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Revision of Terms

Revision of Terms

Revision of Terms is a feature that provides you with the flexibility to manaqe your loan repayment in a way that is responsive to your situation. It can be used as a debt management measure designed to help you decrease your monthly payment amount should you be unable to repay your government student loans according to the terms of your existing repayment arrangement. Alternately, it can be used to increase your loan payments so you can pay your loan in full more quickly.

How does Revision of Terms Work?

Revisions of Terms decreases your monthly payment by extending the amount of time that it takes you to pay off the principal and interest up to 15 years.

When you consolidate your loan, the maximum amortization period is 144 months (9.5 years). With Revision of Terms, you may request an extended amortization period of up to 174 months (14.5 years) or reduced amortization period.

1. Request to decrease payments for a short-term period.

   If you need a little breathing room to get back on track, you can revise the terms of your loan to decrease your payment amount for a short-term period, as agreed to by you and the National Student Loans Service Centre and/or your financial institution.

   During Revision of Terms for a short-term period:

   • You can temporarily extend the terms of your loan to reduce your monthly payment to ensure you can meet your repayment obligations.
   • You must make interest and principal payments on your loan.

   At the end of the short-term period, your monthly interest and principal payments return to the original amount as outlined in your Consolidation Agreement, unless otherwise stated.

   Note: After a stort-term Revision of Terms, your payment amount will increase in order to ensure that your loan is paid in full by the end of your original term.

2. Extend the term of your loan to obtain a permanent decrease in your monthly payment.

   If you need more than a payment break, it is possible to extend the term of your loan to decrease your monthly payments for a longer period of time.

   During a Revision of Terms for an extended period:

   • It will take you longer to pay back your loan in full.
   • You will end up paying more in interest in the long run.
     

3. Revise your monthly payment after a lump sum payment has been made.

   If your are financially able to make a lump sum payment on your loan, yyou may re-amortize the reduced principal balance over the remaining term of your loan. If you can't afford to make a lump sum payment, you can make payments (in addition to your regularly scheduled monthly payments) when it's financially possible for you, which decreases the time it takes you to repay your loan.

Am I eligible for Revision of Terms?

Revision of Terms is available to most borrowers and it can be tailored to meet your individual financial needs. Contact the National Student Loans Service Centre (NSLSC) and/or your financial institution to discuss your options.

How do I apply?

There is no formal application process to request Revision of Terms. Simply call the NSLSC or the financial institution holding your loans for information and to discuss the best option for your financial situation. You will be sent a revised consolidation agreement to be signed and returned to the NSLSC to complete the change.

For more information on Revision of Terms, please visit the 'Obtaining Repayment Assistance' section located in the 'Pay' 'Repay your Student Loan' section of www.canlearn.ca.