You're using an outdated browser. This website will not display correctly and some features will not work.
Learn more about the browsers we support for a faster and safer online experience.

O. Reg. 464/11: PRESCRIBED FINANCIAL INSTITUTIONS AND ONTARIO STUDENT LOANS MADE AFTER JULY 31, 2001

filed December 15, 2011 under Ministry of Training, Colleges and Universities Act, R.S.O. 1990, c. M.19

Skip to content

 

ontario regulation 464/11

made under the

Ministry of Training, Colleges and Universities Act

Made: December 14, 2011
Filed: December 15, 2011
Published on e-Laws: December 16, 2011
Printed in The Ontario Gazette: December 31, 2011

Amending O. Reg. 268/01

(Prescribed Financial Institutions and Ontario Student Loans made after July 31, 2001)

1. The heading to Part II of Ontario Regulation 268/01 is revoked and the following substituted:

Part II
Ontario Student Loans made After July 31, 2001

2. (1) Subsection 2 (1) of the Regulation is amended by adding the following definition:

“master student loan agreement” means an agreement entered into under section 20;

(2) The definition of “student loan agreement” in subsection 2 (1) of the Regulation is revoked and the following substituted:

“student loan agreement” means an agreement entered into under section 20 as that section read on January 31, 2012.

3. (1) Subsection 3 (1) of the Regulation is revoked and the following substituted:

Obtaining and repaying a student loan

(1) An individual who wishes to obtain a student loan that is to be issued for a period of study commencing on or after August 1, 2012 must obtain a certificate of loan approval from the Minister in accordance with sections 4 to 17 and meet the requirements of sections 19 and 20.

(2) Subsection 3 (2) of the Regulation is amended by striking out “student loan agreement” and substituting “master student loan agreement”. 

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

(2.1) Subsections (1), (2) and (5), as they read on January 31, 2012, continue to apply to student loans that are issued for a period of study commencing before August 1, 2012.  

(4) Subsection 3 (5) of the Regulation is revoked and the following substituted:

(5) The repayment of the student loan is governed by sections 30 to 40.8 and by the terms of the master student loan agreement and the consolidated loan agreement. 

4. Sections 19 and 20 of the Regulation are revoked and the following substituted:

Obtaining a student loan

19. A lender or a service provider on behalf of the lender shall issue a student loan to an individual in the amount set out in the certificate of loan approval for a period of study commencing on or after August 1, 2012 if,

(a) the individual has received a certificate of loan approval and has entered into a master student loan agreement under section 20; and

(b) the individual’s enrolment in the approved program of study has been confirmed by the approved institution.

Master student loan agreement

20. (1) A lender may enter into a master student loan agreement in accordance with this section where an individual applies for a student loan that is to be issued for a period of study commencing on or after August 1, 2012 and the lender is satisfied that the individual who applies for the student loan is entitled to one and has a certificate of approval.

(2) Where a master student loan agreement has been entered into under subsection (1), the master student loan agreement applies to all student loans received under the Act on or after the date on which the master student loan agreement was entered into.  

(3) Subject to subsection (4), the parties to a master student loan agreement are the individual who wishes to obtain a student loan and the lender.

(4) Where the Minister is not the lender, Her Majesty the Queen in right of Ontario, as represented by the Minister, is also a party to the master student loan agreement.

(5) Subject to subsection (6), the lender may amend the terms of the master student loan agreement.

(6) Amendments to the terms of the master student loan agreement are subject to both of the following rules:

1. For the amendments to be valid, the lender must give notice by posting the amended terms on the website for the Ministry.

2. The amendments shall only apply to student loans issued for a period of study commencing on or after the August 1 that is immediately after the posting referred to in paragraph 1.

(7) Despite subsection (2), an individual shall enter into a new master student loan agreement if two or more years have elapsed since the individual ceased to be a qualifying student under section 27.

(8) A master student loan agreement entered into under subsection (7) applies to all student loans received under the Act on or after the date on which the individual entered into the new master student loan agreement.

5. Subsection 21 (1) of the Regulation is revoked and the following substituted:

Restriction on advances

(1) A lender or a service provider on behalf of a lender is not permitted to make an advance in respect of a student loan to an individual before the requirements in section 19 are met. 

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

Student loan agreements re period before August 1, 2012

21.1 Sections 19 and 20 and subsection 21 (1), as they read on January 31, 2012, continue to apply to student loans that are issued for a period of study commencing before August 1, 2012. 

7. Subsection 22 (1) of the Regulation is revoked and the following substituted:

Duty to give notice of material change in circumstances

(1) An individual who enters into a student loan agreement or enters into a master student loan agreement, under which the individual receives a student loan pursuant to section 19, is required to promptly notify the Minister or such person or entity as may be designated by the Minister for the purposes of this section of any material change in his or her circumstances that occurs during the period of study for which the loan is made. 

8. Section 22.1 of the Regulation is revoked and the following substituted:

Change of address

22.1 An individual who enters into a student loan agreement or enters into a master student loan agreement, under which the individual receives a student loan pursuant to section 19, 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. 

9. Subsections 26 (1) and (2) of the Regulation are revoked and the following substituted:

Effect of status as qualifying student

(1) While an individual is a qualifying student, his or her obligations to pay principal and interest under a student loan agreement, a master student loan agreement and a consolidated loan agreement, if any, are suspended. 

(2) If the individual owes interest to the lender under the student loan agreement, master student loan agreement or consolidated loan agreement, if any, for a period during which he or she was not a qualifying student, and if the lender asks the individual to pay the accrued interest for that period, subsection (1) does not apply until the individual pays the accrued interest.

10. Subsection 28 (1) of the Regulation is revoked and the following substituted:

Requirement for a consolidated loan agreement

(1) Every individual shall enter into a consolidated loan agreement with the lender after the individual ceases to be a qualifying student if the individual has entered into,

(a) one or more student loan agreements;

(b) one or more master student loan agreements; or

(c) any combination of student loan agreements and master student loan agreements.

11. Subsections 30 (1) and (2) of the Regulation are revoked and the following substituted:

Obligation to pay interest

(1) An individual is not required to pay interest under a student loan agreement, a master student loan agreement or a consolidated loan agreement until the first day of the seventh month immediately following the month in which the individual ceased to be a qualifying student.

(2) The interest rate in effect on any day under a student loan agreement, a master student loan agreement or a consolidated loan agreement is the prime rate on that day plus 1 per cent. 

12. Section 44 of the Regulation is revoked and the following substituted:

Payments by lenders to the Minister

44. If the Minister pays to a lender an amount in respect of a student loan, the lender shall remit to the Minister all amounts that may be collected or realized by the lender pursuant to the student loan agreement, master student loan agreement or consolidated loan agreement.

Commencement

13. This Regulation comes into force on the later of February 1, 2012 and the day it is filed.