Apprentice Loans Regulations (SOR/2014-255)

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.