Mission
Program Overview
Organization

Mission

The mission of the Canada Student Loans Program (CSLP) is to promote accessibility to post-secondary education for students with a demonstrated financial need by lowering financial barriers through the provision of loans and grants, and to ensure Canadians have an opportunity to develop the knowledge and skills to participate in the economy and society.

Legislative Background

The Canada Student Loans Program was created in 1964 as a statutory spending program under the Canada Student Loans Act. This Act continues to apply to loans negotiated prior to August 1, 1995. On June 23, 1994, the Canada Student Financial Assistance Act received Royal Assent. The new Act was needed to administer the risk-shared loan regime because the relationship between the federal government and financial institutions changed dramatically. In 2000, the Canada Student Financial Assistance Act was amended to allow for directly financed loans through the Government of Canada. Financial institutions are no longer responsible for issuing Canada Student Loans. Guaranteed student loans are governed pursuant to the Canada Student Loans Act, while risk-shared and directly financed student loans are governed pursuant to the Canada Student Financial Assistance Act.

Objectives

Maintaining the Government's Commitment to Accessibility - making student loans accessible to students with financial need by having policies, service delivery media, and information that maximize the accessibility of the program while maintaining program integrity.

Making the loan experience a positive one - by working to: simplify the program for all stakeholders; harmonize it with provincial/territorial programs and reduce defaults by improving services during the in-study period, repayment and collections.

Increasing awareness - by providing learning and labour market information to aid student borrowers and prospective borrowers in making informed choices. CSLP will continue to promote awareness by maintaining contact with borrowers throughout the life of the loan to improve borrower satisfaction and to enhance the loan repayment rate.

Ensuring performance, integrity and accountability - improving program results, reducing costs per student assisted, reducing defaults, and decreasing the percentage of loans written off by initiating a default management program; enhancing systems for tracking data; building accountability for reducing defaults into service provider contracts; and improving on-line services to students during the in-study period, during repayment and collections.

Program Overview

The Canada Student Loans Program (CSLP) is an essential element of the Government of Canada's Human Capital Agenda. Through the agenda, the Government is working to ensure that Canadians have the necessary skills to be able to compete in the economy of the 21st century. By providing loan monies to Canadians enrolled in full- or part-time post-secondary educational studies, the CSLP is able to offer individuals the opportunity to participate in the process of lifelong learning. The Government has assisted over 3.8 million students with over $16 billion in loans since the CSLP was founded.

The CSLP reflects a close federal-provincial-territorial relationship. Nine participating provinces and territories determine eligibility and assess students' financial need based on federal criteria, award the aid by issuing a loan certificate, and designate eligible educational institutions. Québec, the Northwest Territories, and Nunavut do not participate in the CSLP, but they offer their own Student Assistance Programs and receive alternative payments from the Government of Canada to assist in the operation of those programs.

History

The CSLP was created in 1964. Since its inception, the Program has supplemented the financial resources available to eligible students from other sources to assist in their pursuit of post-secondary education. Between 1964 and 1995, loans were provided by financial institutions to post-secondary students approved to receive financial assistance. The financial institutions also administered the loan repayment process. In return, the Government of Canada guaranteed each Canada Student Loan that was issued, by reimbursing the financial institution the full amount of loans that went into default.

In 1995, several important changes were made to the CSLP, reflecting the changing needs of the parties involved in the loan process. The Government of Canada developed a formalized "risk-shared" agreement with several financial institutions, whereby the institution would assume responsibility for the possible risk of defaulted loans in return for a fixed payment from the Government. During this period, the weekly federal loan amount was increased to a maximum of $165. This amount was increased to $210 as of August 1. 2005.

On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC). There are two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions.

Integration

The Government of Canada has been working with participating provinces for a number of years to simplify student financial assistance in Canada. Since August 1, 2001, students in Ontario and Saskatchewan have been benefiting from integrated federal and provincial student loans. Subsequently since April 1, 2004, Newfoundland and Labrador now offer integrated loans and on May 1, 2005 New Brunswick signed an integration agreement with the Government of Canada. Since the Government of Canada and each of the provinces agreed to integrate their student loans programs, the result has been a more streamlined and simplified loan process for student borrowers.

With Integrated Student Loans, first time borrowers benefit from one application, one need assessment, one loan certificate and loan agreement form, and common repayment assistance measures. As a result, these borrowers have one student debt and make a single payment when repaying their student loans. Already, integrated certificates of eligibility are in use for borrowers residing in all integrated provinces. These borrowers also benefit from a single loan consolidation form and process and a single interest relief application for their integrated student loans.

Borrowers with student loans issued prior to August 1, 2001, also benefit from Integrated Student Loans in Ontario, Saskatchewan, Newfoundland and Labrador and New Brunswick. It is important to remember, however, that they will maintain a separate consolidation and repayment process for their risk-shared and guaranteed loans.

For more information about the program, visit the Canada Student Loans Program section under Programs and Services.