A Guide to Canada Student Loan Repayment

How, When and Where to Repay Federal and Provincial Student Loans

Jul 10, 2009

After graduation, students often have many questions about how, where, and when to start repaying their Canada Student Loans. Here is a quick guide to the basics.

The how, when and where of repaying Canada Student Loans depends on many factors, including where the student applied for their loans, what year they received them, and whether or not they are still in school.

Most loan programs offer a 6 month grace period after graduation before students must begin making payments on their debt. While no payments are due during this time, it's important to remember that interest will accumulate. Students can choose to start repaying their government loans immediately after leaving school, to pay the interest that will accumulate in one lump sum payment, or to have that interest amount added to the total amount owing.

Students are responsible to make payment arrangements with their lender, and it is recommended that students contact their lender as soon as possible after leaving school in order to arrange a payment schedule.

The NSLSC

The National Student Loan Service Centre assists all students who have received federal loans, as well as those who have received integrated loans in certain provinces. Students can use the NSLSC to do the following:

Provinces With Integrated Loans

Saskatchewan, Ontario, New Brunswick, and Newfoundland and Labrador are provinces that offer integrated loans, meaning that the provincial and federal assistance are paid back together through the NSLSC. Students who received loans in these provinces prior to August 2001 may also have loans held at a bank or financial institution.

Provinces Without Integrated Loans

British Columbia, Alberta, Manitoba, Prince Edward Island and Nova Scotia do not have integrated loans. Students who received financial assistance from these provinces will be making two separate payments: one for their federal loan, and another for their provincial loan. The federal student debt is managed through the NSLSC, but the provincial loan will be repaid through the province or one of their loan service providers. Students who received loans in these provinces prior to August 2000 may also have federal or provincial loans held at a bank or financial institution.

Loans Through Other Provinces

Students who received their loans through Quebec, Nunavut, and the Northwest Territories will deal directly with that province's Student Assistance Office, as these provinces operate their own student funding programs, and do not participate in the Canada Student Loan program.

Part Time Students

Part time students in all provinces will repay their part-time loans through the NSLSC.

Repaying student debt can seem overwhelming for a new graduate. Students should be aware of who they received loans from, and make arrangements as soon as possible to being repaying their loans after leaving school. Students should keep in touch with their lender about changes to their student status, personal information such as address changes, and if they are experiencing financial hardship which may prevent them from making their scheduled payments.

The copyright of the article A Guide to Canada Student Loan Repayment in Student Loans is owned by Catherine Walsh. Permission to republish A Guide to Canada Student Loan Repayment in print or online must be granted by the author in writing.