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Ministry of Training, Colleges and Universities Act

R.R.O. 1990, REGULATION 774

ontario student loans made before August 1, 2001

Historical version for the period November 1, 2016 to March 9, 2017.

Last amendment: O. Reg. 346/16.

This is the English version of a bilingual regulation.

CONTENTS

 

Interpretation

1. (1) In this Regulation,

“applicant” means a student who applies for a student loan under the Act; (“demandeur”)

“approved course of studies” means a course of studies described in section 1.1; (“programme d’études approuvé”)

“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 the Act; (“banque”)

“borrower” means a person to whom a student loan is made; (“emprunteur”)

“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; (“certificat d’approbation de prêt”)

“consolidated student loan agreement” means an agreement described in section 8; (“contrat de prêt d’études consolidé”)

“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), (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; (“frais d’étude”)

“eligible employment” means paid employment in Ontario or voluntary work in Ontario or a combination of both totalling a minimum of 30 hours a week; (“emploi admissible”)

“eligible institution” means an institution described in section 1.2; (“établissement admissible”)

“eligible not-for-profit entity” means an eligible not-for-profit entity within the meaning of section 16.2; (“entité sans but lucratif admissible”)

“financial resources” means the estimated amount of money determined by the Minister that the Minister expects the applicant and his or her spouse, 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, parents or sponsor of the applicant from all sources,

(d) the assets of the applicant and his or her spouse,

(e) personal income tax, unemployment insurance and pension plan contributions of the spouse, 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, parents or sponsor, and

(g) any other resources, assets or deductions of the applicant and his or her spouse, parents or sponsor in addition to those listed in clauses (a) to (f) that the Minister may determine are relevant; (“ressources financières”)

“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 career college registered under the Private Career Colleges Act, while receiving financial assistance from the Government of Canada, and

(c) actively seeking employment while registered with the Canadian Employment and Immigration Commission; (“emploi à temps plein”)

“married student” means a person who,

(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection 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; (“étudiant marié”)

“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; (“charge de cours minimale exigée”)

“single student” means a person who,

(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection 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 and has no child dependent on the person for support; (“étudiant célibataire”)

“sole support student” means a person, other than a single student or a married student, who,

(a) is a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection 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, 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 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; (“étudiant seul soutien de famille”)

“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); (“établissement d’enseignement agréé”)

“sponsor” means a person who is a sponsor within the meaning of the regulations made under the Immigration and Refugee Protection Act (Canada); (“répondant”)

“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”)

“student” means a single student, a married student or a sole support student registered in an approved course of studies in respect of which he or she receives a student loan under the Act; (“étudiant”)

“student loan” means a student loan made in accordance with the requirements of section 8 of the Act. (“prêt d’études”)  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; O. Reg. 167/04, s. 1 (1-12); O. Reg. 215/12, s. 1; O. Reg. 198/13, s. 1.

(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 or spouse resided in Ontario, if the parent, sponsor or spouse 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); O. Reg. 167/04, s. 1 (13).

(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 and Refugee Protection 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 and Refugee Protection Act (Canada).  O. Reg. 441/91, s. 1 (5); O. Reg. 167/04, s. 1 (14).

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

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

2. A consumer proposal made by the borrower 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 borrower, including any student loans that the borrower may have received under the Act.

4. A document seeking relief has been filed by the borrower 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 borrower may have received under the Act.  O. Reg. 167/04, s. 1 (15).

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 Ontario Colleges of Applied Arts and Technology Act, 2002.

3. The Collège d’Alfred, the Kemptville College and the Ridgetown College.

4. The Law Society of Upper Canada.

5. The Niagara Parks Commission School of Horticulture.  O. Reg. 269/01, s. 3; O. Reg. 167/04, s. 2 (1).

(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 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.

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

5. A private career college operating in another jurisdiction that is authorized by that jurisdiction to operate as a private career college or as an analogous type of school.  O. Reg. 269/01, s. 3; O. Reg. 167/04, s. 2 (2); O. Reg. 281/13, s. 1.

(3) Revoked:  O. Reg. 167/04, s. 2 (3).

2. (1) 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).

6. The period of study for which the student received a student loan ends and the number of weeks in respect of which the student has received student loans during his or her lifetime is equal to or greater than,

i. 340 weeks for a student who is enrolled in a program other than a doctoral program, or

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

7. Subject to subsections (2) and (3), the student became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into another recognized arrangement for debt settlement and, if the event occurred during a period of study, the period of study ends.  O. Reg. 269/01, s. 4; O. Reg. 167/04, s. 3 (1).

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

(a) the student is issued a certificate of loan approval under section 15.1 of Ontario Regulation 268/01 (Ontario Student Loans made after July 31, 2001) under the Act; or

(b) the student meets the requirements of section 11 or 11.1.  O. Reg. 167/04, s. 3 (2).

(3) A student may continue to be a student for the purposes of this Regulation under subsection (2) until the earlier of,

(a) the day that is,

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

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

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

(c) the day the student ceases to be enrolled in the course of study he or she was enrolled in at the time the event described in paragraph 7 of subsection (1) occurred.  O. Reg. 167/04, s. 3 (2).

(4) Paragraph 7 of subsection (1) and subsections (2) and (3) only apply to events described in paragraph 7 of subsection (1) that occurred on or after May 11, 2004.  O. Reg. 167/04, s. 3 (2).

Application

3. This Regulation applies with respect to student loans made before August 1, 2001 and with respect to the consolidated student loan agreements relating to such student loans and made under section 8.  O. Reg. 269/01, s. 4; O. Reg. 167/04, s. 4.

3.1-7. Revoked:  O. Reg. 167/04, 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), (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)-(9) Revoked:  O. Reg. 269/01, s. 7 (2).

9.1 Revoked:  O. Reg. 334/10, s. 1.

9.2 (1)-(7) Revoked:  O. Reg. 334/10, s. 2 (1).

(7.1) Revoked:  O. Reg. 334/10, s. 2 (2).

(8) Revoked:  O. Reg. 334/10, s. 2 (3).

9.3, 9.4 Revoked:  O. Reg. 334/10, 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, 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); O. Reg. 167/04, s. 9 (1).

(1.1) Revoked:  O. Reg. 167/04, s. 9 (2).

(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).

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

(a) deny the borrower the status of a qualifying student under section 11 or 11.1 during a period of study during which he or she does not receive a student loan; or

(b) refuse the borrower any repayment assistance under sections 12 to 12.12.  O. Reg. 167/04, s. 9 (3); O. Reg. 334/10, s. 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 in respect of which he or she does not receive a student loan if the borrower complies with this section.  O. Reg. 167/04, s. 10 (1).

(1.1) The individual must be a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada).  O. Reg. 121/10, s. 2.

(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 and that he or she is taking at least the minimum course load required under subsection (2.1);

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

(d) that he or she is enrolled at an educational institution not described in clause (a), (b) or (c) that is approved by the Minister for the purposes of this section and that he or she is taking at least the minimum course load required under subsection (2.1).  O. Reg. 269/01, s. 9; O. Reg. 167/04, 10 (2); O. Reg. 198/13, s. 2.

(2.1) For the purposes of clause (2) (b), (c) or (d), the minimum course load that a borrower who is enrolled at an institution described in one of those clauses must take in order to be deemed to be a student for the purposes of this Regulation 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 borrower’s course of study, in the case of an borrower 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 borrower’s course of study, in the case of an borrower who is a person with a disability.  O. Reg. 167/04, s. 10 (3).

(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, 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; and

(b) the circumstances that are required in order to obtain a confirmation of enrolment under clause 11 (2) (a), (b), (c) or (d) exist.

(c) Revoked:  O. Reg. 167/04, s. 11.

O. Reg. 269/01, s. 9; O. Reg. 167/04, s. 11.

(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 (5) 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 student loan agreement to pay principal and interest.  O. Reg. 269/01, s. 9; O. Reg. 167/04, s. 12; O. Reg. 198/13, s. 3.

(2) The bank is not authorized to suspend the obligations of the borrower under subsection (1) unless the borrower has entered into a consolidated student loan agreement and has signed the agreement.  O. Reg. 269/01, s. 9; O. Reg. 167/04, s. 12.

(3) If the borrower owes interest to the bank under the student loan agreement or the consolidated student 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; O. Reg. 167/04, s. 12.

(4) The borrower is not permitted to pay the accrued interest by means of a promissory note.  O. Reg. 269/01, s. 9.

Repayment Assistance Plan

Definitions

12. In this section and in sections 12.1 to 13,

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

“monthly affordable payment” means the amount that a borrower can reasonably afford to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 12.5; (“versement mensuel abordable”)

“monthly required payment” means the amount that a borrower would be required to pay on all of his or her federal and provincial student loans on a monthly basis, as determined under section 12.6; (“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 postsecondary school level or in the labour force, and

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

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

“qualifying student” means a student or a borrower deemed to be a student under section 11 or 11.1. (“étudiant admissible”)  O. Reg. 334/10, s. 5.

Repayment assistance

12.1 (1) A borrower under a consolidated student loan agreement who is having difficulty paying amounts on principal and interest under the agreement may apply for repayment assistance in accordance with section 12.3.  O. Reg. 334/10, s. 5.

(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 student loans.

2. Assistance from the Minister in paying off the borrower’s outstanding student loans by making monthly payments on the loans.  O. Reg. 334/10, s. 5.

(3) The amount of assistance provided by the Minister shall be determined so that,

(a) in the case of a person receiving repayment assistance other than a person described in clause (b), the recipient’s student loans are repaid in full within 15 years from the day the recipient last was a qualifying student; and

(b) in the case of a person with a permanent disability who is receiving repayment assistance and who, in an application for repayment assistance, discloses his or her disability, the recipient’s student loans are paid in full within 10 years from the day he or she last was a qualifying student.  O. Reg. 334/10, s. 5.

(4) The assistance provided by the Minister to the borrower, whether by means of amounts paid to the bank on behalf of the borrower or by any other means, shall be deemed to be a grant made to the borrower under section 5 of the Act.  O. Reg. 334/10, s. 5.

Two stages of repayment assistance

12.2 (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 consist solely of amounts payable on account of interest owing on the outstanding student loans.

2. Stage 2, known as the debt reduction stage.  During this stage, the monthly assistance provided by the Minister shall include such amounts payable on account of principal and interest owing on the outstanding student loans as are required so as to ensure that the student loans are repaid in full within the time period specified in subsection 12.1 (3).  O. Reg. 334/10, s. 5.

(2) Subject to subsection (4), the two stages of repayment assistance are consecutive and a borrower must receive the interest relief stage of repayment assistance for the full period of time for which it is available under subsection (3) before he or she is entitled to receive the debt reduction stage of repayment assistance.  O. Reg. 334/10, s. 5.

(3) A borrower may receive repayment assistance at the interest relief stage for a period of up to 60 months, subject to sections 12.11 and 12.12.  O. Reg. 334/10, s. 5.

(4) A borrower who meets the eligibility requirements specified in subsection 12.4 (1) and in either paragraph 2 or 3 of subsection 12.4 (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. 334/10, s. 5.

Application and approval process

12.3 (1) A borrower who wishes to receive repayment assistance shall submit an application for the assistance to the bank to which amounts are owed under the consolidated student loan agreement.  O. Reg. 334/10, s. 5.

(2) The application shall be in the form approved by the Minister and shall provide the bank 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. 334/10, s. 5.

(3) If the bank determines that the applicant meets the eligibility requirements under sections 12.4, 12.5 and 12.6, the applicant shall be entitled to receive repayment assistance for a period of six months.  O. Reg. 334/10, s. 5.

(4) If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, he or she shall submit an application for the assistance to the bank no later than 30 days after the end of the six month period.  O. Reg. 334/10, s. 5.

(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. 334/10, s. 5.

Eligibility requirements

12.4 (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 bank in accordance with section 12.3.

3. The borrower has entered into a consolidated student loan agreement.

4. The borrower is not ineligible under section 12.10 after failing to make the monthly payments in a previous repayment assistance period.

5. The borrower’s monthly affordable payment is less than his or her monthly required payment.

6. The borrower satisfies the eligibility requirements for the interest relief stage of repayment assistance described in subsection (2) or for the debt reduction stage of repayment assistance described in subsection (3).  O. Reg. 334/10, s. 5.

(2) A borrower must meet all of the following requirements in order to be eligible for the interest relief stage of repayment assistance:

1. Since the borrower last was a qualifying student, he or she,

i. has not received any repayment assistance, or

ii. has received repayment assistance at the interest relief stage for a total period of time of less than 60 months.

2. Less than 10 years has elapsed since the borrower last was a qualifying student.

3. The borrower does not disclose a permanent disability in his or her application for repayment assistance.  O. Reg. 334/10, s. 5.

(3) A borrower must meet at least one of the following requirements in order to be eligible for the debt reduction stage of repayment assistance:

1. Since the borrower last was a qualifying student, he or she has received repayment assistance at the interest relief stage for 60 months.

2. 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, his or her disability.  O. Reg. 334/10, s. 5.

(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 10 (5); or

(b) has determined that the borrower is ineligible for repayment assistance for a period of time under subsection 13.3 (2).  O. Reg. 334/10, s. 5.

Determination of monthly affordable payment

12.5 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 5 of subsection 12.4 (1), the borrower’s monthly affordable payment shall be determined in accordance with this section, having regard to the number of persons in his or her family and to his or her family income.  O. Reg. 334/10, s. 5.

(1.1) For the purposes of this section,

(a) Table 2 applies if the repayment assistance period commences on or after November 1, 2016 or if the application for repayment assistance is received on or after November 1, 2016; and

(b) Table 1 applies in all other cases.

Table 1
Threshold amount for Family Income: before November 1, 2016

Column 1

Number of Family Members

Column 2

Threshold Amount

1

$1,684

2

$2,631

3

$3,399

4

$4,009

5 or more

$4,569

 

Table 2
Threshold amount for Family Income: on and After November 1, 2016

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. 346/16, s. 1 (1).

(2) If a borrower’s monthly family income is equal to or less than the threshold amount set out in Column 2 of Table 1 or Table 2 to subsection (1.1), opposite the number of members in the borrower’s family, the borrower’s monthly affordable payment shall be a nil amount. O. Reg. 334/10, s. 5; O. Reg. 346/16, s. 1 (2, 3).

(3) If a borrower’s monthly family income is greater than the threshold amount set out in Column 2 of Table 1 or Table 2 to subsection (1.1), 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) 20 per cent of the person’s monthly family income; and

(b) the portion of the person’s monthly family income obtained by multiplying that income by the following formula:

1.5 × [(A – B)/(100 × C) + 0.01]

where,

A is the borrower’s family income,

B is the appropriate threshold amount set out in Column 2 of Table 1 or Table 2 to subsection (1.1) for a family with the number of members in the borrower’s family,

C is the monthly increment for a family with the number of members in the borrower’s family, as set out in the Table to this subsection.

Table
Monthly Increments

Column 1

Number of Family Members

Column 2

Monthly increment

1

$250

2

$350

3

$425

4

$500

5 or more

$575

O. Reg. 334/10, s. 5; O. Reg. 346/16, s. 1 (4, 5).

(4) If the borrower has a spouse who has received federal or provincial student loans and has begun repayment of those loans as required under the Act or under the laws of the appropriate jurisdiction, the borrower’s monthly affordable payment as determined under subsection (3) shall be adjusted in accordance with the following formula:

A × B/C

where,

A is the borrower’s monthly affordable payment as determined under subsection (3),

B is the borrower’s total outstanding federal and provincial student loans,

C is the sum of the borrower’s total outstanding federal and provincial student loans and the spouse’s total outstanding federal and provincial student loans that are in repayment.  O. Reg. 334/10, s. 5.

(5) In this section,

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

“family income” means the borrower’s gross income and that of his or her spouse, if any, from all sources less, in the case of a borrower with a permanent disability, any expenses related to the disability that are not covered by public health care or private insurance. (“revenu familial”)  O. Reg. 334/10, s. 5.

Determination of monthly required payment

12.6 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 5 of subsection 12.4 (1), the borrower’s monthly required payment shall be equal to the monthly payment obtained by amortizing the amount of principal on all of his or her federal and provincial student loans outstanding at the time of the application for repayment assistance over the appropriate period of time determined under subsection (2) and using the interest rate determined under subsection (3).  O. Reg. 334/10, s. 5.

(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. 334/10, s. 5.

(3) The rate of interest used to determine a borrower’s monthly required payment shall be equal to the average of the interest rates applicable to all of the borrower’s federal and provincial student loans, such average to be weighted based on the proportion of the borrower’s outstanding principal in each jurisdiction to the total amount of the borrower’s outstanding federal and provincial student loans.  O. Reg. 334/10, s. 5.

Repayment assistance period

12.7 (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 bank; 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 bank in,

(i) the month immediately before the individual is required under subsection 16 (5), 16.1 (1) or 16.3 (1) to start paying interest on a student loan, or

(ii) the last month of the most recent repayment assistance period. O. Reg. 346/16, s. 2.

(2) Despite subsection (1), a bank may, at the request of an applicant, backdate the commencement of the repayment assistance period if the applicant has failed to pay the principal amount and any interest on his or her outstanding student loans during the months previous to his or her application for repayment assistance.  O. Reg. 334/10, s. 5.

(3) The bank shall not backdate the commencement of the repayment assistance period by more than six months.  O. Reg. 334/10, s. 5.

Suspension of repayment terms in agreement

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

(a) the terms of the repayment of the student loan set out in the borrower’s consolidated student loan agreement are suspended and of no effect; and

(b) instead of the payments required under the consolidated student loan agreement, payments shall be made each month on the borrower’s outstanding student loans by the borrower and the Minister in an amount equal to all or part of the Ontario portion of the borrower’s monthly required payment, as determined in accordance with section 12.9.  O. Reg. 334/10, s. 5.

(2) At the end of the repayment assistance period, the suspension of repayment terms in the consolidated student loan agreement between the borrower and the bank in clause (1) (a) is lifted, subject to such amendments to the consolidated student loan agreement as may be agreed to by the parties.  O. Reg. 334/10, s. 5.

(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. 334/10, s. 5.

(4) In this section and in section 12.9,

“Ontario portion” means, in relation to the monthly required payment or the monthly affordable payment, the portion of the payment proportional to the portion of all of the borrower’s federal and provincial student loans that is equal to the student loans issued under this Regulation.  O. Reg. 334/10, s. 5.

Monthly payments during repayment assistance

12.9 (1) If a borrower is granted repayment assistance at the interest relief stage, the part of the Ontario portion of the borrower’s monthly required payment that is equal to the sum of the following amounts shall be paid each month on the borrower’s outstanding student loans:

1. The borrower shall pay to the bank the Ontario portion of his or her monthly affordable payment.

2. The Minister shall pay to the bank any interest payable as part of the Ontario portion of the borrower’s monthly required payment that is not paid by the borrower under paragraph 1.  O. Reg. 334/10, s. 5.

(2) For greater certainty, during the interest relief stage of repayment assistance, any part of the Ontario portion of a borrower’s monthly required payment that is attributable to principal and not covered by the borrower’s payment under paragraph 1 of subsection (1) is not payable to the bank.  O. Reg. 334/10, s. 5.

(3) If a borrower is granted repayment assistance at the debt reduction stage, all of the Ontario portion of the borrower’s monthly required payment shall be paid each month on the borrower’s outstanding student loans as follows:

1. The borrower shall pay to the bank the Ontario portion of his or her monthly affordable payment.

2. The Minister shall pay to the bank any part of the Ontario portion of the borrower’s monthly required payment, whether attributable to interest alone or to both principal and interest, that is not paid by the borrower under paragraph 1.  O. Reg. 334/10, s. 5.

(4) A monthly payment made by the borrower under this section shall be paid to the bank each month at the same time as the monthly amounts otherwise payable under the consolidated student loan agreement would have been paid.  O. Reg. 334/10, s. 5.

(5) Despite subsection 9 (3), a monthly payment made by the borrower under this section shall be applied by the bank against the borrower’s outstanding student loans as follows:

1. The full amount of the payment shall be applied first against the part of the Ontario portion of the monthly required payment that would be payable on the outstanding principal.

2. If the amount of the payment exceeds the amount of principal payable as part of the Ontario portion of the monthly required payment, the excess amount shall be applied against the interest payable as part of the Ontario portion of the monthly required payment.  O. Reg. 334/10, s. 5.

(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. 334/10, s. 5.

(7) If there is a conflict between a provision of a consolidated student loan agreement and this section, this section prevails.  O. Reg. 334/10, s. 5.

Failure to make payments

12.10 (1) If a borrower fails to make one or more monthly payments that he or she is required to make during a repayment assistance period to a bank, the borrower shall pay all missed payments to the bank on or before 30 days after the end of the repayment assistance period.  O. Reg. 334/10, s. 5.

(2) A borrower who fails to pay to the bank all the missed monthly payments as required under subsection (1) shall no longer be eligible for repayment assistance under this Regulation unless after the failure the borrower,

(a) pays all arrears of interest owing under the consolidated student loan agreement;

(b) makes at least six consecutive monthly payments under the consolidated student loan agreement; and

(c) is otherwise eligible for repayment assistance under section 12.4.  O. Reg. 334/10, s. 5.

Return to school

12.11 If a borrower receives repayment assistance under this Regulation and subsequently returns to school and becomes a qualifying student once again, the repayment assistance received before the return to school shall not be considered for purposes of determining eligibility for any further repayment assistance that the borrower may apply to receive after completing the further period of study.  O. Reg. 334/10, s. 5.

Transitional provisions

12.12 (1) This section applies to any application for repayment assistance under this Regulation made by a person whose payment obligations under a consolidated student loan agreement were suspended for a period of six months on one or more occasions under old section 12 or 12.1.  O. Reg. 334/10, s. 5.

(2) In this section,

“new section” means a section in this Regulation as it reads on and after November 1, 2010; (“nouvel article”)

“old section” means a section in this Regulation as it read on October 31, 2010. (“ancien article”)  O. Reg. 334/10, s. 5.

(3) A person described in subsection (1) is eligible for repayment assistance under this Regulation if he or she meets the eligibility requirements under new sections 12.4, 12.5 and 12.6, subject to the following rules that apply for purposes of determining whether the person meets the eligibility requirements:

1. Any month during which the person’s payment obligations were suspended under old section 12 or 12.1 since the person last was a qualifying student is deemed to be a month during which the person received repayment assistance at the interest relief stage under the amended Regulation.

2. Any month during which the person’s payment obligations were suspended under old section 12 or 12.1 before the person last was a qualifying student is not relevant for the purposes of determining eligibility for repayment assistance under this Regulation.  O. Reg. 334/10, s. 5.

Severe Permanent Disability Benefit

Severe permanent disability benefit

13. (1) In this section,

“severe permanent disability” means a permanent disability as defined under section 12 that is so severe that,

(a) it not only restricts but prevents a borrower from performing the daily activities necessary to participate in studies at a postsecondary school level and in the labour force; and

(b) the degree of functional limitation described in clause (a) is expected to remain with the person for the duration of their life.  O. Reg. 334/10, s. 5.

(2) A person who has a severe permanent disability is entitled to have the outstanding amount on his or her student loans forgiven if he or she meets the following eligibility requirements:

1. The person is a Canadian citizen or is a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada).

2. The person resides in Canada.

3. The person has submitted an application to the Minister for the severe permanent disability benefit.

4. The person satisfies the Minister that, by reason of his or her severe permanent disability, the person is unable to repay the student loan and will never be able to do so.  O. Reg. 334/10, s. 5.

(3) If a student loan issued under this Regulation is forgiven under this section, the Minister shall pay to the bank the full amount (principal and interest) outstanding on the loan.  O. Reg. 334/10, s. 5.

13.1, 13.2 Revoked:  O. Reg. 334/10, s. 5.

Restrictions on Future Eligibility for Benefits in respect of Student Loans

13.3 (1) The Minister may determine that a borrower shall not be eligible, for such period as the Minister may determine, for any of the benefits described in subsection (2) if any of the following circumstances exist:

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

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

3. The borrower has been convicted of an offence under the Ministry of Training, Colleges and Universities Act, the Canada Student Loans Act or the Canada Student Financial Assistance Act or an offence under the Criminal Code (Canada) involving fraud or theft in respect of any student assistance program or a loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.  O. Reg. 167/04, s. 14; O. Reg. 116/07, s. 5 (1).

(2) A determination under subsection (1) may render a borrower ineligible to receive any of the following types of benefits available under this Regulation with respect to the repayment of the borrower’s outstanding student loans:

1. Relief under section 11.2 from the obligation to pay interest on student loans while deemed to be a student under section 11 or 11.1.

2. Repayment assistance under sections 12 to 12.12.

3. Severe permanent disability benefits under section 13.

4. Revoked:  O. Reg. 334/10, s. 6 (1).

O. Reg. 167/04, s. 14; O. Reg. 334/10, s. 6 (1).

(3) Upon making a determination under this section, the Minister shall give the borrower notice of the determination and of the length of the period of ineligibility.  O. Reg. 167/04, s. 14.

(4) The period of ineligibility begins on the day specified in the notice given and shall be for a period of up to five years as the Minister may determine, subject to subsection (5).  O. Reg. 167/04, s. 14.

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

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

(ii) The amount of any interest paid by the Minister on behalf of the borrower as a result of an borrower’s obligations to pay principal and interest being suspended under section 11.2.

(iii) The amount of any reduction of the amount of principal outstanding under a consolidated student loan agreement granted to the borrower under section 9.1 or 9.2, as those sections read on July 30, 2011.

(iii.1) The amount of any assistance provided by the Minister as part of any repayment assistance granted to the borrower under sections 12 to 12.12.

(iii.2) The amount of any severe permanent disability benefit granted to the borrower under section 13.

(iii.3) The amount of any reduction of the amount of principal outstanding under a consolidated student loan agreement granted to the borrower under section 9.4, as that section read on October 31, 2010.

(iv) The amount of any payments that were suspended under section 12, 12.1 or 12.2, as those sections read on October 31, 2010, and any interest thereon.

(v) The amount of any principal and interest outstanding under a consolidated student loan agreement at the time the borrower’s payment obligations under the agreement were terminated under section 13.2, as that section read on October 31, 2010.  O. Reg. 167/04, s. 14; O. Reg. 334/10, s. 6 (2-6).

(6) A borrower who is the subject of a determination under subsection (1) shall not receive a reduction under section 9.1 or 9.2 of any amount of principal on student loans outstanding at the time of the determination.  O. Reg. 167/04, s. 14.

(7) Despite subsection (6) and subject to subsection (8), at the end of the period of ineligibility specified by the Minister in the notice under subsection (1), the Minister may, having regard to the particular facts and special circumstances of the borrower, determine that the amount of principal outstanding on student loans shall be reduced in accordance with section 9.2 if the borrower is otherwise eligible for the reduction.  O. Reg. 116/07, s. 5 (2).

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

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

(b) the period of study in respect of which the loan was granted is the period of study during which, the borrower committed the act or omission which led to a conviction referred to in paragraph 3 of subsection (1).  O. Reg. 116/07, s. 5 (2).

(9) If the Minister makes a determination before November 1, 2010 that a borrower is ineligible for a specified period for any of the types of relief from repayment obligations under a consolidated student loan agreement referred to in paragraph 2 or 3 of subsection (2), as those paragraphs read on October 31, 2010, and if the specified ineligibility period is still in effect on November 1, 2010, then the borrower is deemed to be ineligible for repayment assistance under sections 12 to 12.12 for the remainder of the ineligibility period.  O. Reg. 334/10, s. 6 (7).

(10) If the Minister makes a determination before November 1, 2010 that a borrower is ineligible for a specified period for the relief from repayment obligations under a consolidated student loan agreement referred to in paragraph 4 of subsection (2), as that paragraph read on October 31, 2010, and if the specified ineligibility period is still in effect on November 1, 2010, then the borrower is deemed to be ineligible for the severe permanent disability benefit under section 13 for the remainder of the ineligibility period.  O. Reg. 334/10, s. 6 (7).

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 or, if the borrower fails to enter into a consolidated student loan agreement in accordance with section 8, pursuant to a student loan agreement shall,

(a) 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

(b) continue at the prime rate plus one per cent in accordance with changes in the prime rate.  O. Reg. 121/10, s. 3 (1).

(3.1) Revoked:  O. Reg. 121/10, s. 3 (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 the last day of the sixth month after the month in which he or she ceases to be a student.  O. Reg. 121/10, s. 3 (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) Revoked:  O. Reg. 334/10, s. 7.

16.1 (1) Despite subsection 16 (5), an individual is not required to pay interest on a student loan in respect of the period from the day he or she ceases to be a student to the last day of the 12th month after the month in which he or she ceases to be a student where the Minister determines that the individual is employed in or does voluntary work that is eligible employment with an eligible not-for-profit entity.  O. Reg. 215/12, s. 2.

(2) To be eligible for a determination under subsection (1), an individual must submit a completed application form, as approved by the Minister, to the bank to which his or her obligations under the student loan are owed before the end of the six-month period set out in subsection 16 (5).  O. Reg. 215/12, s. 2.

(3) The application form shall include an attestation, in a form approved by the Minister, that is to be completed by a person who is authorized by the governing body of the eligible not-for-profit entity to complete the attestation form on behalf of the entity which,

(a) verifies that the individual is employed by or doing voluntary work for the eligible not-for-profit entity and that the individual’s employment or voluntary work falls within the meaning of the definition of eligible employment as set out in subsection 1 (1); and

(b) provides,

(i) evidence of the eligible not-for-profit entity’s status as a registered charity, in the case of an entity that is a registered charity, or

(ii) the eligible not-for-profit entity’s corporation number or legal name, in the case of an entity that is not a registered charity but is a corporation incorporated as a not-for-profit corporation or similar entity.  O. Reg. 215/12, s. 2.

16.2 (1) An entity is an eligible not-for-profit entity for the purposes of this Regulation if,

(a) the entity is a registered charity within the meaning of the Income Tax Act (Canada) and is in good standing with the Canada Revenue Agency; or

(b) the entity is a corporation incorporated as a not-for-profit corporation or similar entity under an Act of Canada or a province or territory of Canada and is in good standing under the Act.  O. Reg. 215/12, s. 2.

(2) The following are not eligible not-for-profit entities for the purposes of this Regulation:

1. The Government of Canada or a municipal, provincial or territorial government in Canada or an agency of any such government.

2. A local board within the meaning of subsection 1 (1) of the Municipal Act, 2001 and a local board within the meaning of subsection 3 (1) of the City of Toronto Act, 2006.

3. A district social service administration board within the meaning of subsection 1 (1) of the District Social Services Administration Boards Act.

4. A community care access corporation within the meaning of subsection 1 (1) of the Community Care Access Corporations Act, 2001.

5. An elementary, secondary or post-secondary educational institution, whether or not it receives regular operating grants from Canada or a province or territory of Canada.

6. A public hospital within the meaning of the Public Hospitals Act or a private hospital within the meaning of the Private Hospitals Act.  O. Reg. 215/12, s. 2.

(3) A registered charitable foundation associated with an entity described in subsection (2) may be an eligible not-for-profit entity for the purposes of this Regulation.  O. Reg. 215/12, s. 2.

(4) Where an individual is employed by or does voluntary work for an entity described in subsection (2) and the entity is a registered charity that meets the requirements of clause (1) (a), the individual may be deemed to meet the requirements of eligible employment with an eligible not-for-profit entity if the Minister is satisfied that the individual’s employment or voluntary work consists entirely or predominately of administering or promoting the charitable activities of the entity.  O. Reg. 215/12, s. 2.

(5) For the purposes of subsection (4), examples of administering or promoting charitable activities include raising charitable donations and administering charitable funds.  O. Reg. 215/12, s. 2.

Exception

16.3 (1) Despite subsection 16 (5), an individual is not required to pay interest on a student loan in respect of the period from the day he or she ceases to be a student to the last day of the 12th month after the month in which he or she ceases to be a student where the Minister determines that,

(a) the individual is the sole or joint owner or controlling shareholder of a business operating in Ontario;

(b) the business was started or acquired by the individual in the calendar year in which the individual submits his or her application under this section or within the two previous calendar years;

(c) the business is registered with the Canada Revenue Agency; and

(d) the individual is working a minimum of 30 hours per week in the business. O. Reg. 281/13, s. 2.

(2) To be eligible for a determination under subsection (1), an individual must submit a completed application form, as approved by the Minister, to the bank to which his or her obligations under the student loan are owed before the end of the six-month period set out in subsection 16 (5). O. Reg. 281/13, s. 2.

(3) The application form shall include an attestation, in a form approved by the Minister, that is to be completed by the applicant attesting that he or she meets the requirements set out in subsection (1). O. Reg. 281/13, s. 2.

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 Financial Assistance 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; O. Reg. 334/10, 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.