O. Reg. 220/22: ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS

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ontario regulation 220/22

made under the

Ministry of Training, Colleges and Universities Act

Made: February 24, 2022
Filed: March 17, 2022
Published on e-Laws: March 17, 2022
Printed in The Ontario Gazette: April 2, 2022

Amending O. Reg. 768/20

(ONTARIO STUDENT GRANTS AND ONTARIO STUDENT LOANS FOR MICRO-CREDENTIALS)

1. (1) The definition of “borrower” in section 2 of Ontario Regulation 768/20 is revoked and the following substituted:

“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 repayment notice, but does not include a person whose student loan has been paid; (“emprunteur”)

(2) The definition of “consolidated micro-credential loan agreement” in section 2 of the Regulation is revoked.

(3) Section 2 of the Regulation is amended by adding the following definition:

“repayment notice” means a notice described in section 27; (“avis de remboursement”)

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

(2) An institution described in one of the following paragraphs is an approved institution for the purpose of micro-credential grants or micro-credential 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 that is authorized under the Post-secondary Education Choice and Excellence Act, 2000 to operate or maintain a university or to provide all or part of a program leading to a degree.

3. A private career college registered in Ontario under the Private Career Colleges Act, 2005.

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

3. (1) Clauses 12 (3) (a) and (b) of the Regulation are revoked and the following substituted:

(a) was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 31.1 to 31.12 of this Regulation, 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 the individual is not described in clause (b) or (b.1);

(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 the individual last was a qualifying student as described in section 24 of the 2017 Regulation, a qualifying student as described in section 23 of the 2001 Regulation or a student or borrower deemed to be a student under section 11 or 11.1 of the pre-2001 Regulation;

(b.1) has a permanent disability and was granted repayment assistance at the debt reduction stage in respect of the previous student loan under sections 31.1 to 31.12 and at least 60 months have elapsed since the individual last was a qualifying student; or

(2) Subsection 12 (4) of the Regulation is amended by adding “under section 31.13 of this Regulation” after “severe permanent disability benefit”.

(3) Subsection 12 (5) of the Regulation is revoked.

4. (1) Subsection 14 (2) of the Regulation is revoked and the following substituted:

(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 for any of the following types of benefits available with respect to the repayment of the individual’s outstanding micro-credential student loans:

1. Retaining the status of a qualifying student under section 23 during a period of study during which the individual does not receive a micro-credential grant or micro-credential student loan.

2. Repayment assistance under sections 31.1 to 31.12.

3. A severe permanent disability benefit under section 31.13.

(2) Subclause 14 (5) (b) (iv) of the Regulation is amended by adding “under sections 31.1 to 31.12 of this Regulation” after “granted to the individual”.

(3) Subclause 14 (5) (b) (v) of the Regulation is amended by adding “under section 31.13 of this Regulation” after “granted to the individual”.

5. Subsections 22 (1) and (2) of the Regulation are revoked and the following substituted:

Effect of status as qualifying student

(1) While an individual is a qualifying student, the individual’s obligations to pay principal and interest under a micro-credential student loan agreement or repayment notice, are suspended.

(2) If the individual owes interest to the Minister under a micro-credential student loan agreement or repayment notice for a period during which the individual 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.

6. Subsection 26 (2) of the Regulation is revoked and the following substituted:

(2) After an individual ceases to be a qualifying student, the individual is required to make repayments under a repayment notice which consolidates all of the individual’s micro-credential student loans made under this Regulation.

7. The heading before section 27 of the Regulation is revoked and the following substituted:

Repayment Notice and Repayment Terms

8. Sections 27 to 29 of the Regulation are revoked and the following substituted:

Repayment notice

27. (1) If an individual who entered into a micro-credential student loan agreement under this Regulation has ceased to be a qualifying student, the Minister shall send the individual a repayment notice.

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

(3) The repayment notice 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 notice may provide for other matters.

(4) If an individual who received a repayment notice subsequently becomes a qualifying student again, the Minister shall, after the individual ceases to be a qualifying student, send the individual a new repayment notice, which shall supersede the previous notice.

(5) If an individual 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 a repayment notice, 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.

(6) The payments made by a financial institution under subsection (5) shall be made in accordance with the repayment terms set out in the repayment notice.

Obligation to pay interest

28. (1) An individual is not required to make payments towards the interest accruing under a micro-credential student loan agreement or repayment notice 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 repayment notice is the prime rate on that day plus 1 per cent.

9. Subsection 30 (3) of the Regulation is amended by striking out “consolidated micro-credential loan agreement” and substituting “repayment notice”.

10. Section 31 of the Regulation is revoked and the following substituted:

Amendment to prevent default

31. The Minister may amend a repayment notice if the borrower notifies the Minister that the terms of the notice are such that the borrower will be in default and the Minister considers that an amendment to the notice will enable the borrower to meet their obligations under the notice.

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

Repayment Assistance Plan

Definitions

31.1 In this section and in sections 31.2 to 31.12,

“federal student loan” means a loan issued by the Government of Canada under the Canada Student Financial Assistance Act or the Canada Student Loans Act; (“prêt d’études fédéral”)

“monthly affordable payment” means the amount that a borrower can reasonably afford to pay on all of their micro-credential student loans on a monthly basis, as determined under section 31.6; (“versement mensuel abordable”)

“monthly required payment” means the amount that a borrower would be required to pay on all of their micro-credential student loans on a monthly basis, as determined under section 31.7; (“versement mensuel exigé”)

“permanent disability” means a functional limitation caused by a physical or mental impairment that,

(a) restricts the ability of the person to perform the daily activities necessary to participate in studies at a post-secondary school level or in the labour force, and

(b) is expected to remain with the person for the duration of the person’s life; (“invalidité permanente”)

“provincial student loan” means a student loan issued under the Act or a loan issued to a student for educational purposes by the government of a province other than Ontario or by the government of a territory of Canada; (“prêt d’études provincial”)

“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. (“étudiant admissible”)

Repayment assistance

31.2 (1) A borrower who is having difficulty paying amounts on principal and interest owing on micro-credential student loans issued under the Act may apply for repayment assistance in accordance with section 31.4.

(2) The repayment assistance available under this Regulation includes the following two forms of assistance:

1. A reduction in the borrower’s monthly payments on the micro-credential student loans.

2. Assistance from the Minister in paying off the borrower’s outstanding micro-credential student loans by making monthly payments on the loans.

(3) The amount of assistance provided by the Minister shall be determined so that,

(a) in the case of a person receiving repayment assistance other than a person described in clause (b), the recipient’s micro-credential student loans are repaid in full within 15 years from the day the person last was a qualifying student; and

(b) in the case of a person with a permanent disability who is receiving repayment assistance and who, in an application for repayment assistance, discloses the disability, the recipient’s micro-credential student loans are repaid in full within 10 years from the day the person last was a qualifying student.

(4) The assistance provided by the Minister to the borrower, whether by means of amounts paid to the Minister on behalf of the borrower or by any other means, shall be deemed to be a grant issued to the borrower under section 5 of the Act.

Two stages of repayment assistance

31.3 (1) There are two stages of repayment assistance provided under this Regulation:

1. Stage 1, known as the interest relief stage. During this stage, the monthly assistance provided by the Minister shall relate solely to amounts payable on account of interest owing on the outstanding micro-credential student loans.

2. Stage 2, known as the debt reduction stage. During this stage, the monthly assistance provided by the Minister shall relate to amounts payable on account of principal and interest owing on the outstanding micro-credential student loans as are required so as to ensure that the micro-credential student loans are repaid in full within the time period specified in subsection 31.2 (3).

(2) Subject to subsection (4), the two stages of repayment assistance are consecutive and a borrower must receive the interest relief stage of repayment assistance for the full period of time for which it is available under subsection (3) before the borrower is entitled to receive the debt reduction stage of repayment assistance.

(3) A borrower may receive repayment assistance at the interest relief stage for a period of up to 60 months, subject to section 31.12.

(4) A borrower who meets the eligibility requirements specified in subsection 31.5 (1) and in either paragraph 2 or 3 of subsection 31.5 (3) is eligible for repayment assistance at the debt reduction stage without having received the interest relief stage of repayment assistance for the full 60 months referred to in subsection (3).

Application and approval process

31.4 (1) A borrower who wishes to receive repayment assistance shall submit an application for the assistance to a service provider.

(2) The application shall be in the form approved by the Minister and shall provide the service provider with information relating to the applicant’s family status, number of family members and family income, and such other information as may be required to determine eligibility for the repayment assistance.

(3) If the service provider determines that the applicant meets the eligibility requirements under sections 31.5, 31.6 and 31.7, the applicant shall be entitled to receive repayment assistance for a period of six months.

(4) If a borrower wishes to continue to receive repayment assistance immediately after the expiry of a repayment assistance period, the borrower shall submit an application for the assistance to a service provider no later than 30 days after the end of the six-month period.

(5) Subsections (2), (3) and (4) apply, with necessary modifications, to every successive application for repayment assistance made under subsection (1) until the borrower’s student loans are repaid in full.

Eligibility requirements

31.5 (1) A borrower must meet the following requirements in order to be eligible for repayment assistance under this Regulation:

1. The borrower resides in Canada.

2. The borrower has submitted an application to the service provider in accordance with section 31.4.

3. If the borrower failed to make the monthly payments in a previous repayment assistance period, the borrower meets the requirements set out in section 31.11.

4. The borrower’s monthly affordable payment is less than their monthly required payment.

5. The borrower satisfies the eligibility requirements for the interest relief stage of repayment assistance described in subsection (2) or for the debt reduction stage of repayment assistance described in subsection (3).

(2) A borrower must meet all of the following requirements in order to be eligible for the interest relief stage of repayment assistance:

1. Since the borrower last was a qualifying student, the borrower,

i. has not received any repayment assistance, or

ii. has received repayment assistance at the interest relief stage for a total period of time of less than 60 months.

2. Less than 10 years has elapsed since the borrower last was a qualifying student.

3. The borrower does not disclose a permanent disability in their application for repayment assistance.

(3) A borrower must meet at least one of the following requirements in order to be eligible for the debt reduction stage of repayment assistance:

1. Since the borrower last was a qualifying student, the borrower has received repayment assistance at the interest relief stage for 60 months.

2. Ten years or more has elapsed since the borrower last was a qualifying student.

3. The borrower has a permanent disability and discloses, in an application for repayment assistance, the disability.

(4) Despite anything in this section, a borrower who meets the eligibility requirements in this section shall not be eligible for repayment assistance if the Minister,

(a) denies repayment assistance in accordance with subsection 14 (5) of this Regulation, subsection 16 (5) of the 2017 Regulation, subsection 42.1 (5) of the 2001 Regulation or subsection 13.3 (5) of the pre-2001 Regulation; or

(b) has determined that the borrower is ineligible for repayment assistance for a period of time under subsection 14 (2) of this Regulation, subsection 16 (2) of the 2017 Regulation, subsection 42.1 (2) of the 2001 Regulation or subsection 13.3 (2) of the pre-2001 Regulation.

Determination of monthly affordable payment

31.6 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 4 of subsection 31.5 (1), the borrower’s monthly affordable payment shall be determined in accordance with this section, having regard to the number of persons in the borrower’s family and the borrower’s monthly family income.

Table
Threshold amount for Family Income

Column 1 Number of family members	Column 2 Threshold amount
1	$2,083
2	$3,254
3	$4,205
4	$4,959
5 or more	$5,652

 

(2) If a borrower’s monthly family income is equal to or less than the threshold amount set out in Column 2 of the Table to subsection (1), opposite the number of members in the borrower’s family, the borrower’s monthly affordable payment shall be a nil amount.

(3) If a borrower’s monthly family income is greater than the threshold amount set out in Column 2 of the Table to subsection (1), opposite the number of members in the borrower’s family, the amount of the borrower’s monthly affordable payment shall be equal to the lesser of,

(a) the amount obtained by the following formula:

A × B/C × 0.2

in which,

“A” is the borrower’s monthly family income,

“B” is the borrower’s total outstanding micro-credential student loans, and

“C” is the sum of the borrower’s total outstanding federal and provincial student loans and, if the borrower has a spouse, the spouse’s total outstanding federal and provincial student loans that are in repayment under the Act or under the laws of the appropriate jurisdiction; and

(b) the amount obtained by the following formula:

A × B/C × 1.5 × [(A – D)/(100 × E) + 0.01]

in which,

“A” is the borrower’s monthly family income,

“B” is the borrower’s total outstanding micro-credential student loans,

“C” is the sum of the borrower’s total outstanding federal and provincial student loans and, if the borrower has a spouse, the spouse’s total outstanding federal and provincial student loans that are in repayment under the Act or under the laws of the appropriate jurisdiction,

“D” is the appropriate threshold amount set out in Column 2 of the Table to subsection (1) for a family with the number of members in the borrower’s family, and

“E” is the monthly increment for a family with the number of members in the borrower’s family, as set out in the Table to this subsection.

Table
Monthly Increments

Column 1 Number of family members	Column 2 Monthly increment
1	$250
2	$350
3	$425
4	$500
5 or more	$575

 

(4) In this section,

“family” means the borrower, the borrower’s spouse, if any, and any person who is wholly dependent on either of them; (“famille”)

“family income” means the borrower’s gross income and that of the borrower’s spouse, if any, from all sources less, in the case of a borrower with a permanent disability, any expenses related to the disability that are not covered by public health care or private insurance. (“revenu familial”)

Determination of monthly required payment

31.7 (1) For the purpose of determining whether a borrower meets the eligibility requirements of paragraph 4 of subsection 31.5 (1), the borrower’s monthly required payment shall be equal to the monthly payment obtained by amortizing the amount of principal on all of the borrower’s micro-credential student loans outstanding at the time of the application for repayment assistance over the appropriate period of time determined under subsection (2) and using the interest rate referred to under subsection (3).

(2) The amortization period used to determine a borrower’s monthly required payment shall be the greater of six months and one of the following periods of time:

1. In the case of a borrower who is applying for repayment assistance at the interest relief stage, the number of months obtained by,

i. subtracting the number of months since the borrower last was a qualifying student from 120 months, and

ii. adding the number of months that the borrower has previously received repayment assistance at the interest relief stage since the borrower last was a qualifying student, if any, to the difference obtained under subparagraph i.

2. In the case of a borrower applying for repayment assistance at the debt reduction stage, other than a person referred to in paragraph 3, the number of months obtained by subtracting the number of months since the date the borrower last was a qualifying student from 180 months.

3. In the case of a borrower with a permanent disability applying for repayment assistance at the debt reduction stage, the number of months obtained by subtracting the number of months since the date the borrower last was a qualifying student from 120 months.

(3) The rate of interest used to determine a borrower’s monthly required payment shall be equal to the average of the interest rates applicable to all of the borrower’s federal and provincial student loans, where the average is weighted based on the proportion of the borrower’s outstanding principal in each jurisdiction to the total amount of the borrower’s outstanding federal and provincial student loans.

Repayment assistance period

31.8 (1) If a borrower is granted repayment assistance, the six-month repayment assistance period shall commence,

(a) at the beginning of the month in which the application for repayment assistance is received by the service provider; or

(b) at the beginning of the month following the month described in clause (a), if the application for repayment assistance is received by the service provider in,

(i) the month immediately before the individual is required to start paying interest under a micro-credential student loan agreement or repayment notice, or

(ii) the last month of the most recent repayment assistance period.

(2) Despite subsection (1), a service provider may, at the request of an applicant, backdate the commencement of the repayment assistance period if the applicant has failed to pay the principal amount and any interest on the applicant’s outstanding micro-credential student loans during the months preceding the application for repayment assistance.

(3) The service provider shall not backdate the commencement of the repayment assistance period by more than six months.

Suspension of repayment terms in agreement

31.9 (1) If a borrower is granted repayment assistance, then during the repayment assistance period,

(a) the terms of the repayment of the micro-credential student loan set out in the borrower’s repayment notice are suspended and of no effect; and

(b) instead of the payments required under the repayment notice, payments shall be covered each month on the borrower’s outstanding micro-credential student loans by payment by the borrower and either payment or reduction in the outstanding balance by the Minister in an amount equal to the borrower’s monthly required payment, as determined in accordance with section 31.7.

(2) At the end of the repayment assistance period, the suspension of repayment terms set out in the repayment notice is lifted, subject to any amendments to the repayment notice made by the Minister.

(3) Subsection (2) does not apply if the borrower is granted a subsequent six-month period of repayment assistance immediately upon the expiry of a previous repayment assistance period and the suspension of repayment terms is consequently extended.

Monthly payments during repayment assistance

31.10 (1) If a borrower is granted repayment assistance at the interest relief stage,

(a) the borrower shall pay to the Minister the monthly affordable payment; and

(b) the Minister shall forgive any interest payable as part of the borrower’s monthly required payment that is not paid by the borrower under clause (a).

(2) For greater certainty, during the interest relief stage of repayment assistance, any part of the borrower’s monthly required payment that is attributable to principal and not covered by the borrower’s payment under clause (1) (a) is not payable to the Minister.

(3) If a borrower is granted repayment assistance at the debt reduction stage,

(a) the borrower shall pay to the Minister the monthly affordable payment; and

(b) the Minister shall forgive the borrower’s monthly required payment, whether attributable to interest alone or to both principal and interest, that is not paid by the borrower under clause (a).

(4) A monthly payment made by the borrower under this section shall be paid to the Minister each month at the same time as the monthly amounts that would otherwise have been payable under the repayment notice.

(5) Despite subsection 30 (5), a monthly payment made by the borrower under this section shall be applied against the borrower’s outstanding micro-credential student loans as follows:

1. The full amount of the payment shall be applied first against the monthly required payment that would be payable on the outstanding principal.

2. If the amount of the payment exceeds the amount of principal payable of the monthly required payment, the excess amount shall be applied against the interest payable of the monthly required payment.

(6) Despite anything in subsections (1) and (3), the Minister is not required to pay an amount under this section in respect of a month during a repayment assistance period if the borrower fails to make a payment as required under this section in respect of that month.

(7) If there is a conflict between this section and a provision of a repayment notice, this section prevails.

Failure to make payments

31.11 (1) If a borrower fails to make one or more monthly payments that the borrower is required to make during a repayment assistance period, the borrower shall pay all missed payments on or before 30 days after the end of the repayment assistance period.

(2) A borrower who fails to pay all the missed monthly payments as required under subsection (1) and who is eligible for repayment assistance under section 31.5, may, upon paying all monthly payments under the repayment notice that are more than six months in arrears,

(a) apply for repayment assistance under this Regulation; and

(b) request that the service provider backdate the commencement of the repayment assistance period pursuant to subsections 31.8 (2) and (3).

Return to school and transition

31.12 If a borrower received repayment assistance under this Regulation and subsequently returns to school and becomes a qualifying student once again, the periods of repayment assistance received before the return to school shall not be considered for purposes of determining eligibility for any further repayment assistance that the borrower may apply to receive after completing the further period of study.

Severe Permanent Disability Benefit

Severe permanent disability benefit

31.13  (1) In this section,

“severe permanent disability” means a permanent disability as defined under section 31.1 that is so severe that,

(a) it not only restricts but prevents a borrower from performing the daily activities necessary to participate in studies at a post-secondary school level and in the labour force, and

(b) the degree of functional limitation described in clause (a) is expected to remain with the person for the duration of the person’s life.

(2) A person who has a severe permanent disability is entitled to have the outstanding amount of their micro-credential student loans made under the Act forgiven if the person meets the following eligibility requirements:

1. The person is a Canadian citizen or is a permanent resident within the meaning of the Immigration and Refugee Protection Act (Canada).

2. The person resides in Canada.

3. The person has submitted an application to the Minister for the severe permanent disability benefit.

4. The person satisfies the Minister that, by reason of the person’s severe permanent disability, the person is unable to repay the micro-credential student loan and will never be able to do so.

(3) If a micro-credential student loan issued under the Act is forgiven under this section, the Minister shall forgive the full amount outstanding on the loan.

12. Clause 32 (b) of the Regulation is revoked and the following substituted:

(b) is in arrears by at least three months under the repayment notice as a result of failing to make monthly payments on at least three separate occasions.

13. (1) Subsection 33 (2) of the Regulation is amended by striking out “consolidated micro-credential loan agreement” and substituting “repayment notice”.

(2) Subsection 33 (3) of the Regulation is revoked and the following substituted:

(3) When a borrower defaults on their obligation to make payments under a repayment notice, the Minister may,

(a) deny the borrower the status of a qualifying student under section 23 during a period of study during which the borrower does not receive a micro-credential grant or micro-credential student loan; and

(b) refuse the borrower any repayment assistance under sections 31.1 to 31.12.

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

Loan Rehabilitation

Definitions

33.1 In sections 33.2 to 33.5,

“monthly rehabilitation payment” means the amount that an individual is required to pay on a monthly basis to rehabilitate a micro-credential student loan, as determined under subsection 33.2 (3); (“versement mensuel de régularisation”)

“rehabilitation period” means the period, as determined under subsection 33.2 (4), over which a micro-credential student loan is to be rehabilitated; (“période de régularisation”)

“total rehabilitation payment” means the payment determined under subsection 33.2 (3). (“versement total de régularisation”).

Application for rehabilitation

33.2 (1) An individual who has defaulted on their obligation to repay micro-credential student loans and who wishes to make an attempt to rehabilitate the loans shall apply for loan rehabilitation in a form approved by the Minister.

(2) An individual who applied for loan rehabilitation will receive a payment schedule described in subsection (3), if the following conditions are satisfied:

1. The micro-credential student loans were issued under this Regulation.

2. The borrower is in default of their obligations to repay the micro-credential student loans under section 32 and the Minister determines that the loan will no longer be administered by the service provider.

3. The amount of principal outstanding on the micro-credential student loans is at least $600.

4. The individual has not previously made more than one attempt at rehabilitating the micro-credential student loans.

(3) The payment schedule shall include,

(a) the amount of the total rehabilitation payment required to rehabilitate the micro-credential loan, which is equal to,

(A × 2) + B

in which,

“A” is the monthly amount calculated by amortizing the outstanding principal over 114 months at an interest rate equal to the prime rate as of the date of application plus 1 per cent, and

“B” is the amount of interest in arrears as of the date of the application; and

(b) the amount of the monthly rehabilitation payments required to satisfy the total rehabilitation payment if paid over a period of two, three, four, five or six months.

(4) An individual who receives a payment schedule described in subsection (3) determines the rehabilitation period by selecting whether to make monthly rehabilitation payments over two, three, four, five or six months, and shall make the monthly rehabilitation payments, in accordance with the payment schedule, on or before the end of the number of months selected.

Suspension of rehabilitation

33.3 (1) The Minister may grant a temporary suspension of a rehabilitation attempt, whether or not the rehabilitation attempt has already failed and been terminated under section 33.4 if, in the Minister’s opinion, the special circumstances of the individual justify the suspension.

(2) The suspension may be for such period of time as the Minister determines is appropriate, and a revised payment schedule setting out a revised rehabilitation period shall be provided to the individual.

(3) If a rehabilitation attempt fails and is terminated, and subsequently a suspension of the attempt is granted under subsection (1),

(a) the failure and termination of the attempt are deemed never to have occurred; and

(b) the suspension period is deemed to have started on the day of the failure and ends on the day specified by the Minister.

(4) When the suspension period ends, the rehabilitation attempt recommences on the same terms as applied before the suspension.

(5) An individual who receives a revised payment schedule described in subsection (2) shall make the required monthly rehabilitation payments, in accordance with the revised payment schedule, before the end of the revised rehabilitation period.

Rehabilitation attempt

33.4 (1) A rehabilitation attempt is considered to fail as follows:

1. The attempt is considered to fail on the first day that the individual is in arrears for two consecutive months on the obligation under subsection 33.2 (4) to make monthly rehabilitation payments.

2. If the individual’s rehabilitation attempt was suspended under section 33.3, the attempt is considered to fail on the first day after the recommencement of the attempt that the individual is in arrears for two consecutive months on the obligation under subsection 33.3 (5) to make monthly rehabilitation payments.

3. If, as of the last day of the rehabilitation period or the revised rehabilitation period, the individual has not made payments that, in total, are equal to the total rehabilitation payment, the attempt is considered to fail on the day after the last day of the rehabilitation period or revised rehabilitation period.

(2) If an attempt at rehabilitating a micro-credential student loan fails, the attempt is terminated and the loan cannot be rehabilitated unless the individual reapplies under subsection 33.2 (1).

(3) A rehabilitation attempt is considered to succeed if,

(a) the individual makes the monthly rehabilitation payments in accordance with subsection 33.2 (4) and, if applicable, subsection 33.3 (5);

(b) as of the last day of the rehabilitation period or revised rehabilitation period, the individual has made payments that, in total, are equal to the total rehabilitation payment, and,

(i) the individual was not at any point during the rehabilitation period in arrears for two consecutive months on the obligation under subsection 33.2 (4) to make monthly rehabilitation payments, or

(ii) for a rehabilitation attempt that was suspended, the individual was not, at any point after the recommencement of the attempt, in arrears for two consecutive months on the obligation under subsection 33.3 (5) to make monthly rehabilitation payments.

(4) If a rehabilitation attempt succeeds, the rehabilitation is effective as of the day after the last day of the rehabilitation period or revised rehabilitation period.

(5) Subsection (4) applies even if the final payment is made before the last day of the rehabilitation period or revised rehabilitation period.

Effect of rehabilitation

33.5 A micro-credential student loan that has been successfully rehabilitated,

(a) is deemed to be a micro-credential student loan issued by the Minister under this Regulation and is subject to the terms and conditions normally applicable to such a loan; and

(b) shall otherwise be treated as if the default and rehabilitation had not occurred.

Commencement

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

 

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