1. Definitions
“ALA” means the Apprentice Loans Act and the Apprentice Loans Regulations, as in effect at any given time, and as available through the Department of Justice at the following website address: www.justice.gc.ca.
“Canada Apprentice Loan” means an apprentice loan made under section 4.1 of the ALA.
“CALAA” means the Canada Apprentice Loan Application and Agreement.
“CALSC” means the Canada Apprentice Loan Service Centre, which administers parts of the Financial Assistance programs on behalf of Canada.
“Apprentice” means a person who is registered with a province or territory as an apprentice in a Red Seal Trade as confirmed through: (a) confirmation of enrolment from a Technical Training Provider for the purposes of receiving Canada Apprentice Loan funding for a Technical Training Period; or (b) confirmation of continued apprenticeship from a Province/Territory of Registration for the purposes of extending a payment-deferred period.
“Financial Assistance” means Canada Apprentice Loans, interest-free periods, repayment assistance, and any other form of financial assistance provided under the ALA, directly or indirectly to you.
“Outstanding Loan Balance” means the principal amount of your Canada Apprentice Loans outstanding at any time, together with all interest on this amount, if applicable.
“Province/Territory of Registration” means the provincial or territorial apprenticeship authority that you are registered with for the purposes of completing your Red Seal Trade and is the authority that assigns your apprenticeship registration number.
“Red Seal Trade” means an eligible trade as per Schedule 1 of the ALA, as designated by your Province/Territory of Registration and recognized by the Interprovincial Standards Red Seal Program (see program details at the following website address: www.red-seal.ca).
“Technical Training” means full-time formal instruction or training that is offered by your Technical Training Provider and determined by your Province/Territory of Registration as an essential element of your apprenticeship program and required for the practice of your Red Seal Trade.
“Technical Training Period” means the duration of your Technical Training as established by your Province/Territory of Registration and as confirmed by your Technical Training Provider.
“Technical Training Provider” means an institution authorized by your Province/Territory of Registration to deliver Technical Training, whether in your Province/Territory of Registration or in another province or territory.
2. Agreement
This agreement is between you ("you" or "your"), as identified under Personal Information, and His Majesty the King in Right of Canada, as represented by the Minister of Employment and Social Development ("Canada"), and is made pursuant to the ALA and called the CALAA.
In consideration of Canada providing Financial Assistance under this CALAA, and, by checking the box under the CALAA, you agree to the terms and conditions of this loan contract.
3. General Principles
Subject to you meeting the requirements of the ALA and respecting the terms and conditions of this CALAA, you may be eligible for Canada Apprentice Loans up to the maximum $4,000.00 per Technical Training Period and five Technical Training Periods within a lifetime cumulative period of six years of interest-free and/or payment-deferred status, and you are not required to make payments on your Outstanding Loan Balance while you are an Apprentice.
4. Amended Terms and Conditions
At any time, and in its sole discretion, Canada may amend the terms and conditions of the CALAA. Canada will post the amended CALAA on the Canada Apprentice Loan Service Centre (CALSC) website. Any and all such amendments are effective immediately upon posting. You agree to review the CALSC website and the Terms and Conditions of the CALAA at least every 90 days in order to be aware of any such amendments that may affect your rights and obligations under this agreement. If you decide that you do not want to accept the amended terms and conditions of the CALAA, you must advise Canada of your refusal by contacting the CALSC in writing at Canada Apprentice Loan Service Centre, P.O.Box 2061, Mississauga, ON, L5A 4M4 within 90 days of the date of posting of the amendments, at which time you may be denied further Financial Assistance or payment-deferred status, or be required to immediately pay all or part of your Outstanding Loan Balance. If you have not so advised Canada and (i) you apply for, or receive, new Financial Assistance or (ii) retain an Outstanding Loan Balance, after the 90 day period following the date of posting of the amended terms and conditions of the CALAA, it will mean that you accept the amended terms and conditions of the CALAA.
5. Electronic Funds Transfer
The approved amount of any Canada Apprentice Loan funding disbursed under the CALAA will be electronically deposited into your financial institution account as entered under Banking Information, which must be an account at a financial institution established in Canada held in your name, solely or jointly. Electronic withdrawals may also be made from this financial institution account when payment is triggered, as per section 6(c)(iii), subject to your right of revocation, as per section 6(e). If you fail to provide your financial institution account information, disbursement of your Canada Apprentice Loan funding may be delayed.
6. Return of Money
(a) Agreement to Repay: You promise to pay your total Outstanding Loan Balance in accordance with the terms and conditions of this CALAA.
(b) Early Payment: You may pay all or any part of your Outstanding Loan Balance at any time without notice, penalty or bonus.
(c) Payment Terms: Unless you enter into an agreement to alter payment terms, you agree to pay your Outstanding Loan Balance according to the standard payment terms, which are as follows:
(i) Principal and Interest: your Outstanding Loan Balance;
(ii) Interest: As of April 1, 2023, interest will not accrue on your Outstanding Loan Balance. You are responsible for payment of any interest that may have accrued before April 1, 2023.
(iii) Payment Trigger Date: is the first day of the seventh month following the month in which you cease to be an Apprentice;
(iv) Loan Payment Due Date: is, at the latest, the last day of each month, starting on the seventh month following the month in which you cease to be an Apprentice;
(v) Loan Payment Amount: is the monthly payment amount calculated using these payment terms (minimum monthly loan payment amount of $25);
(vi) Amortization Period: nine and one-half (9½) years, or such lesser or greater period of time up to fourteen and half (14½) years as determined by Canada (or the CALSC on behalf of Canada) further to consultation with you minimum monthly loan payment amount of $25;
(vii) Payment Allocation: payment amounts may be applied first to interest and then to principal;
(viii) Final Lump Sum Payment: any amount of your Outstanding Loan Balance that remains at the end of your Amortization Period.
(d) Interest up to Payment Trigger Date: Unless you pay any interest that may have accrued before the Payment Trigger Date, that interest will be added to the principal amount of your Outstanding Loan Balance.
(e) Personal Pre-Authorized Debit: Unless you otherwise agree in writing, upon the Payment Trigger Date, you authorize Canada to debit your bank account identified under the Banking Information part of this CALAA or such other bank account as advised in writing in order to collect your Outstanding Loan Balance as follows:
You grant your revocable authority and direction to Canada, and any financial institution which holds such a bank account, to:
(i) exchange the financial information necessary to facilitate such Personal Pre-Authorized Debits according to the Canadian Payments Association Rule H1; and
(ii) debit the bank account on each Loan Payment Due Date, for the Loan Payment Amount in accordance with the payment terms of this CALAA, and to remit that as payment to Canada.
You waive any requirement to receive written pre-notification of Personal Pre-Authorized Debits. You may revoke your authorization at any time, subject to providing 30 days notice. You have certain recourse and reimbursement rights if any debit does not comply with the terms of this section. To obtain a sample cancellation form, or for more information on your right to revoke this authorization and your recourse rights to dispute or receive reimbursement for any debit that is not authorized or is not consistent with the terms of this section, you may contact your financial institution or visit: www.payments.ca. Revocation of your authorization does not terminate your responsibility to pay your Outstanding Loan Balance; it only terminates the method of payment.
(f) Return of Money to You: Subject to any right of set-off, if you have overpaid $10 or more than your Outstanding Loan Balance, you will be issued a refund. Refunds of less than $10 will only be issued on your request.
7. Payment-Deferred Period
Subject to section 9, and the requirements of the ALA:
(a) Payment-Deferred Period: No payments on your Outstanding Loan Balance are required to be made while you are an Apprentice provided that you confirm your enrolment or continued apprenticeship as required by the ALA.
(b) Payment-Deferred Period Ends: You are required to begin paying your Outstanding Loan Balance on the last day of the seventh month following the month in which you cease to be an Apprentice.
(c) Payment-Deferred Period Upon Return to Apprentice Status: If you return to Apprentice status, and you confirm your enrolment or continued apprenticeship as required by the ALA:
(i) you may be returned to payment-deferred status; and
(ii) any obligations you have in respect of your Outstanding Loan Balance up to your confirmation of enrolment or continued apprenticeship may be suspended.
(d) Maximum Number of Years of Payment-Deferred Status: As prescribed by the ALA, you are entitled to no more than six years of interest-free status and payment-deferred, as applicable. If you remain an Apprentice after you have reached the maximum number of years, you will be required to start making payments on your Outstanding Loan Balance as per section 6(c).
(e) Payment-Deferred Period Terminated or Denied: Termination or denial of a payment-deferred period can result if you do not meet the requirements for payment-deferred status under the ALA.
8. Information
(a) Notification: You agree to promptly notify Canada of any change to information you have provided in this CALAA, or change to your status as an Apprentice.
(b) Certification: You certify that all information provided in this CALAA is accurate and complete to the best of your knowledge.
(c) Complete Disclosure: You confirm that, to the best of your knowledge, all information that you have disclosed relating to any previous Canada Apprentice Loan(s) is accurate and complete.
(d) Acknowledgement and Consent: You acknowledge that Canada, and any of its contractors or agents, may collect, use, and retain your personal information directly from you, or indirectly from a third party. Your personal information will only be used for the purpose of administering your Financial Assistance under this CALAA, and administering and enforcing the ALA. Your personal information may be exchanged with and disclosed to the Social Insurance Registry, credit bureaus, Technical Training Provider, Province/Territory of Registration, financial institutions, employers, and the Canada Revenue Agency. The collection, use, exchange and disclosure will be undertaken as required and in compliance with the Privacy Act, and Part 4 of the Department of Employment and Social Development Act. Where your consent is required by law to permit the direct or indirect collection, retention, use or disclosure of personal information, by your acceptance of the Terms and Conditions of this CAL Agreement, you provide your consent.
(e) Authorization: You authorize any of your current, past or future employers to release to Canada or its contractors or agents, information to locate you including your name, Social Insurance Number, date of birth, apprenticeship registration number, banking information, permanent and mailing address, telephone numbers, employer, and Technical Training Provider(s) address(es) for the purpose of enforcing your obligations pursuant to this CALAA.
9. Denial, Termination and Immediate Repayment
You agree that the following events may result in you being denied further Financial Assistance or you being required to immediately pay all or part of your Outstanding Loan Balance:
(a) you fail to make a regularly scheduled loan payment by the Loan Payment Due Date in accordance with the payment terms of this CALAA, as per section 6(c)(iv), and that failure continues for two consecutive months;
(b) you fail to make any regularly scheduled loan payment(s) by the Loan Payment(s) Due Date in accordance with the payment terms of this CALAA, as per section 6(c)(iv), and Canada demands that you make the payment(s) and you demonstrably and unequivocally refuse to do so;
(c) you file for or have filed against you any bankruptcy-related proceeding;
(d) you seek relief under a provincial or territorial law relating to the orderly payment of debts that includes a Canada Apprentice Loan;
(e) you are found guilty of an offence under any Act of Parliament by reason of your conduct in obtaining or repaying Financial Assistance; or
(f) you knowingly provided information or made representation related to your application or other document upon which the Minister takes administrative measures under section 20.1 of the ALA; or
(g) you advise Canada of your refusal to accept amendments to the terms and conditions of the CALAA made in accordance with section 4 of the CALAA.
10. Miscellaneous
(a) Ratification: If you have entered into any Canada apprentice loan agreements while you were a minor, by your acceptance of the Terms and Conditions of this CALAA, you ratify and affirm those agreements.
(b) Previous Outstanding Canada Apprentice Loan Amounts: You agree that all amounts you owe on previous Canada Apprentice Loans will be administered and paid under the Terms and Conditions of this CALAA, and that all such amounts are consolidated into and form part of your Outstanding Loan Balance.
(c) Death: All your rights and obligations under this CALAA in respect of your Outstanding Loan Balance will terminate upon your death.
(d) Governing Law: This CALAA will be governed and construed in accordance with the laws of the province/territory in which you are or were last registered as an Apprentice, and by the federal laws of Canada applicable therein.
(e) Limitation Period: You acknowledge that the period for the limitation of actions will be six years.
(f) Use of Financial Assistance: You acknowledge that the Financial Assistance provided to you under this CALAA is to assist you in participating in Technical Training.
(g) Survival: This CALAA will remain in force notwithstanding your entry into or fulfillment of an agreement with Canada to alter payment terms.
(h) Severability: Any provision that becomes void or unenforceable will be severed from this CALAA, and the validity and enforceability of all other provisions will not be affected.
(i) Interest and Costs: You agree to pay all legal fees and disbursements incurred by Canada to collect any amount of your Outstanding Loan Balance owing under this CALAA, and you agree to pay interest, if applicable, before and after default and delinquency. You agree to pay interest before and after judgment, as applicable.
NOTICE OF COLLECTION OF PERSONAL INFORMATION
The personal information is collected and used for the administration of Canada Apprentice Loans under the authority of the Apprentice Loans Act (ALA), and in accordance with the Privacy Act and Part 4 of the Department of Employment and Social Development Act.
Administration and enforcement of Canada Apprentice Loans means development and operation of Canada Apprentice Loans, including investigations into allegations of wrongdoing, audits, and policy analysis, research and evaluation.
The Social Insurance Number (SIN) is collected by the Minister of Employment and Social Development under the express authority of the ALA and in accordance with the Treasury Board Secretariat Directive on Social Insurance Number (SIN). The SIN will be used for the administration of Canada Apprentice Loans under the ALA. The SIN will be used as a file identifier and, along with the other information you provide, will also be used to validate your application, to administer your Canada Apprentice Loans and to enforce your obligations as set out in the ALA. You must provide your SIN and the other personal information requested on this form to be considered for Canada Apprentice Loans.
The information you provide may be used and/or disclosed for policy analysis, research and/or evaluation purposes. However, these additional uses and/or disclosures of your personal information will never result in an administrative decision being made about you.
You have the right to the protection of and access to your personal information. The details of the collection and used is described in Personal Information Bank Student Financial Assistance ESDC PPU 030 and Canada Apprentice Loans ESDC PPU 709. Instructions for obtaining this information are outlined in the government publication entitled Information about Programs and Information Holdings, which is available at the following website address: https://www.canada.ca/en/employment-social-development/corporate/transparency/access-information/reports/infosource.html. Information about Programs and Information Holdings may also be accessed on-line at any Service Canada Centre.
You have the right to file a complaint with the Privacy Commissioner of Canada regarding how we handle your personal information at: https://www.priv.gc.ca/en/report-a-concern/file-a-formal-privacy-complaint/https://www.priv.gc.ca/en/report-a-concern/file-a-formal-privacy-complaint/.
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