Student Loan Repayment
Your Child's Student Loan
"Your Child's Student Loans Guide" provide information about student loan sources, loan administration, Consolidation Agreements, and assistance options. Click here to view or download a copy.
The second "Your Child's Student Loans Guide" provides information about student loan basics, student loan responsibilities and consequences for not paying them, repayment assistance options, and Repayment Assistance Plans (RAPs). Click here to view or download the second guide.
The "Student Loans Application To Repayment" diagram illustrates the steps to repaying your student loan. To view this diagram, please click here.
- It is your responsibility to repay your student loans. Protect yourself and your credit rating by doing so in full and on time every month.
- If you received a student loan in order to go to school, you actually received two loans from two different lenders:
- 60% of your total student loan amounts are provided by the Federal Government and is called a Canada Student Loan.
- The remaining 40% is provided by the Provincial Government and is called a Provincial or Newfoundland and Labrador Student Loan.
- For repayment purposes, student loans from both lenders will be consolidated (combined) and administered as one loan.
- Your consolidated student loans will be serviced through the National Student Loan Service Centre (NSLSC).
- You have 6 months from the last day of your program or your last day of class before you have to start repaying your loan. These 6 months are called a grace period.
- The grace period allows for borrowers to find employment before they have to begin repaying their student loans. You may, however, make payments on your student loans during your 6-month grace period, as interest begins to accumulate on Canada Student Loans during this time.
- As of August 1, 2009 no further interest will accumulate on Provincial Student Loans.
- You are responsible for ensuring that your loans are in good standing. Campus representatives and your campus Business Office can provide helpful information and reminders, but the responsibility of paying your loans in full and on time belongs solely to you.
- Your student loans do not and will never go away. They are real loans and lenders will expect that they be repaid just as any loan be repaid.
- There are many repayment assistance options available to student loan borrowers. If you are experiencing financial difficulty before or during the repayment of your student loans, contact the NSLSC at 1-888-815-4514 to apply for repayment assistance. You may be eligible to defer, decrease, or entirely eliminate portions of your student loans.
If you left your program early and did not graduate, here are some things you should know:
- You are still required to repay student loan money borrowed if you withdraw or are dismissed.
- Academy Canada notifies your lenders that you have ended your program early. Therefore, you will have 6 months from your last day of class to start repaying your loan.
- If you are entitled to a tuition refund, it will be sent to the NSLSC to be applied to your outstanding student loan balance.
- You may still have an outstanding balance with Academy Canada depending on when you withdrew from studies. See your campus Business Office to determine if this is the case.
- There are several repayment assistance programs for which you may be eligible. Contact the NSLSC at 1-888-815-4514 to determine if you can receive assistance in repaying your student loans.
Before Finishing Your Studies
- Contact the NSLSC at 1-888-815-4514 to discuss your consolidation agreement and verify your program end date, address and telephone number.
- In consolidating your student loans, you are simply allowing the NSLSC to combine all of your student loans into one larger loan. This makes repayment much more manageable. You will receive, sign and return a consolidation agreement sent by the NSLSC which will inform you of your repayment terms and repayment schedule.
- If the NSLSC has the wrong end date on file it will cause you to enter into repayment of your loans before the end of your 6-month grace period.
- If your lenders have the wrong end date on file for you, contact your campus Business Office to get a Schedule II or Continuation of Enrollment form to complete and submit to the NSLSC. It is important that you do this before your program end date—the NSLSC will not accept this form after you finish your program.
Before Entering Payment
- Contact the NSLSC at 1-888-815-4514 to consolidate your student loans immediately after finishing your program or leaving school.
- If you do not contact your lenders to consolidate your loans, they will do it for you. However, whether you sign a consolidation agreement or not, you will still be responsible for repaying you student loans. Your monthly loan payments will be taken from the bank account into which they were initially deposited. If there is no money in that account, your loans will be considered delinquent and will already be heading toward default.
- Apply for repayment assistance. You may be eligible to defer or significantly decrease your monthly payments or even eliminate portions of your student loan altogether. Call the NSLSC at 1-888-815-4514 to inquire and apply.
- Borrowers have 3 options to consider when deciding how to deal with the repayment of their student loans. The 3 options are explained below:
Option 1: Start repaying your student loan.
- The NSLSC will send a consolidation agreement 4-5 weeks prior to your repayment start date for your review and to be signed and returned.
- Consolidation occurs when the NSLSC combines all of the student loans you’ve had each semester into one loan. This makes repayment easier to track and understand.
- When you receive the consolidation agreement, it will state the interest rate of your loan, the full amount owing on your loan, when your first payment is due, and the amount of each monthly payment.
- It is important to know that even if you do not return the consolidation agreement, you will still be responsible for repaying the loan and the payments will still be deducted from your bank account each month.
- The first payment on your student loans will be required on the last day of the seventh month following your end date. For example, if your program ends August 4, 2010, your first payment is due on March 31, 2011.
Option 2: Review repayment assistance programs if you are experiencing financial difficulties.
- If you are experiencing financial hardship before or during your repayment period and anticipate that you may not be able to make the required monthly payments on your student loan, there are programs available to assist you.
- You must apply for these programs before you miss any payments. Contact the NSLSC at 1-888-815-4514 directly after graduating or leaving school to ask about repayment assistance options. These options include the Repayment Assistance Plan, Payment Deferral, a Revision of Terms, and Debt Reduction Grants. These options are explained in greater detail below.
Option 3: Ignore your loans and go into default.
- If you choose to ignore your student loans, you will go into default. Doing so will cause lenders to quickly take action to recover the money you owe them.
- You will be reported to a credit bureau, where your credit history will be negatively reported.
- Lenders such as banks, credit card companies and car dealerships review your credit history when you apply for a loan, for items such as a house, car or credit card. Landlords also check the credit ratings of potential tenants before renting a house or apartment.
- If such institutions or individuals see that your credit rating has been negatively affected by your irresponsibility with student loan repayment, you may not be eligible to borrow money for a house or car, and may not qualify to own a credit card or rent a property.
- Your information will be shared with the CRA and/or a private collection agency for further collection of your student loan payments.
- When your file is transferred to the Canada Revenue Agency, any income tax refunds or tax rebates for which you are eligible may be intercepted before you receive them so that they may be applied to your outstanding student loan balance.
- If you do not repay your student loans on time, lenders may take legal action against you. This may involve the garnishing of your wages, among other legal consequences.
- By law, you cannot avoid repaying your student loans through declaring bankruptcy.
Repayment Assistance Options
- Repayment Assistance Plan (Canada Student Loan only)
- Repayment Assistance Plan for Borrowers with a Permanent Disability (Canada Student Loan only)
- Payment Deferral (Provincial Student Loan Only)
- Revision of Terms
- Debt Reduction Grant
- Permanent Disability Benefit
1. Repayment Assistance Plan (Canada Student Loan only)
- The Repayment Assistance Plan is designed to help borrowers who are experiencing difficulty in repaying the Canada Student Loan (CSL) portion of their student loans.
- The program allows borrowers to make affordable monthly payments on their loans. Loan payments are calculated based on income, debt amount, and family size.
- No borrower will make payments that exceed 20% of their income and the repayment period will not extend beyond 15 years.
- If a borrower earns a very low income, he/she may not be required to repay until his/her income increases.
- Application is not automatic — borrowers must apply for the Repayment Assistance Plan. Call the National Student Loan Service Centre at 1 888 815 4514 to inquire and apply.
2. Repayment Assistance Plan for Borrowers with a Permanent Disability (Canada Student Loan only)
- The Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD) is available to borrowers with a permanent disability who are having difficulty repaying their student loan debt.
- Loan payments are based on family income, family size, and disability-related expenses (allowable uninsured medical expenses, special care and other expenses directly related to the disability).
- No borrower with a permanent disability will have a repayment period longer than 10 years under the plan.
- You must apply for RAP-PD. Enrolment is not automatic. Call the NSLSC at 1-888-815-4514 to inquire and apply.
3. Payment Deferral (Newfoundland Student Loan Only)
- If you experience difficulty repaying your loan, you may qualify to have the provincial portion of your student loan payment deferred (delayed/postponed) for up to 54 months.
- You must apply for this program. Contact the NSLSC at 1-888-815-4514 for information on the application process.
4. Revision of Terms
- The Revision of Terms option extends the repayment period of your student loan.
- Student loans are normally repaid within 9 years. However, a Revision of Terms may allow your repayment period to increase up to a maximum of 15 years.
- By extending the number of months taken to repay the loan, the monthly payment amounts will decrease.
- You must apply for a Revision of Terms. Contact the NSLSC at 1-888-815-4514 to determine whether a Revision of Terms is an appropriate option for you.
5. Debt Reduction Grants
Debt Reduction Grants are offered by the Provincial Government to help reduce the student loan debt of successful students. This program converts the provincial portion of your student loan into a non-repayable grant, pending you meet the eligibility requirements.
To qualify you must have:
- Graduated from a program at least 80 weeks in duration
- Borrowed more than $165 per week during a semester
- Been successful in at least 80% of a full course load in a semester, except where it is determined that you have extenuating circumstances
- Completed an Information Release Form from your campus Business Office. This release form gives Academy Canada authorization to confidentially share your financial and academic information with Student Aid in order to determine your eligibility for the Debt Reduction Grant.
6. Permanent Disability Benefit
The Permanent Disability Benefit is available to borrowers with a severe permanent disability. If you have a severe permanent disability, you may be eligible to have your loans immediately forgiven.
- The Canada Student Loans Program defines a severe permanent disability as preventing you from working and from participating in post-secondary education.
- You must apply for the Permanent Disability Benefit. Enrolment is not automatic. Call the NSLSC at 1-888-815-4514 to inquire and apply.
Your responsibilities as a student include, but are not limited to:
- Reporting changes in your address, telephone number, name, marital status, financial status, or student status (withdrawal, transfer to part-time studies, or change of school or program) to the NSLSC. Call the NSLSC at 1 888 815 4514 to make such changes.
- Providing proof of enrollment to the NSLSC in the form of a Continuation of Enrollment form, available at your campus Business Office.
- Contacting the NSLSC to set up your repayment schedule immediately after you finish your program of study or leave your program without graduating - you must repay your student loans whether you graduate or not.
- Educate yourself on your student loans and the repayment of your student loans.
- Maintain contact with the NSLSC during and after your study period.
- Protect yourself by documenting and safely storing all correspondence and conversations regarding student loans.
- Protect yourself and your credit rating by making your student loan payments on time and in full every month.
The federal government provides access to post-secondary education through federally funded loans. The National Student Loan Service Centre (NSLSC) is managed by the federal government to administer and maintain all student loans belonging to all Canadian student loan borrowers.
The responsibilities of the NSLSC include those listed below, among many others.
- Processing your student Loan documents (the documents you sign to accept your loan once your application has been assessed by the provincial Student Aid office).
- Arranging for student loans to be released to students and deposited into bank accounts.
- Managing student loans during and after a student’s study periods.
- Working with students to establish and manage a repayment schedule.
- Administering repayment assistance programs for student loan borrowers.
Student Aid is a division of the Government of Newfoundland and Labrador’s Department of Education. Student Aid has various responsibilities, some of which include:
- Creating and updating application forms, program guides and informational tools available to students and educational institutions.
- Communicating information about all relevant programs and services to student loan borrowers and educational institutions.
- Working with student loan borrowers and educational institutions in many capacities to ensure students properly receive and repay their loans.
- Assessing the financial need of each student loan applicant.
- Authorizing the amount of funding to be provided to qualifying students through federal and provincial loan, bursary, and grant programs.
- Carrying out credit checks, when necessary.
- Reviewing student loan assessments on request.
- Assessing students for bursaries or grants and distributing these bursary/grant cheques.
Post-secondary educational institutions have various responsibilities in supporting their student loan borrowers. Educational institutions play a fundamental role in helping students obtain, manage and repay student loans.
The responsibilities of educational institutions include, but are not limited to:
- Educating and counseling students on the responsibilities of borrowing student loans, as well as educating borrowers on all available student financial assistance programs as well as all repayment assistance programs available.
- Confirming student enrolment in school by signing a Confirmation of Enrolment form. The form is forwarded to the NSLSC as proof of full or part time studies.
- Making all information and documents concerning student financial assistance and loan repayment available to students.
- Keeping students up to date on all student loan issues, changes, or repayment assistance options.
- Communicating with students, Student Aid and the NSLSC to resolve all issues that may arise regarding student loans.
Helpful Tips/For Your Information
- Contact the NSLSC at 1-888-815-4514 to determine your repayment start date and confirm consolidation—the combination of all your loans into one loan for repayment purposes.
- Protect yourself by documenting and safely storing or filing all conversations and correspondence relating to your student loans. More particularly, keep track of dates, names and discussions. For example, keep notes like the one below:
- January 15, 2011. Spoke with Kelly at NSLSC. Wrong program end date on file. Need to get Schedule II form from Business Office.
- The NSLSC manages and administers the loans of millions of students. This means that letters or phone calls that you should receive may not reach you on time or may not reach you at all.
- Protect yourself by calling throughout your study period (i.e. once each semester) to determine your total loan amount, your repayment start date, your monthly repayment amount, repayment assistance options available, or to ask any questions regarding your loans.
- Call the NSLSC immediately before and after you finish your program to ensure that you apply for available repayment assistance options and that you are prepared to make your monthly loan payments in full and on time.
- If you have applied for, or have been approved for repayment assistance, contact the NSLSC to ensure that the repayment assistance you receive is applied accurately to your loans.
- If you have trouble understanding the person you reach at the NSLSC due to a language barrier, or feel that you are being misinformed, politely hang up and call again. You will likely reach someone else.
- Be responsible for your loans and your future as a loan borrower. Keep your student loans in good standing and ensure that you do not go into default due to making late payments or missing payments altogether.
Amortization: The amount of time, usually expressed in months or years, required to fully repay the principal and interest of a loan.
Appeal: A request sent to Student Aid by a loan borrower to review or reconsider an initial student loan needs assessment. Borrowers must submit a written appeal to a provincial Student Aid office, outlining the details of the appeal and providing evidence as to why they need an alternate amount of student loans.
Assessment: The process through which the provincial Student Aid office determines a borrower’s student loan amounts based on their financial need.
Collection Agency: A company hired to collect money owing on accounts (such as a student loan) from customers who are behind on their payments.
Consolidation: The act of combing all loans into one larger loan for the purposes of repayment. A consolidation agreement is sent from the NSLSC to all student loan borrowers 4-5 weeks prior to the start of repayment. The consolidation agreement indicates the total amount of student loans borrowed, the interest rates, repayment schedule, and amount of each monthly payment and the terms of repayment. Credit Bureau: A company that collects and assesses the personal and financial information of borrowers and consumers. This information is gathered from various sources and provides consumer credit information to businesses. The information is made available by the request of such businesses that are customers of the credit bureau, such as mortgage brokers, banks, credit card companies, car dealerships or landlords. Businesses request consumer credit information for the purposes of conducting a credit risk assessment or determining a customer’s credit score. In doing so, businesses determine if a particular consumer is an ideal candidate to obtain and manage a loan for items such as a house, car or credit card.
Credit Rating: A credit rating estimates the credit worthiness of an individual. It is an evaluation made by a credit bureau through the collection and assessment of a borrower’s overall credit history. A credit rating is an evaluation of a potential borrower's ability to repay debt, prepared by a credit bureau at the request of the lender. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan in a timely manner. A poor credit rating indicates a high risk of defaulting on a loan, and often results from previous loan defaults. A poor credit rating leads to higher than normal interest rates or the refusal of a loan by a potential lender.
Default: A student loan is considered to be delinquent when payments are behind by at least one month. Loans are considered to be in default when payments are behind by at least nine months, not necessarily consecutive. A payment is considered to be missed or behind even if it is only one day late.
Financial Institution: A bank or credit union. Financial instructions only deal with student loans issued before August 1, 2000.
Grace Period: The six-month period after a student departs school, either by graduating, withdrawing from a program early (dropping out), being dismissed (expelled) or by taking time off. Loan payments are not required during your grace period, although interest on your Canada Student Loan begins to accumulate during this period.
Grant: A grant is a non-repayable loan - money that you do not have to pay back. For instance, Debt Reduction Grants are offered by the provincial government. If you qualify for such a grant, the provincial government will pay for a portion of your student loans and you do not have to repay that money.
Integrated Student Loan: In Newfoundland and Labrador, student loans are provided by two lenders: the provincial government (40%) and the federal government (60%). Newfoundland and Labrador student loan borrowers have integrated student loans because the provincial and federal portions of their loans are integrated or combined to pay for tuition, books, etc. The Government of Canada and the Government of Newfoundland and Labrador combined their full-time loans programs effective April 1, 2004.
Loan: Money borrowed from a lender (i.e. Government of Newfoundland and Labrador or Bank of Montreal) that must be repaid on time and with interest. A student loan is a loan granted to a student for the purposes of paying for tuition, books and other associated expenses that may arise during a student’s study period.
NSLSC: The National Student Loan Service Centre is a business overseen by the federal government for the purposes of managing student loans during students’ study period and repayment periods. The NSLSC is the point of contact for all student loan borrowers if they have questions, concerns, issues, or need help with making their monthly loan payments. Contact the NSLSC at 1 888 815 4514 or at http://www.canlearn.ca.
Repayment Assistance: Various forms of help available to student loan borrowers who are facing difficulty making their monthly payments on time and in full. There are repayment assistance options available that may allow you to defer, decrease or eliminate portions of your student loan. Contact the NSLSC at 1 888 815 4514 to inquire and apply.
Schedule II: A Confirmation of Enrollment form that student loan borrowers and their respective educational institution must complete together in order to inform the NSLSC that a student is still enrolled in full time studies. This document keeps student loans interest free and ensures that students do not begin repayment of their student loans while still completing full-time studies
Student Aid: A division of the Government of Newfoundland and Labrador’s Department of Education, Student Aid deals solely with helping students obtain, manage and repay student loans required for receiving a post-secondary education in Newfoundland and Labrador. There are Student Aid representatives located in various places throughout the province. Students should take advantage of such representatives when they visit the campus. If students have problems with their loan application or are having trouble with any aspect of their loan, they are encouraged to call or visit their nearest Student Aid office. For more information contact Student Aid at 1 888 657 0800 or visit http://www.gov.nl.ca/studentaid.
Student Loan Repayment Questions
This Student Loan Repayment Guide will answer many of the questions and concerns you might have. There's also a checklist of important items for you to know and a list of phone numbers and websites that can assist you further.
Click here to obtain a copy of the Student Loan Repayment Guide in PDF format.
If you have any questions about Student Loans, please feel free to contact us at 1-800-561-8000.
Important Numbers and Addresses
National Student Loan Service Centre (NSLSC)
Toll Free: 1-888-815-4514
Studet Aid (Government of Newfoundland and Labrador)
St. John's Office
Coughlan College, Memorial University
216 Prince Phillip Drive
St. John's, NL
Toll free: 1-888-657-0800
Corner Brook Office
113 Riverside Drive
Corner Brook, NL
Toll free: 1-877-771-3737
Academy Canada Campuses
Corner Brook Campus
2 University Drive
Corner Brook, NL
Toll free: 1-800-561-8000
Kenmount Road Campus
167-169 Kenmount Road
St. John’s, NL
Telephone: 709 739 6767
Toll free: 1-800-561-8000
Harding Road Cmapus
37-45 Harding Road
St. John’s, NL
Telephone: 709 722 9151
Toll free: 1-800-561-8000