Repaying

When You Must Repay Your Loans

Full-Time Students:

You are responsible for beginning to repay your loan six months after you have completed your studies or have stopped being a full-time postsecondary student.

Important!

Interest on your loan builds from the time you stop being a full-time postsecondary student.

The actual rates and conditions for repayment are set at the time you begin repaying. In addition, it is important to realize that if you have negotiated more than one loan, you may be responsible for making repayment arrangements with more than one agency.

You must contact the National Student Loans Service Centre (NSLSC) to make repayment arrangements if you have any of the following:

• Canada Student Loans negotiated on or after August 1, 2000, or
• Canada-Ontario Integrated Student Loans negotiated after July 31, 2001.

You must contact the financial institution (bank, credit union, or caisse populaire) holding the loan(s) to make repayment arrangements if you have either of the following:

• Canada Student Loans negotiated before August 1, 2000, or
• Ontario Student Loans negotiated before August 1, 2001

Part-Time Students:

You are responsible for making interest payments on your Part-Time Canada Student Loan while you are in school. Six months after you have completed your studies and/or stopped being a part-time student, you are responsible for beginning to repay the principal and interest on your Part-Time Canada Student Loan.

The actual rates and conditions for repayment are set at the time you begin repaying. You must contact the NSLSC to make repayment arrangements. If you are unable to meet your repayment obligations, you may be eligible for interest relief. Contact the NSLSC for further information.

How to Repay:

During the six-month period after your studies end, you must contact the National Student Loans Service Centre (NSLSC) and/or the financial institution holding your loans to make arrangements to repay your loan(s). You are not required to make any loan payments during the six month period. However, interest will begin to accrue on your outstanding loans during this period. If you choose to do so, any loan payment(s) will be applied against the outstanding principal.

You are required to start making loan payments the first day of the seventh month following the month your studies ended. This is called your "consolidation date". For example if you finish school in April, your consolidation date would be the first day of November.

Before your consolidation date, the NSLSC will send you what is called the Consolidation Agreement. It tells you how much you owe, your expected monthly payment and the interest rate. You are required to sign and return a copy of the Consolidation Agreement.

As of your consolidation date, the amount of interest which accrued in the six-month period after your studies ended is calculated and you can either pay the interest or add (capitalize) it to your loan principal. If you choose to capitalize the interest, your financial institution and/or the NSLSC will adjust your monthly payment amount accordingly.