Government Sponsored Student Loans Repayment Seminar
Agenda
In Study
Payment Examples
How to be Debt Free Faster
Debt Management Options
Government Sponsored Student Loans
Interest is paid by Government while you are a full-time student
Repayment begins 7 months after your End of Study date
If you return to school full-time you need to notify your Loan Servicer
This “Grace Period” is not interest free in all programs
Repayment
“Consolidation” occurs the first day of the seventh month after End of Study Date
e.g. EOSD April 30th --> Consolidation November 1st
You must sign and return the Consolidation Agreement
Depending on when you received your loans, you may have loans with more than one loan servicer.
Separate payments are required for each loan
Payment Examples
• your monthly payment is determined by the principal balance plus any accrued interest plus the interest rate over the term
• information for illustration purposes only, your loan servicer will calculate your repayment schedule
How much interest will I pay?
•your monthly payment is determined by the principal balance plus any accrued interest plus the interest rate over the term
• information for illustration purposes only, your loan servicer will calculate your repayment schedule
Payment Comparisons
•your monthly payment is determined by the principal balance plus any accrued interest plus the interest rate over the term
• information for illustration purposes only, your loan servicer will calculate your repayment schedule
How Can I Be Debt-Free Faster?
Repaying your loan quickly will incur the least interest
Options to consider as your finances permit:
Request an amount larger than the minimum calculated for the term
Request Weekly or Bi-Weekly payments
Make an annual lump sum
Increase the monthly amount by $10, or $25 or $100 in each year
Pay your loan in full at any time without penalty
Debt Management Tools
Contact your loan servicer immediately if you foresee financial difficulties
Check out these government programs:
Interest relief
Revision of Terms
Debt reduction
Loan Remission or Forgiveness
Interest Relief
Debt management tool offered by all programs
Approval based on family income, family size and payment level
Once approved:
No payments required
Government pays the interest
Contact loan servicer to apply prior to missing payments
Revision of TermsChanges the term and your monthly payment based on financial situation
Options:
extending the term to maximum
interest only payments
re-amortization after lump sum payments
Payments are required each month based on the Revision of Terms agreement
Debt Reduction in Repayment
Eligibility:
Must have used at least 30 months of the Interest Relief program
Must be at least 5 years past End of Study Date
Must apply to have your loan principal reduced if your payments exceed a given percentage of your income
Contact your loan servicer to apply
Bankruptcy
Declaring bankruptcy is no longer an option to avoid student loan payments
Federal government regulations will not forgive student loan debt on bankruptcy unless you have been out of school ten years
Check out debt management tools available
Contact your loan servicer to discuss options before missing payments
Managing Your Student LoanSome Loan Servicers now have on-line services to provide access to information and details of your student loan
You can:Check the status of your student loan
Check the balance of your loan(s)
Review details of new loans you’ve recently received
Update your Mailing and Permanent Addresses and other contact information on-line
Review your loan payment and transaction history
Receive helpful information about your loan in your Personal Message Centre
Tips from your Loan Servicer
Sign and return the Consolidation Agreement
Maintain contact with your loan servicer
Always keep address up to date
Remember you will have a tax credit in repayment
Contact your loan servicer with any questions about your file or to change any information
ContactsFor additional information
www.Canlearn.ca
National Student Loans Service Centre – Public Institutions Division 1 888 815- 4514
CIBC National Student Centre 1 800 563-2422
Royal Bank Student Centre 1 800 363-3822
Bank of Nova Scotia 1 888 284-3044