O. Reg. 768/20: ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS

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ontario regulation 768/20

made under the

Ministry of Training, Colleges and Universities Act

Made: December 11, 2020
Filed: December 17, 2020
Published on e-Laws: December 18, 2020
Printed in The Ontario Gazette: January 2, 2021

ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS

CONTENTS

 

Application of this Regulation

1. This Regulation applies with respect to micro-credential grants and micro-credential student loans issued for periods of study that commence on or after January 1, 2021.

Definitions

2. In this Regulation,

“2001 Regulation” means Ontario Regulation 268/01 (Ontario Student Loans Made August 1, 2001 to July 31, 2017), made under the Act; (“Règlement de 2001”)

“2017 Regulation” means Ontario Regulation 70/17 (Ontario Student Grants and Ontario Student Loans), made under the Act; (“Règlement de 2017”)

“approved institution” means an institution described in section 8; (“établissement agréé”)

“approved program of study” means a program of study approved in accordance with section 7; (“programme d’études approuvé”)

“borrower” means a person who has received a micro-credential student loan and who is required to make repayments on the student loan under a consolidated micro-credential loan agreement or under an arrangement established by the Minister under section 28, but does not include a person whose student loan has been paid; (“emprunteur”)

“consolidated loan agreement” means an agreement described in section 28 of the 2017 Regulation, section 28 of the 2001 Regulation or section 8 of the pre-2001 Regulation; (“contrat de prêt consolidé”)

“consolidated micro-credential loan agreement” means an agreement described in section 27; (“contrat de prêt consolidé pour une microcertification”)

“expected contributor” means, in relation to an individual, another individual described in subsection 9 (4); (“personne dont une contribution est attendue”)

“micro-credential” means a credential offered by an approved institution that is not a certificate, diploma or degree; (“microcertification”)

“micro-credential grant” means an Ontario Student Grant issued to an individual pursuing a micro-credential; (“subvention pour une microcertification”)

“micro-credential student loan” means a student loan issued to an individual pursuing a micro-credential; (“prêt d’études pour une microcertification”)

“micro-credential student loan agreement” means an agreement entered into under section 20; (“contrat de prêt d’études pour une microcertification”)

“period of study” means, in relation to a program of study, a period described in subsection 7 (2); (“période d’études”)

“pre-2001 Regulation” means Regulation 774 of the Revised Regulations of Ontario, 1990 (Ontario Student Loans made before August 1, 2001), made under the Act; (“règlement antérieur au Règlement de 2001”)

“prime rate”, with respect to a rate of interest, means the average variable reference rate of interest as calculated monthly, based upon the average variable reference rates of interest for a month, by each of the Bank of Montreal, the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Royal Bank of Canada and the Toronto Dominion Bank as their rate for Canadian dollar consumer demand loans, and calculated without reference to the highest and the lowest of those five rates and by averaging the remaining three rates; (“taux préférentiel”)

“qualifying student” means a student described in section 23; (“étudiant admissible”)

“service provider” means a person or entity, other than a post-secondary educational institution, who provides services with respect to the disbursement, administration, management or delivery of student loans by virtue of,

(a) an agreement with the Minister, or with another Minister of the Crown in right of Ontario, for the provision of those services, or

(b) if the Minister has entered into an agreement with the Government of Canada for the provision of those services, an agreement with the Government of Canada for the provision of those services; (“fournisseur de services”)

“spouse” means either of two persons who,

(a) are married to each other,

(b) have together in good faith entered into a marriage that is voidable or void,

(c) have lived together in a conjugal relationship outside marriage continuously for a period of not less than three years, or

(d) have lived together in a conjugal relationship outside marriage in a relationship of some permanence, if they are the natural or adoptive parents of a child. (“conjoint”)

Application For Micro-Credential Grant or Micro-Credential Student Loan

Applying for a grant or student loan

3. (1) An individual who wishes to obtain a micro-credential grant or micro-credential student loan must apply for it to the Minister, and the application must specify the period of study for which the grant or loan is needed as well as the approved institution and approved program of study in which the individual is enrolled or intends to be enrolled.

(2) The application must be in a form approved by the Minister.

Period of grant or student loan

4. (1) A micro-credential grant or micro-credential student loan may be issued for no more than one period of study in the approved program of study in which the student is or will be enrolled.

(2) An individual who wishes to obtain micro-credential grants or micro-credential student loans for more than one period of study must make a new application under subsection 3 (1) for each period of study.

Eligibility

Eligibility for a grant or student loan

5. An individual is eligible for a micro-credential grant or micro-credential student loan for a period of study if the Minister determines that he or she,

(a) is a Canadian citizen, a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada) or a protected person within the meaning of subsection 95 (2) of that Act;

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

(c) is enrolled in an approved program of study at an approved institution, as determined in accordance with sections 7 and 8; and

(d) meets the financial eligibility requirement for receiving the grant or loan, as determined in accordance with section 9.

Residency requirement

6. (1) An individual meets the residency requirement for a micro-credential grant or micro-credential student loan if, on or before the day the period of study of the approved program of study in which the individual is or is to be 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 12 or more 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 expected contributor 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 requirement described in that subsection shall be deemed to meet the residency requirement for the purposes of issuing a micro-credential grant or micro-credential student loan 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 12 or more consecutive months; and

(b) the individual,

(i) is or will be attending an approved institution in Ontario and, as of the day the application is made, the individual resides in Ontario, or

(ii) has previously received such a grant or student loan under this Regulation.

Approved program of study

7. (1) The Minister may approve a program of study as a program of study for which individuals may be eligible to receive a micro-credential grant or micro-credential student loan if the program,

(a) is provided at an approved institution; and

(b) consists of one period of study of less than 12 weeks.

(2) For the purposes of clause (1) (b), the period of study of an approved program of study is the period of time that the approved institution considers to be the normal school year for that particular program for academic purposes, as determined by that institution.

(3) The Minister may withdraw his or her approval for a program of study if the program 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.

Approved institutions

8. The following institutions are approved institutions for the purposes of micro-credential grants and micro-credential student loans:

1. Every university in Ontario, including any post-secondary educational institution that is affiliated or federated with such a university, the enrolments of which are counted for purposes of calculating annual operating grants and entitlements.

2. Every college of applied arts and technology established under the Ontario Colleges of Applied Arts and Technology Act, 2002.

3. The University of Guelph — Ridgetown Campus.

4. Every Indigenous Institute prescribed for the purposes of section 6 of the Indigenous Institutes Act, 2017.

5. The Royal Military College of Canada.

Financial eligibility

9. (1) An individual meets the financial eligibility requirement for receiving a micro-credential grant or micro-credential student loan for a particular period of study if, in the Minister’s opinion, the individual needs the grant or student loan in order to pursue the approved program of study for which the grant or loan application was made for that period of study.

(2) When deciding whether an individual needs the grant or student loan, the Minister shall consider the individual’s education costs and financial resources and may consider other factors that are relevant in the Minister’s opinion.

(3) The following are an individual’s education costs for an approved program of study at an approved institution for a particular period of study:

1. The tuition and other compulsory fees payable to the institution.

2. The estimated cost allowance established by the Minister for books and other instructional supplies.

3. The estimated cost allowance established by the Minister for such other expenses as the Minister considers relevant in the circumstances.

(4) The Minister may rely on the financial information of the following individuals for the purposes of determining the proportion of micro-credential grant to micro-credential student loan for another individual (the “student”) for a period of study in an approved program of study at an approved institution:

1. The student’s parents or step-parents.

2. An individual who is the student’s sponsor within the meaning of the regulations made under the Immigration and Refugee Protection Act (Canada).

3. The individual who, on the first day of the period of study, is the student’s spouse.

(5) The amount of an individual’s financial resources for a particular period of study in an approved program of study at an approved institution is the amount of money that the Minister expects the individual to contribute toward the individual’s education costs for the period.

(6) The Minister may rely on the information about the individual’s financial resources for the purposes of determining the proportion of micro-credential grant to micro-credential student loan for the individual.

(7) The Minister may determine the individual’s financial resources having regard to the following matters:

1. The individual’s total taxable and non-taxable income from all sources.

2. The total taxable and non-taxable income from all sources of the individuals expected contributors.

3. The number of other individuals that, in the opinion of the Minister, are dependants of the individual.

4. Any other resources, assets or deductions of the individual and the individual’s expected contributors, if any, that the Minister considers to be relevant in the circumstances.

Restrictions on Issuing a Micro-Credential Grant or Micro-Credential Student Loan

Restrictions

10. Despite section 5, an individual who is eligible for a micro-credential grant or micro-credential student loan under that section may be refused the grant or student loan in accordance with sections 11 to 15.

Overlapping periods of study

11. The Minister shall not issue a micro-credential grant or micro-credential student loan in respect of a period of study in an approved program of study that overlaps with a period of study in another approved program of study for which the individual has received a micro-credential grant or micro-credential student loan.

Individual’s finances; other loans, grants, benefits, etc.

12. (1) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual in any of the following circumstances relating to the individual’s finances and financial resources:

1. The individual or his or her spouse owns, possesses or controls real or personal property that, in the opinion of the Minister, constitutes sufficient financial resources to meet the individual’s education costs.

2. The individual is entitled to receive student financial assistance from the Government of Canada or from the government of another province or territory of Canada or of another country.

3. After considering the contents of a consumer report of the individual’s current debts, the Minister is of the opinion that the individual will not repay the student loan.

(2) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual if the individual is in receipt of financial assistance under an educational program or employment training program funded directly or indirectly by the Province of Ontario.

(3) The Minister shall not issue a micro-credential grant or micro-credential student loan to an individual who previously received a grant or student loan issued under the Act for which amounts have not been repaid, if the individual,

(a) was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 36 to 47 of the 2017 Regulation, under sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or under sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017, and he or she is not an individual described in clause (b);

(b) has a permanent disability and was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 36 to 47 of the 2017 Regulation, under sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or under sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017, and at least 60 months have elapsed since he or she last was a qualifying student; or

(c) was granted a reduction of the amount outstanding under the previous student loan under section 40.2 of the 2001 Regulation, as it read on October 31, 2010, or under section 9.4 of the pre-2001 Regulation, as it read on October 31, 2010.

(4) The Minister shall not issue a micro-credential grant or micro-credential student loan to an individual who has been granted a severe permanent disability benefit under section 48 of the 2017 Regulation, under section 40.8 of the 2001 Regulation, as that section read on March 9, 2017, or under section 13 of the pre-2001 Regulation, as that section read on March 9, 2017.

(5) In this section,

“qualifying student” includes a qualifying student as described in section 24 of the 2017 Regulation, a qualifying student as described in section 23 of the 2001 Regulation and a student or borrower deemed to be a student under section 11 or 11.1 of the pre-2001 Regulation.

Actions of individual

13. (1) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual if the Minister considers, after consulting with the approved institution at which the individual has been enrolled, that the individual has not made satisfactory progress in a program of study.

(2) The Minister may refuse to issue a micro-credential grant or micro-credential student loan to an individual in any of the following circumstances relating to actions of the individual:

1. The individual has not made arrangements that are satisfactory to the Minister to repay, or has not repaid, any 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.

2. The individual has not given the Minister all of the information and documents required by the Minister to administer the program of awards, grants or student loans that 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.

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

4. The individual has been found guilty 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 any loan, grant or award made by the Government of Ontario, the Government of Canada or the government of any other province or territory.

Restrictions on future eligibility

14. (1) The Minister may determine that an individual shall not be eligible, for such period as the Minister may determine, to receive a micro-credential grant or micro-credential student loan 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 awards, grants or student loans that 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 any student loan or to any 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 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 any 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 institution 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 and 3 of subsection (1) exist, the Minister may determine that the individual, in addition to being ineligible for a micro-credential grant or micro-credential student loan, shall, for such period as the Minister may determine, not be eligible to retain the status of a qualifying student under section 23 or 24 during a period of study during which the individual does not receive the grant or student loan.

(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 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 all 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 22 of this Regulation, section 23 of the 2017 Regulation, section 26 of the 2001 Regulation or section 11.2 of the pre-2001 Regulation.

(iii) The amount of any reduction of the amount of principal outstanding granted to the individual under section 33 of the 2001 Regulation.

(iv) The amount of any assistance provided by the Minister as part of any repayment assistance granted to the individual under sections 36 to 47 of the 2017 Regulation, sections 35 to 40.7 of the 2001 Regulation, as those sections read on March 9, 2017, or sections 12 to 12.12 of the pre-2001 Regulation, as those sections read on March 9, 2017.

(v) The amount of any severe permanent disability benefit granted to the individual under section 48 of the 2017 Regulation, section 40.8 of the 2001 Regulation, as that section read on March 9, 2017, or section 13 of the pre-2001 Regulation, as that section read on March 9, 2017.

(vi) The amount of any reduction of the amount of principal outstanding under a consolidated loan agreement granted to the individual under section 40.2 of the 2001 Regulation, as that section read on October 31, 2010, or sections 9.3 to 9.4 of the pre-2001 Regulation, as those sections read on October 31, 2010.

(vii) The amount of any payments that were suspended under section 36, 39 or 39.1 of the 2001 Regulation, as those sections read on October 31, 2010, or under section 12, 12.1 or 12.2 of the pre-2001 Regulation, as those sections read on October 31, 2010, and any interest thereon.

(viii) 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 of the 2001 Regulation, as that section read on October 31, 2010, or under section 13.2 of the pre-2001 Regulation, as that section read on October 31, 2010.

(6) If the Minister makes a determination under section 42.1 of the 2001 Regulation or section 16 of the 2017 Regulation that an individual is ineligible for a specified period for a student loan, and on January 1, 2021 the specified ineligibility period has not elapsed, then the individual is deemed to be ineligible for a micro-credential grant and a micro-credential student loan under this Regulation for the remainder of the ineligibility period.

Bankruptcy

15. (1) This section applies with respect to an application for a micro-credential grant or micro-credential student loan 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) An individual enters into a recognized arrangement for debt settlement when any of the following events occurs:

1. A proposal under Division I of Part III of the Bankruptcy and Insolvency Act (Canada) relating to the individual 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.

(3) The Minister shall not issue a micro-credential grant or micro-credential student loan 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 grant or student loan, has not received an order of absolute discharge or certificate of discharge under that Act.

(4) Despite subsection (3), the Minister may issue a micro-credential grant or micro-credential student loan if the individual satisfies the Minister that any grant or student loan made to the individual after a notice of assessment is issued to the individual will not be seized to repay the individual’s creditors.

(5) The Minister shall not issue a micro-credential grant or micro-credential student loan 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 micro-credential grant or micro-credential student loan and, at the time of the application,

(a) there are no amounts of principal or interest outstanding on any student loans under the Act 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 or certificate of discharge granted under the Bankruptcy and Insolvency Act (Canada), three years have elapsed since the day the order of absolute discharge was made or the certificate of discharge was issued.

Notice of Assessment

Issuing a notice of assessment

16. (1) If the Minister determines that an individual is eligible for a micro-credential grant or micro-credential student loan and the individual is not refused the grant or student loan in accordance with sections 11 to 15, the Minister may issue a notice of assessment indicating the amount of the grant or student loan that shall be issued to the individual upon the conditions in subsection 18 (1) being satisfied.

(2) The notice of assessment shall be in respect of all or part of a period of study in an approved program of study at an approved institution, all of which shall be specified in the notice.

Maximum amount of grant and student loan

17. (1) This section sets out the maximum total amount of a micro-credential grant and micro-credential student loan that may be issued to an individual for the individual’s anticipated enrolment in the approved program of study for the period of study specified in the notice of assessment.

(2) The maximum amount is determined as follows:

$5000 + $5 × H

where,

  “H” is the duration of the program of study in number of hours as approved by the Minister under section 7.

Obtaining a Micro-Credential Grant or Micro-Credential Student Loan

Obtaining the grant or student loan

18. (1) The Minister or a service provider on behalf of the Minister shall issue a micro-credential grant or micro-credential student loan if,

(a) the individual has received a notice of assessment under section 16;

(b) the individual has entered into a micro-credential student loan agreement under section 20; and

(c) the individual’s enrolment in the approved program of study has been confirmed by the approved institution no later than 15 business days after the period of study ends.

(2) The grant or student loan shall be issued in the amount set out in the notice of assessment for the grant, the loan, or both, as the case may be.

Grant or loan directed to institution

19. (1) The Minister may direct all or part of an individual’s micro-credential grant or micro-credential student loan for a period of study to an approved institution to apply toward any amounts listed in subsection (2) that the individual owes to the institution if,

(a) the individual is eligible to receive a grant or loan for the period of study; and

(b) the institution requests the direction in a manner approved by the Minister.

(2) For the purposes of subsection (1), the amounts are,

(a) tuition and other compulsory fees for the approved program of study; and

(b) other fees for the approved program of study that the individual has authorized the institution to collect.

Micro-credential student loan agreement

20. (1) The Minister may enter into a micro-credential student loan agreement in accordance with this section where an individual applies for a micro-credential grant or micro-credential student loan and the Minister is satisfied that the individual is entitled to the grant or student loan and has a notice of assessment.

(2) Where a micro-credential student loan agreement has been entered into by an individual, the agreement applies to the micro-credential grant and micro-credential student loan received under this Regulation by the individual in respect of the period of study set out in the agreement.

(3) The terms of a micro-credential student loan are the terms set out in this section and sections 22 to 35 and in the micro-credential student loan agreement that the individual enters into.

(4) The terms of a micro-credential grant are the terms set out in this section and sections 21 to 35 and in the micro-credential student loan agreement that the individual enters into.

(5) Subject to subsection (6), the Minister may amend the terms of the micro-credential student loan agreement.

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

1. For the amendments to be valid, the Minister must give notice by posting the amended terms on a website of the Government of Ontario.

2. The amendments shall only apply to micro-credential grants and micro-credential 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.

Repayment of Overpayment of a Micro-Credential Grant

Repayment of overpayment of a grant

21. (1) The Minister may require an individual to repay to the Minister of Finance any overpayment of a micro-credential grant, or any amount of such a grant that exceeds the amount the individual is eligible to receive as a grant if,

(a) the individual ceases to be enrolled in an approved program of study at an approved institution;

(b) the circumstances of the individual or the individual’s expected contributors have changed, resulting in a determination that the individual is no longer eligible to receive a grant or is not entitled to the amount of the grant issued;

(c) the Minister cannot, to his or her satisfaction, verify with the Canada Revenue Agency or through other means the financial information reported by the individual or the individual’s expected contributors; or

(d) an error or mistake has been made.

(2) The Minister may provide that a repayment under subsection (1) is not required, if in his or her opinion there are such exceptional circumstances of an individual or the individual’s expected contributors.

(3) When repayment under subsection (1) is required, the Minister may take such measures as the Minister considers advisable in the circumstances, including applying interest on the amount owing.

Maintaining Status as a Qualifying Student

Effect of status as qualifying student

22. (1) While an individual is a qualifying student, his or her obligations to pay principal and interest under a micro-credential student loan agreement or consolidated micro-credential loan agreement, are suspended.

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

(3) The individual is not permitted to pay the accrued interest by means of a promissory note.

Qualifying student

23. (1) An individual is a qualifying student during a period of study for which he or she receives a micro-credential grant or micro-credential student loan.

(2) An individual may be a qualifying student during a period of study for which he or she does not receive a micro-credential grant or micro-credential student loan, if the requirements set out in section 24 or 25 are met.

(3) If an individual ceases to be a qualifying student for a period of less than six months, the individual shall be deemed to have been a qualifying student throughout that period.

Confirmation of enrolment by institution

24. (1) An individual who wishes to be a qualifying student during a period of study for which he or she does not receive a micro-credential grant or micro-credential student loan must comply with this section.

(2) The individual must continue to meet the requirements of clause 5 (a).

(3) The individual 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 program of study at an approved institution for the period of study in question;

(b) that he or she is enrolled in an approved program of study at an approved institution under the 2017 Regulation, the 2001 Regulation or the pre-2001 Regulation for the period of study in question;

(c) 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 (4);

(d) that he or she is enrolled at a designated educational institution as defined in the Canada Student Financial Assistance Act; or

(e) that he or she is enrolled at an educational institution not described in clause (a), (b) (c) or (d) 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 (4).

(4) For the purposes of clauses (3) (c) and (e), the minimum course load that an individual who is enrolled in a program of study at an institution described in one of those clauses must take in order to maintain his or her status as a qualifying student during the relevant period of study 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 period 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 period of study, in the case of an individual who is a person with a disability.

(5) The document confirming enrolment must be given in a form approved by the Minister and must be certified by the institution at which the individual is enrolled.

(6) The individual must give the completed document referred to in subsection (5) to the Minister promptly upon becoming enrolled as described in subsection (3).

(7) Subject to section 26, the individual is a qualifying student under this section beginning on the first day of the period of study.

Confirmation of enrolment by Minister

25. (1) Even though an individual does not comply with section 24, the individual is a qualifying student during a period of study for which he or she does not receive a micro-credential grant or micro-credential student loan if he or she establishes to the satisfaction of the Minister that,

(a) the individual was unable to obtain a document confirming enrolment under section 24; and

(b) the circumstances that are required in order to obtain a document confirming enrolment under clause 24 (3) (a), (b), (c), (d) or (e) exist.

(2) Subject to section 26, the individual is a qualifying student under this section beginning on the first day of the period of study.

Ceasing to be a qualifying student

26. (1) An individual ceases to be a qualifying student in any of the following circumstances:

1. The individual ceases to be enrolled in the approved program of study in respect of which his or her most recent notice of assessment was issued.

2. The individual is enrolled in a program of study described in clause 24 (3) (c) or (e) and reduces his or her course load below the minimum required course load.

3. The individual withdraws from the applicable educational institution.

4. The program of study in which the individual is enrolled at the approved institution ceases to be an approved program of study.

5. The institution at which the individual is enrolled ceases to be an approved institution or to be described by clause 24 (3) (c), (d) or (e).

6. The individual became a bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into another recognized arrangement for debt settlement.

(2) After an individual ceases to be a qualifying student, he or she is required to enter into an agreement under section 27 to consolidate all of his or her micro-credential student loans made under this Regulation.

Consolidated Micro-Credential Loan Agreement and Repayment Terms

Requirement for a consolidated micro-credential loan agreement

27. (1) If an individual has entered into a micro-credential student loan agreement under this Regulation, he or she shall enter into a consolidated micro-credential loan agreement with the Minister after the individual ceases to be a qualifying student.

(2) A consolidated micro-credential loan agreement entered into under this Regulation shall apply to all micro-credential student loan agreements that the individual has entered into.

(3) If the individual does not enter into a consolidated micro-credential loan agreement within six months after ceasing to be a qualifying student, section 28 applies until he or she does enter into such an agreement.

(4) The consolidated micro-credential loan agreement must establish the amount and duration of the repayments to be made to discharge the principal amount of all outstanding micro-credential student loans issued under this Regulation and the interest on the outstanding balance from time to time, and the agreement may provide for other matters.

(5) If the individual enters into a consolidated micro-credential loan agreement and then becomes a qualifying student again, he or she is required to enter into a new consolidated micro-credential loan agreement after ceasing to be a qualifying student, and the new agreement supersedes the old agreement.

(6) If an individual described in subsection (5) does not enter into a new consolidated micro-credential loan agreement within six months after ceasing to be a qualifying student, section 28 applies until he or she does enter into such an agreement.

Arrangement if there is no consolidated micro-credential loan agreement

28. (1) If an individual does not enter into a consolidated micro-credential loan agreement within six months after ceasing to be a qualifying student, the Minister may establish the amount and duration of the repayments to be made to discharge the principal amount of all outstanding micro-credential student loans issued under this Regulation and the interest on the outstanding balance from time to time.

(2) If an individual does not enter into a consolidated micro-credential loan agreement within six months after ceasing to be a qualifying student or does not provide the Minister 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 the loan agreement, the Minister may require a financial institution to make payments on the individual’s micro-credential student loans issued under this Regulation, from an account at the institution that the individual has identified to the Minister.

(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 micro-credential loan agreement, if any, or, if none, in accordance with the repayment terms established by the Minister under subsection (1).

Obligation to pay interest

29. (1) An individual is not required to make payments towards the interest accruing under a micro-credential student loan agreement or consolidated micro-credential loan agreement until the first day of the month immediately after the six-month period following the month in which the individual ceased to be a qualifying student.

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

Repayment terms

30. (1) The term for the repayment of a micro-credential student loan is to be determined by the Minister in consultation with the borrower.

(2) Interest on a micro-credential student loan begins to accrue on the first day of the month immediately following the month in which the person ceases to be a qualifying student.

(3) The borrower is entitled to repay all or part of the micro-credential student loan, without notice or bonus to the Minister, before the period for repayment specified in the consolidated micro-credential loan agreement expires.

(4) The obligation to repay a micro-credential student loan terminates upon the death of the borrower.

(5) Instalments of the repayment of a micro-credential student loan are to be applied first to interest accrued to the date of the payment and then to the outstanding principal.

Amendment to prevent default

31. The Minister and borrower may amend their consolidated micro-credential loan agreement if the borrower notifies the Minister that the terms of the agreement are such that he or she will be in default and if the Minister considers that an amendment to the agreement will enable the borrower to meet his or her obligations under the agreement.

Default on a Micro-Credential Student Loan

What constitutes default

32. A borrower is in default of his or her obligations to repay micro-credential student loans if he or she,

(a) unequivocally refuses to pay the loans; or

(b) is in arrears by at least three months under the consolidated micro-credential loan agreement or under the arrangement established by the Minister under section 28 as a result of failing to make monthly payments on at least three separate occasions.

Consequences of default

33. (1) When a borrower is in default of his or her obligation to repay micro-credential student loans, the loans are due and payable on the following date:

1. If the default occurs because the borrower unequivocally refuses to pay the loans, the day of the refusal.

2. If the default occurs because the borrower fails to make monthly payments on at least three separate occasions, the day of the third missed payment.

(2) When a borrower’s loans are due and payable, the Minister may take such measures as the Minister considers advisable in the circumstances, including amending the consolidated micro-credential loan agreement or collecting the loans.

(3) When a borrower defaults on his or her obligation to make payments under a consolidated micro-credential loan agreement or an arrangement established by the Minister under section 28, the Minister may deny the borrower the status of a qualifying student under section 24 or 25 during a period of study during which he or she does not receive a micro-credential grant or micro-credential student loan.

General

Duty to give notice of material change in circumstances

34. (1) An individual who enters into a micro-credential student loan agreement, under which the individual receives a micro-credential grant or micro-credential student loan pursuant to section 18, 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 micro-credential grant or micro-credential student loan is issued.

(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 subsection 9 (3);

(e) a change in the financial information of the individual’s expected contributors; and

(f) a change in financial resources described in subsection 9 (5).

Change of address

35. An individual who enters into a micro-credential student loan agreement under which the individual receives a micro-credential grant or micro-credential student loan pursuant to section 18, 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 23 but before the repayment in full of the principal amount of the student loan and of any outstanding interest on that amount.

Effect of false statements

36. (1) If a service provider discovers that a document pertaining to a micro-credential grant or micro-credential student loan contains a false statement, the service provider shall promptly report the matter to the Minister.

(2) Upon discovering that the document contains a false statement, the service provider may take any action that he, she or it considers appropriate in the circumstances, with the approval of the Minister.

Officers authorized to issue notices of assessment

37. The Deputy Minister and the Director, Student Financial Assistance Branch of the Ministry, are authorized to approve micro-credential student loans under section 8 of the Act.

Authority of service providers

38. A service provider may act on behalf of the Minister in exercising rights and performing duties under this Regulation, if authorized to do so by the Minister.

Commencement

Commencement

39. This Regulation comes into force on the day it is filed.

 

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