Canada Gazette, Part I, Volume 154, Number 6: Regulations Amending the Canada Student Financial Assistance Regulations

February 8, 2020

Statutory authority

Canada Student Financial Assistance Act

Sponsoring department

Department of Employment and Social Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the regulations.)

Executive summary

Issues

Currently, borrowers begin repaying their CSLs and interest begins to accrue six months after the date they leave their studies. This rule makes the CSLP less responsive to the needs of students in challenging financial and life situations and can create a significant financial burden for some vulnerable student loan borrowers. To better respond to the needs of borrowers who have to take a temporary leave from their studies for medical (including mental health) or parental reasons, Budget 2019 proposed specific amendments to the CSFAR and the CSLR.

Requiring students who take a leave from studies for medical or parental reasons to start repaying their loans as if they had permanently left school can compound the impact of already stressful and costly circumstances that result from dealing with illness or injury, or becoming a parent. The additional financial burden of student loan repayment could contribute to borrowers further delaying or entirely withdrawing from their studies, thereby delaying or forgoing the substantial benefits of a post-secondary credential. In addition, this financial impact is particularly felt by borrowers with disabilities, who may be more likely to take a leave from school for medical reasons, and women borrowers, who may be more likely to take a parental leave as they still tend to be the primary caregivers within families.

Background

The CSLP provides financial assistance to students in the form of grants and loans to supplement resources and help meet the costs of post-secondary education. Delivered in partnership with 10 provinces and territories, the CSLP provides up to 60% of a borrower’s calculated financial need in grants and loans, while participating provinces and territories cover the remainder. The non-participating provinces and territories, namely Quebec, Nunavut and the Northwest Territories, receive alternative payments from the federal government to administer their own student financial assistance programs.

The CSLP provides the Repayment Assistance Plan to assist borrowers who are experiencing difficulty repaying their CSLs. However, there are currently no specific provisions to support borrowers taking temporary leave from their studies to care for a new child or recover from an illness or injury.

In Budget 2019, several measures were announced to modernize the CSLP and help make it more flexible and accessible for borrowers in vulnerable financial or life situations. Legislative and regulatory amendments have already been made to implement several of these measures, including lowering interest rates on CSLs; making the six-month non-repayment period following studies interest-free; increasing supports and flexibility for students with disabilities; and making it easier for borrowers in default to return their loans to good standing. These proposed regulatory amendments would implement the final measure announced in Budget 2019: an interest-free and payment-free leave for borrowers taking temporary leave from their studies for medical reasons, including mental health leave, or for parental reasons.

Objective

The objective is to help make post-secondary education more accessible and affordable by introducing interest-free and payment-free medical and parental leave for CSLs. More specifically, the proposed regulations would help address the financial burden and stress on students who take temporary leave from their studies for medical and parental reasons, including mental health leave, and help reduce financial barriers to pursuing their post-secondary education. It is expected that the proposal would particularly benefit borrowers with disabilities, many of whom have to take temporary breaks from their studies, and women borrowers who may be more likely to take parental leave.

Description

Several sections of the CSFAR and CSLR would be amended to provide both full- and part-time CSL borrowers with the ability to apply for an interest-free and payment-free medical or parental leave in 6-month periods up to a maximum of 18 months. Specifically, the following changes would be made:

• amending the CSFAR and the CSLR to give full-time students taking medical or parental leave the ability to apply for the leave within 6 months after leaving school, as long as that date is within 12 months of the medical event or the date a child joined the family, and to apply for an extension of their leave any time between 30 days before the end of their leave and 30 days after the end of their leave;
• amending the CSFAR and the CSLR to ensure that, for full-time students, loan payments would not be required and interest would not accrue, in 6-month periods up to a maximum of 18 months, while they are on leave for medical or parental reasons;
• amending the CSFAR to give part-time students taking medical or parental leave the ability to apply for the leave within 6 months after leaving school, as long as that date is within 12 months of the medical event or the date a child joined the family, and to apply for an extension of their leave any time between 30 days before the end of their leave and 30 days after the end of their leave;
• amending the CSFAR to ensure that, for part-time students, loan payments would not be required and interest would not accrue during periods of leave for medical or parental reasons;
• amending the CSFAR to ensure that no time spent on a medical or parental leave would be counted towards a student’s maximum lifetime weeks of CSLP support; and
• amending the CSFAR to ensure that students on medical or parental leave who experience a bankruptcy-related event can avail themselves of the existing benefits that are available to students currently in school who experience the same situation.

Medical leave would be defined as a temporary leave from CSL payment obligations for medical problems, including mental health problems, which, in the opinion of a medical professional, would significantly interfere with the student’s ability to pursue their program of studies. Pregnant students would also be able to take medical leave, if needed, for reasons related to their pregnancy prior to the birth date of their child.

Parental leave would be defined as a temporary leave from CSL payment obligations following the birth of a child, finalization of an adoption or commencement of guardianship or tutorship ^{footnote *} of a child.

Interest-free and payment-free medical or parental leave would not be available to borrowers who are no longer in school (i.e. those who have begun repaying their loans once their six-month interest-free and payment-free period has ended).

Regulatory development

Consultation

The CSLP regularly engages with stakeholders and partners, including student groups, borrowers, and provinces and territories, through the National Advisory Group on Student Financial Assistance (NAGSFA) and the Intergovernmental Consultative Committee on Student Financial Assistance (ICCSFA). The CSLP discussed policy ideas related to making student loans more affordable and accessible with these stakeholders, including an interest-free and payment-free medical and parental leave, and all were generally supportive.

Following the release of Budget 2019, the Canadian Alliance of Student Associations, the Canadian Federation of Students, and the Canadian Association of Student Financial Aid Administrators all expressed support for the CSLP measures announced. Student organizations specifically welcomed the medical and parental leave proposal.

As part of prepublication in the Canada Gazette, Part I, Employment and Social Development Canada (ESDC) will accept comments on the proposed regulations for 30 days. ESDC will also engage proactively with stakeholders, including organizations representing borrowers, post-secondary institutions, financial aid administrators, and participating provincial and territorial governments, to seek their views on the draft regulations.

Modern treaty obligations and Indigenous engagement and consultation

The proposed regulatory amendments are not expected to have any differential impacts on Indigenous people or implications for modern treaties, as per Government of Canada obligations in relation to rights protected by section 35 of the Constitution Act, 1982, modern treaties, and international human rights obligations.

Instrument choice

Given that the CSFAR and CSLR include provisions prescribing when CSLs become payable and periods during which interest does not accrue, regulatory amendments are required to implement interest-free and payment-free leave from CSL obligations for borrowers taking a leave from their studies for medical or parental reasons. As a result, non-regulatory options were not considered.

Regulatory analysis

Benefits and costs

The stakeholders that would be most directly affected by these proposed regulatory amendments are student borrowers and the Government of Canada. The 10 participating provincial and territorial governments that are partners in the delivery of the CSLP would be affected indirectly. They would retain the flexibility to decide whether or not to align their policies with those of the federal government. In addition, Canadian society would be affected indirectly given that post-secondary education helps to mitigate overall income inequality.

This cost-benefit analysis assessed the incremental impacts to stakeholders of implementing medical and parental leave from student loan repayment obligations compared to a baseline scenario in which these regulatory amendments are not made.

Monetized costs

The costs to the Government of Canada for providing medical and parental leave from student loan repayment obligations are due to forgone interest revenues on student loans and additional borrowing costs.

Forgone interest revenues represent the interest that the Government of Canada would have received in the absence of the proposed amendments. In addition, the Government of Canada must bear the cost of keeping these student loans in its portfolio for an additional period of up to 18 months. This implies that, during that period, the Government of Canada must borrow in the capital markets to finance its other fiscal obligations. The monetized costs are estimated at $27.0 million (net present value) over the next 10 years.

Monetized benefits

Under the proposed regulatory amendments, interest on student loans held by borrowers approved for leave would not accrue for a maximum period of 18 months. This represents a direct transfer to students, which is equal to forgone interest revenues identified as a cost to the Government of Canada.

In addition, under the proposed regulatory amendments, students would not have to pay down principal for a period of up to 18 months. These principal payments are simply delayed until the student makes regular repayments (when loans are consolidated). As a result, students derive utility based on their individual preference for time or their trade-off between current and future consumption. Assuming that financial markets are competitive, the social time preference rate ^{footnote †} is equal to the borrowing cost faced by the Government of Canada. By allowing students not to repay the principal immediately, students could consume more of their preferred goods and services or could invest the non-paid principal and earn interest. The students’ utility gains or interest earnings effectively represent a transfer of purchasing power from the Government of Canada to students. The monetized benefits are estimated at $27.0 million (net present value) over the next 10 years.

Qualitative benefits

Students with children face significant obstacles when pursuing post-secondary education; studies show that a majority of student parents are low-income, less likely to persist in school and more likely to have higher debt loads than other students. ^{footnote 1}, ^{footnote 2}, ^{footnote 3} Considering these obstacles, the interest-free and payment-free leave for parental reasons would have a positive impact on students who welcome a new child. The introduction of medical and parental leave would allow students to focus on child rearing and the ability to adapt to significant life changes without academic or financial stress related to repayment of loans. Furthermore, these students would be able to return to school after their leave without having a higher student debt load, which can be a significant deterrent from post-secondary education attainment for students with children.

Students with disabilities take longer to complete their studies, accumulate higher debt loads and require accommodations and supports. ^{footnote 4}, ^{footnote 5} For students with disabilities who take a temporary leave from post-secondary education for medical reasons, the proposed amendments would provide support to these students by reducing the financial stress associated with loan repayment and the accumulation of interest. Furthermore, these regulatory amendments would allow students with disabilities to focus on their health recovery rather than on the requirement to make payments on their CSL or the associated interest charges.

The measure of a medical leave for students facing health conditions would allow these students to focus on their health recovery rather than on the financial requirements of the CSL when taking a leave from school. When a student is unable to attend school for a medical reason, the possibility of applying for this leave from repayment obligations will alleviate the financial stress they face through forgoing interest payments and repayment on their student loans.

Studies have shown that the completion of post-secondary education is linked to improved overall health and longevity. According to McMahon, ^{footnote 6} those who have attained the highest levels of education could add more than seven years to their lives. Moreover, the strong relationship between improved health and educational attainment holds regardless of how “improved health” is operationalized — i.e. mortality rates, self-identification of health status by individuals, unhealthy behaviour such as smoking, physiological health indicators, etc. ^{footnote 7}

Through the measure of a medical and parental leave on CSL repayments and interest accrual, students with children, students with disabilities and students with medical conditions, including mental health conditions, would be able to focus on child rearing and their health recovery. Because of the removal of financial barriers, these borrowers will also be more likely to return to school and complete their post-secondary education after their leave and experience the demonstrated socio-economic and health benefits associated with post-secondary education completion.

A survey of the available literature found that the debt accrued from post-secondary education could have short- and long-term impacts on the financial well-being of borrowers. A Statistics Canada report from 2010 ^{footnote 8} found that there are a number of financial effects on borrowers and that these effects are less prevalent for those who did not borrow to finance post-secondary education. The first finding was that borrowers are notably less likely to have savings and investments than non-borrowers. ^{footnote 9} In addition, the report stated that borrowers with post-secondary education are less likely to own their homes, and when they do, are more likely to have a mortgage. ^{footnote 10} The literature shows that students with children, students with disabilities and students with medical conditions, including mental health conditions, face considerably more financial difficulties than other students.

By providing financial relief, these proposed regulatory amendments would enhance the financial well-being of borrowers who take advantage of the proposed interest-free and payment-free medical and parental leave.

As cited in McMahon, ^{footnote 11} Leslie and Brinkman provide an extensive survey of research on the effects of post-secondary education and conclude that post-secondary education tends to lead to reduced income inequality in Canada. The students who are most likely to benefit from interest-free and payment-free medical and parental leave from student loan repayment obligations are low-income students, as they are more likely to be CSL borrowers. These students are more likely to face higher debt loads and greater financial difficulty. With the introduction of these proposed regulatory amendments, there would be a reduction in income inequality for these students, as they would not be required to make payments on their CSLs or accrue interest during prescribed periods of leave.

These measures can directly benefit all eligible borrowers by reducing debt loads and indirectly benefit Canadian society by helping to mitigate overall income inequality; however, there is a minor risk. Specifically, some borrowers may be tempted to fraudulently claim medical and parental leave to avoid having to repay loans or accrue interest. The risk is mitigated by the requirement for the borrower to provide an attestation by a medical professional or an attestation backed up by official documentation on the birth, adoption or guardianship of a child. In addition, the limited duration of these measures (maximum of 18 months) and the penalties stipulated in subsection 17(1) of the Canada Student Financial Assistance Act provide a reasonable disincentive against fraudulent claims. In particular, the amount of money gained in fraudulently not accruing interest for no more than 18 months is disproportionately less than the $1,000 fine incurred and, more importantly, less than the value of the multiple potential administrative penalties incurred, including denial of future loans and grants.

Cost-benefit statement

A. Quantified impacts (in millions of Can$, 2020 constant dollars)

		First Year: 2020–21	Second Year: 2021–22	Final Year: 2029–30	Total (Present Value) table 1 note a	Annualized Value
Benefits	Borrowers: no interest payments	0.4	1.0	7.3	25.0	3.6
	Borrowers: postponement of the payment of the principal	0.2	0.2	0.3	2.0	0.3
	Total benefits	0.6	1.2	7.7	27.0	3.8
Costs	Government of Canada: forgone interest revenues	0.4	1.0	7.3	25.0	3.6
	Government of Canada: borrowing costs	0.2	0.2	0.3	2.0	0.3
	Total costs	0.6	1.2	7.7	27.0	3.8
Net benefits					0.0	0.0
Table 1 note(s) Table 1 note a 7% discount rate, Canadian Cost-Benefit Analysis Guide: Regulatory Proposals. Return to table 1 note a referrer

B. Qualitative benefits

For borrowers who take advantage of medical and parental leave:

• Ability to focus on child rearing or recovery from a health challenge and ability to adapt to significant life changes
• Reduced financial stress during already stressful and costly life situations
• Reductions in student debt amounts for students who already face high financial need, higher debt, and poverty
• Reduced financial barriers to returning to school after leave and benefitting from post-secondary education completion (e.g. increased employment income, enhanced health and longevity)
• Better academic achievement due to reduced need for employment during studies
• Reduced interest costs as borrowers would be less likely to rely on more expensive private sources of credit during leave
• Improved post-secondary education attainment when returning to school for students with disabilities, as greater financial support has been shown to increase post-secondary education attainment

Additional benefits for Canadian society:

• Reduced income inequality as those who would most benefit from medical and parental leave are people who have lower income

Small business lens

The small business lens does not apply to these proposed regulatory amendments as there are no costs that would impact small businesses.

One-for-one rule

The one-for-one rule does not apply to these proposed regulatory amendments as there is no change in administrative burden and no administrative costs that would impact businesses.

Regulatory cooperation and alignment

The proposed regulatory amendments are not related to any commitment under a formal regulatory cooperation forum. The ICCSFA is a federal-provincial-territorial body for student financial assistance in Canada, but this organization does not focus on regulatory cooperation. However, the CSLP has shared these proposed regulatory amendments with provincial and territorial partners and they have been generally supportive.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus (GBA+)

The proposed regulatory amendments will support various vulnerable groups of students and are expected to have significant benefits from the perspective of gender and diversity. In particular, for students with high needs and lower incomes, these proposed regulatory amendments will provide financial relief when they are particularly vulnerable.

Parental leave will considerably benefit women; the CSLP administrative data shows that student parents are predominantly women (75%, compared to 59% of the overall CSLP student population). In addition, these parent students are also low-income students (81%) and tend to be older students (66% of student parents are over the age of 30). The literature finds that student parents are more vulnerable as they have added familial responsibilities and costs, and they are more financially insecure compared to other students. The proposed regulatory amendments will benefit new parents by providing financial relief from their student loan repayment obligations, at a time when they are caring for their new child and unable to continue their post-secondary education.

Medical leave will have benefits for students who face health conditions, through the provision of a temporary leave from student loan repayment obligations. The literature finds that people with disabilities face significant financial barriers, take longer to complete their post-secondary education and acquire higher debt loads. ^{footnote 12} In terms of gender, the CSLP finds that there are more female students with permanent disabilities in the program. Therefore, this measure may benefit more women with permanent disabilities; of the 7% of students with permanent disabilities in the program, 60% are female. In terms of medical conditions, the Public Health Agency of Canada finds that 44% of adults aged 20 and older have at least one of the 10 most common chronic conditions. ^{footnote 13} Within student populations, mental health problems are prevalent, with substance use, anxiety, and mood disorders being most common. ^{footnote 14} Statistics Canada finds that young people, aged 15 to 24, are more likely to experience mental illness and substance use disorders than any other age group. ^{footnote 15} Students with medical and mental health conditions face significant challenges when it comes to pursuing education, have lower educational attainment and face higher debt loads. The proposed regulatory amendments will provide financial relief for students who are facing adverse medical and mental health issues, through the provision of a leave from student loan repayment obligations when these students are unable to continue their post-secondary education. These provisions in turn may help with the de-stigmatization of mental health issues.

The proposed regulatory amendments are expected to benefit Indigenous students and LGBTQ2+ students when they require a temporary leave from studies for medical or parental reasons. Within the CSLP’s population, there are Indigenous students who may be affected by this measure. Statistics Canada finds that Indigenous youth are particularly at risk for poor mental health and face significant barriers when it comes to post-secondary education attainment. ^{footnote 16} More generally, First Nations people, Métis and Inuit are less likely than non-Indigenous people to report very good or excellent health. ^{footnote 17} Furthermore, while the CSLP does not collect information on sexual orientation or gender minorities, LGBTQ2+ people are over-represented among low-income Canadians, and LGBTQ2+ youth are often subject to violence, discrimination, and marginalization in schools. ^{footnote 18}, ^{footnote 19} LGBTQ2+ people face pervasive health disparities and barriers to high-quality care. In terms of mental health, LGBTQ2+ people are more likely to report unmet mental health needs, and LGBTQ2+ youth have an increased risk of suicide, substance abuse and isolation, and of experiencing sexual abuse. ^{footnote 20} The proposed regulatory amendments seek to alleviate the financial burden that student loan repayment places on Indigenous students and LGBTQ2+ students, who are more likely to face adverse medical and mental health conditions, and may require a leave of absence from their studies.

The availability of medical and parental leave from student loan repayment responsibilities will benefit these groups of students who often have low incomes and, in some cases, are less likely to pursue post-secondary education. The relief from student loan repayment and interest accrual comes at a vulnerable period in these students’ lives, when they are unable to continue their post-secondary education due to medical reasons or due to welcoming a new child, allowing for a significant financial relief.

Implementation, compliance and enforcement, and service standards

Implementation

It is anticipated that the proposed regulatory amendments would come into force on August 1, 2020, to align with the beginning of the 2020–2021 loan year. This would require coordination with the third-party service provider who operates the National Student Loans Service Centre. In addition, provincial and territorial partners as well as student financial assistance stakeholders would be notified of the changes, through regular ICCSFA and NAGSFA meetings, to explain how they will support making student financial assistance more accessible and affordable.

Compliance and enforcement

To support effective management and accountability to Canadians, the CSLP will continue to be monitored to ensure effective program performance and integrity. The Canada Student Financial Assistance Act requires that the Minister of Employment and Social Development table an actuarial report produced by the Office of the Chief Actuary at least once every three years. This report provides an estimate of program costs and revenues, a 25-year forecast of future program costs and revenues, and an explanation of the methodology and actuarial and economic assumptions used to produce all of the figures presented in the report. The Canada Student Financial Assistance Act also requires that the Minister table in Parliament an annual report on the CSLP, which provides detailed statistics on the program (including the value of the portfolio) and outlines key objectives, initiatives, and accomplishments achieved over a given academic year.

The Canada Student Financial Assistance Act provides sufficient authority for the CSLP to ensure that interest-free and payment-free leave from student loan repayment obligations is not granted to borrowers who are not eligible. Subsection 17(1) provides for a fine of up to $1,000 for borrowers who knowingly provide any false or misleading information in an application or other document. Section 17.1 allows for any such borrower to be denied additional student financial assistance as well as certain other CSLP benefits, including, but not limited to, repayment assistance and interest-free or interest-reduced periods.

Service standards

While there are no specific service standards for the delivery of the proposed regulatory amendments, it is anticipated that the applications will be processed in a timely manner. When the operational requirements of the CSLP’s third-party service provider are finalized, there will be a focus on a streamlined application process that reduces administrative burden for students.

Contact

Milena Gulia
Director
Policy and Research
Canada Student Loans Program
Employment and Social Development Canada
200 Montcalm Street, Tower II, 1st Floor
Gatineau, Quebec
J8Y 3B5
Email: EDSC.PCPE.MED.PAR.REG-MED.PAR.REG.CSLP.ESDC@hrsdc-rhdcc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to paragraphs 15(1)(f), (f.1) ^{footnote a}, (g), (m) and (n) ^{footnote b} of the Canada Student Financial Assistance Act ^{footnote c}, proposes to make the annexed Regulations Amending the Canada Student Financial Assistance Regulations.

Interested persons may make representations concerning the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Milena Gulia, Director, Policy and Research, Canada Student Loans Program, Employment and Social Development Canada, 200 Montcalm Street, Tower II, 1st Floor, Gatineau, Quebec, J8Y 3B5 (email: EDSC.PCPE.MED.PAR.REG-MED.PAR.REG.CSLP.ESDC@hrsdc-rhdcc.gc.ca).

Ottawa, January 30, 2020

Julie Adair
Assistant Clerk of the Privy Council

Regulations Amending the Canada Student Financial Assistance Regulations

Amendments

1 The Canada Student Financial Assistance Regulations ^{footnote 21} are amended by adding the following after section 7:

Medical Leave and Parental Leave

7.1 (1) The following definitions apply in this section and in section 12.21.

• medical leave means a leave from studies taken by a borrower as a result of a medical problem that, in the opinion of a medical professional, would significantly interfere with the borrower’s ability to pursue their program of studies. (congé pour raisons médicales)
• parental leave means a leave from studies taken by a borrower as a result of the birth of a child of the borrower, the adoption of a child by the borrower, or the commencement of the guardianship or tutorship of a child by the borrower. (congé parental)
• period of postponement of repayment means the period during which, by reason of a medical leave or parental leave, a borrower is not required to repay the principal amount of a student loan and no interest is payable. (différé de remboursement)

(2) The Minister may, on application, grant a borrower a period of postponement of repayment by reason of medical leave or parental leave, if the borrower submits the application in the form and manner specified by the Minister in the six months following the end of the borrower’s most recent period of studies, but no later than 12 months after

• (a) in the case of a medical leave, the date specified by the medical professional; or
• (b) in the case of a parental leave, the date of the birth or adoption of a child or the date the borrower becomes the guardian or tutor of a child.

(3) If the Minister grants the borrower’s application, the borrower is deemed to continue to be a full-time student despite section 8 for a six-month period beginning on the day after the day on which they would otherwise have ceased to be a full-time student.

(4) If the borrower’s medical leave or parental leave must be extended or the borrower is entitled to a new medical leave or a new parental leave, the borrower may, no earlier than 30 days before the end of the six-month period referred to in subsection (3) and no later than 30 days after that period, submit a request to the Minister to extend the length of the period of postponement of repayment to 12 months.

(5) If the borrower’s medical leave or parental leave must be further extended or the borrower is entitled to a new medical leave or a new parental leave, the borrower may, no earlier than 30 days before the end of the 12-month period referred to in subsection (4) and no later than 30 days after that period, submit a request to the Minister to extend the length of the period of postponement of repayment to 18 months.

(6) A borrower who has been granted a period of postponement of repayment cannot submit a new application for a period of postponement of repayment by reason of a new medical leave or a new parental leave for 30 days after the first day of the current confirmed period.

2 The portion of subsection 8(1) of the Regulations before paragraph (a) is replaced by the following:

8 (1) Subject to paragraphs 5(3)(b) and 7(2)(b) and subsection 7.1(3), the borrower ceases to be a full-time student on the earliest of

3 The Regulations are amended by adding the following after section 12.2:

Medical Leave and Parental Leave

12.21 (1) The Minister may, on application, grant a borrower a period of postponement of repayment by reason of medical leave or parental leave, if the borrower submits the application in the form and manner specified by the Minister in the six months following the end of the borrower’s most recent period of studies, but no later than 12 months after

• (a) in the case of a medical leave, the date specified by the medical professional; or
• (b) in the case of a parental leave, the date of the birth or adoption of a child or the date the borrower becomes the guardian or tutor of a child.

(2) If the Minister grants the borrower’s application, the borrower is deemed to continue to be a part-time student despite section 12.3 for a six-month period beginning on the day after the day on which they would otherwise have ceased to be a part-time student.

(3) If the borrower’s medical leave or parental leave must be extended or the borrower is entitled to a new medical leave or a new parental leave, the borrower may, no earlier than 30 days before the end of the six-month period referred to in subsection (2) and no later than 30 days after that period, submit a request to the Minister to extend the length of the period of postponement of repayment to 12 months.

(4) If the borrower’s medical leave or parental leave must be further extended or the borrower is entitled to a new medical leave or a new parental leave, the borrower may, no earlier than 30 days before the end of the 12-month period referred to in subsection (3) and no later than 30 days after that period, submit a request to the Minister to extend the length of the period of postponement of repayment to 18 months.

(5) A borrower who has been granted a period of postponement of repayment cannot submit a new application for postponement of repayment by reason of a new medical leave or a new parental leave for 30 days after the first day of the current confirmed period.

4 The portion of section 12.3 of the Regulations before paragraph (a) is replaced by the following:

12.3 Subject to paragraphs 12.1(2)(b) and 12.2(2)(b) and subsection 12.21(2), a borrower ceases to be a part-time student on the earliest of

5 Subsection 15(1.1) of the Regulations is replaced by the following:

(1.1) For the purposes of paragraph (1)(j), the number of weeks is the aggregate of the number of weeks corresponding to the borrower’s confirmed periods as a full-time student, or the equivalent, under the Act and the Canada Student Loans Act, less the number of weeks determined by the Minister for which the designated educational institution has provided that the borrower, despite subsections 7.1(3) and 8(2), was no longer a full-time student.

6 Section 17 of the Regulations is renumbered as section 11.1 and that section 11.1 and the heading before it are repositioned after section 11.

Coming into Force

7 These Regulations come into force on August 1, 2020.