This enactment amends the Canada Student Financial Assistance Act, the Canada Student Loans Act and the Apprentice Loans Act to eliminate interest on student loans and apprentice loans.

His Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

• (iii)  Insertion start amounts in respect of Insertion end a student loan made by the lender to a borrower whose obligations in respect of the loan are terminated in the circumstances set out in section 10 or 11,

• (vii)  Insertion start the Insertion end adjusted Insertion start amount Insertion end in respect of a student loan, where an inadvertent error concerning the amount to be repaid is made by the lender in drawing up the consolidated student loan agreement or the student loan agreement,

Receipt and Deposit of Public Money Regulations, 1997

(2) Despite section 3 of the Receipt and Deposit of Public Money Regulations, 1997, the portion of the money that is public money and is collected or received electronically by a service provider that has entered into an agreement under subsection (1) as repayment of financial assistance or repayment of a guaranteed student loan, as defined in subsection 2(1) of the Canada Student Loans Act, shall be paid to the credit of the Receiver General by depositing it, within two business days after the day of collection or receipt, in an account established under subsection 17(2) of the Financial Administration Act.

Interest and Deferral Insertion start Period Insertion end

No interest

7 (1) No interest is payable by a borrower on a student loan in respect of any period of studies, Insertion start whether Insertion end the borrower is a full-time or part-time student.

No fees

(2) No fee of any kind may be charged to a borrower on a student loan in respect of any period of studies.

Payment deferred for full-time students

8 (1) Subject to the regulations, no amount in respect of a student loan prescribed by regulations made under paragraph 15(1)‍(j) that is made to a full-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a full-time student.

Payment deferred for part-time students

(2) Subject to the regulations, no amount in respect of a student loan that is made to a part-time student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a student, whether a part-time or full-time student.

• (a) amounts that are determined as a result of the application of subparagraph 5(a)‍(viii) or section 10 or 11;

• (b) amounts in relation to programs established by regulations made under paragraph 15(1)‍(l), (m) or (p);

• (f) prescribing the maximum number of weeks or periods of studies that may elapse after which, Insertion start despite Insertion end anything in this Act, the amount of a student loan made to a full-time student Insertion start commences Insertion end to be payable by the borrower;

• (f.‍1) respecting the circumstances in which an amount is not required to be paid in respect of student loans;

• (i) prescribing the circumstances under which a loan or a certificate of eligibility may be denied to a student;

• (j) prescribing student loans to which section 8, 10 or 11 or subsection 12(4) applies;

• (k) respecting the circumstances in which no amount is required to be paid by members of the reserve force in respect of their student loans;

• (m)  Insertion start despite Insertion end any other provision of this Act, providing for the operation of a student loan program for part-time students, including the determination of a student’s status, terms of repayment of the loans, the advancement of loan funds and the maximum number of weeks or periods of studies that may elapse after which the loans commence to be payable by the borrowers;

Right of recovery by Minister

16.‍01 A student loan that is made to a borrower who is not of full age under an agreement entered into under section 6.‍1 is recoverable by the Minister from the borrower as though the borrower had been of full age at the time the agreement was entered into.

• (c) deny the person the deferral of payments under section 8 for a prescribed period, or terminate the deferral;

Interest Insertion start and Deferral Period Insertion end

No Interest

4 No interest is payable by a borrower on a guaranteed student loan made on or after August 1, 1993 in respect of any period of studies, Insertion start whether Insertion end the borrower is a full-time or Insertion start a part-time Insertion end student.‍

Payment deferred

5 Subject to the regulations, no amount in respect of a guaranteed student loan made to a full-time Insertion start or part-time Insertion end student is required to be paid by the borrower until the last day of the seventh month after the month in which the borrower ceases to be a student.

• (d) no fee, service charge or charge of any kind was by the terms of the loan payable in respect of the loan, except as provided in the regulations in any case where the borrower is in default;

• (i) in the case of a loan made to a full-time student, subject to the regulations, in accordance with practices of the lender in respect of repayment, subject to the right of the borrower to repay at any time all or any part of the amount of the loan outstanding at that time, and

• (ii) in the case of a loan made to a part-time student, within a period of not more than two years after the loan was made, subject to the right of the borrower to repay at any time all or any part of the amount of the loan outstanding at that time; and

• (f) the loan was made in accordance with an agreement in prescribed form between the borrower and the lender making the loan, containing provisions respecting payment of the amount of the loan by the borrower as described in section 5 and Insertion start any Insertion end other prescribed provisions.

Payments in respect of errors

7.‍1 Subject to the regulations, the Minister may pay to a lender the amount of the loss sustained by it as a result of a loan made to a qualifying student if an error concerning the amount to be repaid was made by the lender in drawing up the agreement for the loan and the Minister considers that the error was inadvertent and that the loss was not affected by the error.

Death of borrower

12 (1) All obligations of a borrower in respect of a guaranteed student loan terminate if the borrower dies, and the Minister shall pay to any lender whose rights against the borrower are terminated under this section the amount determined in the prescribed manner to have been payable by the borrower on the day of the borrower’s death.

Décès non signalé

(2) Toutefois, si le prêteur n’est pas averti du décès dans les trente jours qui suivent la date de celui-ci, le ministre paie au prêteur la somme, déterminée conformément aux règlements, qui est exigible à la date qu’il fixe conformément aux règlements.

Disappearance of borrower

(3) If a borrower disappears under circumstances that, in the opinion of the Minister, raise a presumption that the borrower is dead, then all the borrower’s obligations in respect of a guaranteed student loan terminate on the day on which the Minister forms that opinion, and the Minister shall pay to any lender whose rights against the borrower are terminated under this subsection the amount determined in the prescribed manner to have been payable by the borrower on a day that is fixed by the Minister in accordance with the regulations.

Date fixed is after this subsection comes into force

(5) However, if the Minister fixes a day under subsection (2) — as it read immediately before this subsection comes into force — that is later than the day on which this subsection comes into force, then the day that is fixed is the day on which the amount is determined in the prescribed manner to be payable under subsection (2) or (3).

Severe permanent disability

13 (1) If the Minister is satisfied, on the basis of prescribed information provided by or on behalf of a borrower, that the borrower, by reason of severe permanent disability, is unable to repay a guaranteed student loan and will never be able to repay it, all rights of any lender against the borrower in respect of that guaranteed student loan terminate, and the Minister shall pay to any lender whose rights against a borrower are terminated under this section the amount determined in the prescribed manner to have been payable by the borrower at the time the borrower provided the Minister with the information required under this section.

• (i) subject to subsection (3), the aggregate of all amounts paid by the Minister in that loan year to lenders pursuant to sections 7, 8, 12 and 13, and to collection agencies, in respect of guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued by the appropriate authorities for participating provinces that issued or caused to be issued such certificates in that loan year, minus all amounts collected by or on behalf of His Majesty in that loan year in respect of those loans,

Exception

(3) The amounts described in subparagraph (2)‍(a)‍(i) that were paid or collected in respect of a loan made to a part-time student shall be included in the calculation set out in subparagraph (2)‍(a)‍(i) only if the government of the province satisfies the Minister that the provincial student loan plan includes provisions having substantially the same effect as the provisions of this Act relating to loans to part-time students.

• (a) the estimated aggregate of all amounts paid by the Minister in that loan year to lenders pursuant to sections 7, 8, 12 and 13, and to collection agencies, in respect of guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authority for that province

• (a) the aggregate of all amounts paid by the Minister in that loan year to lenders pursuant to sections 7, 8, 12 and 13, and to collection agencies, in respect of guaranteed student loans made pursuant to certificates of eligibility issued or caused to be issued in any loan year by the appropriate authorities for participating provinces

Exception

(7) The amounts described in paragraphs (a) and (b) of the definition net costs in subsection (6) that were paid or received in respect of a loan made to a part-time student shall be included in the calculation described in that definition only if the government of the province satisfies the Minister that the provincial student loan plan includes provisions having substantially the same effect as the provisions of this Act relating to loans to part-time students.

• (g) prescribing, in the event of default in the repayment of a guaranteed student loan, the measures to be taken by the lender and the procedures to be followed for the collection of the amount of the loan outstanding;

• (k) prescribing the maximum number of periods of studies that may elapse after which, Insertion start despite Insertion end anything in this Act, the amount of a guaranteed student loan made to a full-time student shall commence to be payable by the borrower;

• (k.‍1) respecting the circumstances in which an amount is not required to be paid in respect of guaranteed student loans;

• (m) prescribing circumstances, related to the conduct of a student in obtaining or repaying a guaranteed student loan, under which a new loan may be denied to a student;

• (s.‍2) respecting the circumstances in which no amount is required to be paid by members of the reserve force in respect of their guaranteed student loans;

• (b) deny the person the deferral of payments under section 5 for a prescribed period, or terminate the deferral;

Right of recovery by lender

19 A guaranteed student loan made by a lender to a borrower not of full age is recoverable by the lender from the borrower as though the borrower had been of full age at the time the loan was made.

Receipt and Deposit of Public Money Regulations, 1997

(2) Despite section 3 of the Receipt and Deposit of Public Money Regulations, 1997, the portion of the money that is public money and is collected or received electronically by a service provider that has entered into an agreement under subsection (1) as repayment of an apprentice loan must be paid to the credit of the Receiver General by depositing it, within two business days after the day on which it is collected or received, in an account established under subsection 17(2) of the Financial Administration Act.

Insertion start No Insertion end Interest and Deferral Insertion start Period Insertion end

No Interest

8 (1) No interest is payable by a borrower on an apprentice loan.

Deferral period

(2) No amount in respect of an apprentice loan is required to be paid by the borrower until the end of the prescribed period.

• (g) prescribing the circumstances under which an apprentice loan may be denied to an eligible apprentice;

• (i) prescribing the maximum period that may elapse after which, despite anything in this Act, the amount of an apprentice loan begins to be payable by the borrower;

Right of recovery by Minister

14 An apprentice loan that is made to a borrower who is not of full age Insertion start is Insertion end recoverable by the Minister from the borrower as though the borrower had been of full age at the time the agreement was entered into.