- When Do You Pay Back Your Loan
- Making Payments on Your Loan
- Interest Rates on Your Student Loans
- If You Can’t Make a Payment
When Do You Pay Back Your Loan
It is time to start repaying your loan six months after you:
- have graduated from your studies;
- have transferred to part-time studies;
- have left school; or
- are taking time off school for more than six months.
For the first six months after you leave school, you will not have to make payments to your Canada Student Loan or NL Student Loan. This is called your six month non-repayment period or grace period. You should be aware that during this period, interest does accumulate on your Canada Student Loan. The NL Student Loan is always interest free.
Note: Effective November 1, 2019, the Canada Student Loan portion of you student loan will be interest-free during your grace period. This change is subject to the Government of Canada legislative and regulatory approval.
Repayment begins six months after the completion of your part-time or full-time studies (i.e., at the end of the non-repayment period).
You are not required to make payments on your loan while you are in-study, and interest does not begin to accrue until your studies are complete or you are no longer a student.
Note: You are not required to make payments on your part-time loan if you are a full-time student. Your school must confirm your enrolment with the National Student Loans Service Centre. Part-time students with a full-time student loan are required to follow the repayment schedule for their full-time loan and interest will continue to accrue while enrolled in part-time studies. Contact the National Student Loans Service Centre to determine your status.
Making Payments on Your Loan
When you are nearing the end of your 6 month non-repayment period you should receive a notice that your loan repayment is about to begin. If you have not received notification, make sure you contact National Student Loans Service Centre (NSLSC) 1-888-815-4514. If you have both a full-time and part-time student loan, you will be required to set up two separate payment schedules.
It is your responsibility to contact NSLSC to set up a repayment schedule. If you do not make contact, your loan payments may be automatically withdrawn from your bank account. Always ensure your contact information is up to date with the NSLSC.
You will want to review all aspects of your loan(s) and finalize details concerning:
- how much you owe;
- the interest rate that will be applied to your loan(s);
- the bank account you will use to repay the loan;
- the monthly amount that will be withdrawn from your bank account;
- the date it will be withdrawn;
- how long it will take to pay back your loan(s).
Monthly payments can be made to NSLSC through automatic withdrawal, by cheque, online banking or telephone banking.
You can log into your NSLSC account to access your repayment details.
Claiming interest payments on income tax: You are eligible to make a claim on your Federal Income Tax Return for any interest paid on your Canada Student Loan. Log into your account at NSLSC to access your T4A. The NL Student Loan is always interest-free.
Interest Rates on Your Student Loans
- No interest will accumulate on the Newfoundland and Labrador portion of your student loan.
- The interest rate on your Canada Student Loan is prime plus 2.5% floating.
- You have the option of a one-time lock in on your Canada Student Loan at prime plus 5%.
Note: Effective November 1, 2019, interest rates on the Canada Student Loan portion of your student loan will be lowered. For fixed rate, interested is lowered from prime plus 5% to prime plus 2%. For floating rate, interest will be lowered from prime plus 2.5% to prime only. These changes are subject to the Government of Canada legislative and regulatory approval.
If You Can’t Make a Payment
Worried that you can’t make your loan payment? Already missed a payment? There are repayment assistance options that may be able to help. Contact the National Student Loans Service Centre (NSLSC) for more information.
- Through the Repayment Assistance Plan (RAP) you may qualify for a reduced monthly payment or no monthly payment. (You will need to reapply every six months.)
- Under the Revision of Terms measure, you can ask to have your student loan payments decreased if you are having difficulty repaying your student loan debt or increased if you wish to pay off your loan debt more quickly.
- Through the Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD) you may qualify for a reduced monthly payment (or no monthly payment at all) and consider expenses related to your disability in determining eligibility.
- You may be eligible to have your loans forgiven through the Severe Permanent Disability Benefit if you have a severe permanent disability.
- You may be eligible for Canada Student Loan Forgiveness for Family Doctors and Nurses if you are working as a family doctor, resident in family medicine, nurse or nurse practitioner in a designated rural or remote community.
If you have defaulted on your loan and it has gone to collection, refer to Default/Collections/Rehabilitation.