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
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Loi sur le ministère de la Formation et des Collèges et Universités
R.R.O. 1990, REGULATION 774
ONTARIO STUDENT LOANS MADE BEFORE AUGUST 1, 2001
Historical version for the period April 1, 2010 to July 31, 2010.
Last amendment: O. Reg. 121/10.
This Regulation is made in English only.
CONTENTS
Sections | ||
1-2 | ||
3-7 | ||
8 | ||
9 | ||
9.1 | ||
9.2 | ||
9.3-9.4 | ||
10 | ||
11-11.2 | ||
12-13 | ||
13.1-13.2 | ||
Restrictions on Future Eligibility for Benefits in respect of Student Loans |
13.3 | |
14 | ||
15 | ||
16 | ||
17 | ||
18 | ||
19 | ||
20 | ||
21 | ||
22 | ||
23 | ||
24 | ||
25-26 |
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;
“consolidated student loan agreement” means an agreement described in section 8;
“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, 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;
“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;
“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;
“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;
“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;
“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;
“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 and Refugee Protection Act (Canada);
“spouse” means either of two persons who,
(a) are married to each other,
(b) have together in good faith entered into a marriage that is voidable or void,
(c) have lived together in a conjugal relationship outside marriage continuously for a period of not less than three years, or
(d) have lived together in a conjugal relationship outside marriage in a relationship of some permanence, if they are the natural or adoptive parents of a child;
“student” 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;
“student loan” means a student loan made in accordance with the requirements of section 8 of the Act. 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).
(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 as a university or to offer 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).
(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).
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 Revoked: O. Reg. 167/04, s. 5.
4. Revoked: O. Reg. 167/04, s. 5.
5. Revoked: O. Reg. 167/04, s. 5.
6. Revoked: O. Reg. 167/04, s. 5.
7. Revoked: O. Reg. 167/04, s. 5.
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).
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).
(5) The total principal amount owing on a borrower’s student loans in respect of the academic terms that begin during the relevant 12-month period shall not be reduced under this section until,
(a) the borrower, his or her spouse, parents or sponsor file with the Canada Revenue Agency an income tax return with respect to the period in question; and
(b) the Minister has verified with the Canada Revenue Agency the financial information provided by the borrower, his or her spouse, parents or sponsor in the borrower’s application for a certificate of loan approval for that period. O. Reg. 167/04, s. 6.
(6) A borrower who receives a reduction under section 9.4 before the requirements of clauses (5) (a) and (b) are met shall not receive a reduction under this section. O. Reg. 167/04, s. 6.
(7) A borrower who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement shall not be entitled to a reduction under this section in respect of the total principal amount that was owing on the borrower’s student loans at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 167/04, s. 6.
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.
(6) The total principal amount owing on a borrower’s student loans in respect of the academic terms that begin during the relevant 12-month period shall not be reduced under this section until,
(a) the borrower, his or her spouse, parents or sponsor file with the Canada Revenue Agency an income tax return with respect to the period in question; and
(b) the Minister has verified with the Canada Revenue Agency the financial information provided by the borrower, his or her spouse, parents or sponsor in the borrower’s application for a certificate of loan approval for that period. O. Reg. 167/04, s. 7.
(7) A borrower who receives a reduction under section 9.4 before the requirements of clauses (6) (a) and (b) are met shall not receive a reduction under this section. O. Reg. 167/04, s. 7.
Note: On August 1, 2010, section 9.2 is amended by adding the following subsection:
(7.1) An individual who fails to meet the requirements under clauses (6) (a) and (b) within six years of the end of the 12-month period during which the individual received student loans is not entitled to a reduction under this section. O. Reg. 121/10, s. 1.
See: O. Reg. 121/10, ss. 1, 4.
(8) A borrower who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement shall not be entitled to a reduction under this section in respect of the total principal amount that was owing on the borrower’s student loans at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 167/04, s. 7.
9.3 (1) A borrower who wishes to have the amount of principal outstanding under a consolidated student loan agreement reduced in accordance with section 9.4 shall submit his or her application for the reduction to the bank to which amounts are owed under the agreement. O. Reg. 167/04, s. 8; O. Reg. 116/07, s. 1.
(2) The application shall be made on a form approved by the Minister. O. Reg. 167/04, s. 8.
9.4 (1) Subject to subsections (2) and (3), a borrower who meets the eligibility criteria set out in subsection (4) is entitled to have the amount of principal outstanding under a consolidated student loan agreement reduced by an amount to be determined in accordance with subsections (5) and (7) if that amount is greater than zero. O. Reg. 167/04, s. 8.
(2) A borrower is not entitled to reduce a principal amount outstanding under a consolidated student loan agreement under this section if he or she has previously received three such reductions on principal amounts outstanding on any student loans received by the borrower under the Act. O. Reg. 167/04, s. 8.
(3) A borrower is not entitled to a reduction described in subsection (1) unless,
(a) in the case of a borrower who has not received any previous reductions referred to in subsection (2), it has been at least five years since the borrower was a student; and
(b) in the case of a borrower who has received a previous reduction referred to in subsection (2), it has been at least one year since the previous reduction was granted. O. Reg. 167/04, s. 8.
(4) A borrower is eligible for a reduction of the principal amount outstanding with respect to a student loan if he or she,
(a) has entered into a consolidated student loan agreement respecting the loan;
(b) resides in Canada;
(c) no longer qualifies under section 12, 12.1 or 12.2 for a suspension from his or her obligation to make payments under the consolidated student loan agreement;
(d) is not in default on the loan; and
(e) has not received a student loan under the Act on or after August 1, 2001. O. Reg. 167/04, s. 8.
(5) Subject to subsection (8), the amount of a reduction granted under this section shall be the amount calculated using the following formula:
in which,
“A” is the amount of principal outstanding on the student loans received by the borrower under the Act,
“B” is the affordable monthly payment indicated in Column 7 of the Table to this section that it is determined the borrower can afford to make on the total amount of all outstanding Canadian student loans he or she has received, based on the size of the borrower’s family and the borrower’s family income that are indicated in Columns 1 to 6 of the Table, and
“C” is the monthly payment that the borrower actually makes on the total of all amounts outstanding on Canadian student loans that he or she has received or, if the borrower’s loans were not amortized over a 15-year period at a rate of interest equal to that provided for under section 16, the monthly payment he or she would be required to make on those loans if that total were amortized over a 15-year period at a rate of interest equal to that provided for under section 16.
O. Reg. 167/04, s. 8.
(6) In subsection (5),
“Canadian student loans” includes all student loans received by a borrower under the Act or granted to the borrower by the federal government or by any government of a province or territory in Canada outside Ontario;
“family” includes the borrower and his or her spouse, if any, and any person who is wholly dependent on either of them;
“family income” means the borrower’s gross income and the gross income of his or her spouse, if any, from all sources, except the Universal Child Care Benefit. O. Reg. 167/04, s. 8; O. Reg. 116/07, s. 2.
(7) The amount of a reduction granted under this section shall not be more than,
(a) $4,300, in the case of a first reduction under this section; and
(b) $2,200, in the case of a second or third reduction under this section. O. Reg. 167/04, s. 8.
(8) Despite anything in this section, a borrower who, before May 11, 2004, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement is not entitled to a reduction under this section of the principal amount of any student loan that was outstanding at the time the bankruptcy occurred or the arrangement was entered into. O. Reg. 167/04, s. 8.
TABLE
DETERMINATION OF A BORROWER’S AFFORDABLE MONTHLY PAYMENT
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
Monthly Family Income of a Family of 1 |
Monthly Family Income of a Family of 2 |
Monthly Family Income of a Family of 3 |
Monthly Family Income of a Family of 4 |
Monthly Family Income of a Family of 5 |
Monthly Family Income of a Family of 6 or more |
Affordable Monthly Payment |
$539.00 or less |
$1,180.00 or less |
$1,396.00 or less |
$1,612.00 or less |
$1,815.00 or less |
$2,012.00 or less |
$14.00 |
$539.01 to $912.00 |
$1,180.01 to $1,486.00 |
$1,396.01 to $1,783.00 |
$1,612.01 to $2,080.00 |
$1,815.01 to $2,371.00 |
$2,012.01 to $2,658.00 |
$21.00 |
$912.01 to $1,105.00 |
$1,486.01 to $1,645.00 |
$1,783.01 to $1,984.00 |
$2,080.01 to $2,324.00 |
$2,371.01 to $2,660.00 |
$2,658.01 to $2,994.00 |
$29.00 |
$1,105.01 to $1,291.00 |
$1,645.01 to $1,798.00 |
$1,984.01 to $2,178.00 |
$2,324.01 to $2,558.00 |
$2,660.01 to $2,938.00 |
$2,994.01 to $3,318.00 |
$36.00 |
$1,291.01 to $1,399.00 |
$1,798.01 to $1,905.00 |
$2,178.01 to $2,285.00 |
$2,558.01 to $2,623.00 |
$2,938.01 to $3,003.00 |
$3,318.01 to $3,383.00 |
$71.00 |
$1,399.01 to $1,506.00 |
$1,905.01 to $2,012.00 |
$2,285.01 to $2,392.00 |
$2,623.01 to $2,668.00 |
$3,003.01 to $3,068.00 |
$3,383.01 to $3,448.00 |
$107.00 |
$1,506.01 to $1,613.00 |
$2,012.01 to $2,119.00 |
$2,392.01 to $2,499.00 |
$2,668.01 to $2,753.00 |
$3,068.01 to $3,133.00 |
$3,448.01 to $3,513.00 |
$143.00 |
$1,613.01 to $1,720.00 |
$2,119.01 to $2,226.00 |
$2,499.01 to $2,564.00 |
$2,753.01 to $2,818.00 |
$3,133.01 to $3,198.00 |
$3,513.01 to $3,578.00 |
$179.00 |
$1,720.01 to $1,827.00 |
$2,226.01 to $2,334.00 |
$2,564.01 to $2,630.00 |
$2,818.01 to $2,884.00 |
$3,198.01 to $3,264.00 |
$3,578.01 to $3,643.00 |
$214.00 |
$1,827.01 to $1,934.00 |
$2,334.01 to $2,441.00 |
$2,630.01 to $2,695.00 |
$2,884.01 to $2,949.00 |
$3,264.01 to $3,329.00 |
$3,643.01 to $3,709.00 |
$250.00 |
$1,934.01 to $2,041.00 |
$2,441.01 to $2,506.00 |
$2,695.01 to $2,760.00 |
$2,949.01 to $3,014.00 |
$3,329.01 to $3,394.00 |
$3,709.01 to $3,774.00 |
$286.00 |
$2,041.01 to $2,148.00 |
$2,506.01 to $2,571.00 |
$2,760.01 to $2,825.00 |
$3,014.01 to $3,079.00 |
$3,394.01 to $3,459.00 |
$3,774.01 to $3,839.00 |
$321.00 |
$2,148.01 to $2,256.00 |
$2,571.01 to $2,636.00 |
$2,825.01 to $2,890.00 |
$3,079.01 to $3,144.00 |
$3,459.01 to $3,524.00 |
$3,839.01 to $3,904.00 |
$357.00 |
$2,256.01 to $2,363.00 |
$2,636.01 to $2,701.00 |
$2,890.01 to $2,955.00 |
$3,144.01 to $3,209.00 |
$3,524.01 to $3,589.00 |
$3,904.01 to $3,969.00 |
$393.00 |
$2,363.01 to $2,470.00 |
$2,701.01 to $2,766.00 |
$2,955.01 to $3,020.00 |
$3,209.01 to $3,274.00 |
$3,589.01 to $3,654.00 |
$3,969.01 to $4,034.00 |
$429.00 |
$2,470.01 to $2,535.00 |
$2,766.01 to $2,832.00 |
$3,020.01 to $3,086.00 |
$3,274.01 to $3,340.00 |
$3,654.01 to $3,720.00 |
$4,034.01 to $4,099.00 |
$464.00 |
$2,535.01 to $2,600.00 |
$2,832.01 to $2,897.00 |
$3,086.01 to $3,151.00 |
$3,340.01 to $3,405.00 |
$3,720.01 to $3,785.00 |
$4,099.01 to $4,165.00 |
$500.00 |
$2,600.01 to $2,665.00 |
$2,897.01 to $2,962.00 |
$3,151.01 to $3,216.00 |
$3,405.01 to $3,470.00 |
$3,785.01 to $3,850.00 |
$4,165.01 to $4,230.00 |
$536.00 |
$2,665.01 to $2,730.00 |
$2,962.01 to $3,027.00 |
$3,216.01 to $3,281.00 |
$3,470.01 to $3,535.00 |
$3,850.01 to $3,915.00 |
$4,230.01 to $4,295.00 |
$571.00 |
$2,730.01 to $2,795.00 |
$3,027.01 to $3,092.00 |
$3,281.01 to $3,346.00 |
$3,535.01 to $3,600.00 |
$3,915.01 to $3,980.00 |
$4,295.01 to $4,360.00 |
$607.00 |
$2,795.01 to $2,861.00 |
$3,092.01 to $3,157.00 |
$3,346.01 to $3,411.00 |
$3,600.01 to $3,665.00 |
$3,980.01 to $4,045.00 |
$4,360.01 to $4,425.00 |
$643.00 |
$2,861.01 to $2,926.00 |
$3,157.01 to $3,222.00 |
$3,411.01 to $3,476.00 |
$3,665.01 to $3,730.00 |
$4,045.01 to $4,094.00 |
$4,425.01 to $4,490.00 |
$679.00 |
$2,926.01 to $2,991.00 |
$3,222.01 to $3,288.00 |
$3,476.01 to $3,542.00 |
$3,730.01 to $3,796.00 |
$4,094.01 to $4,142.00 |
$4,490.01 to $4,555.00 |
$714.00 |
$2,991.01 to $3,056.00 |
$3,288.01 to $3,353.00 |
$3,542.01 to $3,607.00 |
$3,796.01 to $3,861.00 |
$4,142.01 to $4,191.00 |
$4,555.01 to $4,621.00 |
$750.00 |
$3,056.01 to $3,121.00 |
$3,353.01 to $3,418.00 |
$3,607.01 to $3,672.00 |
$3,861.01 to $3,926.00 |
$4,191.01 to $4,239.00 |
$4,621.01 to $4,686.00 |
$786.00 |
$3,121.01 to $3,186.00 |
$3,418.01 to $3,483,00 |
$3,672.01 to $3,737.00 |
$3,926.01 to $3,991.00 |
$4,239.01 to $4,288.00 |
$4,686.01 to $4,751.00 |
$821.00 |
$3,186.01 to $3,251.00 |
$3,483.01 to $3,548.00 |
$3,737.01 to $3,802.00 |
$3,991.01 to $4,056.00 |
$4,288.01 to $4,337.00 |
$4,751.01 to $4,816.00 |
$857.00 |
$3,251.01 to $3,317.00 |
$3,548.01 to $3,613.00 |
$3,802.01 to $3,867.00 |
$4,056.01 to $4,121.00 |
$4,337.01 to $4,385.00 |
$4,816.01 to $4,881.00 |
$893.00 |
$3,317.01 to $3,382.00 |
$3,613.01 to $3,678.00 |
$3,867.01 to $3,932.00 |
$4,121.01 to $4,186.00 |
$4,385.01 to $4,434.00 |
$4,881.01 to $4,946.00 |
$929.00 |
$3,382.01 to $3,447.00 |
$3,678.01 to $3,744.00 |
$3,932.01 to $3,998.00 |
$4,186.01 to $4,235.00 |
$4,434.01 to $4,482.00 |
$4,946.01 to $5,011.00 |
$964.00 |
$3,447.01 or more |
$3,744.01 or more |
$3,998.01 or more |
$4,235.01 or more |
$4,482.01 or more |
$5,011.01 or more |
$1000.00 |
O. Reg. 167/04, s. 8.
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;
(b) refuse a suspension in the obligation to make payments under the consolidated student loan agreement under sections 12 to 12.2; or
(c) deny the borrower a reduction in the amount of principal outstanding under the consolidated student loan agreement under section 9.1, 9.2 or 9.3. O. Reg. 167/04, s. 9 (3).
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).
Note: On August 1, 2010, section 11 is amended by adding the following subsection:
(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.
See: O. Reg. 121/10, ss. 2, 4.
(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 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).
(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. O. Reg. 269/01, s. 9; O. Reg. 167/04, s. 11.
(c) Revoked: 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 (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 student loan agreement to pay principal and interest. O. Reg. 269/01, s. 9; O. Reg. 167/04, s. 12.
(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.
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 student loan agreement respecting the loan;
(b) if he or she resides in Canada; and
(c) if, in the opinion of the Minister, he or she is unable to make the payments without incurring exceptional hardship, taking into account his or her gross income and the gross income of his or her spouse, if any, from all sources, except the Universal Child Care Benefit, and the obligations of the borrower and his or her spouse, if any, to a child or other person who is wholly dependent on either of them. O. Reg. 269/01, s. 10 (1); O. Reg. 167/04, s. 13 (1, 2); O. Reg. 116/07, s. 3.
(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) the first day of the sixth month before the month in which the borrower applied for the suspension; 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); O. Reg. 167/04, s. 13 (3).
(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. Unless the borrower is disqualified from doing so under subsection (7),
i. enters into a revised consolidated student loan agreement in which up to three months of any unpaid interest that has accrued up to the effective date has been capitalized, and
ii. pays any unpaid interest that has accrued up to the effective date and that remains after the capitalization of interest under subparagraph i. O. Reg. 269/01, s. 10 (2); O. Reg. 167/04, s. 13 (4).
(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).
(7) A borrower is disqualified from taking advantage of paragraph 2 of subsection (5) when applying for a suspension of payment obligations under a consolidated student loan agreement if he or she took advantage of paragraph 2 of subsection (5) in relation to a previous suspension of payment obligations under a consolidated student loan agreement, whether under the same consolidated student loan agreement or under a previous consolidated student loan agreement. O. Reg. 167/04, s. 13 (5).
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.
12.2 (1) This section applies to a borrower who,
(a) received student loans, ceased to be a student for the purposes of this Act and entered into a first consolidated student loan agreement;
(b) was granted one or more suspensions of payment obligations under the first consolidated student loan agreement; and
(c) received additional student loans, again ceased to be a student for the purposes of this Regulation and entered into a second consolidated student loan agreement. O. Reg. 167/04, s. 14.
(2) Despite sections 12 and 12.1, a borrower who did not repay all amounts of principal and interest outstanding under the first consolidated student loan agreement before entering into the second consolidated student loan agreement shall not be entitled to a suspension of payment obligations under the second agreement unless he or she meets the requirements for relief set out in subsection 12 (1) and,
(a) the cumulative period for which the borrower’s payment obligations under a consolidated student loan agreement have been suspended previously, including those suspensions that were granted with respect to payment obligations under the first consolidated student loan agreement, does not exceed 30 months; or
(b) if the cumulative period of suspension referred to in clause (a) is equal to 30 months, the borrower qualifies for extended relief under subsection 12.1 (1) and it has not been more than 60 months since the day the borrower ceased to be a student for the purposes of this Regulation for the first time. O. Reg. 167/04, s. 14.
(3) Despite subsection 12 (7), a borrower may take advantage of paragraph 2 of subsection 12 (5) in relation to a suspension of payment obligations granted under the second consolidated student loan agreement, even though he or she took advantage of that paragraph in relation to a previous suspension granted under the first consolidated student loan agreement, if the borrower repaid all amounts of principal and interest outstanding under the first consolidated student loan agreement before entering into the second consolidated student loan agreement. O. Reg. 167/04, s. 14.
(4) A borrower who takes advantage of paragraph 2 of subsection 12 (5) in accordance with subsection (3) in relation to the suspension of payment obligation under the second consolidated student loan agreement may do so no more than once. O. Reg. 167/04, s. 14.
(5) This section applies with necessary modifications in any case where the number of times a borrower ceases to be a student for the purposes of this Regulation and subsequently re-enrols in an approved course of study and becomes a student for the purposes of this Regulation once again is two or more. O. Reg. 167/04, s. 14.
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.
Medical Loan Forgiveness Program
13.1 (1) A borrower who has a permanent disability may apply to the Minister to terminate his or her obligation to make payments under a consolidated student loan agreement. O. Reg. 167/04, s. 14.
(2) The application shall be made on a form approved by the Minister. O. Reg. 167/04, s. 14.
13.2 (1) The Minister may terminate a borrower’s obligation to make payments under a consolidated student loan agreement if,
(a) the Minister is satisfied, after considering documents from a physician or other health professional provided by the borrower, that the borrower has a permanent disability that will substantially reduce his or her earning capacity for the borrower’s expected lifetime;
(b) the borrower has entered into a consolidated student loan agreement;
(c) the borrower resides in Canada;
(d) subject to subsection (2), the borrower,
(i) has been granted suspensions under section 12 from his or her obligation to make payments under the consolidated student loan agreement and the total cumulative period of suspension is equal to 30 months, and
(ii) does not qualify for extended relief under section 12.1 or 12.2; and
(e) in the opinion of the Minister, the borrower is unable to repay his or her student loans without incurring exceptional hardship, taking into account the borrower’s assets and liabilities, his or her gross income and the gross income of his or her spouse, if any, from all sources, except the Universal Child Care Benefit, and the obligations of the borrower and his or her spouse, if any, to persons who are wholly dependent on either of them. O. Reg. 167/04, s. 14; O. Reg. 116/07, s. 4 (1).
(2) The Minister may terminate the payment obligations under a consolidated student loan agreement of a borrower who does not meet the requirements of clause (1) (d) if the Minister determines that the obligation to make payments should be terminated, after considering the particular facts and the special circumstances of the borrower. O. Reg. 167/04, s. 14.
(3) The Minister may terminate a borrower’s obligation to repay a student loan before the borrower enters into a consolidated loan agreement for the repayment of any outstanding amounts on those loans if,
(a) the borrower otherwise meets the requirements of subsection (1) or of subsection (2); and
(b) after considering the particular facts and circumstances of the borrower, the Minister determines that it is appropriate to do so. O. Reg. 116/07, s. 4 (2).
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. A suspension in the obligation to make payments under a consolidated student loan agreement under sections 12 to 12.2.
3. A reduction in the amount of principal outstanding on the student loans under section 9.4.
4. The termination of the borrower’s obligation to make payments under a consolidated student loan agreement under section 13.2. O. Reg. 167/04, s. 14.
(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, 9.2 or 9.4.
(iv) The amount of any payments that were suspended under section 12, 12.1 or 12.2 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. O. Reg. 167/04, s. 14.
(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).
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).
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.
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).
Note: On August 1, 2010, subsection (3) is revoked and the following substituted:
(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).
See: O. Reg. 121/10, ss. 3 (1), 4.
(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).
Note: On August 1, 2010, subsection (3.1) is revoked. See: O. Reg. 121/10, ss. 3 (1), 4.
(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).
Note: On August 1, 2010, subsection (5) is revoked and the following substituted:
(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).
See: O. Reg. 121/10, ss. 3 (2), 4.
(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).
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).
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.
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).
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.
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.
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).
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).
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.
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.