Apprentice Loans Regulations

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).