This Micro-credential Student Loan Agreement is a legal contract that defines your rights and responsibilities with respect to the Financial Assistance you receive from Ontario for a micro- credential. This agreement must be signed for each application for Financial Assistance for a micro- credential. This agreement does not specify the actual amount(s) that will be disbursed to you or the amount(s) you will be required to repay. The amount(s) that will be disbursed to you under this agreement will be determined based on a needs assessment(s) of your application(s) for Financial Assistance in accordance with provincial legislation and policies. You will be responsible under this agreement for paying your Outstanding Loan Balance and any Grant Overpayments.
The approved amounts of any Financial Assistance disbursed under the Micro-credential Student Loan Agreement will be provided based on the information you submit during the application process. Approved amounts will either be electronically deposited into your bank account, which must be held in your name, solely or jointly, or be issued to you as a cheque. Electronic withdrawals may also be made from this bank account when your payments are triggered, as per section 8 (j). If you fail to provide your bank account information or choose to be issued a cheque, disbursement of Financial Assistance to you under the Micro-credential Student Loan Agreement may be delayed.
You understand that if you do not agree to the Micro-credential Student Loan Agreement, you will not receive Financial Assistance.
By clicking on the "I agree" button at the end of this agreement you agree to the terms and conditions of the Micro-credential Student Loan Agreement.
This Micro-credential Student Loan Agreement is made between you and Her Majesty the Queen in right of Ontario, as represented by the Minister of Colleges and Universities.
In consideration of Ontario providing Financial Assistance under this agreement and by accepting, you agree to the terms and conditions of this Micro-credential Student Loan Agreement.
“Approved Institution” means an educational institution approved for the purposes of Micro- credential Grants and Micro-credential Student Loans under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA.
“Approved Program of Study” means a program of study approved for the purposes of Micro- Credential Grants and Micro-credential Student Loans under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA.
“Expected Contributors” means, in relation to an individual, another individual who is an expected contributor as defined under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA.
“Financial Assistance” means Micro-credential Grants, Micro-credential Student Loans, Ontario student grants, Ontario student loans, interest-free periods and any other assistance provided under the MTCUA, directly or indirectly to you.
“Grant Overpayment” means any overpayment of a Micro-credential Grant, or any amount of such a grant that exceeds the amount you are eligible to receive as a grant, that you may be required to repay to Ontario.
“Interest-Free Period” means the period of time that no interest on your Outstanding Loan Balance accrues to you.
“Interest-Free Status” means you are eligible for the Interest-Free Period.
“Micro-credential Grant” means a grant issued to you for pursuing a micro-credential under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA for a Study Period that commences on or after January 1, 2021.
“Micro-credential Student Loan” means a student loan issued to you for pursuing a micro-credential under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA for a Study Period that commences on or after January 1, 2021.
“Minister” means the Minister of Colleges and Universities, or any other Minister responsible for the administration of the MTCUA.
“MTCUA” means the Ministry of Training, Colleges, and Universities Act and Regulations made under the Act, as amended from time to time.
“NSLSC” means the National Student Loans Service Centre which administers parts of the Financial Assistance on behalf of Ontario.
“Ontario” means Her Majesty the Queen in right of Ontario, as represented by the Minister of Colleges and Universities.
“Outstanding Loan Balance” means the principal amount of your Micro-credential Student Loan outstanding at any time on or after the date of this Micro-credential Student Loan Agreement with all interest owing on this amount.
“Payment Trigger Date” means the date on which you must begin repayment of your Outstanding Loan Balance.
“Prime Rate” with respect to a rate of interest means the average variable reference rates of interest for a month as determined by each of the Bank of Montreal, the Bank of Nova Scotia, the Canadian Imperial Bank of Commerce, the Royal Bank of Canada and the Toronto Dominion Bank as their rate for Canadian dollar consumer demand loans and calculated without reference to the highest and lowest of these five rates and by averaging the remaining three rates.
“Qualifying Student” means a qualifying student as defined under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA, as amended from time to time.
“Study Period” means the period of study of a program of study approved under O. Reg. 768/20 (Ontario Student Grants and Ontario Student Loans for Micro-Credentials) made under the MTCUA that the educational institution considers to be the normal school year for that particular program, for academic purposes.
The terms and conditions of this Micro-credential Student Loan Agreement are subject to the MTCUA. If there is any uncertainty, dispute, or conflict between the terms and conditions in this agreement and the requirements in the MTCUA, the MTCUA prevails.
a. The terms and conditions in effect at the time any Financial Assistance was provided to you under the MTCUA, before any amendments that may be made by being posted in accordance with the MTCUA, will continue to apply to such Financial Assistance.
b. You are responsible for reviewing the most current terms and conditions of this Micro-credential Student Loan Agreement each time you apply for a Micro-credential Grant or a Micro-credential Student Loan.
Your acceptance of any Financial Assistance made under the Micro-credential Student Loan Agreement will ratify your continuing acceptance of all terms and conditions, including any amended terms and conditions posted in accordance with the MTCUA in place at the time that you accept such Financial Assistance.
If your educational institution owes you a refund of tuition fees paid to the educational institution, you are responsible for repaying to Ontario any portion of such fees that have been paid with the proceeds of your Micro-credential Grant or Micro-credential Student Loan for credit against your Outstanding Loan Balance, if any, or any amount owing as a result of a reassessment described in section 9.
You will owe and, except as may be varied by Ontario or unless you enter into an agreement with Ontario to amend payment terms, you unconditionally promise to pay Ontario, through the NSLSC or as otherwise directed by Ontario, your Outstanding Loan Balance according to the standard payment terms, which are as follows:
a. Interest Rate: simple interest will accrue on the principal amount of your Outstanding Loan Balance at a floating rate equal to the Prime Rate plus 1%, accruing daily and calculated monthly;
b. Payment Trigger Date: the date that you must begin repayment is the first day of the seventh month following the month in which you cease to be a Qualifying Student or such later date determined under the MTCUA;
c. Loan Payment Due Date: is, at the latest, the last day of each month, starting in the month on which the Payment Trigger Date occurs;
d. Loan Payment Amount: is the monthly payment amount calculated using these payment terms, with a minimum monthly payment of $25 per month;
e. Amortization Period: is nine and one-half (9½) years or such other lesser or greater period of time up to fourteen and one-half (14½) years as determined by Ontario (or the NSLSC on behalf of Ontario) in consultation with you;
f. Payment Allocation: payment amounts under this Micro-credential Student Loan Agreement will be applied first to interest and then to principal;
g. Final Lump Sum Payment: any amount of your Outstanding Loan Balance that remains at the end of your Amortization Period;
h. Prime Rate Variance: if the Prime Rate changes significantly it may result in: (1) your loan being paid in full early; (2) the lengthening of your Amortization Period; or (3) you being required to pay a Final Lump Sum Payment;
i. Interest up to Payment Trigger Date: the interest on any Micro-credential Student Loan made to you will start to accrue on the principal amount of your Outstanding Loan Balance on the first day of the month immediately following the month in which you cease to be a Qualifying Student;
j. Automatic Debit: unless you have otherwise agreed to another payment method acceptable to Ontario, in accordance with the MTCUA upon the Payment Trigger Date, Ontario (or the NSLSC on behalf of Ontario) without notice to you, will debit the financial institution account that you have identified to Ontario or the NSLSC;
k. Return of Money to You: subject to any Ontario right of set-off, if it is determined that you have overpaid any amount after you have paid your Outstanding Loan Balance in full, you will be issued a refund;
l. Early Payment: you may pay all or any part of your Outstanding Loan Balance at any time without notice, penalty or bonus;
m. Repayment Programs: there may be programs that can help you repay your Outstanding Loan Balance. Please contact the NSLSC to determine if you meet the eligibility requirements.
If the amount of your Micro-credential Grant or Micro-credential Student Loan during the term of this Micro-credential Student Loan Agreement is reassessed because of a change in your status resulting from a correction, update, verification, or audit, it may affect your future eligibility and the type and amount of future Financial Assistance you may receive. If you have received Financial Assistance in excess of the reassessed amount, you will repay all or part of such excess Financial Assistance in a manner as directed by Ontario.
a. Interest-Free Period: Interest will not accrue to you on the principal amount of your Outstanding Loan Balance while you are a Qualifying Student.
b. Interest-Free Period Ends: Interest will start to accrue to you on the principal amount of your Outstanding Loan Balance on the first day of the month immediately following the month in which you cease to be a Qualifying Student.
c. Interest-Free Period Upon Return to eligible Full-time, eligible Part-time or other eligible Micro-credential Studies: If you return to Qualifying Student status, and you confirm your enrolment as required under the MTCUA:
i. you will be returned to Interest-Free Status for the applicable period;
ii. any obligations you have in respect of your Outstanding Loan Balance up to your confirmation of enrolment will be suspended for the applicable period; and
iii. you will not be required to make payments nor will interest accrue to you on the principal amount of your Outstanding Loan Balance while you remain a Qualifying Student and to the end of the Interest-Free Period as specified in section 10 (b).
d. Interest-Free Period Terminated or Denied: If you do not meet the requirements for an Interest-Free Period under the MTCUA, or your Interest-Free Period is terminated, interest will accrue to you on your Outstanding Loan Balance even if you are in full-time, part-time or other micro-credential studies.
You acknowledge that you may be required to repay all or a portion of your Micro- credential Grant, or any amount of such a grant that exceeds the amount you were eligible to receive as a grant, on a date determined under the MTCUA if:
a. you cease to be enrolled in an Approved Program of Study at an Approved Institution;
b. your circumstances or the circumstances of your Expected Contributors have changed, resulting in a determination that you are no longer eligible to receive a grant or are not entitled to the amount of the grant issued;
c. the Minister cannot, to his or her satisfaction, verify with the Canada Revenue Agency or through other means the financial information reported by the individual or the individual’s Expected Contributors; or
d. an error or mistake has been made.
a. Certification: You certify that all information provided in your application(s) for Financial Assistance and in relation to this Micro-credential Student Loan Agreement is true and complete to the best of your knowledge.
b. Notification of change in information: During any Study Period for which you have received a Micro-credential Grant or Micro-credential Student Loan, you will promptly notify Ontario of any material change in your circumstances in accordance with the MTCUA. Material changes include any change to your family status, financial situation or Qualifying Student status, or to information you have provided in your application(s) for Financial Assistance under this Micro-credential Student Loan Agreement. During any other period during the term of this Micro-credential Student Loan Agreement, you will promptly notify the NSLSC or as otherwise directed by Ontario, directly or through your educational institution if you are a Qualifying Student at the time the change occurred, of any change to your name, address, and/or to your banking information as provided.
c. Authorization for collection, use and disclosure of information: Ontario and any of its contractors, agents, or other authorized third party administrators will collect (directly and indirectly), use, and disclose personal information about you if necessary for the purpose of administering your Financial Assistance under the Micro-credential Student Loan Agreement. You understand and agree that this includes personal information you provide on your application(s) for Financial Assistance, this Micro-credential Student Loan Agreement, and any other grants, loans and awards granted under the MTCUA. You also understand and agree that this includes personal information from any other source including financial institutions, lenders, educational institutions, employers, credit bureaus and Canada Revenue Agency, if it is relevant to the administration of your Financial Assistance. Ontario may also exchange personal information collected from any source with the NSLSC, any financial institution, any educational institution you have attended, any lenders holding any Ontario Student Loans issued to you before August 1, 2001, and any lenders holding any Canada Student Loans issued to you before August 1, 2000, but solely for the purposes of the administration or enforcement of the MTCUA.
d. Personal information about you under the control of Ontario will be administered in accordance with the Freedom of Information and Protection of Privacy Act.
The following events may result in you being denied further Financial Assistance under this Micro- credential Student Loan Agreement, or you being required to immediately pay all or part of your Outstanding Loan Balance:
a. you fail to make three regularly scheduled loan payments by the Loan Payment Due Date in accordance with the payment terms of this Micro-credential Student Loan Agreement;
b. you unequivocally refuse to repay your Outstanding Loan Balance;
c. you became bankrupt within the meaning of the Bankruptcy and Insolvency Act (Canada) or entered into a recognized arrangement for debt settlement as defined in the MTCUA;
d. you are found guilty of an offence under any Act of Parliament or the Ontario Legislature by reason of your conduct in obtaining or repaying Financial Assistance under the Micro- credential Student Loan Agreement or in respect of any student assistance program or any loan, grant or award made by the Government of Ontario, the Government of Canada, or the government of any other province or territory.
This Micro-credential Student Loan Agreement will remain in force notwithstanding your entering into or fulfillment of an agreement to alter payment terms or the full payment by you of your Outstanding Loan Balance, subject to the MTCUA.
a. Death: All your rights and obligations under this Micro-credential Student Loan Agreement in respect of your Outstanding Loan Balance will terminate upon your death.
b. Governing law: The Micro-credential Student Loan Agreement is governed by the laws of Ontario.
c. Limitation period: Under the Limitations Act, 2002, there is no limitation of actions to recover money owing in respect of student loans, awards, or grants made under the MTCUA.
d. Severability: Any provision that becomes void or unenforceable will be severed from this Micro-credential Student Loan Agreement, and the validity and enforceability of all other provisions will not be affected.
e. Interest and costs: You will pay all legal fees and disbursements incurred by Ontario to collect any amount of your Outstanding Loan Balance owing under this Micro-credential Student Loan Agreement, and you will pay interest, in accordance with section 8, before and after default.