O. Reg. 269/01: ONTARIO STUDENT LOANS

 

ONTARIO regulation 269/01

made under the

ministry of training, colleges and universities act

Made:  July 4, 2001
Filed:  July 5, 2001
Printed in The Ontario Gazette: July 21, 2001

Amending Reg. 774 of R.R.O. 1990

(Ontario Student Loans)

Note: Since the end of 2000, Regulation 774 has been amended by Ontario Regulation 179/01.  Previous amendments are listed in the Table of Regulations published in The Ontario Gazette dated January 20, 2001.

1. The title to Regulation 774 of the Revised Regulations of Ontario, 1990 is revoked and the following substituted:

ontario student loans made
before August 1, 2001

2. (1) The definition of “approved course of studies” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“approved course of studies” means a course of studies described in section 1.1;

(2) The definition of “eligible institution” in subsection 1 (1) of the Regulation is revoked and the following substituted:

“eligible institution” means an institution described in section 1.2;

3. The Regulation is amended by adding the following sections:

1.1 (1) A course of study is an approved course of study for the purposes of student loans if it consists of one or more courses of study of at least 12 weeks duration approved by the Minister leading to a certificate, degree or diploma.

(2) A bar admission course conducted by the Law Society of Upper Canada is an approved course of study.

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

1.2 (1) The following institutions are eligible institutions for the purposes of student loans:

1. Every public university in Ontario, including any post-secondary educational institution that is affiliated or federated with such a university.

2. Every college of applied arts and technology established under the Act.

3. Every college of agricultural technology established under the Ministry of Agriculture, Food and Rural Affairs Act.

4. The Law Society of Upper Canada.

5. The Niagara Parks Commission School of Horticulture.

(2) An institution described in one of the following paragraphs is an eligible institution for the purpose of student loans if it is approved by the Minister for that purpose:

1. A public post-secondary institution in Canada that is not described in subsection (1).

2. A private post-secondary educational institution or entity that is authorized under the Degree Granting Act or the Post-secondary Education Choice and Excellence Act, 2000 to operate as a university or to offer a program leading to a degree.

3. A private vocational school registered in Ontario under the Private Vocational Schools Act.

4. A private post-secondary institution in Ontario, other than one described in paragraph 2 or 3.

5. A private vocational school operating in another jurisdiction that is authorized by that jurisdiction to operate as a private vocational school or as an analogous type of school.

(3) The Minister may withdraw his or her approval of an institution described in subsection (2) if the institution 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.

4. Sections 2 and 3 of the Regulation are revoked and the following substituted:

2. A student ceases to be a student for the purposes of this Regulation in any of the following circumstances:

1. The student ceases to be enrolled in the approved course of study in respect of which his or her most recent certificate of loan approval was issued.

2. The student reduces his or her course load below the minimum required course load in the approved course of study.

3. The student withdraws from the eligible institution.

4. The course of studies in which the individual is enrolled at the eligible institution ceases to be an approved course of studies.

5. The institution at which the student is enrolled ceases to be an eligible institution or to be described by clause 11 (2) (b), (c) or (d).

Application

3. This Regulation applies with respect to student loans made before August 1, 2001 and with respect to the consolidated loan agreements relating to such student loans.

Restriction on Eligibility for a Student Loan

3.1 (1) A student who has received a student loan under the Act is not eligible for further student loans if the period of study for which he or she would receive the further loan, together with the periods of study in respect of which he or she previously received loans under the Act, total more than,

(a) 340 weeks for a student who is enrolled in a program other than a doctoral program; or

(b) 400 weeks for a student who is enrolled in a doctoral program.

(2) Despite subsection (1), a student may be eligible for a further student loan in the circumstances described in subsection (1) if the Minister considers it necessary,

(a) in order to accommodate a student who is a person with a disability; or

(b) in order to accommodate a student in exceptional circumstances.

(3) Clause (2) (b) is revoked on August 1, 2002.

5. Clauses 7 (2) (e) and (f) of the Regulation are revoked and the following substituted:

(e) who has failed to file with the Minister all the information and documentation required by the Minister in connection with an application under this Regulation or required by the Minister to verify any statement made in an application and in the supporting material;

6. Subsection 8 (1) of the Regulation is amended by inserting “before August 1, 2001” after “A borrower to whom a student loan has been made”.

7. (1) Subsections 9 (1) and (2) of the Regulation are revoked.

(2) Subsections 9 (6), (7), (8) and (9) of the Regulation are revoked and the following substituted:

(6) The liability of the Minister to the bank under the Act is not discharged by an alteration or revision to a loan agreement that is altered or revised under subsection (5).

8. Section 10 of the Regulation is amended by adding the following subsection:

(1.1) For the purposes of subsection (1), the borrower is not considered to be taking advantage of a law for the relief of debtors if he or she makes a consumer proposal under Division I or II of Part III of the Bankruptcy and Insolvency Act (Canada) that provides for the payment of all or part of the student loans.

9. Section 11 of the Regulation is revoked and the following substituted:

11. (1) A borrower shall be deemed to be a student for the purposes of this Regulation during a period of study, despite subsection 2 (1), if the borrower complies with this section.

(2) The borrower 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 course of study at an eligible institution during the period, and that he or she is taking at least the minimum required course load;

(b) that he or she is enrolled at a secondary school within the meaning of the Education Act;

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

(d) that he or she is enrolled at an educational institution not described in clause (a), (b) or (c) that is approved by the Minister for the purposes of this section.

(3) The confirmation of enrolment must be given on a form approved by the Minister and must be certified by the institution at which the borrower is enrolled.

(4) The borrower must give the bank the confirmation of enrolment form promptly upon becoming enrolled as described in subsection (2).

(5) The borrower shall be deemed under this section to be a student for the purposes of this Regulation beginning on the date on which the bank receives the confirmation of enrolment form.

11.1 (1) Even though a borrower does not comply with section 11, he or she shall be deemed to be a student for the purposes of this Regulation during a period of study, despite subsection 2 (1) if he or she establishes to the satisfaction of the Minister that,

(a) the borrower was unable to obtain a confirmation of enrolment form under section 11;

(b) the borrower is enrolled in an approved course of study at an eligible institution or is enrolled in a course of study at an educational institution described in clause 11 (2) (b), (c) or (d); and

(c) his or her course load is at least the minimum required course load for that course of study at that institution.

(2) The borrower must obtain from the Minister a confirmation of enrolment form under this section and must give it to the bank promptly.

(3) The borrower shall be deemed under this section to be a student for the purposes of this Regulation beginning on the date on which the bank receives the confirmation of enrolment form.

11.2 (1) While a borrower is deemed, under subsection 11 (2) or 11.1 (3), to be a student, the bank shall suspend his or her obligations under the student loan agreement and under the consolidated loan agreement to pay principal and interest.

(2) The bank is not authorized to suspend the obligations of the borrower under subsection (1) unless the borrower has entered into a consolidated loan agreement and has signed the agreement.

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

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

10. (1) Subsections 12 (1) and (1.1) of the Regulation are revoked and the following substituted:

(1) A borrower is eligible for the suspension of his or her obligation to make payments respecting a student loan,

(a) if he or she has entered into a consolidated loan agreement respecting the loan;

(b) if he or she resides in Canada; and

(c) if, in the opinion of the Minister, he or she is unable to make the payments without incurring exceptional hardship, taking into account his or her gross income from all sources, the gross income of his or her spouse or same-sex partner, if any, and the obligations of the individual and his or her spouse or same-sex partner to children who are dependent on any of them.

(1.1) If the individual’s obligations have been suspended for a cumulative period of 30 months, the individual’s eligibility for further relief is determined under section 12.1.

(2) Subsections 12 (4) and (5) of the Regulation are revoked and the following substituted:

(4) The suspension takes effect on the date specified in the notice of suspension given to the bank (the “effective date”), and the notice may specify that the suspension be made retroactive to a date that is not earlier than the date that is the later of,

(a) three months before the date on which the borrower applied for the suspension of his or her obligations under the consolidated loan agreement; or

(b) the last day of the sixth month after the month in which the borrower ceased to be a student for the purposes of this Regulation.

(5) Despite subsection (4), the suspension does not take effect until the borrower does one of the following things:

1. Pays to the bank all of the unpaid interest that has accrued up to the effective date.

2. Enters into a revised consolidated loan agreement in which up to three months of any unpaid interest that has accrued up to the effective date has been capitalized; pays to the bank the balance of any unpaid interest that has accrued up to the effective date.

(6) The borrower is not permitted to pay the accrued interest referred to in paragraph 2 of subsection (5) by means of a promissory note.

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

12.1 (1) If a borrower’s obligations under a consolidated loan agreement have been suspended for a cumulative period of 30 months, the Minister may suspend the borrower’s obligations for one or more further periods if the Minister is satisfied that the conditions of exceptional hardship still exist.

(2) Subsections 12 (2) and (3) apply with respect to a suspension authorized by subsection (1).

(3) A suspension authorized by subsection (1) cannot extend beyond the date that is 60 months after the date on which the borrower ceased to be a student for the purposes of this Regulation.

12. Section 13 of the Regulation is revoked and the following substituted:

13. (1) The Minister may revoke a suspension given under section 12 or 12.1 of a borrower’s obligations under a consolidated loan agreement if any of the following circumstances exist:

1. The borrower made a false statement or a misrepresentation on the application for relief or on any document required by the Minister relating to the application.

2. The borrower furnished false or misleading information relating to the application for relief.

3. The borrower did not file with the Minister all the information and documents required by the Minister to verify a statement made in the application for relief.

4. The borrower has, at any time, defaulted in repayment of a student loan or any other loan made or guaranteed by the Province of Ontario, a student loan guaranteed by any other province or territory of Canada or a loan made under the Canada Student Loans Act or the Canada Student Financial Assistance Act.

5. The borrower has been required to repay to the Minister of Finance all or part of a student grant made under section 3 of Regulation 775 of the Revised Regulations of Ontario, 1990 (“Ontario Study Grant Plan”) or any predecessor thereof.

6. The borrower has, at any time, 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 involving fraud or theft under the Criminal Code (Canada) in respect of any student assistance program or a loan, grant or award made by the Province of Ontario or any other province or territory of Canada.

7. The borrower has not made arrangements that are satisfactory to the Minister to repay, or has not repaid, a 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) If the Minister revokes the suspension of a borrower’s obligations, the Minister may require him or her to pay to the Minister the interest paid by the Minister to the bank on the borrower’s behalf during the period of the suspension.

(3) The borrower shall promptly make the payment required by the Minister under subsection (2).

13. Section 26 of the Regulation is revoked.

14. This Regulation comes into force on August 1, 2001.