O. Reg. 268/01: PRESCRIBED FINANCIAL INSTITUTIONS AND ONTARIO STUDENT LOANS MADE AFTER JULY 31, 2001
under Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19
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Loi sur le ministère de la Formation et des Collèges et Universités
ONTARIO REGULATION 268/01
PRESCRIBED FINANCIAL INSTITUTIONS AND ONTARIO STUDENT LOANS MADE AFTER JULY 31, 2001
Historical version for the period November 1, 2010 to December 14, 2011.
Last amendment: O. Reg. 333/10.
This Regulation is made in English only.
CONTENTS
PART I | |
Financial institution | |
PART II | |
Application | |
Definitions | |
Obtaining and repaying a student loan | |
Period of loan | |
Applying for a certificate of loan approval | |
Prerequisites for certificate | |
Residency requirement | |
Approved program of study | |
Approved institutions | |
Minimum required course load | |
Issuance of certificate and criteria for issuance | |
Education costs of an individual | |
Expected contributors to an individual’s education costs | |
Financial resources of an individual | |
Grounds for refusing to issue a certificate | |
Restrictions on issuance of certificate | |
Further restrictions re: bankruptcy | |
Scope and duration of certificate | |
Maximum amount of loan approved by a certificate | |
Replacement certificate | |
Applying for a student loan | |
Student loan agreement | |
Restriction on advances | |
Duty to give notice of material change in circumstances | |
Change of address | |
Qualifying student | |
Confirmation of enrolment by institution | |
Confirmation of enrolment by Minister | |
Effect of status as qualifying student | |
Ceasing to be a qualifying student | |
Requirement for a consolidated loan agreement | |
Arrangement if there is no consolidated loan agreement | |
Obligation to pay interest | |
Repayment terms | |
Amendment to prevent default | |
Ontario Student Opportunity Grant | |
Repayment to Minister | |
Definitions | |
Repayment assistance | |
Two stages of repayment assistance | |
Application and approval process | |
Eligibility requirements | |
Determination of monthly affordable payment | |
Determination of monthly required payment | |
Repayment assistance period | |
Suspension of repayment terms in agreement | |
Monthly payments during repayment assistance | |
Failure to make payments | |
Return to school | |
Transitional provisions | |
Severe permanent disability benefit | |
What constitutes default | |
Consequences of default | |
Restrictions on Future Eligibility for Student Loans and other Benefits under this Part | |
Minister’s determination | |
Subrogation of the Crown | |
Payments by lenders to the Minister | |
Effect of false statements | |
Officers authorized to issue certificates | |
Authority of service providers | |
PART I
PRESCRIBED FINANCIAL INSTITUTIONS
Financial institution
0.1 For the purposes of the definition of “financial institution” in section 1 of the Act, the following corporation is prescribed:
1. The Ontario Student Loan Trust, a trust established by deed of the Deputy Minister of Training, Colleges and Universities dated July 9, 2001 and updated from time to time. O. Reg. 333/10, s. 2.
PART II
ONTARIO STUDENT LOANS MADE AFTER JULY 31, 2010
Application and Interpretation
Application
1. This Part applies with respect to student loans made after July 31, 2001. O. Reg. 268/01, s. 1; O. Reg. 333/10, s. 4.
Definitions
“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);
“borrower” means a person who has been issued a student loan under this Part and who has either entered into a consolidated loan agreement for the repayment of the loan or is repaying the loan in accordance with section 29;
“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) the Ontario Student Loan Trust, or
(b) the Minister, if he or she makes a student loan;
“Ontario Student Loan Trust” means the trust referred to in section 0.1;
“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, other than a post-secondary educational institution, who provides services with respect to the disbursement, administration, management or delivery of student loans by virtue of,
(a) an agreement with the Minister, or with another Minister of the Crown in right of Ontario, for the provision of those services, or
(b) if the Minister has entered into an agreement with the Government of Canada for the provision of those services, an agreement with the Government of Canada for the provision of those services;
“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; O. Reg. 333/10, s. 5 (1-5).
(2) For the purposes of this Part, 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); O. Reg. 333/10, s. 5 (6).
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 40.8 and by the terms of the consolidated loan agreement. O. Reg. 268/01, s. 3 (5); O. Reg. 168/04, s. 2; O. Reg. 333/10, s. 6.
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
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.
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.
(4) In determining an individual’s financial resources under subsection (2), the Minister shall not include any income the individual receives under a plan that is a registered disability savings plan within the meaning of section 146.4 of the Income Tax Act (Canada). O. Reg. 333/10, s. 8.
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 was issued a student loan in respect of a previous period of study and has not repaid all amounts due with respect to that previous loan if the individual,
(a) was granted repayment assistance at the debt reduction stage under sections 35 to 40.7 in respect of the previous student loan or under sections 12 to 12.12 of Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001), made under the Act, other than an individual described in clause (b);
(b) has a permanent disability and was granted repayment assistance at the debt reduction stage under sections 35 to 40.7 or under sections 12 to 12.12 of Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001), made under the Act in respect of the previous student loan and at least 60 months has elapsed since he or she last was a qualifying student; or
(c) was granted a reduction of the amount outstanding under the previous student loan under section 40.2 of this Regulation as it read on October 31, 2010 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, as it read on October 31, 2010. O. Reg. 333/10, s. 9.
(4) The Minister shall not issue a certificate of loan approval to an individual who has been granted a severe permanent disability benefit under section 40.8 or under section 13 of Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001), made under the Act. O. Reg. 333/10, s. 9.
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 Part 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; O. Reg. 333/10, s. 10 (1).
(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 Part 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); O. Reg. 333/10, s. 10 (2).
(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).
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 while the certificate is valid. O. Reg. 268/01, s. 19 (1); O. Reg. 333/10, s. 11 (1).
(2), (3) Revoked: O. Reg. 333/10, s. 11 (2).
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 Part. O. Reg. 268/01, s. 20 (3); O. Reg. 333/10, s. 12.
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”, with respect to a rate of interest, means the average variable reference rate of interest as calculated monthly, based upon the average variable reference rates of interest for a 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 the Toronto Dominion Bank as their rate for Canadian dollar consumer demand loans, and calculated without reference to the highest and the lowest of those five rates and by averaging the remaining three rates. O. Reg. 268/01, s. 30 (3); O. Reg. 168/04, s. 17; O. Reg. 333/10, s. 13.
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) Despite anything in this section, an individual shall not receive a reduction in the principal amount owing on his or her student loans under this section if he or she,
(a) was granted repayment assistance at the debt reduction stage under sections 35 to 40.7 in respect of the student loans and he or she is not an individual described in clause (b);
(b) has a permanent disability and was granted repayment assistance at the debt reduction stage under sections 35 to 40.7 in respect of the student loans and at least 60 months has elapsed since he or she last was a qualifying student; or
(c) was granted a reduction of the amount outstanding under the student loans under section 40.2 of this Regulation as it read on October 31, 2010 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, as it read on October 31, 2010. O. Reg. 333/10, s. 14.
(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.
Definitions
35. In this section and in sections 36 to 40.7,
“federal student loan” means a loan made by the Government of Canada under the Canada Student Financial Assistance Act (Canada) or the Canada Student Loans Act (Canada);
“monthly affordable payment” means the amount that a borrower can reasonably afford to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 40;
“monthly required payment” means the amount that a borrower would be required to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 40.1;
“permanent disability” means a functional limitation caused by a physical or mental impairment that,
(a) restricts the ability of the person to perform the daily activities necessary to participate in studies at a postsecondary school level or in the labour force, and
(b) is expected to remain with the person for the duration of the person’s life;
“provincial student loan” means a student loan made under this Part or a loan made to a student for educational purposes by the government of a province other than Ontario or by the government of a territory of Canada. O. Reg. 333/10, s. 15.
Repayment assistance
36. (1) A borrower under a consolidated loan agreement who is having difficulty paying amounts on principal and interest under the agreement may apply for repayment assistance in accordance with section 38. O. Reg. 333/10, s. 15.
(2) The repayment assistance available under this Part includes the following two forms of assistance:
1. A reduction in the borrower’s monthly payments on the student loans.
2. Assistance from the Minister in paying off the borrower’s outstanding student loans by making monthly payments on the loans. O. Reg. 333/10, s. 15.
(3) The amount of assistance provided by the Minister shall be determined so that,
(a) in the case of a person receiving repayment assistance other than a person described in clause (b), the recipient’s student loans are repaid in full within 15 years from the day the recipient last was a qualifying student; and
(b) in the case of a person with a permanent disability who is receiving repayment assistance and who, in an application for repayment assistance, discloses his or her disability, the recipient’s student loans are paid in full within 10 years from the day he or she last was a qualifying student. O. Reg. 333/10, s. 15.
(4) The assistance provided by the Minister to the borrower, whether by means of amounts paid to lender on behalf of the borrower or by any other means, shall be deemed to be a grant made to the borrower under section 5 of the Act. O. Reg. 333/10, s. 15.
Two stages of repayment assistance
37. (1) There are two stages of repayment assistance provided under this Part:
1. Stage 1, known as the interest relief stage. During this stage, the monthly assistance provided by the Minister shall consist solely of amounts payable on account of interest owing on the outstanding student loans.
2. Stage 2, known as the debt reduction stage. During this stage, the monthly assistance provided by the Minister shall include such amounts payable on account of principal and interest owing on the outstanding student loans as are required so as to ensure that the student loans are repaid in full within the time period specified in subsection 36 (3). O. Reg. 333/10, s. 15.
(2) Subject to subsection (4), the two stages of repayment assistance are consecutive and a borrower must receive the interest relief stage of repayment assistance for the full period of time for which it is available under subsection (3) before he or she is entitled to receive the debt reduction stage of repayment assistance. O. Reg. 333/10, s. 15.
(3) A borrower may receive repayment assistance at the interest relief stage for a period of up to 60 months, subject to sections 40.6 and 40.7. O. Reg. 333/10, s. 15.
(4) A borrower who meets the eligibility requirements specified in subsection 39 (1) and in either paragraph 2 or 3 of subsection 39 (3) is eligible for repayment assistance at the debt reduction stage without having received the interest relief stage of repayment assistance for the full 60 months referred to in subsection (3). O. Reg. 333/10, s. 15.
Application and approval process
38. (1) A borrower who wishes to receive repayment assistance shall submit an application for the assistance to a service provider. O. Reg. 333/10, s. 15.
(2) The application shall be in the form approved by the Minister and shall provide the service provider with information relating to the applicant’s family status, number of family members and family income, and such other information as may be required to determine eligibility for the repayment assistance. O. Reg. 333/10, s. 15.
(3) If the service provider determines that the applicant meets the eligibility requirements under sections 39, 40 and 40.1, the applicant shall be entitled to receive repayment assistance for a period of six months. O. Reg. 333/10, s. 15.
(4) If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, he or she shall submit an application for the assistance to a service provider no later than 30 days after the end of the six month period. O. Reg. 333/10, s. 15.
(5) Subsections (2), (3) and (4) apply with necessary modifications to every successive application for repayment assistance made under subsection (1) until the borrower’s student loans are repaid in full. O. Reg. 333/10, s. 15.
Eligibility requirements
39. (1) A borrower must meet the following requirements in order to be eligible for repayment assistance under this Part:
1. The borrower resides in Canada.
2. The borrower has submitted an application to the service provider in accordance with section 38.
3. The borrower has entered into a consolidated loan agreement.
4. The borrower is not ineligible under section 40.5 after failing to make the monthly payments in a previous repayment assistance period.
5. The borrower’s monthly affordable payment is less than his or her monthly required payment.
6. The borrower satisfies the eligibility requirements for the interest relief stage of repayment assistance described in subsection (2) or for the debt reduction stage of repayment assistance described in subsection (3). O. Reg. 333/10, s. 15.
(2) A borrower must meet all of the following requirements in order to be eligible for the interest relief stage of repayment assistance:
1. Since the borrower last was a qualifying student, he or she,
i. has not received any repayment assistance, or
ii. has received repayment assistance at the interest relief stage for a total period of time of less than 60 months.
2. Less than 10 years has elapsed since the borrower last was a qualifying student.
3. The borrower does not disclose a permanent disability in his or her application for repayment assistance. O. Reg. 333/10, s. 15.
(3) A borrower must meet at least one of the following requirements in order to be eligible for the debt reduction stage of repayment assistance:
1. Since the borrower last was a qualifying student, he or she has received repayment assistance at the interest relief stage for 60 months.
2. 10 years or more has elapsed since the borrower last was a qualifying student.
3. The borrower has a permanent disability and discloses, in an application for repayment assistance, his or her disability. O. Reg. 333/10, s. 15.
(4) Despite anything in this section, a borrower who meets the eligibility requirements in this section shall not be eligible for repayment assistance if the Minister,
(a) denies repayment assistance in accordance with subsection 42 (5); or
(b) has determined that the borrower is ineligible for repayment assistance for a period of time under subsection 42.1 (2). O. Reg. 333/10, s. 15.
39.1 Revoked: O. Reg. 333/10, s. 15.
Determination of monthly affordable payment
40. (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 5 of subsection 39 (1), the borrower’s monthly affordable payment shall be determined in accordance with this section, having regard to the number of persons in his or her family and to his or her family income. O. Reg. 333/10, s. 15.
(2) If a borrower’s monthly family income is equal to or less than the threshold amount set out in Column 2 to the Table to this subsection, opposite the number of members in the borrower’s family, the borrower’s monthly affordable payment shall be a nil amount.
TABLE
THRESHOLD AMOUNT FOR FAMILY INCOME
Column 1 |
Column 2 |
Number of Family Members |
Threshold Amount |
1 |
$1,684 |
2 |
$2,631 |
3 |
$3,399 |
4 |
$4,009 |
5 or more |
$4,569 |
O. Reg. 333/10, s. 15.
(3) If a borrower’s monthly family income is greater than the threshold amount set out in Column 2 to the Table to subsection (2), opposite the number of members in the borrower’s family, the amount of the borrower’s monthly affordable payment shall be equal to the lesser of,
(a) 20 per cent of the person’s monthly family income; and
(b) the portion of the person’s monthly family income obtained by multiplying that income by the following formula:
where,
A is the borrower’s family income,
B is the appropriate threshold amount set out in Column 2 to the Table to subsection (2) for a family with the number of members in the borrower’s family,
C is the monthly increment for a family with the number of members in the borrower’s family, as set out in the Table to this subsection.
TABLE
MONTHLY INCREMENTS
Column 1 |
Column 2 |
Number of Family Members |
Monthly increment |
1 |
$250 |
2 |
$350 |
3 |
$425 |
4 |
$500 |
5 or more |
$575 |
O. Reg. 333/10, s. 15.
(4) If the borrower has a spouse who has received federal or provincial student loans and has begun repayment of those loans as required under the Act or under the laws of the appropriate jurisdiction, the borrower’s monthly affordable payment as determined under subsection (3) shall be adjusted in accordance with the following formula:
where,
A is the borrower’s monthly affordable payment as determined under subsection (3),
B is the borrower’s total outstanding federal and provincial student loans,
C is the sum of the borrower’s total outstanding federal and provincial student loans and the spouse’s total outstanding federal and provincial student loans that are in repayment.
O. Reg. 333/10, s. 15.
(5) In this section,
“family” means the borrower, his or her spouse, if any, and any person who is wholly dependent on either of them;
“family income” means the borrower’s gross income and that of his or her spouse, if any, from all sources less, in the case of a borrower with a permanent disability, any expenses related to the disability that are not covered by public health care or private insurance. O. Reg. 333/10, s. 15.
Subsequent Reductions in Principal
Determination of monthly required payment
40.1 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 5 of subsection 39 (1), the borrower’s monthly required payment shall be equal to the monthly payment obtained by amortizing the amount of principal on all of his or her federal and provincial student loans outstanding at the time of the application for repayment assistance over the appropriate period of time determined under subsection (2) and using the interest rate determined under subsection (3). O. Reg. 333/10, s. 15.
(2) The amortization period used to determine a borrower’s monthly required payment shall be the greater of six months and one of the following periods of time:
1. In the case of a borrower who is applying for repayment assistance at the interest relief stage, the number of months obtained by,
i. subtracting the number of months since the borrower last was a qualifying student from 120 months, and
ii. adding the number of months that the borrower has previously received repayment assistance at the interest relief stage since the borrower last was a qualifying student, if any, to the difference obtained under subparagraph i.
2. In the case of a borrower applying for repayment assistance at the debt reduction stage, other than a person referred to in paragraph 3, the number of months obtained by subtracting the number of months since the date the borrower last was a qualifying student from 180 months.
3. In the case of a borrower with a permanent disability applying for repayment assistance at the debt reduction stage, the number of months obtained by subtracting the number of months since the date the borrower last was a qualifying student from 120 months. O. Reg. 333/10, s. 15.
(3) The rate of interest used to determine a borrower’s monthly required payment shall be equal to the average of the interest rates applicable to all of the borrower’s federal and provincial student loans, such average to be weighted based on the proportion of the borrower’s outstanding principal in each jurisdiction to the total amount of the borrower’s outstanding federal and provincial student loans. O. Reg. 333/10, s. 15.
Repayment assistance period
40.2 (1) If a borrower is granted repayment assistance, the six-month repayment assistance period shall commence at the beginning of the month in which the application for repayment assistance is submitted to the service provider. O. Reg. 333/10, s. 15.
(2) Despite subsection (1), a service provider may, at the request of an applicant, backdate the commencement of the repayment assistance period if the applicant has failed to pay the principal amount and any interest on his or her outstanding student loans during the months previous to his or her application for repayment assistance. O. Reg. 333/10, s. 15.
(3) The service provider shall not backdate the commencement of the repayment assistance period by more than six months. O. Reg. 333/10, s. 15.
Suspension of repayment terms in agreement
40.3 (1) If a borrower is granted repayment assistance, then during the repayment assistance period,
(a) the terms of the repayment of the student loan set out in the borrower’s consolidated loan agreement are suspended and of no effect; and
(b) instead of the payments required under the consolidated loan agreement, payments shall be made each month on the borrower’s outstanding student loans by the borrower and the Minister in an amount equal to all or part of the Ontario portion of the borrower’s monthly required payment, as determined in accordance with section 40.4. O. Reg. 333/10, s. 15.
(2) At the end of the repayment assistance period, the suspension of repayment terms in the consolidated loan agreement between the borrower and the lender in clause (1) (a) is lifted, subject to such amendments to the consolidated loan agreement as may be agreed to by the parties. O. Reg. 333/10, s. 15.
(3) Subsection (2) does not apply if the borrower is granted a subsequent six-month period of repayment assistance immediately upon the expiry of a previous repayment assistance period and the suspension of repayment terms is consequently extended. O. Reg. 333/10, s. 15.
(4) In this section and in section 40.4,
“Ontario portion” means, in relation to the monthly required payment or the monthly affordable payment, the portion of the payment proportional to the portion of all of the borrower’s federal and provincial student loans that is equal to the student loans issued under this Part. O. Reg. 333/10, s. 15.
Monthly payments during repayment assistance
40.4 (1) If a borrower is granted repayment assistance at the interest relief stage, the part of the Ontario portion of the borrower’s monthly required payment that is equal to the sum of the following amounts shall be paid each month on the borrower’s outstanding student loans:
1. The borrower shall pay to the lender the Ontario portion of his or her monthly affordable payment.
2. The Minister shall pay to the lender any interest payable as part of the Ontario portion of the borrower’s monthly required payment that is not paid by the borrower under paragraph 1. O. Reg. 333/10, s. 15.
(2) For greater certainty, during the interest relief stage of repayment assistance, any part of the Ontario portion of a borrower’s monthly required payment that is attributable to principal and not covered by the borrower’s payment under paragraph 1 of subsection (1) is not payable to the lender. O. Reg. 333/10, s. 15.
(3) If a borrower is granted repayment assistance at the debt reduction stage, all of the Ontario portion of the borrower’s monthly required payment shall be paid each month on the borrower’s outstanding student loans as follows:
1. The borrower shall pay to the lender the Ontario portion of his or her monthly affordable payment.
2. The Minister shall pay to the lender any part of the Ontario portion of the borrower’s monthly required payment, whether attributable to interest alone or to both principal and interest, that is not paid by the borrower under paragraph 1. O. Reg. 333/10, s. 15.
(4) A monthly payment made by the borrower under this section shall be paid to the lender each month at the same time as the monthly amounts otherwise payable under the consolidated loan agreement would have been paid. O. Reg. 333/10, s. 15.
(5) Despite subsection 31 (5), a monthly payment made by the borrower under this section shall be applied by the lender against the borrower’s outstanding student loans as follows:
1. The full amount of the payment shall be applied first against the part of the Ontario portion of the monthly required payment that would be payable on the outstanding principal.
2. If the amount of the payment exceeds the amount of principal payable as part of the Ontario portion of the monthly required payment, the excess amount shall be applied against the interest payable as part of the Ontario portion of the monthly required payment. O. Reg. 333/10, s. 15.
(6) Despite anything in subsections (1) and (3), the Minister is not required to pay an amount under this section in respect of a month during a repayment assistance period if the borrower fails to make a payment as required under this section in respect of that month. O. Reg. 333/10, s. 15.
(7) Despite anything in this section, if the Minister is the lender under a consolidated loan agreement, the Minister shall be deemed to comply with this section by forgiving each month the portion of the borrower’s outstanding student loans that is equal to the payments that the Minister is otherwise required to make under this section. O. Reg. 333/10, s. 15.
(8) If there is a conflict between a provision of a consolidated loan agreement and this section, this section prevails. O. Reg. 333/10, s. 15.
Failure to make payments
40.5 (1) If a borrower fails to make one or more monthly payments that he or she is required to make during a repayment assistance period to a lender, the borrower shall pay all missed payments to the lender on or before 30 days after the end of the repayment assistance period. O. Reg. 333/10, s. 15.
(2) A borrower who fails to pay to the lender all the missed monthly payments as required under subsection (1) shall no longer be eligible for repayment assistance under this Part unless after the failure the borrower,
(a) pays all arrears of interest owing under the consolidated loan agreement;
(b) makes at least six consecutive monthly payments under the consolidated loan agreement; and
(c) is otherwise eligible for repayment assistance under section 39. O. Reg. 333/10, s. 15.
Return to school
40.6 If a borrower receives repayment assistance under this Part or under Regulation 774 of the Revised Regulations of Ontario (Ontario Student Loans made before August 1, 2001), made under the Act, and subsequently returns to school and becomes a qualifying student once again, the repayment assistance received before the return to school shall not be considered for purposes of determining eligibility for any further repayment assistance that the borrower may apply to receive after completing the further period of study. O. Reg. 333/10, s. 15.
Transitional provisions
40.7 (1) This section applies to any application for repayment assistance under this Part made by a person whose payment obligations under a consolidated loan agreement were suspended for a period of six months on one or more occasions under old section 36 or 39. O. Reg. 333/10, s. 15.
(2) In this section,
“new section” means a section in this Part as it reads on and after November 1, 2010;
“old section” means a section in this Part as it read on October 31, 2010. O. Reg. 333/10, s. 15.
(3) A person described in subsection (1) is eligible for repayment assistance under this Part if he or she meets the eligibility requirements under new sections 39, 40 and 40.1, subject to the following rules that apply for purposes of determining whether the person meets the eligibility requirements:
1. Any month during which the person’s payment obligations were suspended under old section 36 or 39 since the person last was a qualifying student is deemed to be a month during which the person received repayment assistance at the interest relief stage under the amended Part.
2. Any month during which the person’s payment obligations were suspended under old section 36 or 39 before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance under the Part. O. Reg. 333/10, s. 15.
Severe Permanent Disability Benefit
Severe permanent disability benefit
“severe permanent disability” means a permanent disability as defined under section 35 that is so severe that,
(a) it not only restricts but prevents a borrower from performing the daily activities necessary to participate in studies at a postsecondary school level and in the labour force; and
(b) the degree of functional limitation described in clause (a) is expected to remain with the person for the duration of their life. O. Reg. 333/10, s. 15.
(2) A person who has a severe permanent disability is entitled to have the outstanding amount on his or her student loans forgiven if he or she meets the following eligibility requirements:
1. The person is a Canadian citizen or is a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada).
2. The person resides in Canada.
3. The person has submitted an application to the Minister for the severe permanent disability benefit.
4. The person satisfies the Minister that, by reason of his or her severe permanent disability, the person is unable to repay the student loan and will never be able to do so. O. Reg. 333/10, s. 15.
(3) If a student loan issued under this Part is forgiven under this section, the Minister shall,
(a) in a case where the lender is a financial institution, pay to the lender the full amount (principal and interest) outstanding on the loan; and
(b) in a case where the lender is the Minister, forgive the full amount outstanding on the loan. O. Reg. 333/10, s. 15.
What constitutes default
41. A borrower is in default of his or her obligations to repay student loans if he or she,
(a) unequivocally refuses to pay the loans; or
(b) is in arrears by at least three months under the consolidated loan agreement or under the arrangement established by the lender under section 29, as a result of failing to make monthly payments on at least three separate occasions. O. Reg. 333/10, s. 16.
Consequences of default
42. (1) When a borrower 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 borrower unequivocally refuses to pay the loans, the day of the refusal.
2. If the default occurs because the borrower fails to make monthly payments on at least three separate occasions, the day of the third missed payment. O. Reg. 333/10, s. 17.
(2) When a borrower’s loans are 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. 333/10, s. 17.
(3) When a borrower defaults on his or her obligation to make payments under a consolidated loan agreement, the Minister may,
(a) deny the borrower 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 the borrower any repayment assistance under sections 35 to 40.7; or
(c) deny the borrower a reduction in the amount of principal outstanding under the consolidated loan agreement under section 33. O. Reg. 333/10, s. 17.
Restrictions on Future Eligibility for Student Loans and other Benefits under this Part
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 Part 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. Repayment assistance under sections 35 to 40.7.
3. Severe permanent disability benefits under section 40.8.
4. Revoked: O. Reg. 333/10, s. 19 (2).
O. Reg. 168/04, s. 26; O. Reg. 333/10, s. 19 (1, 2).
(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.
(iii.1) The amount of any assistance provided by the Minister as part of any repayment assistance granted to the individual under sections 35 to 40.7.
(iii.2) The amount of any severe permanent disability benefit granted to the individual under section 40.8.
(iii.3) The amount of any reduction of the amount of principal outstanding under a consolidated loan agreement granted to the individual under section 40.2, as that section read on October 31, 2010.
(iv) The amount of any payments that were suspended under section 36, 39 or 39.1, as those sections read on October 31, 2010 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 as that section read on October 31, 2010. O. Reg. 168/04, s. 26; O. Reg. 333/10, s. 19 (3-6).
(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).
(9) If the Minister makes a determination before November 1, 2010 that an individual is ineligible for a specified period for any of the types of relief from repayment obligations under a consolidated loan agreement referred to in paragraph 2 or 3 of subsection (2), as those paragraphs read on October 31, 2010, and if the specified ineligibility period is still in effect on November 1, 2010, then the individual is deemed to be ineligible for repayment assistance under sections 35 to 40.7 for the remainder of the ineligibility period. O. Reg. 333/10, s. 19 (7).
(10) If the Minister makes a determination before November 1, 2010 that an individual is ineligible for a specified period for the relief from repayment obligations under a consolidated loan agreement referred to in paragraph 4 of subsection (2), as that paragraph read on October 31, 2010, and if the specified ineligibility period is still in effect on November 1, 2010, then the individual is deemed to be ineligible for the severe permanent disability benefit under section 40.8 for the remainder of the ineligibility period. O. Reg. 333/10, s. 19 (7).
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 Financial Assistance Branch, Ministry of Training, Colleges and Universities are authorized to approve loans under section 8 of the Act. O. Reg. 268/01, s. 46; O. Reg. 333/10, s. 20.
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.