The Student Assistance and Student Aid Fund Regulations, PDF Free Download

1 STUDENT AID FUND S-61.1 REG 5 The Student Assistance and Student Aid Fund Regulations, 2001 being Chapter S-61.1 Reg 5 (effective August 2, 2001) as amended by Saskatchewan Regulations 43/2002, 85/2004, 41/2005, 82/2005, 67/2009 and 80/2010. NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.

2 S-61.1 REG 5 STUDENT AID FUND Table of Contents 1 Title 2 Interpretation and application 3 Interest-free period 4 Repealed 5 Repayment of loans made after August 1, 1983 6 Interest relief 7 Debt reduction and repayment 8 Severe permanent disability 8.1 Death of student 9 Credits in favour of principal 10 Exemptions 10.1 Limitations exception 11 Coming into force Table 1 Table 2 Appendix Determination of Amortization Period Debt Reduction Table

3 STUDENT AID FUND S-61.1 REG 5 CHAPTER S-61.1 REG 5 The Student Assistance and Student Aid Fund Act, 1985 Title 1 These regulations may be cited as The Student Assistance and Student Aid Fund Regulations, 2001. Interpretation and application 2(1) In these regulations: (a) Act means The Student Assistance and Student Aid Fund Act, 1985; (b) Canada Student Loan means a loan made to a student pursuant to the Canada Student Loans Act; (c) (d) educational institution includes an educational institution: (i) approved by the minister pursuant to subsection 7(1) of the Act; or (ii) designated by the minister pursuant to section 8.1 of the Act; family unit means: (i) the student; (ii) the student s spouse; (iii) any dependent children of the student, the student s spouse or the student and the student s spouse; and (iv) any persons who, in the opinion of the minister, are wholly dependent on the student, the student s spouse or the student and the student s spouse; (e) Repealed. 14 Aug 2009 SR 67/2009 s3. (f) monthly family income means the total of the student s and the student s spouse s gross monthly income as determined by the minister; (g) monthly payment means the minimum monthly instalment amount that a person is required to pay on a loan made under or pursuant to the Act; (h) period of study end date means the last day of the month in which a student ceases to be a student; (i) Saskatchewan student loan means a loan that is made to a student, or purchased by the fund, pursuant to the Act; (j) spouse means, with respect to a student: (i) the person to whom the student is legally married; or (ii) another person with whom the student is cohabiting and has cohabited as a spouse continuously for at least one year;

4 S-61.1 REG 5 STUDENT AID FUND (k) student means an individual to whom financial assistance is provided pursuant to these regulations or was provided pursuant to The Student Assistance and Student Aid Fund Regulations, 1990; (l) table means a table set out in the Appendix. (2) Notwithstanding any terms of a loan made pursuant to or governed by The Student Assistance and Student Aid Fund Regulations, 1990 or any agreement made pursuant to The Student Assistance and Student Aid Fund Regulations, 1990 governing that loan, on the coming into force of these regulations: (a) these regulations apply to all loans made pursuant to or governed by The Student Assistance and Student Aid Fund Regulations, 1990; (b) The Student Assistance and Student Aid Fund Regulations, 1990 cease to apply to the loans mentioned in clause (a). 10 Aug 2001 cs-61.1 Reg 5 s2; 7 Jun 2002 SR 43/2002 s3; 24 Sept 2004 SR 85/2004 s3; 5 Aug 2005 SR 82/2005 s3; 14 Aug 2009 SR 67/2009 s3. Interest-free period 3 Where the minister has provided financial assistance to a student in the form of a loan, no interest accrues on the loan during the time that the student is in fulltime attendance at an educational institution. 7 Jun 2002 SR 43/2002 s4. 4 Repealed. 6 Aug 2010 SR 80/2010 s3. Repayment of loans made after August 1, 1983 5(1) Where the minister provides financial assistance to a student in the form of loan on or after August 1, 1983, the student shall repay the loan: (a) in equal consecutive monthly payments due on the last day of each month commencing on the last day of the seventh month after the date the student ceases to be a full-time student at an educational institution; (b) at a monthly rate equal to the greater of: (i) $10; and (ii) the amount determined by amortizing the principal amount of the loan, less any credits made in favour of that principal amount pursuant to section 10, at the interest rate established pursuant to subsection (2) over the number of months determined in accordance with Table 1; and (c) until the loan is paid in full.

5 STUDENT AID FUND S-61.1 REG 5 (2) After the expiration of the interest-free period prescribed in section 3, interest accrues on any amount owing on a loan, and on any late payments with respect to the loan, at: (a) a floating rate equal to the annual prime rate calculated by the minister in accordance with subsection (5); or (b) if requested by the student, a fixed rate equal to the prime rate at the date of the request plus 2.5% per annum. (3) Notwithstanding subsection (1), the minister may establish an alternative minimum monthly payment or a monthly payment schedule for a student for any period that the minister considers advisable where the minister is satisfied that the student: (a) has demonstrated a willingness to repay his or her loan; (b) is unable to make the monthly payments mentioned in subsection (1); and (c) is ineligible for interest relief pursuant to section 6. (4) A student mentioned in subsection (3) shall make the monthly payments determined by the minister in accordance with that subsection. (5) For the purposes of subsection (2), the minister shall calculate the annual prime rate at any given time by: (a) using the variable reference rates of interest that: (i) are determined by the Minister as defined in the Canada Student Loans Act or the Canada Student Financial Assistance Act; and (ii) are based on the variable reference rates of interest declared by the five largest Canadian financial institutions; (b) ignoring the highest and lowest of the five rates of interest mentioned in clause (a); and (c) taking the average of the remaining three rates of interest. 10 Aug 2001 cs-61.1 Reg 5 s5; 6 Aug 2010 SR 80/2010 s4.

6 S-61.1 REG 5 STUDENT AID FUND Interest relief 6(1) A student may apply to the minister for interest relief pursuant to this section where the student: (a) has received financial assistance in the form of a loan; (a.1) resides in Canada; and (b) is: (i) unemployed; (ii) suffering from a temporary illness or a temporary disability that renders the student incapable of working; (iii) earning an amount insufficient to make the minimum monthly payments on the loan; or (iv) subject to other extenuating circumstances that render the student incapable of making the minimum monthly payments on the loan. (2) A student applying for interest relief shall: (a) apply on the form provided by the minister; and (b) provide the minister with any information that the minister considers necessary for the purpose of administering the Act and these regulations. (3) The minister may authorize a period during which no interest is to be charged against the loan where the minister: (a) receives an application pursuant to subsection (2); and (b) is satisfied that one or more of the circumstances mentioned in clause (1)(b) render the student incapable of making the minimum monthly payments on the loan. (4) When deciding whether to authorize a period of interest relief pursuant to subsection (3), the minister shall take into consideration: (a) the assets and income of the student; and (b) if the student has a spouse, the assets and income of the student s spouse. (5) For the purpose of determining eligibility for interest relief, a student is deemed to be unemployed if: (a) during the four-week period immediately preceding his or her application for interest relief, the student: (b) (i) either: (A) was not working; or (B) worked less than a total of 80 hours; and (ii) was actively seeking work; and at the time of the application, the student is actively seeking work.

7 STUDENT AID FUND S-61.1 REG 5 (6) The minister shall not authorize, with respect to any one student, periods of interest relief that exceed 30 months in total. (7) Notwithstanding that a student already has been granted a total of 30 months of interest relief on the loans mentioned in subsection (6) and if not more than 60 months have elapsed since the student s last period of study end date, as that period is specified by the student in his or her first application for interest relief, the minister may grant the student a further period of interest relief of not more than 24 months and not beyond the 60-month period since the student s last period of study end date if the minister is satisfied that: (a) in the case of a Saskatchewan student loan that has a repayment period of 15 years or more, the student is unable to make the monthly payment required on the loan; or (b) in the case of a Saskatchewan student loan that has a repayment period of less than 15 years, the student would be unable to make the monthly payment required on the loan even if the repayment schedule were extended to 15 years. (8) Where the minister authorizes a period of interest relief pursuant to subsection (3), no interest is to accrue on the outstanding amount of the loan and the student is not required to make payments on account of principal or interest on the loan with respect to which the interest relief was authorized: (a) during the period with respect to which the interest relief was authorized; and (b) until the last day of the month in which interest on the loan begins accruing following the period of interest relief. (9) Notwithstanding subsections (1) to (8), if a student has a loan that is governed by these regulations and a loan pursuant to The Saskatchewan Student Direct Loans Regulations and the student wishes to obtain interest relief with respect to the loan governed by these regulations: (a) the student shall not apply for or receive interest relief pursuant to this section with respect to the loan governed by these regulations; (b) the student shall apply for repayment assistance in accordance with Part IV of The Saskatchewan Student Direct Loans Regulations; and (c) Part IV of The Saskatchewan Student Direct Loans Regulations applies, with any necessary modification, for the purposes of applying for and granting repayment assistance with respect to the loan governed by these regulations. 10 Aug 2001 cs-61.1 Reg 5 s6; 7 Jun 2002 SR 43/2002 s5; 24 Sept 2004 SR 85/2004 s4; 14 Aug 2009 SR 67/2009 s4.

8 S-61.1 REG 5 STUDENT AID FUND Debt reduction and repayment 7(1) In this section and in Table 2, monthly family income ceiling, with respect to a student, means, based on the size of the student s family unit, the sum of the student s monthly family income less all monthly payments that the student s spouse is required to pay on all loans made under or pursuant to the Act. (2) A student may apply to the minister to reduce the student s indebtedness to the minister respecting the student s Saskatchewan student loan. (3) On an application pursuant to subsection (2), the minister may reduce the amount of the student s indebtedness if the student resides in Canada and the minister is satisfied that: (a) all of the following criteria are met: (i) the student is not in default on the Saskatchewan student loan; (ii) the student ceased to be a full-time student 60 months or more before the date of the application; (iii) the student has exhausted at least 30 months of interest relief and is not entitled to any further interest relief periods pursuant to these regulations; (iv) the student has not previously been granted a reduction of indebtedness pursuant to this section; (v) the student s monthly payment with respect to Saskatchewan student loans is greater than the dollar amount set out in Column 1 of Table 2 for the student s monthly family income ceiling set out in Column 2 of Table 2; or (b) all of the following criteria are met: (i) the student has incurred extraordinary expenses due to circumstances beyond the control of the student and the student s spouse; (ii) the student will be able to make the monthly payment required on the reduced amount of the loan. (4) Subject to subsection (5), the amount of reduction of indebtedness that the minister may grant pursuant to this section is the positive amount P, rounded to the nearest dollar, calculated in accordance with the following formula: P = A(1 B/C) where: A is the total principal amount owing by the student with respect to all Saskatchewan student loans; B is the dollar amount set out in Column 1 of Table 2 for the student s monthly family income ceiling set out in Column 2 of Table 2; and C is: (a) if the repayment period of the Saskatchewan student loan is 15 years or more, the amount of the monthly payment due by the student on the Saskatchewan student loan; or (b) if the repayment period of the Saskatchewan student loan is less than 15 years, the amount of the monthly payment that would be due by the student on the Saskatchewan student loan if the repayment period were 15 years.

9 STUDENT AID FUND S-61.1 REG 5 (5) The maximum amount of reduction of indebtedness that may be granted pursuant to this section is $3,000. (6) Notwithstanding subsections (3) to (5), if a student has a loan that is governed by these regulations and a loan pursuant to The Saskatchewan Student Direct Loans Regulations and the student wishes to obtain debt reduction in repayment with respect to the loan governed by these regulations: (a) the student shall not apply for or receive debt reduction in repayment pursuant to this section with respect to the loan governed by these regulations; (b) the student shall apply for repayment assistance in accordance with Part IV of The Saskatchewan Student Direct Loans Regulations; and (c) Part IV of The Saskatchewan Student Direct Loans Regulations applies, with any necessary modification, for the purposes of applying for and granting repayment assistance with respect to the loan governed by these regulations. 24 Sept 2004 SR 85/2004 s5; 14 Aug 2009 SR 67/2009 s5. Severe permanent disability 8(1) In this section, severe permanent disability means a functional limitation caused by a physical or mental impairment that prevents a borrower from performing the daily activities necessary to participate in studies at a postsecondary school level and in the labour force and that is expected to remain with the person for his or her expected life. (2) All obligations of a student with respect to a Saskatchewan student loan terminate if the minister is satisfied, on the basis of information specified by the minister and provided by or on behalf of the student, that the student, by reason of the student s severe permanent disability, is unable to repay the loan and will never be able to repay it. 14 Aug 2009 SR 67/2009 s6. Death of student 8.1 All obligations of a student with respect to a Saskatchewan student loan terminate if the student dies. 14 Aug 2009 SR 67/2009 s6. Credits in favour of principal 9 The minister may give any credit to which the student is entitled by: (a) applying it as a credit in favour of: (i) the principal amount of the loan; (ii) the interest owing on the loan; or (iii) any other amounts owing by the student to the fund;

10 S-61.1 REG 5 STUDENT AID FUND (b) applying it as a credit in favour of any amount owing by a student with respect to a Canada Student Loan; or (c) paying it directly or otherwise to the credit of the student. 10 Aug 2001 cs-61.1 Reg 5 s9. Exemptions 10 The minister may exempt a student from any requirement set out in these regulations where, in the opinion of the minister: (a) one or more of the following applies: (i) the non-compliance is due to a factor beyond the control of the student; (ii) the non-compliance is with respect to a minor detail; (iii) the student has proposed other conditions that meet or exceed the conditions with respect to which there is non-compliance; (b) the student is mainly in compliance with the requirements of these regulations; and (c) it is not contrary to the public interest to grant the exemption. 10 Aug 2001 cs-61.1 Reg 5 s10. Limitations exception 10.1 Notwithstanding section 5 of The Limitations Act, no proceedings shall be commenced with respect to a claim respecting a loan made pursuant to or governed by these regulations after six years from the day on which the claim is discovered. 6 May 2005 SR 41/2005 s2. Coming into force 11 These regulations come into force on the day on which they are filed with the Registrar of Regulations. APPENDIX Table 1 [clause 5(1)(b)] 10 Aug 2001 cs-61.1 Reg 5 s11. Determination of Amortization Period Item Principal Amount of Loan Amortization Period in Months 1. $1 - $1,500 36 2. $1,501 - $3,000 60 3. $3,001 - $4,500 84 4. $4,501 - $6,000 96 5. over $6,000 114 10 Aug 2001 cs-61.1 Reg 5 Appendix.

11 STUDENT AID FUND S-61.1 REG 5 Table 2 [Section 7] Debt Reduction Table COLUMN 1 COLUMN 2 Monthly Family Income Ceiling ($) Dollar 1 2 3 4 5 6 people Amount ($) person people people people people or more 10 539 1180 1396 1612 1815 2012 15 912 1486 1783 2080 2371 2658 20 1105 1645 1984 2324 2660 2294 25 1291 1798 2178 2558 2938 3318 50 1399 1905 2285 2623 3003 3383 75 1506 2012 2392 2688 3068 3448 100 1613 2119 2499 2753 3133 3513 125 1720 2226 2564 2818 3198 3578 150 1827 2334 2630 2884 3264 3643 175 1934 2441 2695 2949 3329 3709 200 2041 2506 2760 3014 3394 3774 225 2148 2571 2825 3079 3459 3839 250 2256 2636 2890 3144 3524 3904 275 2363 2701 2955 3209 3589 3969 300 2470 2766 3020 3274 3654 4034 325 2535 2832 3086 3340 3720 4099 350 2600 2897 3151 3405 3785 4165 375 2665 2962 3216 3470 3850 4230 400 2730 3027 3281 3535 3915 4295 425 2795 3092 3346 3600 3980 4360 450 2861 3157 3411 3665 4045 4425 475 2926 3222 3476 3730 4094 4490 500 2991 3288 3542 3796 4142 4555 525 3056 3353 3607 3861 4191 4621 550 3121 3418 3672 3926 4239 4686 575 3186 3483 3737 3991 4288 4751 600 3251 3548 3802 4056 4337 4816 625 3317 3613 3867 4121 4385 4881 650 3382 3678 3932 4186 4434 4946 675 3447 3744 3998 4235 4482 5011 700 3512 3809 4063 4284 4531 5077 24 Sept 2004 SR 85/2004 s7.