O. Reg. 168/04: Ontario Student Loans made after July 31, 2001

 

ontario regulation 168/04

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 O. Reg. 268/01

(Ontario Student Loans made after July 31, 2001)

1. (1) The definition of “same-sex partner” in section 2 of Ontario Regulation 268/01 is revoked.

(2) The definition of “spouse” in section 2 of the Regulation is amended by striking out “a man and woman” in the portion before clause (a) and substituting “two persons”.

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

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

1. A proposal made by the individual 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 individual under Division II of Part III of the Bankruptcy and Insolvency Act (Canada) is approved or deemed to be approved by a court under that Act.

3. A consolidation order is made under Part X of the Bankruptcy and Insolvency Act (Canada) in relation to any debts of the individual, including any student loans that the individual may have received under the Act.

4. A document seeking relief has been filed by the individual under a law in a province or territory in Canada outside of Ontario for the orderly payment of debts, including any student loans that the individual may have received under the Act.

2. Subsection 3 (5) of the Regulation is amended by striking out “sections 30 to 34” and substituting “sections 30 to 40.5”.

3. Section 5 of the Regulation is revoked and the following substituted:

Prerequisites for certificate

5. An individual is eligible to receive a certificate of loan approval only if,

(a) he or she is

(i) a Canadian citizen or a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada); or

(ii) in the case of an individual who is applying for a certificate of loan approval in respect of an approved course of study that begins on or after August 1, 2004, a protected person within the meaning of subsection 95 (2) of the Immigration and Refugee Protection Act (Canada);

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

(c) he or she is enrolled in an approved course of study at an approved institution;

(d) he or she is taking at least the minimum required course load for the course of study; and

(e) at the time of the application for the certificate of loan approval, he or she is not ineligible to receive the certificate as a result of a determination made by the Minister under section 42.1.

4. Section 6 of the Regulation is revoked and the following substituted:

Residency requirement

6. (1) An individual meets the residency requirements for a certificate of loan approval if, on or before the day the approved course of study in which the individual is enrolled begins, either the individual or one of his or her expected contributors,

(a) has resided in Ontario for a period of at least 12 consecutive months; and

(b) has not resided in another province or territory in Canada for a period of at least 12 consecutive months since completing the 12-month period of residency in Ontario required under clause (a).

(2) In determining whether an individual or his or her spouse has resided in Ontario or in another province or territory of Canada for 12 consecutive months for the purposes of subsection (1), the time that the individual or spouse spent in full-time studies at a post-secondary institution shall not be included.

(3) Despite subsection (1), an individual who does not meet the residency requirements described in that subsection shall be deemed to meet the residency requirements for the purposes of issuing a certificate of loan approval if,

(a) neither the individual, nor any of his or her other expected contributors, has resided in any province or territory of Canada other than Ontario for at least 12 consecutive months; and

(b) the individual is or will be attending an approved institution in Ontario on a full-time basis and, as of the day the application for the certificate of loan approval is made, the individual resides in Ontario.

(4) Subsection (3) applies to an individual only if he or she applies for a certificate of loan approval with respect to a course of study that begins on or after August 1, 2004.

5. (1) Paragraphs 2 and 3 of subsection 8 (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 8 (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 8 (3) of the Regulation is revoked.

6. (1) Paragraph 2 of section 12 of the Regulation is amended by striking out “Immigration Act (Canada)” at the end and substituting “Immigration and Refugee Protection Act (Canada)”.

(2) Paragraph 3 of section 12 of the Regulation is amended by striking out “or same-sex partner” at the end.

7. Paragraph 3 of subsection 13 (2) of the Regulation is revoked and the following substituted:

3. The assets of the individual and, if the individual has a spouse, the assets of the spouse.

8. (1) Paragraph 1 of subsection 14 (1) of the Regulation is amended by striking out “or same-sex partner”.

(2) Subsection 14 (2) of the Regulation is amended by striking out “program of study” at the end and substituting “course of study”.

(3) Paragraph 2 of subsection 14 (3) of the Regulation is revoked and the following substituted:

2. The individual 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 individual has received under the Act, including information about the individual’s academic status, financial status or family status during a period of study.

9. Section 15 of the Regulation is revoked and the following substituted:

Restrictions on issuance of certificate

15. (1) The Minister shall not issue a certificate of loan approval to an individual if the individual has received loans under the Act in respect of previous periods of study totalling more than,

(a) 340 weeks for an individual who is enrolled in a program other than a doctoral program; or

(b) 400 weeks for an individual who is enrolled in a doctoral program.

(2) Despite subsection (1), the Minister may issue a certificate of loan approval to an individual who has received loans under the Act in respect of previous periods of study totalling more than the maximum number of weeks referred to in clause (1) (a) or (b), as the case may be, in order to accommodate an individual who is a person with a disability.

(3) The Minister shall not issue a certificate of loan approval to an individual who was granted a reduction under section 40.2 of the principal amount outstanding under a consolidated loan agreement respecting a previous period of study and who has not repaid all amounts due under that agreement.

Further restrictions re: bankruptcy

15.1 (1) This section applies with respect to an application for a certificate of loan approval made by an individual who, at any time prior to the day of the application, became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement.

(2) The Minister shall not issue a certificate of loan approval to an individual referred to in subsection (1) who has previously received a student loan under the Act unless the individual otherwise satisfies the requirements of this Regulation for a certificate of loan approval and, at the time of the application,

(a) there are no amounts of principal or interest outstanding on any student loans previously received by the individual; or

(b) if the individual was released from the obligation of repaying any student loans previously received by reason of an order of absolute discharge granted under the Bankruptcy and Insolvency Act (Canada), three years have elapsed since the day the order of absolute discharge was made.

(3) The Minister shall not issue a certificate of loan approval to an individual who became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) and who, at the time of the application for the certificate of loan approval, has not received an order of absolute discharge under that Act unless the individual satisfied the Minister that any student loans made to the individual after a certificate of loan approval is granted to the individual will not be seized to repay the individual’s creditors.

(4) Despite subsection (2), the Minister may issue a certificate of loan approval to an individual who was a qualifying student enrolled in an approved course of study at the time an event described in subsection (1) occurred even though the individual does not satisfy the requirements of clause (2) (a) or (b) if,

(a) the individual continues to be enrolled in the approved course of study in which he or she was enrolled at the time the event occurred;

(b) the individual otherwise satisfies the requirements of this Regulation for a certificate of loan approval; and

(c) the certificate of loan approval is issued for a period of study referred to in subsection (5).

(5) The Minister may issue a certificate of loan approval to an individual under subsection (4) for any period of study that begins before the earlier of,

(a) the day that is three years after the day the event described in subsection (1) occurred;

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

(c) the day the individual ceases to be enrolled in the course of study he or she was enrolled in at the time the event described in subsection (1) occurred.

(6) Subsections (4) and (5) apply with respect to any event described in subsection (1) that occurred on or after May 11, 2004. 

10. The definition of “single student” in subsection 17 (3) of the Regulation is amended by striking out “spouse, same-sex partner or dependent child” and substituting “spouse or dependent child”.

11. (1) Subsection 22 (1) of the Regulation is amended by striking out “the service provider” and substituting “the Minister or such person or entity as may be designated by the Minister for the purposes of this section”.

(2) Subsection 22 (2) of the Regulation is revoked and the following substituted:

(2) A material change in circumstances includes,

(a) a change in the individual’s marital or family status;

(b) a change of address;

(c) a change in his or her enrolment;

(d) a change in education costs described in section 11; and

(e) a change in financial resources described in section 13.

12. The Regulation is amended by adding the following section immediately after section 22:

Change of address

22.1 An individual who enters into a student loan agreement shall promptly notify the service provider or such person or entity as may be designated by the Minister for the purposes of this section of any change of address that occurs after the person ceases to be a qualifying student under section 27 but before the repayment in full of the principal amount of the student loan and of any outstanding interest on that amount.

13. (1) Clauses 24 (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).

(2) Section 24 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 an individual who is enrolled at an institution described in one of those clauses must take in order to maintain his or her status as a qualifying student under this section 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 individual’s course of study, in the case of an individual who is not a person with a disability; and

(b) a course load that is at least 40 per cent of what the institution considers to be a full course load for the individual’s course of study, in the case of an individual who is a person with a disability.

14. Subsection 25 (1) of the Regulation is amended by adding “and” at the end of clause (a) and 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 24 (2) (a), (b), (c) or (d) exist.

15. (1) Section 27 of the Regulation is amended by adding the following paragraphs:

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

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

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

7. Subject to subsections (2) and (3), the individual 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 27 of the Regulation is amended by adding the following subsections:

(2) Despite paragraph 7 of subsection (1), an individual shall continue to be a qualifying student 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 individual is issued a certificate of loan approval under section 15.1; or

(b) the individual meets the requirements of section 24 or 25.

(3) An individual may continue to be a qualifying student 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 individual 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 individual 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.

16. Section 29 of the Regulation is amended by adding the following subsections:

(2) If an individual does not enter into a consolidated loan agreement within six months after ceasing to be a qualifying student or does not provide the lender with a void cheque, a bank account number or with such other information or documents as may be necessary in order to collect payments in accordance with the terms of a consolidated loan agreement, the lender may require a financial institution to make payments on the individual’s student loans from an account at the institution that the individual has identified to the lender.

(3) The payments made by a financial institution under subsection (2) shall be made in accordance with the repayment terms set out in the consolidated loan agreement, if any, or, if none, in accordance with the repayment terms established by the lender under subsection (1).

17. The definition of “prime rate” in subsection 30 (3) of the Regulation is amended by striking out “and the Toronto-Dominion Bank” and substituting “and TD Canada Trust”.

18. Subsections 31 (3) and (4) of the Regulation are revoked.

19. (1) The heading immediately before section 33 is revoked and the following substituted:

Initial Reduction of Principal

(2) Section 33 of the Regulation is amended by adding the following subsections:

(8) Despite subsections (1) and (2), the principal amount of student loans given to an individual for all academic terms that begin during the 12-month period shall not be reduced under this section until,

(a) the individual and his or her expected contributors 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 individual and his or her expected contributors in the individual’s application for a certificate of loan approval for that period.

(9) An individual who receives a reduction under section 40.2 before the requirements of clauses (8) (a) and (b) are met shall not receive a reduction under this section.

(10) An individual 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 of any principal amount of a student loan received by the individual that was outstanding at the time the bankruptcy occurred or the arrangement was entered into.

20. (1) Clause 36 (1) (c) of the Regulation is amended by striking out “or same-sex partner” wherever it occurs.

(2) Section 36 of the Regulation is amended by adding the following subsection:

(3) An individual 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 eligible for a suspension of his or her obligation to make payments respecting any student loans that were outstanding at the time the bankruptcy occurred or the arrangement was entered into.

21. (1) Clause 37 (2) (a) of the Regulation is revoked and the following substituted:

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

(2) Paragraph 2 of subsection 37 (3) of the Regulation is revoked and the following substituted:

2. Unless the individual is disqualified from doing so under subsection (4.1),

i. enters into a revised consolidated loan agreement in which up to three months of any unpaid interest that has accrued up to the effective date has been capitalized, 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.

(3) Section 37 of the Regulation is amended by adding the following subsection:

(4.1) An individual is disqualified from taking advantage of paragraph 2 of subsection (3) when applying for a suspension of payment obligations under a consolidated loan agreement if he or she took advantage of paragraph 2 of subsection (3) in relation to a previous suspension of payment obligations under a consolidated loan agreement, whether under the same consolidated loan agreement or under a previous consolidated loan agreement.

22. The Regulation is amended by adding the following section:

Where individual returns to school

39.1 (1) This section applies to an individual who,

(a) receives student loans, ceases to be a qualifying student and enters into a first consolidated loan agreement;

(b) is granted one or more suspensions of payment obligations under the first consolidated loan agreement; and

(c) receives additional student loans, again ceases to be a qualifying student and enters into a second consolidated loan agreement.

(2) Despite sections 36 and 39, an individual who does not repay all amounts of principal and interest outstanding under the first consolidated loan agreement before entering into the second consolidated 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 36 (1) and,

(a) the cumulative period for which the individual’s payment obligations under a consolidated loan agreement have been suspended previously, including those suspensions that were granted with respect to payment obligations under the first consolidated 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 individual qualifies for extended relief under subsection 39 (1) and it has not been more than 60 months since the day the individual ceased to be a qualifying student for the first time.

(3) Despite subsection 37 (4.1), an individual may take advantage of paragraph 2 of subsection 37 (3) in relation to a suspension of payment obligations granted under the second consolidated loan agreement, even though he or she took advantage of that paragraph in relation to a previous suspension granted under the first consolidated loan agreement, if the individual repaid all amounts of principal and interest outstanding under the first consolidated loan agreement before entering into the second consolidated loan agreement.

(4) An individual who takes advantage of paragraph 2 of subsection 37 (3) in accordance with subsection (3) in relation to the suspension of payment obligation under the second consolidated loan agreement may do so no more than once.

(5) This section applies with necessary modifications in any case where the number of times an individual ceases to be a qualifying student and subsequently re-enrols in an approved course of study and becomes a qualifying student once again is two or more.

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

Subsequent Reductions in Principal

Application for reduction

40.1 (1) An individual who wishes to have the amount of principal outstanding under a consolidated loan agreement reduced in accordance with section 40.2 shall submit his or her application for the reduction to a service provider.

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

Ontario debt reduction in repayment program

40.2 (1) Subject to subsections (2) and (3), an individual who meets the eligibility criteria set out in subsection (4) is entitled to have the amount of principal outstanding under a consolidated loan agreement reduced by an amount to be determined in accordance with subsections (5) and (7) if that amount is greater than zero.

(2) An individual is not entitled to reduce a principal amount outstanding under a consolidated loan agreement under this section if the individual has previously received three such reductions on principal amounts outstanding on any student loans received by the individual under the Act, including any reductions in a principal amount outstanding under a previous consolidated loan agreement under this Regulation or under a consolidated student loan agreement made under Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001) under the Act.

(3) An individual is not entitled to a reduction described in subsection (1) unless,

(a) in the case of an individual who has not received any previous reductions referred to in subsection (2), it has been at least five years since the individual was a qualifying student; and

(b) in the case of an individual 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) An individual 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 loan agreement respecting the loan;

(b) resides in Canada;

(c) no longer qualifies under section 36, 39 or 39.1 for a suspension from his or her obligation to make payments under the consolidated loan agreement; and

(d) is not in default on the loan.

(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 individual under the Act,

“B” is the affordable monthly payment indicated in Column 7 of the Table to this section that it is determined the individual 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 individual’s family and the individual’s family income that are indicated in Columns 1 to 6 of the Table, and

“C” is the monthly payment that the individual actually makes on the total of all amounts outstanding on Canadian student loans that he or she has received or, if the individual’s loans were not amortized over a 15-year period at a rate of interest equal to that provided for under section 30, 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 30.

(6) In subsection (5),

“Canadian student loans” includes all student loans received by an individual under the Act or granted to the individual by the federal government or by any government of a province or territory in Canada outside Ontario;

“family” includes the individual, his or her spouse, if any, and any children of the individual or of his or her spouse, or of both, who are dependent on either of them;

“family income” means the individual’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, an individual 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 an individual’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

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

Medical Loan Forgiveness Program

Application for medical loan forgiveness

40.3 (1) An individual who has a permanent disability may apply to the Minister to terminate his or her obligation to make payments under a consolidated loan agreement.

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

Termination of loan payment

40.4 (1) The Minister may terminate an individual’s obligation to make payments under a consolidated loan agreement if,

(a) the Minister is satisfied, after considering documents from a physician or other health professional provided by the individual, that the individual has a permanent disability that will substantially reduce his or her earning capacity for the individual’s expected lifetime;

(b) the individual has entered into a consolidated loan agreement;

(c) the individual resides in Canada;

(d) subject to subsection (2), the individual,

(i) has been granted suspensions under section 36 from his or her obligation to make payments under the consolidated loan agreement and the total cumulative period of suspension is equal to 30 months, and

(ii) does not qualify for extended relief under section 39; and

(e) in the opinion of the Minister, the individual is unable to repay his or her student loans without incurring exceptional hardship, taking into account the individual’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 individual 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 loan agreement of a individual 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 individual.

Limitation on relief

40.5 (1) Despite section 40.4, the Minister shall not terminate an individual’s payment obligations under a consolidated loan agreement if the individual’s payment obligations under a previous consolidated loan agreement were terminated under section 40.4.

(2) Subsection (1) applies even though the individual meets all the requirements for relief under subsection 40.4 (1).

(3) The Minister may determine that subsection (1) does not apply to an individual, after considering the particular facts and the special circumstances of the individual.

25. (1) Subsection 42 (1) of the Regulation is amended by striking out “the loans are due and payable on the date that is the earlier of the date described in subsection (2) and the following date” in the portion before paragraph 1 and substituting “the loans are due and payable on the following date”.

(2) Subsections 42 (2) and (3) of the Regulation are revoked.

(3) Subsection 42 (4) of the Regulation is amended by striking out “the lender make” and substituting “the lender may”.

(4) Section 42 of the Regulation is amended by adding the following subsection:

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

(a) deny the individual the status of a qualifying student under section 24 or 25 or subsection 27 (2) 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 loan agreement under sections 36 to 39.1; or

(c) deny the individual a reduction in the amount of principal outstanding under the consolidated loan agreement under section 33 or 40.2.

26. The Regulation is amended by adding the following section:

Restrictions on Future Eligibility for Student Loans and other Benefits under this Regulation

Minister’s determination

42.1 (1) The Minister may determine that an individual shall not be eligible, for such period as the Minister may determine, to receive a certificate of loan approval if any of the following circumstances exist:

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

2. The individual has given the Minister incorrect information relating to a student loan, or has not informed the Minister promptly about any change to information previously given to the Minister.

3. The individual has been convicted of an offence under the Ministry of Training, Colleges and Universities Act, the Canada Student Loans Act or the Canada Student Financial Assistance Act or an offence under the Criminal Code (Canada) involving fraud or theft in respect of any student assistance program or a loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.

4. The Minister considers, after consulting with the approved institutions at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study.

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

1. Retaining the status of a qualifying student under section 24 or 25 or subsection 27 (2) during a period of study during which the individual does not receive a student loan.

2. A suspension in the obligation to make payments under a consolidated loan agreement under sections 36 to 39.1.

3. A reduction in the amount of principal outstanding on the student loans under section 40.2.

4. The termination of the individual’s obligation to make payments under a consolidated loan agreement under section 40.4.

(3) Upon making a determination under this section, the Minister shall give the individual notice of the determination and of the length of the period of ineligibility.

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

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

(ii) The amount of any interest paid by the Minister on behalf of the individual as a result of an individual’s obligations to pay principal and interest being suspended under section 26.

(iii) The amount of any reduction of the amount of principal outstanding under a consolidated loan agreement granted to the individual under section 33 or 40.2.

(iv) The amount of any payments that were suspended under section 36, 39 or 39.1 and any interest thereon.

(v) The amount of any principal and interest outstanding under a consolidated loan agreement at the time the individual’s payment obligations under the agreement were terminated under section 40.4.

(6) An individual who is the subject of a determination under subsection (1) shall not receive a reduction under section 33 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 an individual referred to in subsection (6), the Minister may reduce the principal amount of student loans received by the individual in accordance with section 33.

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

(2) Section 23 comes into force on October 31, 2004.