Canada Student Financial Assistance Regulations

43.1 (1) In each province participating in the student loan program established by the Act and that is financed by the government, all rights of the Minister terminate in respect of a borrower

• (a) who is indebted under a direct loan entered into as a full-time student, if the borrower dies before the end of the month in which the borrower would have otherwise ceased to be a full-time student; or

• (b) who is indebted under a direct loan, if the Minister is satisfied that the borrower, by reason of the borrower's permanent disability, is or will be unable to repay the loan without exceptional hardship, taking into account the borrower's family income.

(2) In the circumstances set out in subsection (1), the Minister shall cancel the obligation to pay the principal and interest of the loan.

(3) For the purposes of subsection (1), the permanent disability must occur

• (a) in the case of a borrower indebted under a direct loan entered into as a full-time student, before the first day of the seventh month after the month in which the borrower ceases to be a full-time student; and

• (b) in the case of borrower indebted under a direct loan entered into as a part-time student, before the day on which the lender and the borrower enter into the direct student loan agreement.