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O. Reg. 167/04: Ontario Student Loans made before August 1, 2001

filed June 22, 2004 under Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19

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ontario regulation 167/04

made under the

Ministry of Training, colleges and Universities act

Made: June 17, 2004
Filed: June 22, 2004
Printed in The Ontario Gazette: July 10, 2004

Amending Reg. 774 of R.R.O. 1990

(Ontario Student Loans made before August 1, 2001)

1. (1) Subection 1 (1) of Regulation 774 of the Revised Regulations of Ontario, 1990 is amended by adding the following definition:

“consolidated student loan agreement” means an agreement described in section 8;

(2) The definition of “financial resources” in subsection 1 (1) of the Regulation is amended by striking out “same-sex partner” wherever it occurs.

(3) Clause (b) of the definition of “full-time employment” in subsection 1 (1) of the Regulation is revoked and the following substituted:

(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

(4) Clause (a) of the definition of “married student” in subsection 1 (1) of the Regulation is amended by striking out “Immigration Act (Canada)” and substituting “Immigration and Refugee Protection Act (Canada)”.

(5) The definition of “same-sex partner” in subsection 1 (1) of the Regulation is revoked.

(6) Clause (a) of the definition of “single student” in subsection 1 (1) of the Regulation is amended by striking out “Immigration Act (Canada)” and substituting “Immigration and Refugee Protection Act (Canada)”.

(7) Clause (c) of the definition of “single student” in subsection 1 (1) of the Regulation is amended by striking out “or same-sex partner”.

(8) The definition of “sole support student” in subsection 1 (1) of the Regulation is amended,

(a) by striking out “a single student, a married student or a student with a same-sex partner” in the portion before clause (a) and substituting “a single student or a married student”,

(b) by striking out “Immigration Act (Canada)” in clause (a) and substituting “Immigration and Refugee Protection Act (Canada)”, and

(c) by striking out “or same-sex partner” wherever it occurs in clause (c).

(9) The definition of “sponsor” in subsection 1 (1) of the Regulation is amended by striking out “Immigration Act (Canada)” and substituting “Immigration and Refugee Protection Act (Canada)”.

(10) The definition of “spouse” in subsection 1 (1) of the Regulation is amended by striking out “a man and woman” in the portion before clause (a) and substituting “two persons”.

(11) The definition of “student” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“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;

(12) The definition of “student with a same-sex partner” in subsection 1 (1) of the Regulation is revoked.

(13) Clause 1 (1.1) (b) of the Regulation is amended by striking out “sponsor, spouse or same-sex partner” wherever it occurs and substituting in each case “sponsor or spouse”.

(14) Subsection 1 (3) of the Regulation is amended by striking out “Immigration Act (Canada)” wherever it occurs and substituting in each case “Immigration and Refugee Protection Act (Canada)”.

(15) Section 1 of the Regulation is amended by adding the following subsection:

(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.

2. (1) Paragraphs 2 and 3 of subsection 1.2 (1) of the Regulation are revoked and the following substituted:

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.

(2) Paragraphs 2, 3 and 5 of subsection 1.2 (2) of the Regulation are revoked and the following substituted:

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.

. . . . .

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.

(3) Subsection 1.2 (3) of the Regulation is revoked.

3. (1) Section 2 of the Regulation is amended by adding the following paragraphs:

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.

(2) Section 2 of the Regulation is amended by adding the following subsections:

(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.

(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.

(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.

4. Section 3 of the Regulation is amended by striking out “consolidated loan agreements relating to such student loans” at the end and substituting “consolidated student loan agreements relating to such student loans and made under section 8”.

5. Sections 3.1, 4, 5, 6 and 7 of the Regulation are revoked.

6. Section 9.1 of the Regulation is amended by adding the following subsections:

(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.

(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.

(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.

7. Section 9.2 of the Regulation is amended by adding the following subsections:

(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.

(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.

(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.

8. The Regulation is amended by adding the following sections:

Reductions in Principal

9.3 (1) An 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.

(2) The application shall be made on a form approved by the Minister. 

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.

(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.

(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.

(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.

(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.

(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, his or her spouse, if any, and any children of the borrower or of his or her spouse, or of both, who are dependent on either of them;

“family income” means the borrower’s gross income from all sources and that of his or her spouse, if any.

(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.

(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.

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

9. (1) Subsection 10 (1) of the Regulation is amended by striking out “or where the borrower becomes subject to or takes advantage of any law relating to bankruptcy, insolvency or for the relief of debtors”.

(2) Subsection 10 (1.1) of the Regulation is revoked.

(3) Section 10 of the Regulation is amended by adding the following subsection:

(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.

10. (1) Subsection 11 (1) of the Regulation is revoked and the following substituted:

(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.

(2) Clauses 11 (2) (b), (c) and (d) of the Regulation are revoked and the following substituted:

(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).

(3) Section 11 of the Regulation is amended by adding the following subsection:

(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.

11. Subsection 11.1 (1) of the Regulation is amended,

(a) by striking out “despite subsection 2 (1)” in the portion before clause (a);

(b) by adding “and” at the end of clause (a); and

(c) by striking out clauses (b) and (c) and substituting the following:

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

12. Section 11.2 of the Regulation is amended by striking out “consolidated loan agreement” wherever it occurs and substituting in each case “consolidated student loan agreement”.

13. (1) Clause 12 (1) (a) of the Regulation is amended by striking out “consolidated loan agreement” and substituting “consolidated student loan agreement”.

(2) Clause 12 (1) (c) of the Regulation is amended by striking out “or same-sex partner” wherever it occurs.

(3) Clause 12 (4) (a) of the Regulation is revoked and the following substituted:

(a) the first day of the sixth month before the month in which the borrower applied for the suspension; or

(4) Paragraph 2 of subsection 12 (5) of the Regulation is revoked and the following substituted:

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.

(5) Section 12 of the Regulation is amended by adding the following subsection:

(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.

14. The Regulation is amended by adding the following sections:

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.

(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.

(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.

(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.

(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.

. . . . .

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.

(2) The application shall be made on a form approved by the Minister.

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 from all sources, the gross income of his or her spouse, if any, and the obligations of the borrower and his or her spouse, if any, to children who are dependent on either of them.

(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.

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 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.

(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.

(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.

(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).

(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.

(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.

(7) Despite subsection (6), after the period of ineligibility specified by the Minister under subsection (1) has elapsed and after considering the particular facts and the special circumstances of a borrower referred to in subsection (6), the Minister may reduce the principal amount of student loans received by the borrower in accordance with section 9.1 or 9.2.

15. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Section 8 comes into force on October 31, 2004.