Repaying
Your Loans
When
is my First Payment Due?
Your Canada Student Loan lenders will consider you to be in repayment
status six months after you cease to be a full-time student. Your
first payment will be due at the end of the seventh month.
If you provide information that confirms that you are a resident
of Manitoba, your Manitoba Student Loan lenders will consider you
to be in repayment status twelve months after you cease to be a
full-time student. In this case, your first payment will be due
at the beginning of the fourteenth month.
If you do not provide information that confirms your Manitoba residency,
your Manitoba Student Loan lenders will consider you to be in repayment
status six months after you cease to be a full-time student. In
this case, your first payment will be due at the beginning of the
eighth month.
For example: If you ceased to be a full-time student in April 2004,
and confirm your Manitoba residency by October 15, 2004, you would
be considered to be in repayment as of May 1, 2005. Your first payment
would be due on June 1, 2005. However, if you did not confirm your
Manitoba residency by October 15, 2004, you would be considered
to be in repayment on November 1, 2004. Your first payment would
be due on December 1, 2004.
How long it takes to repay your loans depends on you. By paying
slightly more than the minimum payment each month, you will pay
your loans off faster, and will pay less interest over the long
run. Options are available, so please contact each of your lenders
to discuss a repayment schedule that works for you.
NOTE: If you continue your studies as a full-time student, it is
your responsibility to inform each of your lenders. Otherwise, you
will automatically be considered to be in repayment status, and
payments may be taken from your bank account. For more information,
please see Maintaining/Reinstating Interest-Free Status.
How do
I make payments on my loans?
How you make your Canada and Manitoba Student Loan payment and
the payment options available to you is dependant on when (which
year) your loan was issued. Please refer to the sections below to
determine what options are available.
| Canada Student Loans Issued before August 1st, 2000 |
| The repayment of your Canada Student Loan(s) needs to
be made to the financial institution that holds the Canada
Student Loan. Contact your lender for payment options (example,
Royal Bank, CIBC, etc.). Refer to the telephone number in
the contact section to obtain further information about repayment
options.
|
| Canada Student Loans Issued on or after August 1st,
2000 |
| The repayment of your Canada Student Loan(s) needs to
be made to the National Student Loan Service Centre. Refer
to the telephone number in the Contact section to obtain further
information about payment options.
|
| Manitoba Student Loans Issued before August 1st, 2001 |
| The repayment of your Manitoba Student Loan(s) needs to
be made to the financial institution that holds the student
loan. Contact your lender for payment options.
|
| Manitoba Student Loans Issued on or after August 1st,
2001 |
|
The repayment of your Manitoba Student Loan can be processed
in a variety of ways. The most common and preferred method
of repayment is a preauthorized debit (PAD) to your Bank account.
The PAD is set up by Manitoba Student Aid just prior to your
first payment due date. If you want to apply additional payments
to your Manitoba Student Loan, you have the following options
available to you:
Cheque
You can send Manitoba Student Aid a cheque payable to Manitoba
Student Aid. The cheque can be mailed to Manitoba Student
Aid, Loan Services Unit, PO Box 12000 Station Main, Winnipeg,
MB, R3C 5R3. You can also drop the cheque off at Manitoba
Student Aid at 401-1181 Portage Avenue.
Interac
You can make additional payments at the Manitoba Student
Aid Inquiry counter through Interac at 401-1181 Portage
Avenue. Remember to bring your Interac card.
|
Where do I Repay
my Student Loans?
Canada and Manitoba Student Loans, like any other loans, must be
repaid. Always remember that the repayment history of your student
loans becomes a part of your personal credit rating.
Depending on when you began borrowing student loans, you may have
up to four different lenders, and thus four separate student loans.
- Canada Student Loans are currently handled through a lender
called the National Student Loans Service Centre. This has been
the case since August 1, 2000. Your Canada Student Loan is the
loan that you received in the first half of your study period
each year.
- Manitoba Student Loans are currently handled through the Manitoba
Government, Manitoba Student Aid Branch. Your Manitoba Student
Loan is the loan that you receive at the mid-point of your study
period each year.
- Prior Canada Student Loans and Manitoba Student Loans were handled
through various lenders, primarily the Royal Bank and CIBC.
When the time comes to repay your student loans, you will be making
payments to all of your lenders.
What is an Extended
Interest-Free Period?
In the 2003 Provincial Budget, it was announced that the the interest-free
period on Manitoba Student Loans would be extended by an additional
six months. During this time, your loans are interest-free (the
government will continue to pay the interest on your behalf), and
no payments are required.
This extension is only available to residents of Manitoba. The
most recent address which you provided to your lenders (this includes
the address on your loan document, confirmation of enrollment form,
or address change form) is considered your residence. If this changes,
it is your responsibility to inform all of your lenders.
To take advantage of this extended period, your lenders must be
informed of your Manitoba address by the 15th day of the fifth month,
after you cease to be a full-time student. For example, if you finished
school in April 2004, you must notify your MSL lenders by October
15, 2004.
What
If My Personal Information/Situation Changes?
You must advise all of your lenders of changes if any of the following
occurs:
- You have completed your program, have withdrawn from full-time
studies, or have dropped below the minimum course load.
- You have returned to full-time studies. For more information,
please see Maintaining/Reinstating Interest-Free Status.
- Your personal information (name, address, phone number) has
changed.
- Your bank account has changed.
Part-time
Student Loans
If you received Canada Student Loans for part-time studies, you
are required to make interest payments even while enrolled. Six
months after you cease to be a student, you will be considered to
be in full repayment status. Your first full payment will be due
at the end of the seventh month.
Bankruptcy
In June 1998, the Bankruptcy and Insolvency Act was amended so
that obligations for student loans can no longer be extinguished
by an order of discharge. This means that student loan debt survives
bankruptcy actions and remains payable for a period of ten years
after the end of your studies.
Repayment
Assistance
If you are having difficulty making the minimum monthly payments
on your student loans, please contact each of your lenders. By not
making required payments, you will be considered in default of your
loans. This has serious consequences for your credit rating and
your future ability to obtain credit (loans, mortgages, credit cards,
etc.). By informing your lenders of your situation, you give them
the opportunity to work with you through the difficult times.
Interest Relief
Both the governments of Canada and Manitoba have Interest Relief
programs available if you are experiencing difficulty making your
minimum monthly payments on your student loans.
If you are approved for Interest Relief, the benefit covers a
six-month period. During this time, you are not required to make
payments on your student loan; the government makes your interest
payments on your behalf. Every six months, you must either reapply
for the program, or resume making payments on your loan.
To apply for Interest Relief, you must contact each lender that
holds your Canada Student Loans and Manitoba Student Loans. For
Manitoba Student Loans issued after August 1, 2001, you must submit
applications for Interest Relief directly to Manitoba Student
Aid. Interest Relief is available for a maximum of 30 months.
Extended Interest Relief is available for up to an additional
24 months within 5 years of leaving Full-time studies; however,
you must meet eligibility criteria to receive the extension.
Interest Relief may continue for a maximum of 54 months. During
this time, you may be required to revise your repayment terms
so that your loan will be paid over 15 years. Should you exhaust
Interest Relief, you may be eligible for a program called Debt
Reduction in Repayment.
Debt
Reduction in Repayment
If you have exhausted Interest Relief, and continue to experience
difficulty in repaying your student loans, you may be eligible
for Debt Reduction in Repayment.
If you are approved, the maximum amount of your federal debt
reduction will be $10,000 or 50% of the principal of your loan,
whichever is less. The maximum amount of your provincial debt
reduction will be 50% of the principal of your loan or $6,667,
whichever is less.
To apply for Debt Reduction in Repayment, you must contact the
lenders that hold your Canada Student Loans. Before you can be
considered for provincial Debt Reduction in Repayment, you must
be approved for federal Debt Reduction in Repayment. Manitoba
Student Loan Debt Reduction in Repayment applications must be
submitted directly to Manitoba Student Aid. Approval is subject
to eligibility criteria and federal approval.
Permanent
Disability Loan Forgiveness
The governments of Canada and Manitoba may forgive your student
loans if you are unable to repay because of a permanent disability.
You must first receive forgiveness on your Canada Student Loans
before being considered for forgiveness of your Manitoba Student
Loans. For more information, please call: 1-888-726-6596.
Tax Credits
While you are in repayment, you will be able to claim a tax credit
of 17% of the interest you have paid each year on your student loans.
For more information, please contact each of your lenders.
Contacts
National Student Loans Service Centre - Public Institutions Branch
(Your Canada Student Loan lender if you attended a university or
community college.)
1-888-815-4514
National Student Loans Service Centre - Private Institutions Branch
(Your Canada Student Loan lender if you attended a career college
or trade school)
1-866-587-7452
Manitoba Student Aid Branch
(204) 945-6321
1-800-204-1685
Royal Bank - Canada Student Loans Centre
1-800-363-3822
CIBC - National Student Centre
1-800-563-2422
(November 2006)
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