R.R.O. 1990, Reg. 774: ONTARIO STUDENT LOANS MADE BEFORE AUGUST 1, 2001
under Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19
Skip to contentMinistry of Training, Colleges and Universities Act
Loi sur le ministère de la Formation et des Collèges et Universités
R.R.O. 1990, REGULATION 774
Amended to O. Reg. 269/01
ONTARIO STUDENT LOANS MADE BEFORE AUGUST 1, 2001
Historical version for the period August 1, 2001 to June 21, 2004.
This Regulation is made in English only.
Interpretation
1. (1) In this Regulation,
“applicant” means a student who applies for a student loan under the Act;
“approved course of studies” means a course of studies described in section 1.1;
“bank” means a bank to which the Bank Act (Canada) applies or a credit union as defined in the Credit Unions and Caisses Populaires Act, that has agreed with the Minister to provide loans to students under this Act;
“borrower” means a person to whom a student loan is made;
“certificate of loan approval” means a certificate issued or caused to be issued by the Minister, or by a person authorized under subsection 25 (1), to an applicant eligible to receive a loan under the Act;
“education costs” means the total of the actual costs or estimated cost allowances for the following items as determined by the Minister for the period for which an applicant is requesting a loan,
(a) tuition and other compulsory fees payable to an eligible institution,
(b) books and instructional supplies,
(c) a weekly personal and living allowance,
(d) Revoked: O. Reg. 353/94, s. 2 (1).
(e) Revoked: O. Reg. 353/94, s. 2 (1).
(f) any other expenses of the applicant in addition to those listed in clauses (a) to (e) that the Minister may determine are relevant;
“eligible institution” means an institution described in section 1.2;
“financial resources” means the estimated amount of money determined by the Minister that the Minister expects the applicant and his or her spouse, same-sex partner, parents or sponsor to contribute towards the education costs for the period for which the applicant is requesting a student loan having regard to,
(a) the total income of the applicant from all sources including earnings from summer and other part-time or full-time employment, investment and other income including gifts,
(b) academic awards and government assistance that the applicant is or may be receiving,
(c) the total income of the spouse, same-sex partner, parents or sponsor of the applicant from all sources,
(d) the assets of the applicant and his or her spouse, same-sex partner,
(e) personal income tax, unemployment insurance and pension plan contributions of the spouse, same-sex partner, parents or sponsor of the applicant,
(f) the number of persons determined by the Minister that are dependent for support upon the applicant, and his or her spouse, same-sex partner, parents or sponsor, and
(g) any other resources, assets or deductions of the applicant and his or her spouse, same-sex partner, parents or sponsor in addition to those listed in clauses (a) to (f) that the Minister may determine are relevant;
“full-time employment” means performing work for remuneration for a minimum of thirty-five hours per week and shall include time spent by an applicant,
(a) caring for a child eleven years of age or under living with the applicant and dependent upon the applicant for support,
(b) attending an adult training program at a college of applied arts and technology or a private vocational school registered under the Private Vocational Schools Act, while receiving financial assistance from the Government of Canada, and
(c) actively seeking employment while registered with the Canadian Employment and Immigration Commission;
“married student” means a person who,
(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration Act (Canada),
(b) meets the residency requirements for a student loan under subsection (1.1), and
(c) on the last day of the month in which classes normally begin in the eligible institution for the period for which the person is applying for a student loan,
(i) has a spouse who is expected by the Minister to contribute towards the education costs for the period for which the person is applying for a student loan, or
(ii) does not have a spouse who is expected by the Minister to contribute towards the education costs for the period for which the person is applying for a student loan, and has a child who is dependent on the person for support;
“minimum required course load” means, in respect of a student enrolled in a course or courses of study at an eligible institution or specified educational institution,
(a) 60 per cent of what the institution considers to be a full course load for the course or courses of study, if the student is not a person with a disability, or
(b) 40 per cent of what the institution considers to be a full course load for the course or courses of study, if the student is a person with a disability;
“same-sex partner” means either of two persons of the same sex who,
(a) have lived together in a conjugal relationship outside marriage continuously for a period of not less than three years, or
(b) 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;
“single student” means a person who,
(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration Act (Canada),
(b) meets the residency requirements for a student loan under subsection (1.1), and
(c) on the last day of the month in which classes normally begin in the eligible institution for the period for which the person is applying for a student loan, does not have a spouse or same-sex partner and has no child dependent on the person for support;
“sole support student” means a person, other than a single student, a married student or a student with a same-sex partner, who,
(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration Act (Canada),
(b) meets the residency requirements for a student loan under subsection (1.1), and
(c) on the last day of the month in which classes normally begin in the eligible institution for the period for which the person is applying for a student loan,
(i) does not have a spouse or same-sex partner, has been engaged in full-time employment for two or more periods of twelve consecutive months each and the final period of employment was spent in Ontario, or
(ii) has a spouse or same-sex partner who is not expected by the Minister to contribute towards the education costs for the period for which the person is applying for a student loan, and does not have a child dependent on the person for support;
“specified educational institution” means an institute of learning that has been designated as a specified educational institution for the purposes of the Canada Student Loans Act (Canada) or the Canada Student Financial Assistance Act (Canada);
“sponsor” means a person who is a sponsor within the meaning of the regulations made under the Immigration Act (Canada);
“spouse” means either of a man and woman 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” means a single student, a married student, a student with a same-sex partner or a sole support student registered in an approved course of studies who applies for a student loan under the Act;
“student loan” means a student loan made in accordance with the requirements of section 8 of the Act;
“student with a same-sex partner” means a person who,
(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration Act (Canada),
(b) meets the residency requirements for a student loan under subsection (1.1), and
(c) on the last day of the month in which classes normally begin in the eligible institution for the period for which the person is applying for a student loan,
(i) has a same-sex partner who is expected by the Minister to contribute towards the education costs for the period for which the person is applying for a student loan, and
(ii) does not have a child who is dependent on the person for support. R.R.O. 1990, Reg. 774, s. 1 (1); O. Reg. 441/91, s. 1 (1-3); O. Reg. 353/94, ss. 1, 2; O. Reg. 280/97, s. 1; O. Reg. 281/97, s. 1; O. Reg. 410/98, s. 1; O. Reg. 86/00, s. 1 (1-7); O. Reg. 269/01, s. 2.
(1.1) A person meets the residency requirements for a student loan if, for not less than twelve consecutive months before the last day of the month in which classes normally begin in the eligible institution for the period for which the person is applying for a student loan,
(a) except for time spent at a post-secondary institution outside Ontario, the person resided in Ontario; or
(b) the person’s parent, sponsor, spouse or same-sex partner resided in Ontario, if the parent, sponsor, spouse or same-sex partner is expected by the Minister to contribute towards the education costs for the period for which the person is applying for a student loan. O. Reg. 441/91, s. 1 (4); O. Reg. 86/00, s. 1 (8).
(2) Where the phrase “resided in Ontario” is used in this Regulation the Minister, after having considered the particular facts, the special circumstances of the applicant, the applicant’s parents or sponsor and the provisions of any agreement made with the Government of Canada or the government of any province of Canada respecting grants or loans to students, shall determine whether a person resided in Ontario at the relevant time for the purposes of this Regulation. R.R.O. 1990, Reg. 774, s. 1 (2).
(3) For the purpose of this Regulation, time spent at a post-secondary institution in Canada by a person who is applying for a student loan may be included in calculating the time during which the person resided in Ontario if,
(a) the person was authorized under the Immigration Act (Canada) to enter Canada for the purpose of studying in Canada; or
(b) the person has been finally determined to be a Convention refugee under the Immigration Act (Canada). O. Reg. 441/91, s. 1 (5).
1.1 (1) A course of study is an approved course of study for the purposes of student loans if it consists of one or more courses of study of at least 12 weeks duration approved by the Minister leading to a certificate, degree or diploma. O. Reg. 269/01, s. 3.
(2) A bar admission course conducted by the Law Society of Upper Canada is an approved course of study. O. Reg. 269/01, s. 3.
(3) The Minister may withdraw his or her approval for a course of study if the course 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. 269/01, s. 3.
1.2 (1) The following institutions are eligible 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 Act.
3. Every college of agricultural technology established under the Ministry of Agriculture, Food and Rural Affairs Act.
4. The Law Society of Upper Canada.
5. The Niagara Parks Commission School of Horticulture. O. Reg. 269/01, s. 3.
(2) An institution described in one of the following paragraphs is an eligible 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 or entity that is authorized under the Degree Granting Act or the Post-secondary Education Choice and Excellence Act, 2000 to operate as a university or to offer a program leading to a degree.
3. A private vocational school registered in Ontario under the Private Vocational Schools Act.
4. A private post-secondary institution in Ontario, other than one described in paragraph 2 or 3.
5. A private vocational school operating in another jurisdiction that is authorized by that jurisdiction to operate as a private vocational school or as an analogous type of school. O. Reg. 269/01, s. 3.
(3) The Minister may withdraw his or her approval of an institution described in subsection (2) if the institution 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. 269/01, s. 3.
2. A student ceases to be a student for the purposes of this Regulation in any of the following circumstances:
1. The student ceases to be enrolled in the approved course of study in respect of which his or her most recent certificate of loan approval was issued.
2. The student reduces his or her course load below the minimum required course load in the approved course of study.
3. The student withdraws from the eligible institution.
4. The course of studies in which the individual is enrolled at the eligible institution ceases to be an approved course of studies.
5. The institution at which the student is enrolled ceases to be an eligible institution or to be described by clause 11 (2) (b), (c) or (d). O. Reg. 269/01, s. 4.
Application
3. This Regulation applies with respect to student loans made before August 1, 2001 and with respect to the consolidated loan agreements relating to such student loans. O. Reg. 269/01, s. 4.
Restriction on Eligibility for a Student Loan
3.1 (1) A student who has received a student loan under the Act is not eligible for further student loans if the period of study for which he or she would receive the further loan, together with the periods of study in respect of which he or she previously received loans under the Act, total more than,
(a) 340 weeks for a student who is enrolled in a program other than a doctoral program; or
(b) 400 weeks for a student who is enrolled in a doctoral program. O. Reg. 269/01, s. 4.
(2) Despite subsection (1), a student may be eligible for a further student loan in the circumstances described in subsection (1) if the Minister considers it necessary,
(a) in order to accommodate a student who is a person with a disability; or
(b) in order to accommodate a student in exceptional circumstances. O. Reg. 269/01, s. 4.
(3) Clause (2) (b) is revoked on August 1, 2002. O. Reg. 269/01, s. 4.
Application for Loan and Loan Agreement
4. (1) An applicant for a student loan shall submit to a bank a certificate of loan approval in a form determined by the Minister signed by an officer authorized under subsection 25 (1) and an official of the eligible institution referred to in such form. R.R.O. 1990, Reg. 774, s. 4 (1).
(2) Where an officer of a bank is satisfied that a student loan may be made to an applicant and such a loan is to be made, the bank and the student shall complete the loan application and agreement portion of the application submitted to the bank under subsection (1). R.R.O. 1990, Reg. 774, s. 4 (2).
(3) A bank shall not make an advance in respect of a student loan until subsections (1) and (2) have been complied with. R.R.O. 1990, Reg. 774, s. 4 (3).
(4) Where an advance is made in respect of a student loan, the bank making the advance shall forthwith distribute the copies of the application that relate to that loan in accordance with the instructions printed thereon. R.R.O. 1990, Reg. 774, s. 4 (4).
(5) A bank may make a student loan to a student in an amount not greater than the amount set out in the certificate of loan approval submitted by the student. R.R.O. 1990, Reg. 774, s. 4 (5).
5. (1) The Minister or a person authorized under subsection 25 (1) may issue a certificate of loan approval to a student whom the Minister or authorized person considers in need of a student loan in order to pursue an approved course of studies, having regard to the student’s education costs and financial resources and any other circumstances that the Minister considers relevant. R.R.O. 1990, Reg. 774, s. 5 (1); O. Reg. 353/94, s. 4 (1).
(2) A certificate of loan approval may be issued to a student in an amount that does not exceed,
(a) $170 for each week of anticipated enrolment in the approved course of studies, in the case of a single student; or
(b) $395 for each week of anticipated enrolment in the approved course of studies, in the case of a married student, student with a same-sex partner or sole support student. O. Reg. 353/94, s. 4 (2); O. Reg. 86/00, s. 2.
(3) A certificate of loan approval shall not be issued if the loan and the loans previously received by the borrower under this Regulation are in respect of periods totalling more than 520 weeks. O. Reg. 353/94, s. 4 (2).
(4) A certificate of loan approval shall not be issued unless the student is enrolled in an approved course of studies and has a course load of at least the minimum required course load. O. Reg. 281/97, s. 2.
6. A certificate of loan approval is valid only up to the thirtieth day following the date of confirmation of enrolment as completed by an official of the eligible institution. R.R.O. 1990, Reg. 774, s. 6.
7. (1) Every student who applies to a bank for a student loan shall declare to the bank all loans for educational purposes granted to the student at an earlier date by that bank or any other bank including loans under the Canada Student Loans Act (Canada) and the Canada Student Financial Assistance Act (Canada). R.R.O. 1990, Reg. 774, s. 7 (1); O. Reg. 281/97, s. 3 (1).
(2) The Minister or a person authorized under subsection 25 (1) may refuse to issue a certificate of loan approval to an applicant,
(a) who at any time has defaulted in repayment of a student loan or any other loan made or guaranteed by the Province of Ontario, a student loan guaranteed by any other province or territory of Canada or a loan made under the Canada Student Loans Act (Canada) or the Canada Student Financial Assistance Act (Canada);
(b) who has been required to repay to the Minister of Finance the whole or any part of a student grant made under section 3 of Regulation 775 of the Revised Regulations of Ontario, 1990 or any predecessor thereof;
(c) who owns, possesses or controls, or whose spouse or same-sex partner owns, possesses or controls, real or personal property that in the opinion of the Minister constitutes sufficient financial resources to meet the education costs of the applicant;
(d) who, in the opinion of the Minister after consultation with the approved institutions at which the applicant has been enrolled, has not made satisfactory progress in a program of study;
(e) who has failed to file with the Minister all the information and documentation required by the Minister in connection with an application under this Regulation or required by the Minister to verify any statement made in an application and in the supporting material;
(f) Revoked: O. Reg. 269/01, s. 5.
(f.1) who has provided incorrect information on a loan application under this Regulation;
(g) who is receiving financial assistance from the Government of Canada or any other province or territory of Canada;
(h) who is entitled to receive student assistance from any other province or territory of Canada;
(i) who has at any time been convicted of an offence under the Canada Student Loans Act (Canada) or the Canada Student Financial Assistance Act (Canada) or an offence involving fraud or theft under the Criminal Code (Canada) in respect of any student assistance program of the Province of Ontario or any other province or territory of Canada or the Ontario Student Venture Capital Program or the Ontario Youth Venture Capital Program;
(j) who has failed to make satisfactory arrangements with the Minister for the repayment of overpayments received in respect of a previous application for student assistance under this Regulation, Regulation 772 of the Revised Regulations of Ontario, 1990, Regulation 773 of the Revised Regulations of Ontario, 1990 or Regulation 775 of the Revised Regulations of Ontario, 1990 or under the Canada Student Loans Act (Canada) or the Canada Student Financial Assistance Act (Canada); or
(k) who has failed to make satisfactory arrangements with the Minister for the payment of any amount required to be paid under subsection 9.1 (3). R.R.O. 1990, Reg. 774, s. 7 (2); O. Reg. 353/94, s. 5; O. Reg. 281/97, s. 3 (2-7); O. Reg. 86/00, s. 3; O. Reg. 269/01, s. 5.
(3) A bank may refuse to grant a student loan in accordance with a certificate of loan approval unless all previous student loans of a student guaranteed by the Province of Ontario or under the Canada Student Loans Act (Canada) or the Canada Student Financial Assistance Act (Canada) are transferred to that bank. R.R.O. 1990, Reg. 774, s. 7 (3); O. Reg. 281/97, s. 5.
Consolidation of Loans
8. (1) A borrower to whom a student loan has been made before August 1, 2001, after he or she ceases to be a student and on or before the last day of the sixth month after the month in which he or she ceases to be a student, shall enter into a loan agreement to be known as a consolidated student loan agreement in a form determined by the Minister with the bank to which his or her obligations under the student loan are owed, which agreement shall determine the amount and duration of the repayments to be made to discharge the principal amount of the student loan and interest on the outstanding balance from time to time. R.R.O. 1990, Reg. 774, s. 8 (1); O. Reg. 269/01, s. 6.
(2) Where a borrower has entered into a consolidated student loan agreement under subsection (1), and again becomes a student whose obligations under the consolidated student loan agreement are suspended by the bank, when he or she again ceases to be a student and on or before the last day of the sixth month thereafter, he or she shall enter into a new consolidated student loan agreement with the bank to which his or her obligations under the student loan are owed, in place of the former consolidated student loan agreement which agreement shall determine the amount and duration of the payments to be made to discharge the principal amount of the loan and interest on the outstanding balance from time to time. R.R.O. 1990, Reg. 774, s. 8 (2).
Loan Terms and Revision of Loan Terms
9. (1) Revoked: O. Reg. 269/01, s. 7 (1).
(2) Revoked: O. Reg. 269/01, s. 7 (1).
(3) Instalments of the repayment of a student loan shall be applied first to interest accrued to the date of payment and then to the balance of the principal then outstanding. R.R.O. 1990, Reg. 774, s. 9 (3).
(4) The term for repayment of any student loan is such term as the bank, after consultation with the borrower, determines, but where the borrower wishes to repay the whole or any part of the loan at any time before the expiration of the period of repayment specified in the loan agreement, the bank may allow the repayment without notice or bonus. R.R.O. 1990, Reg. 774, s. 9 (4).
(5) Where a borrower advises the bank to which his or her loan is repayable that the terms of the loan agreement are such that he or she will be in default and where the bank is of the opinion that an alteration or revision of any of the terms of the loan agreement will enable the borrower to meet his or her obligation thereunder, the bank and the borrower may alter or revise the agreement. R.R.O. 1990, Reg. 774, s. 9 (5).
(6) The liability of the Minister to the bank under the Act is not discharged by an alteration or revision to a loan agreement that is altered or revised under subsection (5). O. Reg. 269/01, s. 7 (2).
(7) Revoked: O. Reg. 269/01, s. 7 (2).
(8) Revoked: O. Reg. 269/01, s. 7 (2).
(9) Revoked: O. Reg. 269/01, s. 7 (2).
Loan Forgiveness
9.1 (1) If a borrower received and was entitled to receive loans under this Regulation, the Canada Student Loans Act or the Canada Student Financial Assistance Act for at least two academic terms beginning on or after August 1, 1993 and before August 1, 1998, the total principal amount owing on the borrower’s student loans shall, in a consolidated student loan agreement entered into under section 8, be reduced by the amount calculated in accordance with the following formula:
A = (B + C – ($3,000 × D)) + (E + F – ($3,500 × G))
where,
A = the amount of the reduction,
B = the total principal amount of the loans that the borrower received and was entitled to receive under this Regulation in respect of periods beginning on or after August 1, 1993 and before August 1, 1997,
C = the total principal amount of the loans that the borrower received and was entitled to receive under the Canada Student Loans Act and the Canada Student Financial Assistance Act in respect of periods beginning on or after August 1, 1993 and before August 1, 1997,
D = the number of academic terms in respect of which the borrower received loans under this Regulation, the Canada Student Loans Act or the Canada Student Financial Assistance Act in respect of periods beginning on or after August 1, 1993 and before August 1, 1997,
E = the total principal amount of the loans that the borrower received and was entitled to receive under this Regulation in respect of periods beginning on or after August 1, 1997 and before August 1, 1998,
F = the total principal amount of the loans that the borrower received and was entitled to receive under the Canada Student Loans Act and the Canada Student Financial Assistance Act in respect of periods beginning on or after August 1, 1997 and before August 1, 1998,
G = the number of academic terms in respect of which the borrower received loans under this Regulation, the Canada Student Loans Act or the Canada Student Financial Assistance Act in respect of periods beginning on or after August 1, 1997 and before August 1, 1998.
O. Reg. 410/98, s. 2 (1).
(2) Subsection (1) applies only if the amount of the reduction calculated in accordance with the formula set out in that subsection is greater than zero. O. Reg. 353/94, s. 6.
(3) If, in a consolidated student loan agreement entered into under section 8, the total principal amount owing on the borrower’s student loans is reduced by more than the amount required by subsection (1), the Minister may require the borrower to pay the difference to the Minister of Finance. O. Reg. 353/94, s. 6; O. Reg. 280/97, s. 4 (2).
(4) For the purposes of this section, the number of academic terms in an academic year shall be based on the number of weeks during the year that the borrower was enrolled in an approved course of studies, in accordance with the following Table:
TABLE
Number of Weeks of Enrolment |
Number of Academic Terms |
0 - 11 |
0 |
12 - 20 |
1 |
21 - 40 |
2 |
41 - 52 |
3 |
O. Reg. 353/94, s. 6; O. Reg. 410/98, s. 2 (2).
Ontario Student Opportunity Grant
9.2 (1) If a borrower received and was entitled to receive loans under this Regulation or the Canada Student Financial Assistance Act for at least two academic terms, each of which began in the 12-month period beginning on August 1 in 1998 or in any year after 1998, the total principal amount owing on the borrower’s student loans in respect of the academic terms that began during that 12-month period shall be reduced by the amount calculated in accordance with the following formula:
A = B + C – ($3,500 × D)
where,
A = the amount of the reduction,
B = the total principal amount of the loans that the borrower received and was entitled to receive under this Regulation in respect of academic terms that began in the 12-month period,
C = the total principal amount of the loans that the borrower received and was entitled to receive under the Canada Student Financial Assistance Act in respect of academic terms that began in the 12-month period,
D = the number of academic terms in respect of which the borrower received loans under this Regulation or the Canada Student Financial Assistance Act in respect of academic terms that began in the 12-month period.
O. Reg. 410/98, s. 3.
(1.1) Despite subsection (1), if a borrower received and was entitled to receive loans under this Regulation or the Canada Student Financial Assistance Act for at least two academic terms, each of which began in the 12-month period that began on August 1, 1999, and the borrower was granted a scholarship under subsection 27 (1) of the Budget Implementation Act, 1998 (Canada) for one or more academic terms that began in that 12-month period, the total principal amount owing on the borrower’s student loans in respect of the academic terms that began during that 12-month period shall be reduced by the amount calculated in accordance with the following formula:
A = ((B + C – D) – ($3,500 × E)) + $500
where,
A = the amount of the reduction,
B = the total principal amount of the loans that the borrower received and was entitled to receive under this Regulation in respect of academic terms that began in the 12-month period,
C = the total principal amount of the loans that the borrower received and was entitled to receive under the Canada Student Financial Assistance Act in respect of academic terms that began in the 12-month period,
D = the amount of the scholarship that the borrower was granted under subsection 27 (1) of the Budget Implementation Act, 1998 (Canada) in respect of academic terms that began in the 12-month period,
E = the number of academic terms in respect of which the borrower received loans under this Regulation or the Canada Student Financial Assistance Act in respect of academic terms that began in the 12-month period.
O. Reg. 401/00, s. 1 (1).
(1.2) If the borrower was granted a scholarship under subsection 27 (1) of the Budget Implementation Act, 1998 (Canada) for one or more academic terms that began in the 12-month period beginning on August 1, 1999 and the amount of the reduction calculated in accordance with the formula set out in subsection (1.1) is greater than zero but less than $25, the amount of the reduction required by subsection (1.1) in respect of the academic terms that began during that 12-month period shall be deemed to be $25. O. Reg. 401/00, s. 1 (1).
(1.3) Despite subsection (1), if a borrower received and was entitled to receive loans under this Regulation or the Canada Student Financial Assistance Act for at least two academic terms, each of which began in the 12-month period beginning on August 1 in 2000 or in any year after 2000, and the borrower was granted a scholarship under subsection 27 (1) of the Budget Implementation Act, 1998 (Canada) for one or more academic terms that begin in that same 12-month period, the total principal amount owing on the borrower’s student loans in respect of the academic terms that began during that 12-month period shall be reduced by the amount calculated in accordance with the formula in subsection (1) plus $500. O. Reg. 179/01, s. 1 (1).
(1.4) If subsection (1.3) applies and the reduction calculated under that subsection is greater than zero but less than $25, the amount of the reduction under that subsection is deemed to be $25. O. Reg. 179/01, s. 1 (1).
(2) Subsections (1), (1.1) and (1.3) do not apply in respect of an academic term if the borrower withdrew or was expelled from the approved course of studies before completing that academic term, unless the Minister, after having considered the particular facts and the special circumstances of the borrower, determines that subsection (1), (1.1) or (1.3) should apply. O. Reg. 179/01, s. 1 (2).
(3) Subsection (1), (1.1) or (1.3) applies only if the amount of the reduction required by that subsection is greater than zero. O. Reg. 401/00, s. 1 (3); O. Reg. 179/01, s. 1 (3).
(4) If the total principal amount owing on the borrower’s student loans is reduced by more than the amount required by subsection (1), (1.1) or (1.3), the Minister may require the borrower to pay the difference to the Minister of Finance. O. Reg. 410/98, s. 3; O. Reg. 401/00, s. 1 (4); O. Reg. 179/01, s. 1 (4).
(5) For the purposes of this section, the number of academic terms in a 12-month period shall be based on the number of weeks during the period that the borrower was enrolled in an approved course of studies, in accordance with the following Table:
TABLE
Number of Weeks of Enrolment |
Number of Academic Terms |
0 - 11 |
0 |
12 - 20 |
1 |
21 - 40 |
2 |
41 - 52 |
3 |
O. Reg. 410/98, s. 3.
Default
10. (1) Where a borrower fails to enter into a consolidated student loan agreement in accordance with section 8 or where default is made in the payment of any instalment under such consolidated student loan agreement and such default continues for thirty days or where the borrower becomes subject to or takes advantage of any law relating to bankruptcy, insolvency or for the relief of debtors, the entire unpaid principal amount of the loan and interest payable by the student that has accrued thereon shall become due and payable on the date thereafter that is determined by the bank, the interest being at such rate, as may be determined by the bank, not exceeding the rate that would have been payable under section 16 had a consolidated student loan agreement been entered into between the bank and the borrower on that date. R.R.O. 1990, Reg. 774, s. 10 (1).
(1.1) For the purposes of subsection (1), the borrower is not considered to be taking advantage of a law for the relief of debtors if he or she makes a consumer proposal under Division I or II of Part III of the Bankruptcy and Insolvency Act (Canada) that provides for the payment of all or part of the student loans. O. Reg. 269/01, s. 8.
(2) Where the entire amount of the balance outstanding on a loan becomes due and payable in accordance with subsection (1), the bank, without in any way discharging the liability of the Minister to the bank under the Act, may take such measures as it considers advisable including,
(a) to alter or revise the terms of the loan agreement in accordance with section 9; or
(b) to effect collection of the amount of the loan outstanding. R.R.O. 1990, Reg. 774, s. 10 (2).
(3) Subsection (4), determining the date of default, applies in respect of the student loan of a borrower who,
(a) does not provide the bank to which his or her obligations under the loan are owed with confirmation of enrolment in accordance with section 3; and
(b) fails to enter into a consolidated student loan agreement in accordance with section 8. R.R.O. 1990, Reg. 774, s. 10 (3).
(4) The borrower under subsection (3) shall be deemed to be in default on the earlier of,
(a) the first day of the seventh month immediately following the month recorded as the end of the period of the approved course of studies for which he or she received a loan under the Act as set out on the last confirmation of enrolment accepted by the bank; or
(b) the first day of the seventh month immediately following the month in which the borrower ceased to be a student, where the bank is advised of this event. R.R.O. 1990, Reg. 774, s. 10 (4).
Reinstatement of Status as Student
11. (1) A borrower shall be deemed to be a student for the purposes of this Regulation during a period of study, despite subsection 2 (1), if the borrower complies with this section. O. Reg. 269/01, s. 9.
(2) The borrower 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 course of study at an eligible institution during the period, 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;
(c) that he or she is enrolled at a designated educational institution as defined in the Canada Student Financial Assistance Act; 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. O. Reg. 269/01, s. 9.
(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 borrower is enrolled. O. Reg. 269/01, s. 9.
(4) The borrower must give the bank the confirmation of enrolment form promptly upon becoming enrolled as described in subsection (2). O. Reg. 269/01, s. 9.
(5) The borrower shall be deemed under this section to be a student for the purposes of this Regulation beginning on the date on which the bank receives the confirmation of enrolment form. O. Reg. 269/01, s. 9.
11.1 (1) Even though a borrower does not comply with section 11, he or she shall be deemed to be a student for the purposes of this Regulation during a period of study, despite subsection 2 (1) if he or she establishes to the satisfaction of the Minister that,
(a) the borrower was unable to obtain a confirmation of enrolment form under section 11;
(b) the borrower is enrolled in an approved course of study at an eligible institution or is enrolled in a course of study at an educational institution described in clause 11 (2) (b), (c) or (d); and
(c) his or her course load is at least the minimum required course load for that course of study at that institution. O. Reg. 269/01, s. 9.
(2) The borrower must obtain from the Minister a confirmation of enrolment form under this section and must give it to the bank promptly. O. Reg. 269/01, s. 9.
(3) The borrower shall be deemed under this section to be a student for the purposes of this Regulation beginning on the date on which the bank receives the confirmation of enrolment form. O. Reg. 269/01, s. 9.
11.2 (1) While a borrower is deemed, under subsection 11 (2) or 11.1 (3), to be a student, the bank shall suspend his or her obligations under the student loan agreement and under the consolidated loan agreement to pay principal and interest. O. Reg. 269/01, s. 9.
(2) The bank is not authorized to suspend the obligations of the borrower under subsection (1) unless the borrower has entered into a consolidated loan agreement and has signed the agreement. O. Reg. 269/01, s. 9.
(3) If the borrower owes interest to the bank under the student loan agreement or the consolidated loan agreement, if any, for a period during which he or she was not a student, and if the bank asks the borrower to pay the accrued interest for that period, subsection (1) does not apply until the borrower pays the accrued interest. O. Reg. 269/01, s. 9.
(4) The borrower is not permitted to pay the accrued interest by means of a promissory note. O. Reg. 269/01, s. 9.
Suspension of Borrower’s Obligation
12. (1) A borrower is eligible for the suspension of his or her obligation to make payments respecting a student loan,
(a) if he or she has entered into a consolidated loan agreement respecting the loan;
(b) if he or she resides in Canada; and
(c) if, in the opinion of the Minister, he or she is unable to make the payments without incurring exceptional hardship, taking into account his or her gross income from all sources, the gross income of his or her spouse or same-sex partner, if any, and the obligations of the individual and his or her spouse or same-sex partner to children who are dependent on any of them. O. Reg. 269/01, s. 10 (1).
(1.1) If the individual’s obligations have been suspended for a cumulative period of 30 months, the individual’s eligibility for further relief is determined under section 12.1. O. Reg. 269/01, s. 10 (1).
(2) The Minister shall upon suspending an obligation to pay principal and interest owing on a student loan send a notice to the bank with which the borrower has entered into the consolidated student loan agreement that sets out the details of the suspension. R.R.O. 1990, Reg. 774, s. 12 (2).
(3) Upon receipt of a notice that a borrower’s obligation to pay the amounts of principal and interest are suspended, the bank shall suspend the obligation of the borrower as of the effective date contained in the notice and every month thereafter until and including the sixth month after the effective date. R.R.O. 1990, Reg. 774, s. 12 (3).
(4) The suspension takes effect on the date specified in the notice of suspension given to the bank (the “effective date”), and the notice may specify that the suspension be made retroactive to a date that is not earlier than the date that is the later of,
(a) three months before the date on which the borrower applied for the suspension of his or her obligations under the consolidated loan agreement; or
(b) the last day of the sixth month after the month in which the borrower ceased to be a student for the purposes of this Regulation. O. Reg. 269/01, s. 10 (2).
(5) Despite subsection (4), the suspension does not take effect until the borrower does one of the following things:
1. Pays to the bank all of the unpaid interest that has accrued up to the effective date.
2. Enters into a revised consolidated loan agreement in which up to three months of any unpaid interest that has accrued up to the effective date has been capitalized; pays to the bank the balance of any unpaid interest that has accrued up to the effective date. O. Reg. 269/01, s. 10 (2).
(6) The borrower is not permitted to pay the accrued interest referred to in paragraph 2 of subsection (5) by means of a promissory note. O. Reg. 269/01, s. 10 (2).
12.1 (1) If a borrower’s obligations under a consolidated loan agreement have been suspended for a cumulative period of 30 months, the Minister may suspend the borrower’s obligations for one or more further periods if the Minister is satisfied that the conditions of exceptional hardship still exist. O. Reg. 269/01, s. 11.
(2) Subsections 12 (2) and (3) apply with respect to a suspension authorized by subsection (1). O. Reg. 269/01, s. 11.
(3) A suspension authorized by subsection (1) cannot extend beyond the date that is 60 months after the date on which the borrower ceased to be a student for the purposes of this Regulation. O. Reg. 269/01, s. 11.
13. (1) The Minister may revoke a suspension given under section 12 or 12.1 of a borrower’s obligations under a consolidated loan agreement if any of the following circumstances exist:
1. The borrower made a false statement or a misrepresentation on the application for relief or on any document required by the Minister relating to the application.
2. The borrower furnished false or misleading information relating to the application for relief.
3. The borrower did not file with the Minister all the information and documents required by the Minister to verify a statement made in the application for relief.
4. The borrower has, at any time, defaulted in repayment of a student loan or any other loan made or guaranteed by the Province of Ontario, a student loan guaranteed by any other province or territory of Canada or a loan made under the Canada Student Loans Act or the Canada Student Financial Assistance Act.
5. The borrower has been required to repay to the Minister of Finance all or part of a student grant made under section 3 of Regulation 775 of the Revised Regulations of Ontario, 1990 (“Ontario Study Grant Plan”) or any predecessor thereof.
6. The borrower has, at any time, 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 involving fraud or theft under the Criminal Code (Canada) in respect of any student assistance program or a loan, grant or award made by the Province of Ontario or any other province or territory of Canada.
7. The borrower 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. O. Reg. 269/01, s. 12.
(2) If the Minister revokes the suspension of a borrower’s obligations, the Minister may require him or her to pay to the Minister the interest paid by the Minister to the bank on the borrower’s behalf during the period of the suspension. O. Reg. 269/01, s. 12.
(3) The borrower shall promptly make the payment required by the Minister under subsection (2). O. Reg. 269/01, s. 12.
Payment on Death
14. (1) The rights of a bank against a borrower in respect of a student loan shall terminate upon the death of the borrower, and the Minister shall pay to the bank whose rights against a borrower are terminated under this section, the amount of principal and interest payable by the borrower at the time of his or her death as determined under subsection (4). R.R.O. 1990, Reg. 774, s. 14 (1).
(2) Despite subsection (1), where a borrower to whom a student loan has been made by a bank,
(a) dies and notice of his or her death is not received by the bank within thirty days of the day of his or her death; or
(b) disappears under circumstances that, in the opinion of the Minister, raise beyond a reasonable doubt a presumption that the borrower is dead,
the Minister shall pay to the bank the amount of principal and interest as determined under subsection (5) to have been payable by the borrower, on such day after the borrower’s death or disappearance as the Minister may fix, and all rights of the bank against that borrower in respect of that student loan terminate on that day. R.R.O. 1990, Reg. 774, s. 14 (2).
(3) A bank making a claim pursuant to subsection (2) shall provide evidence satisfactory to the Minister of the death or disappearance of the borrower. R.R.O. 1990, Reg. 774, s. 14 (3).
(4) The amount payable by the Minister to a bank pursuant to subsection (1) shall be the amount of the unpaid balance of principal payable by the borrower at the time of his or her death and the interest that has accrued thereon to the last day of the month in which the borrower died. R.R.O. 1990, Reg. 774, s. 14 (4).
(5) The amount payable by the Minister to a bank pursuant to subsection (2) shall be the amount of the unpaid balance of principal payable by the borrower at the date fixed by the Minister following the death or disappearance of the borrower and interest that has accrued thereon to that date. R.R.O. 1990, Reg. 774, s. 14 (5).
Misrepresentation
15. Where a bank discovers that a document pertaining to a student loan contains a false statement, the bank may take any action that it considers proper in the circumstances and shall immediately report the matter to the Minister. R.R.O. 1990, Reg. 774, s. 15.
Interest
16. (1) In this section,
“basic rate” means the minimum commercial rate of interest offered by the head office of the lending bank in the Province of Ontario on the first day of each fiscal quarter of the lending bank. R.R.O. 1990, Reg. 774, s. 16 (1).
(2) In this section,
“prime rate” means the minimum commercial lending rate of interest offered at the head office of the lending bank in the Province of Ontario on any given day. R.R.O. 1990, Reg. 774, s. 16 (2).
(3) The rate of interest payable by a borrower pursuant to a consolidated student loan agreement shall,
(a) in the case of an agreement entered into before April 1, 1998, commence at the prime rate in effect on the first day of the seventh month immediately following the month in which the borrower ceased to be a student, plus one per cent, and then continue at the prime rate plus one per cent in accordance with changes in the prime rate; or
(b) in the case of an agreement entered into on or after April 1, 1998, commence at the prime rate in effect on the first day of the month immediately following the month in which the borrower ceased to be a student, plus one per cent, and then continue at the prime rate plus one per cent in accordance with changes in the prime rate. O. Reg. 280/97, s. 7 (1).
(3.1) If a borrower fails to enter into a consolidated student loan agreement in accordance with section 8, the rate of interest payable by the borrower pursuant to a student loan agreement shall,
(a) in the case of a borrower who was required to enter into a consolidated student loan agreement before April 1, 1998, commence at the prime rate in effect on the first day of the seventh month immediately following the month in which the borrower ceased to be a student, plus one per cent, and then continue at the prime rate plus one per cent in accordance with changes in the prime rate; or
(b) in the case of a borrower who was not required to enter into a consolidated student loan agreement until April 1, 1998 or a later date, commence at the prime rate in effect on the first day of the month immediately following the month in which the borrower ceased to be a student, plus one per cent, and then continue at the prime rate plus one per cent in accordance with changes in the prime rate. O. Reg. 280/97, s. 7 (1).
(4) The rate of interest payable by the Minister to a bank in respect of a student loan shall be the basic rate in effect on the date on which the loan was made by the bank and thereafter at the basic rate in effect on the first day of each fiscal quarter in respect of the period prescribed in subsection (5). R.R.O. 1990, Reg. 774, s. 16 (4).
(5) No interest is payable by a student on a student loan in respect of any period while he or she is a student or in respect of the period from the day he or she ceases to be a student to,
(a) the last day of the sixth month after the month in which he or she ceases to be a student, if the student enters into a consolidated student loan agreement in accordance with section 8 before April 1, 1998; or
(b) the last day of the month in which he or she ceases to be a student, if the student fails to enter into a consolidated student loan agreement in accordance with section 8 or enters into a consolidated student loan agreement in accordance with section 8 on or after April 1, 1998. O. Reg. 280/97, s. 7 (2).
(6) The Minister shall pay to a bank in respect of each student loan that a borrower is obliged to pay to the bank, interest thereon at the rate prescribed in subsection (4) in respect of the period prescribed in subsection (5). R.R.O. 1990, Reg. 774, s. 16 (6).
(7) No interest is payable on a student loan in respect of any period during which the borrower’s obligation to pay principal and interest on the student loan is suspended under subsection 12 (1) and the Minister shall pay the interest payable during that period on the student loan to the bank at the rate prescribed in subsection (3). R.R.O. 1990, Reg. 774, s. 16 (7).
Quarterly Interest Payment
17. (1) The Minister shall pay to a bank within twenty-one days following the last day of January, April, July and October in each year the interest owing to the bank under subsection 16 (5) as calculated by the Minister. R.R.O. 1990, Reg. 774, s. 17 (1).
(2) Every payment of interest made under subsection (1) is subject to review at the request of the bank and an adjustment of interest payment may be made upon verification of the amount payable. R.R.O. 1990, Reg. 774, s. 17 (2).
(3) Where a calculation of interest by the Minister varies from that of a bank by reason of a difference in the method used to calculate the interest, the interest as calculated by the Minister shall be the interest payable to the bank by the Minister. R.R.O. 1990, Reg. 774, s. 17 (3).
Subrogation
18. Where the Minister has paid to a bank the amount of a loss sustained by the bank as a result of a student loan, Her Majesty in right of Ontario is thereupon subrogated in and to all the rights of the bank in respect of the student loan and, without limiting the generality of the foregoing, all rights and powers of the bank in respect of the student loan and any Judgment obtained by the bank in respect of the loan, are thereupon vested in Her Majesty in right of Ontario and Her Majesty in right of Ontario is entitled to exercise all the rights, powers and privileges that the bank had or might exercise in respect of the loan or Judgment, including the right to commence or continue any action or proceeding, to execute any release, transfer, sale or assignment, or in any way collect, realize or enforce the loan or Judgment. R.R.O. 1990, Reg. 774, s. 18.
Claims for Loss
19. (1) A claim for loss by a bank in respect of a student loan may be made in a form satisfactory to the Minister,
(a) in the case of a claim made under section 14, at the earliest date that evidence of the death, or disappearance of the borrower is available to the bank; and
(b) in the case of a claim for loss, other than a claim under section 14 at any time after the student loan has been in default for sixty days, except where in the opinion of the bank the circumstances are exceptional, including a bankruptcy or insolvency, in which case a claim may be submitted prior to the expiration of sixty days and such claim may be paid at the discretion of the Minister. R.R.O. 1990, Reg. 774, s. 19 (1).
(2) The amount of loss sustained by a bank as a result of a student loan for which a claim for loss may be submitted may include,
(a) the unpaid principal amount of the loan;
(b) the uncollected earned interest on the student loan calculated to,
(i) the last day of the month in which the borrower died or such later date as may be fixed by the Minister in the case of a claim made under section 14, or
(ii) the date the claim is approved for payment in the case of a claim other than a claim referred to in subclause (i);
(c) any uncollected assessed costs for or incidental to legal proceedings in respect of the loan;
(d) legal fees, legal costs and legal disbursements, whether assessable or not, actually incurred by the bank, whether with or without litigation, in collecting or endeavouring to collect the loan or to protect the interests of the Minister, but only up to the amount that the Minister may allow; and
(e) other disbursements actually incurred by the bank in collecting or endeavouring to collect the loan or to protect the interests of the Minister, but only up to the amount that the Minister may allow. R.R.O. 1990, Reg. 774, s. 19 (2).
(3) A claim for loss shall be approved for payment by the Minister within thirty days from the receipt thereof and shall be paid forthwith. R.R.O. 1990, Reg. 774, s. 19 (3).
(4) Upon payment of a loss in respect of a student loan being made by the Minister to a bank, the bank shall execute a receipt in a form satisfactory to the Minister and shall send the receipt to the Minister together with such applications, agreements and other documents relating to the loan as the Minister requests. R.R.O. 1990, Reg. 774, s. 19 (4).
(5) A document purporting to be a receipt, in a form satisfactory to the Minister and purporting to be signed on behalf of a bank, shall be evidence of the payment by the Minister to the bank under the Act in respect of the loan therein mentioned and of the execution of the document on behalf of the bank. R.R.O. 1990, Reg. 774, s. 19 (5).
Recoveries
20. Where payment is made by the Minister to a bank in respect of a student loan, the bank shall remit all amounts that may be collected or realized by it pursuant to the student loan in a manner satisfactory to the Minister. R.R.O. 1990, Reg. 774, s. 20.
Lost or Stolen Certificates
21. Where the certificate of loan approval issued to a student is lost or stolen, the student may apply to the Minister or an officer authorized under subsection 25 (1) for a replacement certificate of loan approval and where the Minister or such officer is satisfied that the certificate has been lost or stolen, may issue or cause to be issued a replacement certificate of loan approval to the student. R.R.O. 1990, Reg. 774, s. 21.
Liability of the Minister
22. (1) Where a false statement is made by a borrower in a document pertaining to a student loan, the liability of the Minister to the bank shall not for that reason be discharged to any extent even though the document is scrutinized and checked by an officer of the bank with the care required of him or her by the bank in its ordinary business. R.R.O. 1990, Reg. 774, s. 22 (1).
(2) The liability of the Minister is not discharged where a loan is made to a borrower who wrongfully files with the bank a lost or stolen certificate of loan approval and where it is scrutinized and checked by an officer of the bank with the care required of him or her by the bank in its ordinary business. R.R.O. 1990, Reg. 774, s. 22 (2).
Transfer or Assignment
23. (1) Where a borrower and a bank agree that the bank will accept the transfer or assignment to it of a student loan agreement and a consolidated student loan agreement, if any, from the bank to which the obligations of the borrower under the agreement are owed, the borrower may apply to the bank to which his or her obligations under the agreement are owed for such a transfer or assignment and that bank shall forthwith, on receipt of the application of the borrower, transfer or assign the agreement to the bank that has agreed to accept it. R.R.O. 1990, Reg. 774, s. 23 (1).
(2) Where an agreement is transferred or assigned under subsection (1), the bank to which the agreement is transferred or assigned shall pay to the bank from which the agreement is transferred or assigned an amount equal to the principal amount of the loan outstanding as of the date of the transfer or assignment and any interest payable by the borrower that will have accrued as of that date. R.R.O. 1990, Reg. 774, s. 23 (2).
(3) A transfer or assignment made under subsection (1) shall be in a form satisfactory to the Minister. R.R.O. 1990, Reg. 774, s. 23 (3).
Reports to Minister
24. Each bank shall make reports to the Minister respecting all outstanding student loans processed by it in such form and containing such information with respect to the student loans as the Minister may from time to time require, including copies of all documents relating to student loans processed by it. R.R.O. 1990, Reg. 774, s. 24.
Authorized Officers
25. (1) The Deputy Minister and the Director, Student Support Branch, are authorized to approve loans under section 8 of the Act. R.R.O. 1990, Reg. 774, s. 25 (1); O. Reg. 280/97, s. 8.
(2) The Minister may authorize the use of a facsimile signature of an officer of the Ministry mentioned in subsection (1) to be affixed to a certificate of loan approval by the use of a rubber stamp or by printing, lithographing, engraving or by other mechanical means. R.R.O. 1990, Reg. 774, s. 25 (2).
26. Revoked: O. Reg. 269/01, s. 13.