"Helping you honour your commitments"

The Deferred Payment Plan is intended for individuals who are unable to pay back the student loans they contracted under the Loans and Bursaries Program.

When Do You Have to Start Repaying Your Student Loans?

As long as you are a full-time student, you are exempted from paying the interest on your student loans: the government pays the interest on your behalf. You become responsible for the interest on your student loans as of the month following your last study period. This does not mean you have to start making interest payments right away. Indeed, you may capitalize the interest, i.e. have it converted into principal and added to your outstanding debt.

If you can afford to do so, it's a good idea to pay the interest or to start making payments on your student loans as soon as you complete your studies. If you choose to capitalize the interest on your loans, you must start making payments on your student loans (principal and interest) at the end of your exemption period, i.e. six months after the completion of your studies.

You Don't Have the Money?

What if you must start making payments on your student loans but don't have a job? In that case, contact your loan officer at your financial institution as soon as possible. He or she is the best person to go to in order to find out what your options are, in light of your difficult financial situation.

The Deferred Payment Plan

Through the Deferred Payment Plan, the government can give you a few months' grace before you have to make your first payment. To obtain further information on the Plan, contact your financial institution.

Eligibility Requirements
To qualify for the Deferred Payment Plan, your gross monthly employment income must be under $1 220. If you have family responsibilities, this amount is increased by $215 for the first child and by $200 for each additional child. Furthermore, $110 is added if you are a single parent and at least one of the children lives with you.

How the Plan Works
If you qualify for the Deferred Payment Plan, the government will exempt you from repaying your student loans to your financial institution for a period of six consecutive months. You will not have to make monthly payments during this time, nor will you have to repay the government for the interest it paid on your behalf.

You may be on the Plan for a lifetime total of 24 months over the five years following the end of your exemption period.

Once you no longer qualify for the Plan, you must start making the payments set out in your repayment agreement. To do so, contact your loan officer at your financial institution.

Applying for the Plan
To qualify for the Deferred Payment Plan, you must complete the Application for the Deferred Payment Plan form and attach proof of your gross employment income for the relevant reference month.

Additional Information

Additional information on this Plan is available through your financial institution or from the reception and inquiries desk of Aide financière aux études at the following address and numbers:

Service de l'accueil et des renseignements Aide financière aux études Ministère de l'Éducation, du Loisir et Sport 1035, rue De La Chevrotière Québec (Québec) G1R 5A5 Telephone:  (418) 643-3750 1-877-643-3750 (toll-free in Canada and the United States)