg. 119/07, s. 24.

Revocation of suspension

40. (1) The Minister may revoke a suspension given under section 37 or 39 of an individual’s obligations under a consolidated loan agreement if any of the following circumstances exist:

1. The individual made a false statement or a misrepresentation on the application for relief or on any document required by the Minister relating to the application.

2. The individual furnished false or misleading information relating to the application for relief.

3. The individual did not file with the Minister all the information and documents required by the Minister to verify a statement made in the application for relief.

4. The individual did something referred to in subsection 14 (3) that would authorize the Minister to refuse to issue a certificate of loan approval. O. Reg. 268/01, s. 40 (1).

(2) If the Minister revokes the suspension of an individual’s obligations, the Minister may require the individual to pay to the Minister the interest paid by the Minister to the lender on the individual’s behalf during the period of the suspension. O. Reg. 268/01, s. 40 (2).

(3) The individual shall promptly make the payment required by the Minister under subsection (2). O. Reg. 268/01, s. 40 (3).

Subsequent Reductions in Principal

Application for reduction

40.1 (1) An individual who wishes to have the amount of principal outstanding under a consolidated loan agreement reduced in accordance with section 40.2 shall submit his or her application for the reduction to a service provider. O. Reg. 168/04, s. 23.

(2) The application shall be made on a form approved by the Minister. O. Reg. 168/04, s. 23.

Ontario debt reduction in repayment program

40.2 (1) Subject to subsections (2) and (3), an individual who meets the eligibility criteria set out in subsection (4) is entitled to have the amount of principal outstanding under a consolidated loan agreement reduced by an amount to be determined in accordance with subsections (5) and (7) if that amount is greater than zero. O. Reg. 168/04, s. 23.

(2) An individual is not entitled to reduce a principal amount outstanding under a consolidated loan agreement under this section if the individual has previously received three such reductions on principal amounts outstanding on any student loans received by the individual under the Act, including any reductions in a principal amount outstanding under a previous consolidated loan agreement under this Regulation or under a consolidated student loan agreement made under Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001) under the Act. O. Reg. 168/04, s. 23.

(3) An individual is not entitled to a reduction described in subsection (1) unless,

(a) in the case of an individual who has not received any previous reductions referred to in subsection (2), it has been at least five years since the individual was a qualifying student; and

(b) in the case of an individual who has received a previous reduction referred to in subsection (2), it has been at least one year since the previous reduction was granted. O. Reg. 168/04, s. 23.

(4) An individual is eligible for a reduction of the principal amount outstanding with respect to a student loan if he or she,

(a) has entered into a consolidated loan agreement respecting the loan;

(b) resides in Canada;

(c) no longer qualifies under section 36, 39 or 39.1 for a suspension from his or her obligation to make payments under the consolidated loan agreement; and

(d) is not in default on the loan. O. Reg. 168/04, s. 23.

(5) Subject to subsection (8), the amount of a reduction granted under this section shall be the amount calculated using the following formula:

in which,

“A” is the amount of principal outstanding on the student loans received by the individual under the Act,

“B” is the affordable monthly payment indicated in Column 7 of the Table to this section that it is determined the individual can afford to make on the total amount of all outstanding Canadian student loans he or she has received, based on the size of the individual’s family and the individual’s family income that are indicated in Columns 1 to 6 of the Table, and

“C” is the monthly payment that the individual actually makes on the total of all amounts outstanding on Canadian student loans that he or she has received or, if the individual’s loans were not amortized over a 15-year period at a rate of interest equal to that provided for under section 30, the monthly payment he or she would be required to make on those loans if that total were amortized over a 15-year period at a rate of interest equal to that provided for under section 30.

O. Reg. 168/04, s. 23.

(6) In subsection (5),

“Canadian student loans” includes all student loans received by an individual under the Act or granted to the individual by the federal government or by any government of a province or territory in Canada outside Ontario;

“family” includes the individual, his or her spouse, if any, and any person who is wholly dependent on either of them;

“family income” means the individual’s gross income and that of his or her spouse, if any, from all sources, except the Universal Child Care Benefit. O. Reg. 168/04, s. 23; O. Reg. 119/07, s. 25.

(7) The amount of a reduction granted under this section shall not be more than,

(a) $4,300, in the case of a first reduction under this section; and

(b) $2,200, in the case of a second or third reduction under this section. O. Reg. 168/04, s. 23.

(8) Despite anything in this section, an individual who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement is not entitled to a reduction under this section of the principal amount of any student loan that was outstanding at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 168/04, s. 23.

TABLE
DETERMINATION OF AN INDIVIDUAL’S AFFORDABLE MONTHLY PAYMENT

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Column 7

Monthly Family Income of a Family of 1

Monthly Family Income of a Family of 2

Monthly Family Income of a Family of 3

Monthly Family Income of a Family of 4

Monthly Family Income of a Family of 5

Monthly Family Income of a Family of 6 or more

Affordable Monthly Payment

$539.00 or less

$1,180.00 or less

$1,396.00 or less

$1,612.00 or less

$1,815.00 or less

$2,012.00 or less

$14.00

$539.01 to $912.00

$1,180.01 to $1,486.00

$1,396.01 to $1,783.00

$1,612.01 to $2,080.00

$1,815.01 to $2,371.00

$2,012.01 to $2,658.00

$21.00

$912.01 to $1,105.00

$1,486.01 to $1,645.00

$1,783.01 to $1,984.00

$2,080.01 to $2,324.00

$2,371.01 to $2,660.00

$2,658.01 to $2,994.00

$29.00

$1,105.01 to $1,291.00

$1,645.01 to $1,798.00

$1,984.01 to $2,178.00

$2,324.01 to $2,558.00

$2,660.01 to $2,938.00

$2,994.01 to $3,318.00

$36.00

$1,291.01 to $1,399.00

$1,798.01 to $1,905.00

$2,178.01 to $2,285.00

$2,558.01 to $2,623.00

$2,938.01 to $3,003.00

$3,318.01 to $3,383.00

$71.00

$1,399.01 to $1,506.00

$1,905.01 to $2,012.00

$2,285.01 to $2,392.00

$2,623.01 to $2,668.00

$3,003.01 to $3,068.00

$3,383.01 to $3,448.00

$107.00

$1,506.01 to $1,613.00

$2,012.01 to $2,119.00

$2,392.01 to $2,499.00

$2,668.01 to $2,753.00

$3,068.01 to $3,133.00

$3,448.01 to $3,513.00

$143.00

$1,613.01 to $1,720.00

$2,119.01 to $2,226.00

$2,499.01 to $2,564.00

$2,753.01 to $2,818.00

$3,133.01 to $3,198.00

$3,513.01 to $3,578.00

$179.00

$1,720.01 to $1,827.00

$2,226.01 to $2,334.00

$2,564.01 to $2,630.00

$2,818.01 to $2,884.00

$3,198.01 to $3,264.00

$3,578.01 to $3,643.00

$214.00

$1,827.01 to $1,934.00

$2,334.01 to $2,441.00

$2,630.01 to $2,695.00

$2,884.01 to $2,949.00

$3,264.01 to $3,329.00

$3,643.01 to $3,709.00

$250.00

$1,934.01 to $2,041.00

$2,441.01 to $2,506.00

$2,695.01 to $2,760.00

$2,949.01 to $3,014.00

$3,329.01 to $3,394.00

$3,709.01 to $3,774.00

$286.00

$2,041.01 to $2,148.00

$2,506.01 to $2,571.00

$2,760.01 to $2,825.00

$3,014.01 to $3,079.00

$3,394.01 to $3,459.00

$3,774.01 to $3,839.00

$321.00

$2,148.01 to $2,256.00

$2,571.01 to $2,636.00

$2,825.01 to $2,890.00

$3,079.01 to $3,144.00

$3,459.01 to $3,524.00

$3,839.01 to $3,904.00

$357.00

$2,256.01 to $2,363.00

$2,636.01 to $2,701.00

$2,890.01 to $2,955.00

$3,144.01 to $3,209.00

$3,524.01 to $3,589.00

$3,904.01 to $3,969.00

$393.00

$2,363.01 to $2,470.00

$2,701.01 to $2,766.00

$2,955.01 to $3,020.00

$3,209.01 to $3,274.00

$3,589.01 to $3,654.00

$3,969.01 to $4,034.00

$429.00

$2,470.01 to $2,535.00

$2,766.01 to $2,832.00

$3,020.01 to $3,086.00

$3,274.01 to $3,340.00

$3,654.01 to $3,720.00

$4,034.01 to $4,099.00

$464.00

$2,535.01 to $2,600.00

$2,832.01 to $2,897.00

$3,086.01 to $3,151.00

$3,340.01 to $3,405.00

$3,720.01 to $3,785.00

$4,099.01 to $4,165.00

$500.00

$2,600.01 to $2,665.00

$2,897.01 to $2,962.00

$3,151.01 to $3,216.00

$3,405.01 to $3,470.00

$3,785.01 to $3,850.00

$4,165.01 to $4,230.00

$536.00

$2,665.01 to $2,730.00

$2,962.01 to $3,027.00

$3,216.01 to $3,281.00

$3,470.01 to $3,535.00

$3,850.01 to $3,915.00

$4,230.01 to $4,295.00

$571.00

$2,730.01 to $2,795.00

$3,027.01 to $3,092.00

$3,281.01 to $3,346.00

$3,535.01 to $3,600.00

$3,915.01 to $3,980.00

$4,295.01 to $4,360.00

$607.00

$2,795.01 to $2,861.00

$3,092.01 to $3,157.00

$3,346.01 to $3,411.00

$3,600.01 to $3,665.00

$3,980.01 to $4,045.00

$4,360.01 to $4,425.00

$643.00

$2,861.01 to $2,926.00

$3,157.01 to $3,222.00

$3,411.01 to $3,476.00

$3,665.01 to $3,730.00

$4,045.01 to $4,094.00

$4,425.01 to $4,490.00

$679.00

$2,926.01 to $2,991.00

$3,222.01 to $3,288.00

$3,476.01 to $3,542.00

$3,730.01 to $3,796.00

$4,094.01 to $4,142.00

$4,490.01 to $4,555.00

$714.00

$2,991.01 to $3,056.00

$3,288.01 to $3,353.00

$3,542.01 to $3,607.00

$3,796.01 to $3,861.00

$4,142.01 to $4,191.00

$4,555.01 to $4,621.00

$750.00

$3,056.01 to $3,121.00

$3,353.01 to $3,418.00

$3,607.01 to $3,672.00

$3,861.01 to $3,926.00

$4,191.01 to $4,239.00

$4,621.01 to $4,686.00

$786.00

$3,121.01 to $3,186.00

$3,418.01 to $3,483,00

$3,672.01 to $3,737.00

$3,926.01 to $3,991.00

$4,239.01 to $4,288.00

$4,686.01 to $4,751.00

$821.00

$3,186.01 to $3,251.00

$3,483.01 to $3,548.00

$3,737.01 to $3,802.00

$3,991.01 to $4,056.00

$4,288.01 to $4,337.00

$4,751.01 to $4,816.00

$857.00

$3,251.01 to $3,317.00

$3,548.01 to $3,613.00

$3,802.01 to $3,867.00

$4,056.01 to $4,121.00

$4,337.01 to $4,385.00

$4,816.01 to $4,881.00

$893.00

$3,317.01 to $3,382.00

$3,613.01 to $3,678.00

$3,867.01 to $3,932.00

$4,121.01 to $4,186.00

$4,385.01 to $4,434.00

$4,881.01 to $4,946.00

$929.00

$3,382.01 to $3,447.00

$3,678.01 to $3,744.00

$3,932.01 to $3,998.00

$4,186.01 to $4,235.00

$4,434.01 to $4,482.00

$4,946.01 to $5,011.00

$964.00

$3,447.01 or more

$3,744.01 or more

$3,998.01 or more

$4,235.01 or more

$4,482.01 or more

$5,011.01 or more

$1000.00

O. Reg. 168/04, s. 23.

Medical Loan Forgiveness Program

Application for medical loan forgiveness

40.3 (1) An individual who has a permanent disability may apply to the Minister to terminate his or her obligation to make payments under a consolidated loan agreement. O. Reg. 168/04, s. 24.

(2) The application shall be made on a form approved by the Minister. O. Reg. 168/04, s. 24.

Termination of loan payment

40.4 (1) The Minister may terminate an individual’s obligation to make payments under a consolidated loan agreement if,

(a) the Minister is satisfied, after considering documents from a physician or other health professional provided by the individual, that the individual has a permanent disability that will substantially reduce his or her earning capacity for the individual’s expected lifetime;

(b) the individual has entered into a consolidated loan agreement;

(c) the individual resides in Canada;

(d) subject to subsection (2), the individual,

(i) has been granted suspensions under section 36 from his or her obligation to make payments under the consolidated loan agreement and the total cumulative period of suspension is equal to 30 months, and

(ii) does not qualify for extended relief under section 39; and

(e) in the opinion of the Minister, the individual is unable to repay his or her student loans without incurring exceptional hardship, taking into account the individual’s assets and liabilities, his or her gross income and the gross income of his or her spouse, if any, from all sources, except the Universal Child Care Benefit, and the obligations of the individual and his or her spouse to persons who are wholly dependent on either of them. O. Reg. 168/04, s. 24; O. Reg. 119/07, s. 26 (1).

(2) The Minister may terminate the payment obligations under a consolidated loan agreement of a individual who does not meet the requirements of clause (1) (d) if the Minister determines that the obligation to make payments should be terminated, after considering the particular facts and the special circumstances of the individual. O. Reg. 168/04, s. 24.

(3) The Minister may terminate an individual’s obligation to repay a student loan before the individual enters into a consolidated loan agreement for the repayment of any outstanding amounts on those loans if,

(a) the individual otherwise meets the requirements of subsection (1) or of subsection (2); and

(b) after considering the particular facts and circumstances of the individual, the Minister determines that it is appropriate to do so. O. Reg. 119/07, s. 26 (2).

Limitation on relief

40.5 (1) Despite section 40.4, the Minister shall not terminate an individual’s payment obligations under a consolidated loan agreement if the individual’s payment obligations under a previous consolidated loan agreement were terminated under section 40.4. O. Reg. 168/04, s. 24.

(2) Subsection (1) applies even though the individual meets all the requirements for relief under subsection 40.4 (1). O. Reg. 168/04, s. 24.

(3) The Minister may determine that subsection (1) does not apply to an individual, after considering the particular facts and the special circumstances of the individual. O. Reg. 168/04, s. 24.

Default on a Student Loan

What constitutes default

41. An individual is in default of his or her obligation to repay student loans if he or she unequivocally refuses to pay the loans or if he or she does not make a regularly scheduled payment under the consolidated loan agreement or under the arrangement established by the lender under section 29 and the failure to make the payment continues for two months. O. Reg. 268/01, s. 41.

Consequences of default

42. (1) When an individual is in default of his or her obligation to repay student loans, the loans are due and payable on the following date:

1. If the default occurs because the individual unequivocally refuses to the pay the loans, on the day after the refusal.

2. If the default occurs because the individual does not make a regularly scheduled payment, on the day that is two months after the missed payment was due. O. Reg. 268/01, s. 42 (1); O. Reg. 168/04, s. 25 (1).

(2) Revoked: O. Reg. 168/04, s. 25 (2).

(3) Revoked: O. Reg. 168/04, s. 25 (2).

(4) When the individual’s loans become due and payable, the lender may take such measures as the lender considers advisable in the circumstances, including amending the consolidated loan agreement or collecting the loans. O. Reg. 268/01, s. 42 (4); O. Reg. 168/04, s. 25 (3).

(5) When an individual defaults on his or her obligation to make payments under a consolidated loan agreement, the Minister may,

(a) deny the individual the status of a qualifying student under section 24 or 25 or subsection 27 (2) during a period of study during which he or she does not receive a student loan;

(b) refuse a suspension in the obligation to make payments under the consolidated loan agreement under sections 36 to 39.1; or

(c) deny the individual a reduction in the amount of principal outstanding under the consolidated loan agreement under section 33 or 40.2. O. Reg. 168/04, s. 25 (4).

Restrictions on Future Eligibility for Student Loans and other Benefits under this Regulation

Minister’s determination

42.1 (1) The Minister may determine that an individual shall not be eligible, for such period as the Minister may determine, to receive a certificate of loan approval if any of the following circumstances exist:

1. The individual has not given the Minister all of the information and documents required by the Minister to administer the program of award, grants or student loans which the individual has received under the Act, including information about the individual’s academic status, financial status or family status during a period of study.

2. The individual has given the Minister incorrect information relating to a student loan or to a program of awards, grants or bursaries made by the Government of Ontario, the Government of Canada or the government of any other province or territory of Canada or of any other country, or has not informed the Minister promptly about any change to information previously given to the Minister.

3. The individual has been convicted of an offence under the Ministry of Training, Colleges and Universities Act, the Canada Student Loans Act or the Canada Student Financial Assistance Act or an offence under the Criminal Code (Canada) involving fraud or theft in respect of any student assistance program or a loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.

4. The Minister considers, after consulting with the approved institutions at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study. O. Reg. 168/04, s. 26; O. Reg. 119/07, s. 27 (1).

(2) If any of the circumstances described in paragraphs 1, 2 or 3 of subsection (1) exist, the Minister may determine that the individual, in addition to being ineligible for a certificate of loan approval, shall, for such period as the Minister may determine, not be eligible for any of the following types of benefits available under this Regulation with respect to the repayment of the individual’s outstanding student loans:

1. Retaining the status of a qualifying student under section 24 or 25 or subsection 27 (2) during a period of study during which the individual does not receive a student loan.

2. A suspension in the obligation to make payments under a consolidated loan agreement under sections 36 to 39.1.

3. A reduction in the amount of principal outstanding on the student loans under section 40.2.

4. The termination of the individual’s obligation to make payments under a consolidated loan agreement under section 40.4. O. Reg. 168/04, s. 26.

(3) Upon making a determination under this section, the Minister shall give the individual notice of the determination and of the length of the period of ineligibility. O. Reg. 168/04, s. 26.

(4) The period of ineligibility begins on the day specified in the notice given and shall be for a period of up to five years as the Minister may determine, subject to subsection (5). O. Reg. 168/04, s. 26.

(5) If a determination of ineligibility is made under this section because of the existence of circumstances described in paragraph 1, 2 or 3 of subsection (1), the period of ineligibility shall continue until the later of,

(a) the end of the period specified by the Minister in the notice; and

(b) the day the individual repays all amounts of principal and interest outstanding on student loans previously made to the individual under the Act and repays to the Minister any of the following amounts that the Minister may require the individual to repay in the notice of determination:

(i) Any awards or grants made to the individual by the Minister.

(ii) The amount of any interest paid by the Minister on behalf of the individual as a result of an individual’s obligations to pay principal and interest being suspended under section 26.

(iii) The amount of any reduction of the amount of principal outstanding under a consolidated loan agreement granted to the individual under section 33 or 40.2.

(iv) The amount of any payments that were suspended under section 36, 39 or 39.1 and any interest thereon.

(v) The amount of any principal and interest outstanding under a consolidated loan agreement at the time the individual’s payment obligations under the agreement were terminated under section 40.4. O. Reg. 168/04, s. 26.

(6) An individual who is the subject of a determination under subsection (1) shall not receive a reduction under section 33 of any amount of principal on student loans outstanding at the time of the determination. O. Reg. 168/04, s. 26.

(7) Despite subsection (6) and subject to subsection (8), at the end of the period of ineligibility specified by the Minister in the notice under subsection (1), the Minister may, having regard to the particular facts and special circumstances of the individual, determine that the amount of principal outstanding on student loans shall be reduced in accordance with section 33 if the individual is otherwise eligible for the reduction. O. Reg. 119/07, s. 27 (2).

(8) A reduction granted under subsection (7) shall not be granted with respect to any student loans received for a particular period of study if,

(a) the student loan was received based on incorrect or incomplete information as described in paragraphs 1 and 2 of subsection (1);

(b) the period of study in respect of which the loan was granted is the period of study during which,

(i) the individual committed the act or omission which led to a conviction referred to in paragraph 3 of subsection (1), or

(ii) the individual failed to make satisfactory progress resulting in a determination by the Minister under paragraph 4 of subsection (1). O. Reg. 119/07, s. 27 (2).

General

Subrogation of the Crown

43. (1) If the Minister pays to a lender the amount of a loss sustained by the lender as a result of a student loan, Her Majesty in right of Ontario is subrogated in and to the rights of the lender in respect of the student loan. O. Reg. 268/01, s. 43 (1).

(2) If Her Majesty in right of Ontario is subrogated in and to the rights of the lender in respect of the loan, then upon the subrogation the loan constitutes a debt to the Crown. O. Reg. 268/01, s. 43 (2).

Payments by lenders to the Minister

44. If the Minister pays to a lender an amount in respect of a student loan, the lender shall remit to the Minister all amounts that may be collected or realized by the lender pursuant to the student loan agreement or consolidated loan agreement. O. Reg. 268/01, s. 44.

Effect of false statements

45. (1) If a service provider or lender discovers that a document pertaining to a student loan contains a false statement, the service provider or lender shall promptly report the matter to the Minister. O. Reg. 268/01, s. 45 (1).

(2) Upon discovering that the document contains a false statement, the service provider or lender may take any action that he, she or it considers appropriate in the circumstances, with the approval of the Minister. O. Reg. 268/01, s. 45 (2).

Officers authorized to issue certificates

46. The Deputy Minister of Training, Colleges and Universities and the Director, Student Support Branch, Ministry of Training, Colleges and Universities are authorized to approve loans under section 8 of the Act. O. Reg. 268/01, s. 46.

Authority of service providers

47. A service provider may act on behalf of one or more lenders in exercising rights and performing duties under this Regulation, if authorized to do so by each lender. O. Reg. 268/01, s. 47.

48. Omitted (provides for coming into force of provisions of this Regulation). O. Reg. 268/01, s. 48.