Apprentice Loans Regulations (SOR/2014-255)

Interpretation

Marginal note:Definitions — Act and Regulations

• 1 (1) The following definitions apply in the Act and in these Regulations.

  acknowledgment of liability

  acknowledgment of liability means

  • (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

  • (b) a written acknowledgement of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

  • (c) a part payment by the borrower or his or her agent or other representative of any money owing; or

  • (d) an acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts. (reconnaissance de responsabilité)

  apprentice

  apprentice means

  • (a) other than in section 5, a person who

    • (i) is a Canadian citizen, a person registered as an Indian under the Indian Act, a permanent resident as defined in subsection 2(1) of the Immigration and Refugee Protection Act or a protected person as described in subsection 95(2) of that Act,

    • (ii) is not a high school student, and

    • (iii) is registered with a province as an apprentice in an eligible trade; and

  • (b) in section 5, a person who is described in subparagraphs (a)(i) and (ii) and who is enrolled in a program of study that is mandatory in order to enable the person to register as an apprentice with a province. (apprenti)

  apprentice loan

  apprentice loan means a debt obligation incurred by an eligible apprentice on entering into an apprentice loan agreement that is owed to Her Majesty in right of Canada, as represented by the Minister. (prêt aux apprentis)

  borrower

  borrower means a person to whom an apprentice loan is made under the Act. (emprunteur)

  eligible apprentice

  eligible apprentice means an apprentice who is enrolled at a technical training provider for technical training in an eligible trade and whose primary occupation during the technical training period is to participate in that technical training. (apprenti admissible)

  severe permanent disability

  severe permanent disability means any impairment, including a physical, mental, intellectual, cognitive, learning, communication or sensory impairment — or a functional limitation — that prevents a person from performing the daily activities necessary to participate in the labour force in a manner that is substantially gainful, as defined in section 68.1 of the Canada Pension Plan Regulations, and is expected to remain with the person for their expected life. (invalidité grave et permanente)

  technical training

  technical training means formal instruction or training that is offered by a technical training provider and that is determined by a province to be an essential element of an apprenticeship program in that province and required for the practice of an eligible trade. (formation technique)

  technical training period

  technical training period means a continuous period of technical training that begins on the first day of the month in which technical training begins and ends on the last day of the month in which the training ends. (période de formation technique)

• Marginal note:Definitions — Regulations

  (2) The following definitions apply in these Regulations.

  Act

  Act means the Apprentice Loans Act. (Loi)

  apprentice loan agreement

  apprentice loan agreement means an agreement entered into between an eligible apprentice and the Minister under section 4 of the Act that is in the form determined by the Minister and includes the social insurance number of the apprentice. (contrat de prêt aux apprentis)

  apprenticeship program

  apprenticeship program means a program of practical experience, technical training and certification examination that must be undertaken — as determined by the province — by an apprentice in an eligible trade. (programme d’apprentissage)

  common-law partner

  common-law partner, in respect of a borrower, means a person who is cohabiting with the borrower in a conjugal relationship, having so cohabited for a period of at least one year. (conjoint de fait)

  confirmation of continued apprenticeship

  confirmation of continued apprenticeship means proof that a borrower is still registered with a province as an apprentice in an eligible trade. (confirmation d’apprentissage continu)

  confirmation of enrolment

  confirmation of enrolment means proof that an apprentice is enrolled in technical training with a technical training provider. (confirmation d’inscription)

  family income

  family income means the aggregate income — including income from employment, social programs, investments and monetary gifts — of the borrower and their spouse or common-law partner, as the case may be. (revenu familial)

  financial assistance

  financial assistance means any form of financial aid provided under the Act, including apprentice loans. (aide financière)

  fiscal year

  fiscal year means the one-year period that begins on April 1 in any year. (exercice)

  guaranteed student loan

  guaranteed student loan has the same meaning as in subsection 2(2) of the Canada Student Financial Assistance Regulations. (prêt garanti)

  interest suspension period

  interest suspension period means the period set out in section 8.2 of the Act. (période de suspension des intérêts)

  permanent disability

  permanent disability means any impairment, including a physical, mental, intellectual, cognitive, learning, communication or sensory impairment — or a functional limitation — that restricts the ability of a person to perform the daily activities necessary to participate in an apprenticeship program or in the labour force and that is expected to remain with the person for the person’s expected life. (invalidité permanente)

  persistent or prolonged disability

  persistent or prolonged disability means any impairment, including a physical, mental, intellectual, cognitive, learning, communication or sensory impairment — or a functional limitation — that restricts the ability of a person to perform the daily activities necessary to participate in an apprenticeship program or in the labour force and has lasted, or is expected to last, for a period of at least 12 months but is not expected to remain with the person for the person’s expected life. (invalidité persistante ou prolongée)

  provincial loan

  provincial loan has the same meaning as in subsection 2(2) of the Canada Student Financial Assistance Regulations. (prêt provincial)

  student loan

  student loan has the same meaning as in subsection 2(1) of the Canada Student Financial Assistance Regulations. (prêt d’études)

• Marginal note:Schedule 1 — Eligible trades

  (3) For the purposes of subsection 2(1) of the Act, eligible trades are those that are listed in Schedule 1 to these Regulations.

Obtaining an Apprentice Loan

Marginal note:Conditions

2 Subject to section 6, the Minister may make an apprentice loan to an eligible apprentice if the following conditions are met:

• (a) the apprentice has entered into an apprentice loan agreement for a technical training period on or before the last day of technical training;

• (b) confirmation of enrolment is submitted to the Minister;

• (c) in the event that interest started accruing prior to the first day of the current technical training period, the apprentice pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the first day of that technical training period; and

• (d) in the event that interest started accruing prior to the day on which the apprentice enters into an apprentice loan agreement for the current technical training period that began on the day on which interest started accruing, the apprentice

  • (i) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which the apprentice enters into the current apprentice loan agreement, or

  • (ii) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal.

3 [Repealed, SOR/2023-273, s. 18]

Payment of Principal and Interest

Marginal note:Payment-deferred period

• 4 (1) For the purpose of subsection 8(2) of the Act, the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid by the borrower starts on the day on which the loan is made and ends on the earlier of

  • (a) the last day of the 19th month after

    • (i) in the event that no interest has accrued prior to the first day of a technical training period for which confirmation of enrolment is submitted to the Minister, the last day of that period,

    • (ii) in the event that interest started accruing prior to the first day of a technical training period for which confirmation of enrolment is submitted to the Minister, the last day of that period, if the apprentice pays to the Minister the unpaid interest accrued to the day before the first day of that period,

    • (iii) in the event that interest started accruing prior to the day on which confirmation of enrolment is submitted to the Minister for a technical training period that began prior to the day on which interest started accruing, the last day of that period if the apprentice

      • (A) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which confirmation of enrolment is submitted to the Minister, or

      • (B) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal,

    • (iv) in the event that no interest has accrued prior to the day on which confirmation of continued apprenticeship is submitted to the Minister, the day on which the confirmation of continued apprenticeship is submitted, and

    • (v) in the event that interest started accruing prior to the day on which confirmation of continued apprenticeship is submitted to the Minister, the day on which the confirmation of continued apprenticeship is submitted, if the apprentice

      • (A) pays to the Minister the unpaid interest accrued under their apprentice loan agreement to the day before the day on which confirmation of continued apprenticeship is submitted, or

      • (B) directs the addition of the interest referred to in subparagraph (i) to the outstanding principal; and

  • (b) the last day of the month in which an applicable day, as defined in any of paragraphs 6(2)(a) to (l), occurs in relation to the borrower.

• Marginal note:Loan received erroneously

  (2) Despite paragraph 1(b), if an event described in paragraph 6(2)(a) occurs in respect of an apprentice loan made to a borrower and, subsequent to that event, the borrower erroneously receives an apprentice loan, the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid by the borrower ends on the last day of the technical training period for which the apprentice loan was made.

• Marginal note:Exception — continuation of payment-deferred period

  (3) Despite paragraph (1)(b), if, before the last day of the apprenticeship program in which the borrower is registered at the time the event occurs, an event described in any of paragraphs 6(2)(b) to (f) occurs in respect of an apprentice loan made to a borrower, the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ends on the earlier of

  • (a) the last day of the apprenticeship program, and

  • (b) the last day of the 36th month after the applicable day for the event or, if that day falls during a technical training period, the last day of that period.

Marginal note:New payment-deferred period

• 4.1 (1) Subject to subsections (4) and (6), if the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ended under paragraph 4(1)(b) because of the occurrence of an event described in paragraph 6(2)(a) or (h), a new period begins when the conditions set out in paragraphs 7(1)(a) and (b) are met.

• Marginal note:Bankruptcy or insolvency

  (2) Subject to subsections (4) and (6), if the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ended under paragraph 4(1)(b) because of the occurrence of an event described in any of paragraphs 6(2)(b) to (f), a new period begins when one of the conditions described in any of paragraphs 7(2)(a) to (d) occurs.

• Marginal note:Offence related to loan

  (3) Subject to subsections (4) and (6), if the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ended under paragraph 4(1)(b) because of the occurrence of an event described in paragraph 6(2)(g), a new period begins when the conditions set out in paragraphs 7(3)(a) to (d) are met.

• Marginal note:Borrower who was a minor

  (4) If the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ended under paragraph 4(1)(b) and the borrower was a minor when they received an apprentice loan and has refused to ratify that loan as an adult, a new period begins when the borrower ratifies that loan and, to the extent that they apply, the conditions set out in subsection (1), (2) or (3) are met.

• Marginal note:Repayment assistance

  (5) Subject to subsection (6), if the period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid ended under paragraph 4(1)(b) because of the occurrence of an event described in paragraph 6(2)(i), the borrower is entitled to a new period during which no amount on account of principal or interest in respect of an apprentice loan is required to be paid when they have paid in full the outstanding balance of their apprentice loans.

• Marginal note:Judgment

  (6) If a judgment has been obtained against a borrower, a new period does not begin unless the borrower has been released from that judgment and, to the extent that they apply, the conditions set out in subsection (1), (2) or (3) are met.

Special Payments

Marginal note:Amount determined by Minister

• 5 (1) For the purposes of section 7 of the Act, the special payment amount for a province as determined by the Minister after consultation with the Chief Statistician of Canada is the amount for the fiscal year that is obtained by multiplying the total costs for the fiscal year for provinces where apprentices registered with those provinces are able to enter into apprentice loan agreements for the fiscal year, by the ratio of the estimated number of persons in the province in question who are at least 16 years of age but less than 65, to the estimated number of persons of those ages in provinces where apprentices registered with those provinces are able to enter into apprentice loan agreements.

• Marginal note:Total costs

  (2) In this section, total costs for a fiscal year means the amount determined by the formula

  A + B - C

  where

  A

  is the estimated aggregate of all amounts paid by the Minister in that fiscal year to service providers under the Act and to collection agencies in respect of apprentice loans;

  B

  is the estimated aggregate of

  • (a) the amount of interest calculated at the rate of interest referred to in subsection (3) in that fiscal year in respect of outstanding apprentice loans referred to in the description of A made under an apprentice loan agreement,

  • (b) the amount by which the outstanding principal in respect of all apprentice loans referred to in paragraph (a) has been reduced in that fiscal year in accordance with these Regulations,

  • (c) the amount of the outstanding principal and interest in respect of all apprentice loans referred to in paragraph (a) for which the borrower’s obligations have terminated in that fiscal year as a result of the death or severe permanent disability of the borrower, and

  • (d) the amount of the outstanding principal and interest in respect of all apprentice loans referred to in paragraph (a) for which the Minister has commenced collection action in that fiscal year, minus the amount of the outstanding principal and interest in respect of apprentice loans referred to in that paragraph for which the Minister has ended collection action in that fiscal year due to the occurrence of an event described in section 7 that resulted in the removal of restrictions to financial assistance; and

  C

  is the estimated aggregate of

  • (a) the amount of interest received by or on behalf of Her Majesty in right of Canada in that fiscal year in respect of apprentice loans, and

  • (b) any amounts received by or on behalf of Her Majesty in right of Canada in that fiscal year pursuant to collection action taken by the Minister in respect of apprentice loans.

• Marginal note:Rate of interest

  (3) The rate of interest for the purposes of paragraph (a) of the description of B in subsection (2) is the average percentage yield, during the fiscal year in question, of Benchmark Bonds issued by the Government of Canada maturing in 10 years, as published by the Bank of Canada.

Restrictions on Obtaining Financial Assistance

Marginal note:Denial of loan

• 6 (1) An apprentice loan is to be denied to an eligible apprentice who

  • (a) in the 36 months before the day on which they make their application for an apprentice loan, has been in default — in at least three instances — for over 90 days in paying an instalment under at least three loans or other debts each in an amount over $1000; or

  • (b) is in receipt of a student loan for the same technical training period.

• Definition of applicable day

  (2) For the purposes of this section, applicable day means

  • (a) if the Minister is informed that the borrower has failed to make a payment within the two-month period after the day on which the payment is required under their apprentice loan agreement or these Regulations and they do not fulfil the conditions of section 2, the day following the day on which the borrower must begin to repay the principal amount of any apprentice loan made to them, and any interest, in accordance with section 4;

  • (b) if the borrower makes an assignment under the Bankruptcy and Insolvency Act that is filed and not cancelled, is deemed under that Act to have made an assignment, or is the subject of a receiving order, the earlier of the day on which a receiving order is made or the assignment is filed with the official receiver;

  • (c) if the borrower makes a proposal under Division I of Part III of the Bankruptcy and Insolvency Act that is approved by a court under that Act, the day on which that proposal is approved;

  • (d) if the borrower makes a consumer proposal under Division II of Part III of the Bankruptcy and Insolvency Act that is approved or deemed approved by a court under that Act, the day on which the consumer proposal is approved or deemed approved;

  • (e) if the borrower applies for a consolidation order under Part X of the Bankruptcy and Insolvency Act that includes an apprentice loan, the day on which that order is issued;

  • (f) if the borrower seeks relief under a provincial law relating to the orderly payment of debts that includes an apprentice loan, the day on which the document seeking relief is filed;

  • (g) if the borrower is, by reason of his or her conduct in obtaining or repaying an apprentice loan, found guilty of an offence under any Act of Parliament, the day of the finding of guilt;

  • (h) if the borrower fails to comply with subsection 11(1) or 13(1), section 15 or subsection 17(3), the 30th day after the last day of the applicable repayment assistance period;

  • (i) if the borrower has been granted repayment assistance under subsection 13(2), the day on which the repayment assistance period begins;

  • (j) if no amount on account of principal or interest in respect of an apprentice loan was required to be paid by a borrower for a cumulative period of six years, the day after the last day of that period;

  • (k) if any of paragraphs 15(1)(b) to (i) of the Canada Student Financial Assistance Regulations apply to the borrower, the applicable day set out in the paragraph in question;

  • (l) if a measure is taken in respect of the borrower under subsection 20(1) of the Act or under section 17.1 of the Canada Student Financial Assistance Act, the day after the day on which 60 days’ notice given under subsection 20(2) of the Act or subsection 17.1(3) of the Canada Student Financial Assistance Act expires;

  • (m) if five disbursements have already been made to the borrower under these Regulations, the day after the day on which the borrower received the last disbursement under an apprentice loan agreement; or

  • (n) the day on which the obligations of the borrower are terminated under section 10 of the Act or under section 11 or 11.1 of the Canada Student Financial Assistance Act.

• Marginal note:Denial of loan

  (3) Subject to subsections (5) and (7), if an event described in any of paragraphs (2)(a) to (n) occurs, the Minister may, effective on the applicable day for that event, deny the borrower a new apprentice loan.

• Marginal note:Termination of repayment assistance

  (4) If an event described in paragraph 2(g) or (h) occurs, the Minister must terminate any repayment assistance granted to the borrower under section 10 or 12 and refuse to grant further repayment assistance.

• Marginal note:Loan received erroneously

  (5) If an event described in paragraph (2)(a) occurs in respect of an apprentice loan made to a borrower and, subsequent to that event, the borrower erroneously receives an apprentice loan, the borrower is entitled to the apprentice loan.

• Marginal note:New loan

  (6) If, before the last day of the apprenticeship program in which the borrower is registered at the time the event occurs, an event described in any of paragraphs (2)(b) to (f) occurs in respect of an apprentice loan made to a borrower, the borrower is entitled, if otherwise eligible, to a new apprentice loan for that apprenticeship program.

• Marginal note:Subsection (3) measure delayed

  (7) If the borrower receives a new apprentice loan under subsection (6), the measure referred to in subsection (3) takes effect on the earlier of

  • (a) the last day of the apprenticeship program, and

  • (b) the day that is three years after the applicable day for the event or, if that day falls during a technical training period, the last day of that period.

Removal of Restrictions

Marginal note:New loan and repayment assistance

• 7 (1) Subject to subsection (6), a borrower who has been subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(a) or (h) is entitled to a new apprentice loan and further repayment assistance under section 10 or 12 if

  • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans; and

  • (b) the borrower has, in respect of an apprentice loan agreement for which a judgment has not been obtained, fulfilled the terms of a repayment arrangement entered into with the Minister that is no more onerous to the borrower than six consecutive payments made, after a given day, in accordance with that apprentice loan agreement and, if any interest has accrued to that day,

    • (i) has paid the interest accrued to that day, or

    • (ii) has directed, for the first time under this paragraph, paragraph 10(1)(d) of the Canada Student Loans Regulations or paragraph 16(1)(d) of the Canada Student Financial Assistance Regulations, the addition of the unpaid accrued interest to that day to the outstanding principal.

• Marginal note:Rights in subsection (1) apply

  (2) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) because of the occurrence of an event described in any of paragraphs 6(2)(b) to (f) has the rights referred to in subsection (1) if

  • (a) an event described in paragraph 6(2)(g) or (i) has not occurred in respect of the borrower’s apprentice loans;

  • (b) the borrower has complied with paragraph (1)(b), if the borrower’s consumer proposal has been annulled or deemed annulled or the borrower is no longer subject to a provincial law relating to the orderly payment of debts for a reason other than full compliance with that law, and none of the events described in paragraph 6(2)(b), (c) and (e) has occurred;

  • (c) the borrower has been released from their apprentice loans for any reason other than one described in paragraph (b); or

  • (d) the borrower is released from their apprentice loans by virtue of an absolute order of discharge that has been granted under the Bankruptcy and Insolvency Act and three years have passed since the date of the order.

• Marginal note:Rights in subsection (1) apply

  (3) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of the event described in paragraph 6(2)(g) has the rights referred to in subsection (1) if

  • (a) an event described in paragraph 6(2)(i) has not occurred in respect of the borrower’s apprentice loans;

  • (b) the borrower has been released from their apprentice loans that were outstanding on the day of the finding of guilt;

  • (c) in the event that the release referred to in paragraph (b) occurs by operation of an order of absolute discharge granted under the Bankruptcy and Insolvency Act, three years have passed since the date of the order; and

  • (d) five years have passed since the day of the finding of guilt or a pardon has been granted in respect of that finding.

• Marginal note:Rights in subsection (1) apply

  (4) A borrower, who has been the subject of a measure taken under subsection 6(3) or (4), has received an apprentice loan as a minor and has refused to ratify that loan as an adult, has the rights referred to in subsection (1) if

  • (a) the borrower ratifies the loan; and

  • (b) to the extent that they apply, the conditions set out in subsection (1), (2) or (3) are met.

• Marginal note:Rights in subsection (1) apply

  (5) Subject to subsection (6), a borrower who is subject to a measure taken under subsection 6(3) or (4) because of the occurrence of an event described in paragraph 6(2)(i) has the rights referred to in subsection (1) if the borrower has paid in full the outstanding balance of their apprentice loans.

• Marginal note:Judgment

  (6) If a judgment has been obtained against a borrower, the borrower is not entitled to the rights referred to in subsection (1) unless the borrower has been released from that judgment and, to the extent that they apply, the conditions set out in subsection (1), (2) or (3) are met.

Apprentice Loan Limit

Marginal note:Maximum amount

8 The maximum amount of an apprentice loan for one technical training period is $4,000.

Maximum Aggregate Amount of Outstanding Apprentice Loans

Marginal note:Prescribed amount

9 For the purposes of section 11 of the Act, the maximum aggregate amount of apprentice loans outstanding is $1.5 billion.

Repayment Assistance Plan

First Stage

Marginal note:Conditions

• 10 (1) Subject to section 6 of these Regulations and section 15 of the Canada Student Financial Assistance Regulations, the Minister must on application in the form determined by the Minister — including the borrower’s social insurance number — provide the first stage of a repayment assistance plan to a borrower for a period of six months if

  • (a) the borrower resides in Canada;

  • (b) no more than 114 months have passed since the later of the day on which the borrower was most recently required under section 4 to begin to repay the principal amount of any apprentice loan made to them, and any interest — or would have been required to do so but for the interest suspension period — and the day on which a restriction was removed under paragraph 7(1)(b); and

  • (c) the borrower’s monthly affordable payment calculated in accordance with subsection (2) is less than their monthly required payment calculated in accordance with subsection (3).

• Marginal note:Monthly affordable payment

  (2) The monthly affordable payment is equal to

  • (a) $0, if the borrower’s monthly family income is no more than the minimum monthly income threshold for their family size determined in accordance with the table set out in Schedule 2; or

  • (b) otherwise, the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

    0.1A

    1.5[((X – Y)) ÷ 100Z+0.01]A

    where

    A

    is, in relation to apprentice loans, student loans, guaranteed student loans and provincial loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,

    X

    is the borrower’s monthly family income,

    Y

    is the monthly income threshold for the borrower’s family size determined in accordance with the table set out in Schedule 2, and

    Z

    is the monthly increment for the borrower’s family size determined in accordance with the table set out in Schedule 2.

• Marginal note:Monthly required payment

  (3) The monthly required payment is equal to the sum of

  • (a) the outstanding principal of the apprentice loans made to the borrower for which instalments are due, amortized over a period of the greater of

    • (i) six months, and

    • (ii) 114 months minus the number of months that have passed since the applicable day referred to in paragraph (1)(b) plus the number of months since that day during which the borrower received repayment assistance under this section; and

  • (b) the monthly required payment calculated under

    • (i) paragraphs 19(3)(a) and (b) of the Canada Student Financial Assistance Regulations, or

    • (ii) paragraphs 20(3)(a) and (b) of those Regulations.

• Marginal note:Maximum number of months of repayment assistance

  (4) A borrower must not receive more than 60 months, in the aggregate, of repayment assistance under this section since the applicable day referred to in paragraph (1)(b).

Marginal note:Payment of federal portion

• 11 (1) A borrower must, no later than the day that is 30 days after a repayment assistance period ends, pay to the Minister the federal portion of the monthly affordable payments calculated in accordance with subsection 10(2) in respect of that period.

• (2) [Repealed, SOR/2023-273, s. 23]

• Definition of federal portion

  (3) In this section, federal portion means

  • (a) if no instalments are due on account of outstanding principal under provincial loans, 100% of the affordable monthly payment; and

  • (b) otherwise, the ratio of outstanding principal in relation to student loans and guaranteed student loans for which instalments are due to the sum of this amount and the outstanding principal amount of provincial loans for which instalments are due.

• Marginal note:Attribution of payments

  (4) Payments made under this section are to be attributed in proportion to the outstanding principal of each apprentice loan, student loan and guaranteed student loan for which instalments are due.

Second Stage

Marginal note:Conditions

• 12 (1) Subject to section 6 of these Regulations and section 15 of the Canada Student Financial Assistance Regulations, the Minister must on application in the form determined by the Minister — including the borrower’s social insurance number — provide the second stage of a repayment assistance plan to a borrower for a period of six months if

  • (a) the borrower resides in Canada;

  • (b) at least one of the following conditions is met:

    • (i) the borrower has either a permanent disability or a persistent or prolonged disability, and

    • (ii) the borrower has benefited from a total of 60 months of repayment assistance referred to in section 10 or at least 114 months have passed since the applicable day referred to in paragraph 10(1)(b) in respect of any apprentice loan made to the borrower; and

  • (c) the borrower’s monthly affordable payment calculated in accordance with subsection (2) is less than their monthly required payment calculated in accordance with subsection (3).

• Marginal note:Monthly affordable payment

  (2) The monthly affordable payment is equal to

  • (a) in the case of a borrower who has either a permanent disability or a persistent or prolonged disability

    • (i) $0, if the borrower’s monthly family income, less their monthly disability-related expenses not covered by their provincial health care or private insurance plan, is no more than the monthly income threshold for their family size determined in accordance with the table set out in Schedule 2, or

    • (ii) otherwise, the borrower’s monthly family income multiplied by the lesser of the amounts determined by the following formulae:

      0.1A

      1.5[((W – Y)) ÷ 100Z+0.01]A

      where

      A

      is, in relation to apprentice loans, student loans, guaranteed student loans and provincial loans, the ratio of the borrower’s outstanding principal for which instalments are due to the sum of that amount and the outstanding principal for which instalments are due for any loan of the same type to a spouse or common-law partner of the borrower,

      W

      is the borrower’s monthly family income less their monthly disability-related expenses not covered by their provincial health care or private insurance plan,

      Y

      is the monthly income threshold for the borrower’s family size determined in accordance with the table set out in Schedule 2, and

      Z

      is the monthly increment for the borrower’s family size determined in accordance with the table set out in Schedule 2; or

  • (b) in any other case, the amount determined in accordance with subsection 10(2).

• Marginal note:Monthly required payment

  (3) The monthly required payment is equal to the sum of

  • (a) the outstanding principal of the apprentice loans made to the borrower for which instalments are due, amortized over a period of the greater of six months and

    • (i) in the case of a borrower who has either a permanent disability or a persistent or prolonged disability, 114 months minus the number of months that have passed since the applicable day referred to in paragraph 10(1)(b), and

    • (ii) in any other case, 174 months minus the number of months that have passed since the applicable day referred to in paragraph 10(1)(b); and

  • (b) the monthly required payment calculated under

    • (i) paragraphs 19(3)(a) and (b) of the Canada Student Financial Assistance Regulations, or

    • (ii) paragraphs 20(3)(a) and (b) of those Regulations.

Marginal note:Payment of federal portion

• 13 (1) A borrower must, no later than the day that is 30 days after a repayment assistance period ends, pay to the Minister the federal portion of the monthly affordable payments calculated in accordance with subsection 12(2) in respect of that period.

• Marginal note:Reduction of principal and interest

  (2) The amount owing as outstanding principal of apprentice loans and interest on those loans for a month during a repayment assistance period by a borrower is reduced by the Minister by the difference between the monthly required payment calculated in accordance with paragraph 12(3)(a) and the portion of the monthly affordable payment attributed to apprentice loans calculated in accordance with subsection (4). That reduction is made only in relation to the months for which the borrower complies with subsection (1).

• Definition of federal portion

  (3) In this section, federal portion means

  • (a) if no instalments are due on account of outstanding principal under provincial loans, 100% of the affordable monthly payment; and

  • (b) otherwise, the ratio of outstanding principal in relation to apprentice loans, student loans and guaranteed student loans for which instalments are due to the sum of this amount and the outstanding principal amount of provincial loans for which instalments are due.

• Marginal note:Attribution of payments

  (4) Payments made under this section are attributed in proportion to the outstanding principal of each apprentice loan, student loan and guaranteed student loan for which instalments are due.

Monthly Income Thresholds

Marginal note:Annual increases

• 13.1 (1) Beginning in 2023, the monthly income thresholds set out in column 2 of the table to Schedule 2 are adjusted on August 1st of each year by the annual percentage increase to the Consumer Price Index for the previous calendar year, rounded to the nearest dollar.

• Marginal note:No adjustment made

  (2) If the thresholds determined in accordance with subsection (1) are less than those applicable on August 1st of the previous calendar year, no adjustment is to be made and the thresholds applicable on August 1st of the previous calendar year continue to apply.

• Marginal note:Consumer Price Index

  (3) For the purpose of subsection (1), the Consumer Price Index is the annual all-items Consumer Price Index for Canada published by Statistics Canada.

Beginning of Repayment Assistance Period

Marginal note:Beginning of period

14 A repayment assistance period begins no earlier than the later of

• (a) the first day of the month that is six months before the day on which the borrower applies for the assistance, and

• (b) the first day of the month on which the borrower must begin to repay the principal amount of any apprentice loan made to them, and any interest, under section 4.

Condition

Marginal note:Unpaid accrued interest

15 If any accrued interest remains unpaid on the day on which a repayment assistance period begins, the borrower must, on or before 30 days after the day on which the repayment assistance period ends,

• (a) pay the interest to the Minister; or

• (b) if they have not already done so, enter into a revised apprentice loan agreement for the payment of up to three months of the interest accrued and pay the Minister any remaining interest accrued.

Reconsideration of Application

Marginal note:Conditions

• 16 (1) The Minister must, on the written request of the borrower and based on documentary evidence provided by the borrower, reconsider a borrower’s application for repayment assistance if

  • (a) the application was rejected for the sole reason that the borrower did not meet the condition set out in paragraph 10(1)(c) or 12(1)(c); and

  • (b) unforeseen and unavoidable circumstances beyond the control of the borrower or their spouse or common-law partner have led to the borrower incurring extraordinary expenses.

• Marginal note:Notice

  (2) The Minister must provide notice of his or her determination to the borrower.

Borrower Error

Marginal note:Cancellation or reduction of repayment assistance

• 17 (1) If repayment assistance is granted based on an error by the borrower in their application for the assistance or for reconsideration, the Minister may cancel the assistance or reduce the amount of assistance.

• Marginal note:Notice

  (2) The Minister must provide notice of the cancellation or reduction to the borrower, specifying

  • (a) the date of the notice; and

  • (b) the day on which the repayment assistance is to be cancelled or reduced.

• Marginal note:Obligation of borrower

  (3) The borrower must, within 30 days after the date of the notice,

  • (a) repay to the Minister the amount of repayment assistance that the borrower was not entitled to receive; or

  • (b) enter into a revised apprentice loan agreement for repayment of the amount referred to in paragraph (a).

Effect on Apprentice Loan Agreement

Marginal note:Suspension

18 If repayment assistance is provided to a borrower, the apprentice loan agreement in effect between the borrower and the Minister on the day on which the borrower applies for that assistance is suspended until the earlier of

• (a) the day on which repayment assistance is terminated in accordance with section 6, and

• (b) the day after the last day of the repayment assistance period.

Measures

Marginal note:List of measures

• 19 (1) The following are measures for the purposes of subsection 20(1) of the Act:

  • (a) denial of financial assistance for a specified period;

  • (b) [Repealed, SOR/2023-273, s. 25]

  • (c) denial, for a specified period, of deferral of payments of principal or interest, or termination of any such deferral;

  • (d) denial, for a specified period, of any agreement to allow repayment of an apprentice loan on an income-contingent basis as provided for in sections 10 and 12, or termination of any such agreement; and

  • (e) imposition of a requirement for repayment, without delay, of any outstanding amount of an apprentice loan obtained by reason of a false statement or misrepresentation or the provision of false or misleading information.

• Marginal note:Specified periods

  (2) Subject to subsection (3), the following are the specified periods for the purposes of paragraphs (1)(a), (c) and (d):

  • (a) if the person is awarded an amount of financial assistance to which they were not entitled,

    • (i) one year, if the amount is less than $4,000,

    • (ii) two years, if the amount is $4,000 or more and less than $6,000,

    • (iii) three years, if the amount is $6,000 or more and less than $8,000,

    • (iv) four years, if the amount is $8,000 or more and less than $10,000, and

    • (v) five years, if the amount is $10,000 or more;

  • (b) if the person is not an apprentice, five years; and

  • (c) if a measure described in subsection (1) has already been taken in respect of a person under subsection 20(1) of the Act, five years.

• Marginal note:Specified period — five years

  (3) If more than one period applies to a person under subsection (2), the specified period is five years.

• Marginal note:Limitation or prescription — measures

  (4) The Minister must not take any measure under subsection (1) later than six years after the day on which he or she becomes aware of the false statement or misinterpretation or the false or misleading information.

Consequential Amendments to the Canada Student Financial Assistance Regulations

20 [Amendment]

21 [Amendment]

22 [Amendments]

23 [Amendment]

24 [Amendment]

25 [Amendments]

26 [Amendment]

Coming into Force

Marginal note:S.C. 2014, c. 20

Footnote ^*27 These Regulations come into force on the day on which Division 30 of Part 6 of the Economic Action Plan 2014 Act, No. 1 comes into force, but if they are registered after that day, they come into force on the day on which they are registered.

• Return to footnote ^*[Note: Regulations in force January 2, 2015, see SI/2014-100.]