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O. Reg. 768/20: ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS

under Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19

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Ministry of Training, Colleges and Universities Act

ONTARIO REGULATION 768/20

ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS

Consolidation Period:  From March 17, 2022 to the e-Laws currency date.

Last amendment: 220/22.

Legislative History: 220/22.

This is the English version of a bilingual regulation.

CONTENTS

1.

Application of this Regulation

2.

Definitions

Application For Micro-Credential Grant or Micro-Credential Student Loan

3.

Applying for a grant or student loan

4.

Period of grant or student loan

Eligibility

5.

Eligibility for a grant or student loan

6.

Residency requirement

7.

Approved program of study

8.

Approved institutions

9.

Financial eligibility

Restrictions on Issuing a Micro-Credential Grant or Micro-Credential Student Loan

10.

Restrictions

11.

Overlapping periods of study

12.

Individual’s finances; other loans, grants, benefits, etc.

13.

Actions of individual

14.

Restrictions on future eligibility

15.

Bankruptcy

Notice of Assessment

16.

Issuing a notice of assessment

17.

Maximum amount of grant and student loan

Obtaining a Micro-Credential Grant or Micro-Credential Student Loan

18.

Obtaining the grant or student loan

19.

Grant or loan directed to institution

20.

Micro-credential student loan agreement

Repayment of Overpayment of a Micro-Credential Grant

21.

Repayment of overpayment of a grant

Maintaining Status as a Qualifying Student

22.

Effect of status as qualifying student

23.

Qualifying student

24.

Confirmation of enrolment by institution

25.

Confirmation of enrolment by Minister

26.

Ceasing to be a qualifying student

Repayment Notice and Repayment Terms

27.

Repayment notice

28.

Obligation to pay interest

30.

Repayment terms

31.

Amendment to prevent default

Repayment Assistance Plan

31.1

Definitions

31.2

Repayment assistance

31.3

Two stages of repayment assistance

31.4

Application and approval process

31.5

Eligibility requirements

31.6

Determination of monthly affordable payment

31.7

Determination of monthly required payment

31.8

Repayment assistance period

31.9

Suspension of repayment terms in agreement

31.10

Monthly payments during repayment assistance

31.11

Failure to make payments

31.12

Return to school and transition

Severe Permanent Disability Benefit

31.13

Severe permanent disability benefit

Default on a Micro-Credential Student Loan

32.

What constitutes default

33.

Consequences of default

Loan Rehabilitation

33.1

Definitions

33.2

Application for rehabilitation

33.3

Suspension of rehabilitation

33.4

Rehabilitation attempt

33.5

Effect of rehabilitation

General

34.

Duty to give notice of material change in circumstances

35.

Change of address

36.

Effect of false statements

37.

Officers authorized to issue notices of assessment

38.

Authority of service providers

 

Application of this Regulation

1. This Regulation applies with respect to micro-credential grants and micro-credential student loans issued for periods of study that commence on or after January 1, 2021.

Definitions

2. In this Regulation,

“2001 Regulation” means Ontario Regulation 268/01 (Ontario Student Loans Made August 1, 2001 to July 31, 2017), made under the Act; (“Règlement de 2001”)

“2017 Regulation” means Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans), made under the Act; (“Règlement de 2017”)

“approved institution” means an institution described in section 8; (“établissement agréé”)

“approved program of study” means a program of study approved in accordance with section 7; (“programme d’études approuvé”)

“borrower” means a person who has received a micro-credential student loan and who is required to make repayments on the student loan under a repayment notice, but does not include a person whose student loan has been paid; (“emprunteur”)

“consolidated loan agreement” means an agreement described in section 28 of the 2017 Regulation, section 28 of the 2001 Regulation or section 8 of the pre-2001 Regulation; (“contrat de prêt consolidé”)

“expected contributor” means, in relation to an individual, another individual described in subsection 9 (4); (“personne dont une contribution est attendue”)

“micro-credential” means a credential offered by an approved institution that is not a certificate, diploma or degree; (“microcertification”)

“micro-credential grant” means an Ontario Student Grant issued to an individual pursuing a micro-credential; (“subvention pour une microcertification”)

“micro-credential student loan” means a student loan issued to an individual pursuing a micro-credential; (“prêt d’études pour une microcertification”)

“micro-credential student loan agreement” means an agreement entered into under section 20; (“contrat de prêt d’études pour une microcertification”)

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

“pre-2001 Regulation” means Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001), made under the Act; (“règlement antérieur au Règlement de 2001”)

“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; (“taux préférentiel”)

“qualifying student” means a student described in section 23; (“étudiant admissible”)

“repayment notice” means a notice described in section 27; (“avis de remboursement”)

“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; (“fournisseur de 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. (“conjoint”) O. Reg. 768/20, s. 2; O. Reg. 220/22, s. 1.

Application For Micro-Credential Grant or Micro-Credential Student Loan

Applying for a grant or student loan

3. (1) An individual who wishes to obtain a micro-credential grant or micro-credential student loan must apply for it to the Minister, and the application must specify the period of study for which the grant or loan is needed as well as the approved institution and approved program of study in which the individual is enrolled or intends to be enrolled.

(2) The application must be in a form approved by the Minister.

Period of grant or student loan

4. (1) A micro-credential grant or micro-credential student loan may be issued for no more than one period of study in the approved program of study in which the student is or will be enrolled.

(2) An individual who wishes to obtain micro-credential grants or micro-credential student loans for more than one period of study must make a new application under subsection 3 (1) for each period of study.

Eligibility

Eligibility for a grant or student loan

5. An individual is eligible for a micro-credential grant or micro-credential student loan for a period of study if the Minister determines that he or she,

(a)  is a Canadian citizen, a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada) or a protected person within the meaning of subsection 95 (2) of that Act;

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

(c)  is enrolled in an approved program of study at an approved institution, as determined in accordance with sections 7 and 8; and

(d)  meets the financial eligibility requirement for receiving the grant or loan, as determined in accordance with section 9.

Residency requirement

6. (1) An individual meets the residency requirement for a micro-credential grant or micro-credential student loan if, on or before the day the period of study of the approved program of study in which the individual is or is to be 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 12 or more consecutive months since completing the 12-month period of residency in Ontario required under clause (a).

(2) In determining whether an individual or his or her expected contributor 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.

(3) Despite subsection (1), an individual who does not meet the residency requirement described in that subsection shall be deemed to meet the residency requirement for the purposes of issuing a micro-credential grant or micro-credential student loan 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 12 or more consecutive months; and

(b)  the individual,

(i)  is or will be attending an approved institution in Ontario and, as of the day the application is made, the individual resides in Ontario, or

(ii)  has previously received such a grant or student loan under this Regulation.

Approved program of study

7. (1) The Minister may approve a program of study as a program of study for which individuals may be eligible to receive a micro-credential grant or micro-credential student loan if the program,

(a)  is provided at an approved institution; and

(b)  consists of one period of study of less than 12 weeks.

(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 for academic purposes, as determined by that institution.

(3) 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.

Approved institutions

8. (1) The following institutions are approved institutions for the purposes of micro-credential grants and micro-credential student loans:

1.  Every university in Ontario, including any post-secondary educational institution that is affiliated or federated with such a university, the enrolments of which are counted for purposes of calculating annual operating grants and entitlements.

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

3.  The University of Guelph — Ridgetown Campus.

4.  Every Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017.

5.  The Royal Military College of Canada. O. Reg. 768/20, s. 8.

(2) An institution described in one of the following paragraphs is an approved institution for the purpose of micro-credential grants or micro-credential 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 or maintain a university or to provide all or part of a program leading to a degree.

3.  A private career college registered in Ontario under the Private Career Colleges Act, 2005.

4.  A private post-secondary institution in Ontario, other than one described in paragraph 2 or 3. O. Reg. 220/22, s. 2.

Financial eligibility

9. (1) An individual meets the financial eligibility requirement for receiving a micro-credential grant or micro-credential student loan for a particular period of study if, in the Minister’s opinion, the individual needs the grant or student loan in order to pursue the approved program of study for which the grant or loan application was made for that period of study.

(2) When deciding whether an individual needs the grant or 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.

(3) 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 cost allowance established by the Minister for such other expenses as the Minister considers relevant in the circumstances.

(4) The Minister may rely on the financial information of the following individuals for the purposes of determining the proportion of micro-credential grant to micro-credential student loan for another individual (the “student”) for a period of study in an approved program of study at an approved institution:

1.  The student’s parents or step-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 first day of the period of study, is the student’s spouse.

(5) 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 to contribute toward the individual’s education costs for the period.

(6) The Minister may rely on the information about the individual’s financial resources for the purposes of determining the proportion of micro-credential grant to micro-credential student loan for the individual.

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

1.  The individual’s total taxable and non-taxable income from all sources.

2.  The total taxable and non-taxable income from all sources of the individuals expected contributors.

3.  The number of other individuals that, in the opinion of the Minister, are dependants of the individual.

4.  Any other resources, assets or deductions of the individual and the individual’s expected contributors, if any, that the Minister considers to be relevant in the circumstances.

Restrictions on Issuing a Micro-Credential Grant or Micro-Credential Student Loan

Restrictions

10. Despite section 5, an individual who is eligible for a micro-credential grant or micro-credential student loan under that section may be refused the grant or student loan in accordance with sections 11 to 15.

Overlapping periods of study

11. The Minister shall not issue a micro-credential grant or micro-credential student loan in respect of a period of study in an approved program of study that overlaps with a period of study in another approved program of study for which the individual has received a micro-credential grant or micro-credential student loan.

Individual’s finances; other loans, grants, benefits, etc.

12. (1) The Minister may refuse to issue a micro-credential grant or micro-credential student loan 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 the student loan. O. Reg. 768/20, s. 12 (1).

(2) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual if the individual is in receipt of financial assistance under an educational program or employment training program funded directly or indirectly by the Province of Ontario. O. Reg. 768/20, s. 12 (2).

(3) The Minister shall not issue a micro-credential grant or micro-credential student loan to an individual who previously received a grant or student loan issued under the Act for which amounts have not been repaid, if the individual,

(a)  was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 31.1 to 31.12 of this Regulation, under sections 36 to 47 of the 2017 Regulation, under sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or under sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017, and the individual is not described in clause (b) or (b.1);

(b)  has a permanent disability and was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 36 to 47 of the 2017 Regulation, under sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or under sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017, and at least 60 months have elapsed since the individual last was a qualifying student as described in section 24 of the 2017 Regulation, a qualifying student as described in section 23 of the 2001 Regulation or a student or borrower deemed to be a student under section 11 or 11.1 of the pre-2001 Regulation;

(b.1)  has a permanent disability and was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 31.1 to 31.12 and at least 60 months have elapsed since the individual 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 the 2001 Regulation, as it read on October 31, 2010, or under section 9.4 of the pre-2001 Regulation, as it read on October 31, 2010. O. Reg. 768/20, s. 12 (3); O. Reg. 220/22, s. 3 (1).

(4) The Minister shall not issue a micro-credential grant or micro-credential student loan to an individual who has been granted a severe permanent disability benefit under section 31.13 of this Regulation, under section 48 of the 2017 Regulation, under section 40.8 of the 2001 Regulation, as that section read on March 9, 2017, or under section 13 of the pre-2001 Regulation, as that section read on March 9, 2017. O. Reg. 768/20, s. 12 (4); O. Reg. 220/22, s. 3 (2).

(5) Revoked: O. Reg. 220/22, s. 3 (3).

Actions of individual

13. (1) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual if the Minister considers, after consulting with the approved institution at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study.

(2) The Minister may refuse to issue a micro-credential grant or micro-credential student loan 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, any 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 awards, grants or student loans that 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 any grant or student loan, or has not informed the Minister promptly about any change to information previously given to the Minister.

4.  The individual has been found guilty 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 any loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.

Restrictions on future eligibility

14. (1) The Minister may determine that an individual shall not be eligible, for such period as the Minister may determine, to receive a micro-credential grant or micro-credential student loan 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 awards, grants or student loans that 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 any student loan or to any 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 any 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 institution at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study. O. Reg. 768/20, s. 14 (1).

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

1.  Retaining the status of a qualifying student under section 23 during a period of study during which the individual does not receive a micro-credential grant or micro-credential student loan.

2.  Repayment assistance under sections 31.1 to 31.12.

3.  A severe permanent disability benefit under section 31.13. O. Reg. 220/22, s. 4 (1).

(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. 768/20, s. 14 (3).

(4) The period of ineligibility begins on the day specified in the notice and shall be for a period of up to five years, as the Minister may determine, subject to subsection (5). O. Reg. 768/20, s. 14 (4).

(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 all 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 22 of this Regulation, section 23 of the 2017 Regulation, section 26 of the 2001 Regulation or section 11.2 of the pre-2001 Regulation.

(iii)  The amount of any reduction of the amount of principal outstanding granted to the individual under section 33 of the 2001 Regulation.

(iv)  The amount of any assistance provided by the Minister as part of any repayment assistance granted to the individual under sections 31.1 to 31.12 of this Regulation, under sections 36 to 47 of the 2017 Regulation, sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017.

(v)  The amount of any severe permanent disability benefit granted to the individual under section 31.13 of this Regulation, under section 48 of the 2017 Regulation, section 40.8 of the 2001 Regulation, as that section read on March 9, 2017, or section 13 of the pre-2001 Regulation, as that section read on March 9, 2017.

(vi)  The amount of any reduction of the amount of principal outstanding under a consolidated loan agreement granted to the individual under section 40.2 of the 2001 Regulation, as that section read on October 31, 2010, or sections 9.3 to 9.4 of the pre-2001 Regulation, as those sections read on October 31, 2010.

(vii)  The amount of any payments that were suspended under section 36, 39 or 39.1 of the 2001 Regulation, as those sections read on October 31, 2010, or under section 12, 12.1 or 12.2 of the pre-2001 Regulation, as those sections read on October 31, 2010, and any interest thereon.

(viii)  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 of the 2001 Regulation, as that section read on October 31, 2010, or under section 13.2 of the pre-2001 Regulation, as that section read on October 31, 2010. O. Reg. 768/20, s. 14 (5); O. Reg. 220/22, s. 4 (2, 3).

(6) If the Minister makes a determination under section 42.1 of the 2001 Regulation or section 16 of the 2017 Regulation that an individual is ineligible for a specified period for a student loan, and on January 1, 2021 the specified ineligibility period has not elapsed, then the individual is deemed to be ineligible for a micro-credential grant and a micro-credential student loan under this Regulation for the remainder of the ineligibility period. O. Reg. 768/20, s. 14 (6).

Bankruptcy

15. (1) This section applies with respect to an application for a micro-credential grant or micro-credential student loan 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.

(2) An individual enters into a recognized arrangement for debt settlement when any of the following events occurs:

1.  A proposal under Division I of Part III of the Bankruptcy and Insolvency Act (Canada) relating to the individual 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.

(3) The Minister shall not issue a micro-credential grant or micro-credential student loan 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 grant or student loan, has not received an order of absolute discharge or certificate of discharge under that Act.

(4) Despite subsection (3), the Minister may issue a micro-credential grant or micro-credential student loan if the individual satisfies the Minister that any grant or student loan made to the individual after a notice of assessment is issued to the individual will not be seized to repay the individual’s creditors.

(5) The Minister shall not issue a micro-credential grant or micro-credential student loan 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 micro-credential grant or micro-credential student loan and, at the time of the application,

(a)  there are no amounts of principal or interest outstanding on any student loans under the Act 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 or certificate of discharge granted under the Bankruptcy and Insolvency Act (Canada), three years have elapsed since the day the order of absolute discharge was made or the certificate of discharge was issued.

Notice of Assessment

Issuing a notice of assessment

16. (1) If the Minister determines that an individual is eligible for a micro-credential grant or micro-credential student loan and the individual is not refused the grant or student loan in accordance with sections 11 to 15, the Minister may issue a notice of assessment indicating the amount of the grant or student loan that shall be issued to the individual upon the conditions in subsection 18 (1) being satisfied.

(2) The notice of assessment shall be in respect of 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 notice.

Maximum amount of grant and student loan

17. (1) This section sets out the maximum total amount of a micro-credential grant and micro-credential student loan that may be issued to an individual for the individual’s anticipated enrolment in the approved program of study for the period of study specified in the notice of assessment.

(2) The maximum amount is determined as follows:

$5000 + $5 × H

where,

  “H”  is the duration of the program of study in number of hours as approved by the Minister under section 7.

Obtaining a Micro-Credential Grant or Micro-Credential Student Loan

Obtaining the grant or student loan

18. (1) The Minister or a service provider on behalf of the Minister shall issue a micro-credential grant or micro-credential student loan if,

(a)  the individual has received a notice of assessment under section 16;

(b)  the individual has entered into a micro-credential student loan agreement under section 20; and

(c)  the individual’s enrolment in the approved program of study has been confirmed by the approved institution no later than 15 business days after the period of study ends.

(2) The grant or student loan shall be issued in the amount set out in the notice of assessment for the grant, the loan, or both, as the case may be.

Grant or loan directed to institution

19. (1) The Minister may direct all or part of an individual’s micro-credential grant or micro-credential student loan for a period of study to an approved institution to apply toward any amounts listed in subsection (2) that the individual owes to the institution if,

(a)  the individual is eligible to receive a grant or loan for the period of study; and

(b)  the institution requests the direction in a manner approved by the Minister.

(2) For the purposes of subsection (1), the amounts are,

(a)  tuition and other compulsory fees for the approved program of study; and

(b)  other fees for the approved program of study that the individual has authorized the institution to collect.

Micro-credential student loan agreement

20. (1) The Minister may enter into a micro-credential student loan agreement in accordance with this section where an individual applies for a micro-credential grant or micro-credential student loan and the Minister is satisfied that the individual is entitled to the grant or student loan and has a notice of assessment.

(2) Where a micro-credential student loan agreement has been entered into by an individual, the agreement applies to the micro-credential grant and micro-credential student loan received under this Regulation by the individual in respect of the period of study set out in the agreement.

(3) The terms of a micro-credential student loan are the terms set out in this section and sections 22 to 35 and in the micro-credential student loan agreement that the individual enters into.

(4) The terms of a micro-credential grant are the terms set out in this section and sections 21 to 35 and in the micro-credential student loan agreement that the individual enters into.

(5) Subject to subsection (6), the Minister may amend the terms of the micro-credential student loan agreement.

(6) Amendments to the terms of the micro-credential student loan agreement are subject to both of the following rules:

1.  For the amendments to be valid, the Minister must give notice by posting the amended terms on a website of the Government of Ontario.

2.  The amendments shall only apply to micro-credential grants and micro-credential student loans issued for a period of study commencing on or after the August 1 that is immediately after the posting referred to in paragraph 1.

Repayment of Overpayment of a Micro-Credential Grant

Repayment of overpayment of a grant

21. (1) The Minister may require an individual to repay to the Minister of Finance any overpayment of a micro-credential grant, or any amount of such a grant that exceeds the amount the individual is eligible to receive as a grant if,

(a)  the individual ceases to be enrolled in an approved program of study at an approved institution;

(b)  the circumstances of the individual or the individual’s expected contributors have changed, resulting in a determination that the individual is no longer eligible to receive a grant or is not entitled to the amount of the grant issued;

(c)  the Minister cannot, to his or her satisfaction, verify with the Canada Revenue Agency or through other means the financial information reported by the individual or the individual’s expected contributors; or

(d)  an error or mistake has been made.

(2) The Minister may provide that a repayment under subsection (1) is not required, if in his or her opinion there are such exceptional circumstances of an individual or the individual’s expected contributors.

(3) When repayment under subsection (1) is required, the Minister may take such measures as the Minister considers advisable in the circumstances, including applying interest on the amount owing.

Maintaining Status as a Qualifying Student

Effect of status as qualifying student

22. (1) While an individual is a qualifying student, the individual’s obligations to pay principal and interest under a micro-credential student loan agreement or repayment notice, are suspended. O. Reg. 220/22, s. 5.

(2) If the individual owes interest to the Minister under a micro-credential student loan agreement or repayment notice for a period during which the individual was not a qualifying student, and if the Minister 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. 220/22, s. 5.

(3) The individual is not permitted to pay the accrued interest by means of a promissory note. O. Reg. 768/20, s. 22 (3).

Qualifying student

23. (1) An individual is a qualifying student during a period of study for which he or she receives a micro-credential grant or micro-credential student loan.

(2) An individual may be a qualifying student during a period of study for which he or she does not receive a micro-credential grant or micro-credential student loan, if the requirements set out in section 24 or 25 are met.

(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.

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 micro-credential grant or micro-credential student loan must comply with this section.

(2) The individual must continue to meet the requirements of clause 5 (a).

(3) 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;

(b)  that he or she is enrolled in an approved program of study at an approved institution under the 2017 Regulation, the 2001 Regulation or the pre-2001 Regulation for the period of study in question;

(c)  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 (4);

(d)  that he or she is enrolled at a designated educational institution as defined in the Canada Student Financial Assistance Act; or

(e)  that he or she is enrolled at an educational institution not described in clause (a), (b) (c) or (d) 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 (4).

(4) For the purposes of clauses (3) (c) and (e), 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.

(5) The document confirming enrolment must be given in a form approved by the Minister and must be certified by the institution at which the individual is enrolled.

(6) The individual must give the completed document referred to in subsection (5) to the Minister promptly upon becoming enrolled as described in subsection (3).

(7) Subject to section 26, the individual is a qualifying student under this section beginning on the first day of the period of study.

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 micro-credential grant or micro-credential student loan if he or she establishes to the satisfaction of the Minister that,

(a)  the individual was unable to obtain a document confirming enrolment under section 24; and

(b)  the circumstances that are required in order to obtain a document confirming enrolment under clause 24 (3) (a), (b), (c), (d) or (e) exist.

(2) Subject to section 26, the individual is a qualifying student under this section beginning on the first day of the period of study.

Ceasing to be a qualifying student

26. (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 notice of assessment was issued.

2.  The individual is enrolled in a program of study described in clause 24 (3) (c) or (e) and reduces his or her course load below the minimum required course load.

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 (3) (c), (d) or (e).

6.  The individual became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into another recognized arrangement for debt settlement. O. Reg. 768/20, s. 26 (1).

(2) After an individual ceases to be a qualifying student, the individual is required to make repayments under a repayment notice which consolidates all of the individual’s micro-credential student loans made under this Regulation. O. Reg. 220/22, s. 6.

Repayment Notice and Repayment Terms

Repayment notice

27. (1) If an individual who entered into a micro-credential student loan agreement under this Regulation has ceased to be a qualifying student, the Minister shall send the individual a repayment notice. O. Reg. 220/22, s. 8.

(2) A repayment notice issued under this Regulation shall apply to all micro-credential student loan agreements that the individual has entered into. O. Reg. 220/22, s. 8.

(3) The repayment notice must establish the amount and duration of the repayments to be made to discharge the principal amount of all outstanding micro-credential student loans issued under this Regulation and the interest on the outstanding balance from time to time, and the notice may provide for other matters. O. Reg. 220/22, s. 8.

(4) If an individual who received a repayment notice subsequently becomes a qualifying student again, the Minister shall, after the individual ceases to be a qualifying student, send the individual a new repayment notice, which shall supersede the previous notice. O. Reg. 220/22, s. 8.

(5) If an individual does not provide the Minister 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 repayment notice, the Minister may require a financial institution to make payments on the individual’s micro-credential student loans issued under this Regulation from an account at the institution that the individual has identified to the Minister. O. Reg. 220/22, s. 8.

(6) The payments made by a financial institution under subsection (5) shall be made in accordance with the repayment terms set out in the repayment notice. O. Reg. 220/22, s. 8.

Obligation to pay interest

28. (1) An individual is not required to make payments towards the interest accruing under a micro-credential student loan agreement or repayment notice until the first day of the month immediately after the six-month period following the month in which the individual ceased to be a qualifying student. O. Reg. 220/22, s. 8.

(2) The interest rate in effect on any day under a micro-credential student loan agreement or repayment notice is the prime rate on that day plus 1 per cent. O. Reg. 220/22, s. 8.

29. Revoked: O. Reg. 220/22, s. 8.

Repayment terms

30. (1) The term for the repayment of a micro-credential student loan is to be determined by the Minister in consultation with the borrower. O. Reg. 768/20, s. 30 (1).

(2) Interest on a micro-credential student loan begins to accrue on the first day of the month immediately following the month in which the person ceases to be a qualifying student. O. Reg. 768/20, s. 30 (2).

(3) The borrower is entitled to repay all or part of the micro-credential student loan, without notice or bonus to the Minister, before the period for repayment specified in the repayment notice expires. O. Reg. 768/20, s. 30 (3); O. Reg. 220/22, s. 9.

(4) The obligation to repay a micro-credential student loan terminates upon the death of the borrower. O. Reg. 768/20, s. 30 (4).

(5) Instalments of the repayment of a micro-credential student loan are to be applied first to interest accrued to the date of the payment and then to the outstanding principal. O. Reg. 768/20, s. 30 (5).

Amendment to prevent default

31. The Minister may amend a repayment notice if the borrower notifies the Minister that the terms of the notice are such that the borrower will be in default and the Minister considers that an amendment to the notice will enable the borrower to meet their obligations under the notice. O. Reg. 220/22, s. 10.

Repayment Assistance Plan

Definitions

31.1 In this section and in sections 31.2 to 31.12,

“federal student loan” means a loan issued by the Government of Canada under the Canada Student Financial Assistance Act or the Canada Student Loans Act; (“prêt d’études fédéral”)

“monthly affordable payment” means the amount that a borrower can reasonably afford to pay on all of their micro-credential student loans on a monthly basis, as determined under section 31.6; (“versement mensuel abordable”)

“monthly required payment” means the amount that a borrower would be required to pay on all of their micro-credential student loans on a monthly basis, as determined under section 31.7; (“versement mensuel exigé”)

“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 post-secondary school level or in the labour force, and

(b)  is expected to remain with the person for the duration of the person’s life; (“invalidité permanente”)

“provincial student loan” means a student loan issued under the Act or a loan issued to a student for educational purposes by the government of a province other than Ontario or by the government of a territory of Canada; (“prêt d’études provincial”)

“qualifying student” includes a qualifying student as described in section 24 of the 2017 Regulation, a qualifying student as described in section 23 of the 2001 Regulation and a student or borrower deemed to be a student under section 11 or 11.1 of the pre-2001 Regulation. (“étudiant admissible”) O. Reg. 220/22, s. 11.

Repayment assistance

31.2 (1) A borrower who is having difficulty paying amounts on principal and interest owing on micro-credential student loans issued under the Act may apply for repayment assistance in accordance with section 31.4. O. Reg. 220/22, s. 11.

(2) The repayment assistance available under this Regulation includes the following two forms of assistance:

1.  A reduction in the borrower’s monthly payments on the micro-credential student loans.

2.  Assistance from the Minister in paying off the borrower’s outstanding micro-credential student loans by making monthly payments on the loans. O. Reg. 220/22, s. 11.

(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 micro-credential student loans are repaid in full within 15 years from the day the person 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 the disability, the recipient’s micro-credential student loans are repaid in full within 10 years from the day the person last was a qualifying student. O. Reg. 220/22, s. 11.

(4) The assistance provided by the Minister to the borrower, whether by means of amounts paid to the Minister on behalf of the borrower or by any other means, shall be deemed to be a grant issued to the borrower under section 5 of the Act. O. Reg. 220/22, s. 11.

Two stages of repayment assistance

31.3 (1) There are two stages of repayment assistance provided under this Regulation:

1.  Stage 1, known as the interest relief stage. During this stage, the monthly assistance provided by the Minister shall relate solely to amounts payable on account of interest owing on the outstanding micro-credential student loans.

2.  Stage 2, known as the debt reduction stage. During this stage, the monthly assistance provided by the Minister shall relate to amounts payable on account of principal and interest owing on the outstanding micro-credential student loans as are required so as to ensure that the micro-credential student loans are repaid in full within the time period specified in subsection 31.2 (3). O. Reg. 220/22, s. 11.

(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 the borrower is entitled to receive the debt reduction stage of repayment assistance. O. Reg. 220/22, s. 11.

(3) A borrower may receive repayment assistance at the interest relief stage for a period of up to 60 months, subject to section 31.12. O. Reg. 220/22, s. 11.

(4) A borrower who meets the eligibility requirements specified in subsection 31.5 (1) and in either paragraph 2 or 3 of subsection 31.5 (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. 220/22, s. 11.

Application and approval process

31.4 (1) A borrower who wishes to receive repayment assistance shall submit an application for the assistance to a service provider. O. Reg. 220/22, s. 11.

(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. 220/22, s. 11.

(3) If the service provider determines that the applicant meets the eligibility requirements under sections 31.5, 31.6 and 31.7, the applicant shall be entitled to receive repayment assistance for a period of six months. O. Reg. 220/22, s. 11.

(4) If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, the borrower 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. 220/22, s. 11.

(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. 220/22, s. 11.

Eligibility requirements

31.5 (1) A borrower must meet the following requirements in order to be eligible for repayment assistance under this Regulation:

1.  The borrower resides in Canada.

2.  The borrower has submitted an application to the service provider in accordance with section 31.4.

3.  If the borrower failed to make the monthly payments in a previous repayment assistance period, the borrower meets the requirements set out in section 31.11.

4.  The borrower’s monthly affordable payment is less than their monthly required payment.

5.  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. 220/22, s. 11.

(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, the borrower,

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 their application for repayment assistance. O. Reg. 220/22, s. 11.

(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, the borrower has received repayment assistance at the interest relief stage for 60 months.

2.  Ten 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, the disability. O. Reg. 220/22, s. 11.

(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 14 (5) of this Regulation, subsection 16 (5) of the 2017 Regulation, subsection 42.1 (5) of the 2001 Regulation or subsection 13.3 (5) of the pre-2001 Regulation; or

(b)  has determined that the borrower is ineligible for repayment assistance for a period of time under subsection 14 (2) of this Regulation, subsection 16 (2) of the 2017 Regulation, subsection 42.1 (2) of the 2001 Regulation or subsection 13.3 (2) of the pre-2001 Regulation. O. Reg. 220/22, s. 11.

Determination of monthly affordable payment

31.6 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 4 of subsection 31.5 (1), the borrower’s monthly affordable payment shall be determined in accordance with this section, having regard to the number of persons in the borrower’s family and the borrower’s monthly family income.

Table
Threshold amount for Family Income

Column 1
Number of family members

Column 2
Threshold amount

1

$2,083

2

$3,254

3

$4,205

4

$4,959

5 or more

$5,652

O. Reg. 220/22, s. 11.

(2) If a borrower’s monthly family income is equal to or less than the threshold amount set out in Column 2 of the Table to subsection (1), opposite the number of members in the borrower’s family, the borrower’s monthly affordable payment shall be a nil amount. O. Reg. 220/22, s. 11.

(3) If a borrower’s monthly family income is greater than the threshold amount set out in Column 2 of the Table to subsection (1), 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)  the amount obtained by the following formula:

A × B/C × 0.2

in which,

“A”  is the borrower’s monthly family income,

“B”  is the borrower’s total outstanding micro-credential student loans, and

“C”  is the sum of the borrower’s total outstanding federal and provincial student loans and, if the borrower has a spouse, the spouse’s total outstanding federal and provincial student loans that are in repayment under the Act or under the laws of the appropriate jurisdiction; and

(b)  the amount obtained by the following formula:

A × B/C × 1.5 × [(A – D)/(100 × E) + 0.01]

in which,

“A”  is the borrower’s monthly family income,

“B”  is the borrower’s total outstanding micro-credential student loans,

“C”  is the sum of the borrower’s total outstanding federal and provincial student loans and, if the borrower has a spouse, the spouse’s total outstanding federal and provincial student loans that are in repayment under the Act or under the laws of the appropriate jurisdiction,

“D”  is the appropriate threshold amount set out in Column 2 of the Table to subsection (1) for a family with the number of members in the borrower’s family, and

“E”  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
Number of family members

Column 2
Monthly increment

1

$250

2

$350

3

$425

4

$500

5 or more

$575

O. Reg. 220/22, s. 11.

(4) In this section,

“family” means the borrower, the borrower’s spouse, if any, and any person who is wholly dependent on either of them; (“famille”)

“family income” means the borrower’s gross income and that of the borrower’s 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. (“revenu familial”) O. Reg. 220/22, s. 11.

Determination of monthly required payment

31.7 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 4 of subsection 31.5 (1), the borrower’s monthly required payment shall be equal to the monthly payment obtained by amortizing the amount of principal on all of the borrower’s micro-credential 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 referred to under subsection (3). O. Reg. 220/22, s. 11.

(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. 220/22, s. 11.

(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, where the average is 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. 220/22, s. 11.

Repayment assistance period

31.8 (1) If a borrower is granted repayment assistance, the six-month repayment assistance period shall commence,

(a)  at the beginning of the month in which the application for repayment assistance is received by the service provider; or

(b)  at the beginning of the month following the month described in clause (a), if the application for repayment assistance is received by the service provider in,

(i)  the month immediately before the individual is required to start paying interest under a micro-credential student loan agreement or repayment notice, or

(ii)  the last month of the most recent repayment assistance period. O. Reg. 220/22, s. 11.

(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 the applicant’s outstanding micro-credential student loans during the months preceding the application for repayment assistance. O. Reg. 220/22, s. 11.

(3) The service provider shall not backdate the commencement of the repayment assistance period by more than six months. O. Reg. 220/22, s. 11.

Suspension of repayment terms in agreement

31.9 (1) If a borrower is granted repayment assistance, then during the repayment assistance period,

(a)  the terms of the repayment of the micro-credential student loan set out in the borrower’s repayment notice are suspended and of no effect; and

(b)  instead of the payments required under the repayment notice, payments shall be covered each month on the borrower’s outstanding micro-credential student loans by payment by the borrower and either payment or reduction in the outstanding balance by the Minister in an amount equal to the borrower’s monthly required payment, as determined in accordance with section 31.7. O. Reg. 220/22, s. 11.

(2) At the end of the repayment assistance period, the suspension of repayment terms set out in the repayment notice is lifted, subject to any amendments to the repayment notice made by the Minister. O. Reg. 220/22, s. 11.

(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. 220/22, s. 11.

Monthly payments during repayment assistance

31.10 (1) If a borrower is granted repayment assistance at the interest relief stage,

(a)  the borrower shall pay to the Minister the monthly affordable payment; and

(b)  the Minister shall forgive any interest payable as part of the borrower’s monthly required payment that is not paid by the borrower under clause (a). O. Reg. 220/22, s. 11.

(2) For greater certainty, during the interest relief stage of repayment assistance, any part of the borrower’s monthly required payment that is attributable to principal and not covered by the borrower’s payment under clause (1) (a) is not payable to the Minister. O. Reg. 220/22, s. 11.

(3) If a borrower is granted repayment assistance at the debt reduction stage,

(a)  the borrower shall pay to the Minister the monthly affordable payment; and

(b)  the Minister shall forgive 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 clause (a). O. Reg. 220/22, s. 11.

(4) A monthly payment made by the borrower under this section shall be paid to the Minister each month at the same time as the monthly amounts that would otherwise have been payable under the repayment notice. O. Reg. 220/22, s. 11.

(5) Despite subsection 30 (5), a monthly payment made by the borrower under this section shall be applied against the borrower’s outstanding micro-credential student loans as follows:

1.  The full amount of the payment shall be applied first against 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 of the monthly required payment, the excess amount shall be applied against the interest payable of the monthly required payment. O. Reg. 220/22, s. 11.

(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. 220/22, s. 11.

(7) If there is a conflict between this section and a provision of a repayment notice, this section prevails. O. Reg. 220/22, s. 11.

Failure to make payments

31.11 (1) If a borrower fails to make one or more monthly payments that the borrower is required to make during a repayment assistance period, the borrower shall pay all missed payments on or before 30 days after the end of the repayment assistance period. O. Reg. 220/22, s. 11.

(2) A borrower who fails to pay all the missed monthly payments as required under subsection (1) and who is eligible for repayment assistance under section 31.5, may, upon paying all monthly payments under the repayment notice that are more than six months in arrears,

(a)  apply for repayment assistance under this Regulation; and

(b)  request that the service provider backdate the commencement of the repayment assistance period pursuant to subsections 31.8 (2) and (3). O. Reg. 220/22, s. 11.

Return to school and transition

31.12 If a borrower received repayment assistance under this Regulation and subsequently returns to school and becomes a qualifying student once again, the periods of 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. 220/22, s. 11.

Severe Permanent Disability Benefit

Severe permanent disability benefit

31.13  (1) In this section,

“severe permanent disability” means a permanent disability as defined under section 31.1 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 post-secondary 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 the person’s life. O. Reg. 220/22, s. 11.

(2) A person who has a severe permanent disability is entitled to have the outstanding amount of their micro-credential student loans made under the Act forgiven if the person 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 the person’s severe permanent disability, the person is unable to repay the micro-credential student loan and will never be able to do so. O. Reg. 220/22, s. 11.

(3) If a micro-credential student loan issued under the Act is forgiven under this section, the Minister shall forgive the full amount outstanding on the loan. O. Reg. 220/22, s. 11.

Default on a Micro-Credential Student Loan

What constitutes default

32. A borrower is in default of his or her obligations to repay micro-credential 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 repayment notice as a result of failing to make monthly payments on at least three separate occasions. O. Reg. 768/20, s. 32; O. Reg. 220/22, s. 12.

Consequences of default

33. (1) When a borrower is in default of his or her obligation to repay micro-credential 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. 768/20, s. 33 (1).

(2) When a borrower’s loans are due and payable, the Minister may take such measures as the Minister considers advisable in the circumstances, including amending the repayment notice or collecting the loans. O. Reg. 768/20, s. 33 (2); O. Reg. 220/22, s. 13 (1).

(3) When a borrower defaults on their obligation to make payments under a repayment notice, the Minister may,

(a)  deny the borrower the status of a qualifying student under section 23 during a period of study during which the borrower does not receive a micro-credential grant or micro-credential student loan; and

(b)  refuse the borrower any repayment assistance under sections 31.1 to 31.12. O. Reg. 220/22, s. 13 (2).

Loan Rehabilitation

Definitions

33.1 In sections 33.2 to 33.5,

“monthly rehabilitation payment” means the amount that an individual is required to pay on a monthly basis to rehabilitate a micro-credential student loan, as determined under subsection 33.2 (3); (“versement mensuel de régularisation”)

“rehabilitation period” means the period, as determined under subsection 33.2 (4), over which a micro-credential student loan is to be rehabilitated; (“période de régularisation”)

“total rehabilitation payment” means the payment determined under subsection 33.2 (3). (“versement total de régularisation”). O. Reg. 220/22, s. 14.

Application for rehabilitation

33.2 (1) An individual who has defaulted on their obligation to repay micro-credential student loans and who wishes to make an attempt to rehabilitate the loans shall apply for loan rehabilitation in a form approved by the Minister. O. Reg. 220/22, s. 14.

(2) An individual who applied for loan rehabilitation will receive a payment schedule described in subsection (3), if the following conditions are satisfied:

1.  The micro-credential student loans were issued under this Regulation.

2.  The borrower is in default of their obligations to repay the micro-credential student loans under section 32 and the Minister determines that the loan will no longer be administered by the service provider.

3.  The amount of principal outstanding on the micro-credential student loans is at least $600.

4.  The individual has not previously made more than one attempt at rehabilitating the micro-credential student loans. O. Reg. 220/22, s. 14.

(3) The payment schedule shall include,

(a)  the amount of the total rehabilitation payment required to rehabilitate the micro-credential loan, which is equal to,

(A × 2) + B

in which,

“A”  is the monthly amount calculated by amortizing the outstanding principal over 114 months at an interest rate equal to the prime rate as of the date of application plus 1 per cent, and

“B”  is the amount of interest in arrears as of the date of the application; and

(b)  the amount of the monthly rehabilitation payments required to satisfy the total rehabilitation payment if paid over a period of two, three, four, five or six months. O. Reg. 220/22, s. 14.

(4) An individual who receives a payment schedule described in subsection (3) determines the rehabilitation period by selecting whether to make monthly rehabilitation payments over two, three, four, five or six months, and shall make the monthly rehabilitation payments, in accordance with the payment schedule, on or before the end of the number of months selected. O. Reg. 220/22, s. 14.

Suspension of rehabilitation

33.3 (1) The Minister may grant a temporary suspension of a rehabilitation attempt, whether or not the rehabilitation attempt has already failed and been terminated under section 33.4 if, in the Minister’s opinion, the special circumstances of the individual justify the suspension. O. Reg. 220/22, s. 14.

(2) The suspension may be for such period of time as the Minister determines is appropriate, and a revised payment schedule setting out a revised rehabilitation period shall be provided to the individual. O. Reg. 220/22, s. 14.

(3) If a rehabilitation attempt fails and is terminated, and subsequently a suspension of the attempt is granted under subsection (1),

(a)  the failure and termination of the attempt are deemed never to have occurred; and

(b)  the suspension period is deemed to have started on the day of the failure and ends on the day specified by the Minister. O. Reg. 220/22, s. 14.

(4) When the suspension period ends, the rehabilitation attempt recommences on the same terms as applied before the suspension. O. Reg. 220/22, s. 14.

(5) An individual who receives a revised payment schedule described in subsection (2) shall make the required monthly rehabilitation payments, in accordance with the revised payment schedule, before the end of the revised rehabilitation period. O. Reg. 220/22, s. 14.

Rehabilitation attempt

33.4 (1) A rehabilitation attempt is considered to fail as follows:

1.  The attempt is considered to fail on the first day that the individual is in arrears for two consecutive months on the obligation under subsection 33.2 (4) to make monthly rehabilitation payments.

2.  If the individual’s rehabilitation attempt was suspended under section 33.3, the attempt is considered to fail on the first day after the recommencement of the attempt that the individual is in arrears for two consecutive months on the obligation under subsection 33.3 (5) to make monthly rehabilitation payments.

3.  If, as of the last day of the rehabilitation period or the revised rehabilitation period, the individual has not made payments that, in total, are equal to the total rehabilitation payment, the attempt is considered to fail on the day after the last day of the rehabilitation period or revised rehabilitation period. O. Reg. 220/22, s. 14.

(2) If an attempt at rehabilitating a micro-credential student loan fails, the attempt is terminated and the loan cannot be rehabilitated unless the individual reapplies under subsection 33.2 (1). O. Reg. 220/22, s. 14.

(3) A rehabilitation attempt is considered to succeed if,

(a)  the individual makes the monthly rehabilitation payments in accordance with subsection 33.2 (4) and, if applicable, subsection 33.3 (5);

(b)  as of the last day of the rehabilitation period or revised rehabilitation period, the individual has made payments that, in total, are equal to the total rehabilitation payment, and,

(i)  the individual was not at any point during the rehabilitation period in arrears for two consecutive months on the obligation under subsection 33.2 (4) to make monthly rehabilitation payments, or

(ii)  for a rehabilitation attempt that was suspended, the individual was not, at any point after the recommencement of the attempt, in arrears for two consecutive months on the obligation under subsection 33.3 (5) to make monthly rehabilitation payments. O. Reg. 220/22, s. 14.

(4) If a rehabilitation attempt succeeds, the rehabilitation is effective as of the day after the last day of the rehabilitation period or revised rehabilitation period. O. Reg. 220/22, s. 14.

(5) Subsection (4) applies even if the final payment is made before the last day of the rehabilitation period or revised rehabilitation period. O. Reg. 220/22, s. 14.

Effect of rehabilitation

33.5 A micro-credential student loan that has been successfully rehabilitated,

(a)  is deemed to be a micro-credential student loan issued by the Minister under this Regulation and is subject to the terms and conditions normally applicable to such a loan; and

(b)  shall otherwise be treated as if the default and rehabilitation had not occurred. O. Reg. 220/22, s. 14.

General

Duty to give notice of material change in circumstances

34. (1) An individual who enters into a micro-credential student loan agreement, under which the individual receives a micro-credential grant or micro-credential student loan pursuant to section 18, 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 micro-credential grant or micro-credential student loan is issued.

(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 subsection 9 (3);

(e)  a change in the financial information of the individual’s expected contributors; and

(f)  a change in financial resources described in subsection 9 (5).

Change of address

35. An individual who enters into a micro-credential student loan agreement under which the individual receives a micro-credential grant or micro-credential student loan pursuant to section 18, 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 23 but before the repayment in full of the principal amount of the student loan and of any outstanding interest on that amount.

Effect of false statements

36. (1) If a service provider discovers that a document pertaining to a micro-credential grant or micro-credential student loan contains a false statement, the service provider shall promptly report the matter to the Minister.

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

Officers authorized to issue notices of assessment

37. The Deputy Minister and the Director, Student Financial Assistance Branch of the Ministry, are authorized to approve micro-credential student loans under section 8 of the Act.

Authority of service providers

38. A service provider may act on behalf of the Minister in exercising rights and performing duties under this Regulation, if authorized to do so by the Minister.

39. Omitted (provides for coming into force of provisions of this Regulation).

 

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