Lori Meadows
If you have a student loan from the Government of Canada, you can contact your province or territory to arrange payments or for information on your loan. You can also log in to your National Student Loans Service Centre (NSLSC) account to access tools to help you find a repayment plan. There is a 6-month non-repayment period before you must start making payments. If you are having trouble making a payment, you can look into the types of repayment assistance offered by the government.
| Characteristics | Values |
|---|---|
| Non-repayment period | 6 months |
| Arrangement of payments | Contact your province or territory |
| Missed payments | Contact the National Student Loans Service Centre (NSLSC) |
| Loan in collection | Contact the CRA |
| Unable to pay | Look into repayment assistance |
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What You'll Learn
Contact your province or territory
To pay off your student loan in Canada, you must contact your province or territory to arrange payments and receive information on your loan. Each province or territory has its own process for loan repayment, so it is important to contact the correct authority to ensure you are receiving accurate information.
You can reach out to the relevant department or ministry of education, or the student financial assistance office, in your province or territory. They will be able to provide you with the necessary information on how to proceed with your loan repayment. It is recommended to have your loan details on hand when contacting them, including your loan agreement and any relevant documents.
Additionally, you can enquire about the various repayment options available. Some provinces may offer flexible payment plans or allow you to customize your payments. It is in your best interest to understand the terms and conditions of your loan, including any applicable interest rates and the possibility of repayment assistance programs.
Remember that federal and provincial loans are repaid separately. You can repay your federal loan through the National Student Loan Service Centre (NSLSC). However, for provincial loans, you will need to make payments directly to your province or territory. They can provide you with the specific methods and options available for provincial loan repayment.
By proactively contacting your province or territory and understanding the repayment process, you can ensure that you are well-informed and prepared to manage your student loan effectively.
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Payment arrangements
When it comes to paying back your Canadian student loan, there are a few things to keep in mind in terms of payment arrangements. Firstly, there is a 6-month non-repayment period after you graduate or leave full-time studies during which you are not required to make any payments. This grace period is applicable to both federal and provincial loans. After this grace period, you will need to start making regular payments on your loan.
The specific arrangements for repayment will depend on the province or territory where you took out the loan. It is important to contact your respective province or territory to arrange payments and get detailed information about your loan, as there may be different eligibility criteria and assistance programs offered. For example, in Ontario, you will receive a package from the National Student Loans Service Centre with information about your repayment terms, including the amount owing, the repayment start date, and the repayment amount. It's important to note that you make loan payments to the National Student Loans Service Centre, not to OSAP.
There are various payment options available for repaying your student loan. One option is pre-authorized debit, where you can activate online payments to automatically make monthly payments. You can also make one-time lump-sum payments through the NSLSC website to accelerate loan repayment. Additionally, you have the flexibility to make additional payments at any time if you wish to repay your loan faster.
It is important to stay on top of your student loan payments to avoid any penalties or consequences. In Ontario, for instance, an OSAP loan is considered in default if payments are not made for 270 days. This can result in your debt being transferred to the Ministry of Finance or a collection agency, and they may take action to collect the debt through various means, including placing a lien on your assets or using your income tax refund to offset the debt.
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Repayment assistance
If you are facing financial difficulties and are unable to pay your Canada student loan, you can apply for a Repayment Assistance Plan (RAP). The RAP is a plan where the Government of Canada can help you pay toward your loan. Depending on your income, you may qualify for reduced payments or no payments at all. You can apply for this assistance as soon as you start to repay your student loans, and you must re-apply every 6 months to stay eligible. If approved for RAP, the government will pay any interest owing on the federal part of your loan that your reduced payment does not cover. After 60 months of RAP or 10 years after you finish school, the government will start to pay down both the principal and any remaining interest.
There are certain restrictions and conditions attached to the RAP. For instance, once the federal government has paid toward your principal payment while on RAP, you cannot receive more student grants or loans. You will need to pay your unpaid loans back before you can apply for more. Additionally, if you return to school, you do not need to make payments on existing student loans, but this does not apply if you are on RAP-D.
It is important to note that there is a 6-month non-repayment period before you must begin making payments on your Government of Canada student loans. During this time, you can assess your financial situation and apply for repayment assistance if needed.
To arrange payments or for more detailed information about your specific loan, you should contact your province or territory. Each province or territory may have its own specific repayment assistance programs, such as the Alberta Student Aid program, which offers loans, grants, scholarships, and awards for eligible students. Additionally, family doctors, residents, or nurses working in rural or remote areas may qualify for specific repayment assistance programs.
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Non-repayment period
There is a 6-month non-repayment period for Canada Student Loans. During this time, you are not required to make any payments on your loan. However, you can choose to make voluntary payments during this period, which will be applied directly to the principal amount of your loan. This means that any voluntary payments made during the non-repayment period will reduce the total amount of interest that you will pay over the life of your loan. It is important to note that the 6-month non-repayment period is likely a one-time benefit and does not reset if you return to school or take out additional student loans.
The non-repayment period for Canada Student Loans starts on the day your loan is approved and ends 6 months later. No payments are required during this period, and interest does not accrue. This means that you will not be required to make any payments on your loan for the first 6 months after your loan is approved. The non-repayment period is designed to give students time to find employment and financially settle after completing their studies before they need to start repaying their student loans.
You can use the non-repayment period to your advantage by making voluntary payments during this time. Any payments made during the non-repayment period will be applied directly to the principal amount of your loan, reducing the total cost of borrowing. Additionally, if you have a student loan tax credit, you can deduct some of the interest you pay on your student loan, including any payments made during the non-repayment period. This can help you save money on your taxes while also reducing the total cost of borrowing.
To make voluntary payments during the non-repayment period, you can log in to your National Student Loan Service Centre account to view your loan details and make payments. You can also set up Pre-Authorized Debit to ensure that your payments are made on time. It is important to remember that while you are not required to make any payments during the non-repayment period, missing payments once the repayment period starts can negatively affect your credit rating and make it difficult to catch up. Therefore, it is essential to prioritize making regular payments once the repayment period begins.
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CRA collections
If you have missed several payments and are in arrears while there are CRA collections on your student loans, you may need to find a solution to avoid further consequences. The Canada Revenue Agency (CRA) is empowered to take action in ways that other creditors cannot, so it is important to take your student loan debt seriously and act quickly.
Firstly, if you are struggling to make your student loan payments, you have options. Given the challenges posed by the recent pandemic, the CRA is open to working with you on a payment arrangement that suits your circumstances. Contact the CRA to discuss this option and bring your loan up to date. You can reach out to the CRA at 1-866-864-5823 or by mail to the appropriate payment office, as outlined on the Canada.ca website.
Secondly, you can look into the types of repayment assistance offered by the CRA. For instance, filing a consumer proposal can reduce your student loan debt and provide a path towards financial stability. A consumer proposal is a legal debt settlement negotiated by a Licensed Insolvency Trustee, who will arrange an affordable monthly payment with your creditors. This option can reduce your debt by up to 80% and allows you to keep your assets. It is important to note that there is a seven-year rule for any government student loans. According to the Bankruptcy and Insolvency Act, any debt under the Canada Student Loans Act or the Canada Student Financial Assistance Act can only be filed as part of a consumer proposal if more than seven years have passed since your end of study date.
Finally, if other options are not suitable for your financial situation, bankruptcy could be considered to stop CRA collections on student loans. Bankruptcy involves assigning your non-exempt assets to a trustee in exchange for clearing any remaining unsecured debt, including student loan debt. This option also triggers a stay of proceedings, offering immediate protection from collection calls and wage garnishments pursued by the CRA. To file for bankruptcy, you will need to consult a Licensed Insolvency Trustee, who are the only professionals in Canada legally able to file all forms of debt relief.
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Frequently asked questions
You can pay your Canada student loan by logging in to your National Student Loans Service Centre (NSLSC) account.
If you are having trouble making a payment, you can look into the types of repayment assistance offered by the NSLSC. You can also contact the NSLSC to discuss options to help you get back on track.
If you miss a payment on your Canada student loan, you can still log in to your NSLSC account to access tools to help you find a repayment plan. If you miss 9 months of payments, the federal part of your loan is sent to the Canada Revenue Agency (CRA) for collection. Once in collection, you must make the equivalent of 2 monthly payments to bring your loan back into good standing.
