Repaying your loan

You are responsible for repaying all the loans you borrowed to help fund your education as per the terms and conditions detailed on your Master Student Financial Assistance Agreement (MSFAA). 

The full-time loans that you have taken out each year are gathered into one amount for you to pay back which means that if you have Canada Student Loans and New Brunswick Student Loans for full-time studies, you will be making only one payment for both loans. 

If you have full-time and part-time student loans or loans from different provinces, separate payments will be required when it’s time to start making payments.

It’s time to start repaying your loan six (6) months after you have left your studies, whether you have graduated, transferred to part-time studies, withdrawn, or you are taking time off from your studies that is not an approved medical or parental leave. 

The six (6) month period before entering repayment is called the Non-Repayment Period and you are not required to make loan payments during this period but you can make payments if you want to. Log in to your NSLSC.ca online account to make early payments or contact the National Student Loans Service Centre (NSLSC ) for information on how to make a payment.

Before the beginning of your Repayment Period, you will receive a digital repayment notification within your NSLSC.ca online account to inform you of your Repayment Schedule. All your Canada and/or New Brunswick student loans are put together in one amount for you to pay back which means you will only have one repayment schedule. The schedule will outline:

• how much you owe
• the amount of the monthly payment
• the date payments begin
• bank account information

It’s very important to review your Repayment Schedule as you may need to revise some of the terms which could include your banking information, the day your monthly payment comes out of your account, or you may want to either increase or decrease your monthly payment amount. If you do not arrange a different payment schedule, your scheduled monthly payment is due on the last day of the seventh month after you left your studies.

Example

• Period of Study End Date: April 30th
• Date six-month non-repayment period begins: May 1st
• Date six-month nonrepayment period ends: October 31st
• First loan payment due date: November 30th

To help pay off your student loan sooner, you can make extra payments beyond your regular scheduled payment plan at any time, even while you are in school. You can also pay off your loan early. Log in to your NSLSC.ca online account to make extra payments or to request changes to your Repayment Schedule. You can also contact the National Student Loans Service Centre (NSLSC) for more information.

If you would like to know the approximate monthly payment amount you will need to pay back before you officially enter into repayment, try out the loan repayment estimator.

Confirming your enrolment

Whether you take out a new student loan for upcoming studies or not, the National Student Loans Service Centre (NSLSC), needs to know that you are still in school before your repayment start date.  If not, you will have to start repaying your existing loans earlier than expected.

The NSLSC must receive Confirmation of Enrolment information, completed by your school. This proves you have registered for upcoming studies.

If you are receiving new funding for full-time studies before your repayment start date, your school will provide Confirmation of Enrolment as part of the process and no action is required. 

If you are not receiving new funding and are returning to full-time studies before your repayment start date, you must provide Confirmation of Enrolment to ensure you do not begin repayment while you are studying. Visit your NSLSC.ca online account or Canada student aid to get the required form.

Medical and parental leave

If you need to take leave from your studies for medical or parental reasons, you may be eligible to apply for medical and parental leave. You do not have to make payments while on an approved leave. You can be on leave for up to six months. At the end of this period, you can apply to extend your leave if needed.

If you are having trouble repaying your student loans, there are options available. If you can’t make your loan payments, contact the National Student Loans Service Centre (NSLSC) right away to discuss options that may help you.

Repayment assistance plans

The Repayment Assistance Plan (RAP) and the Repayment Assistance Plan for Borrowers with a Disability (RAP-D) can help if you are having difficulty repaying your student loan debt. Depending on your income and family size, you may qualify for reduced monthly payments or your monthly payment could be put on hold until you can afford it. Monthly payments are limited to no more than 10% of your gross family income. For example, borrowers living alone who earn $40,000 per year or less and apply for the Program, will not be expected to make student loan payments. You can apply anytime from when your payments start until your payments end.   

If you qualify:

• an affordable payment is calculated based on your gross family income, family size and how much you owe on your student loans
• for borrowers whose disability has been assessed and recognized by the Canada Student Financial Assistance Program, additional disability-related expenses may be considered
• approvals are for six-month periods.  If financial difficulties persist after the approved six-month period, you may re-apply for RAP or RAP-D

You can access the RAP and RAP-D applications through your NSLSC.ca online account. You must register for an online account if you do not have one. The online application will guide you through the process to apply. If you are applying for RAP-D and would like your disability-related expenses to be considered, you must complete a disability related expense form.

Borrowers in repayment who are impacted by significant natural disasters may be eligible for expedited and easier access to the Repayment Assistance Plan (RAP).

Revision of terms

You may be eligible to lower your monthly payment by requesting to extend the length of time it takes to repay your loan, up to the maximum allowable term.

You can also request to increase the amount of your monthly payment which will reduce the length of time it takes you to pay off your loan.

You are eligible for Revision of Terms regardless of your debt and income level. Log in to your National Student Loans Service Centre (NSLSC) online account to customize your payment terms.

Canada student loan forgiveness for family doctors and nurses

Family doctors, residents in family medicine, nurse practitioners, and nurses who practice in under-served rural or remote communities may be eligible to have a portion of their Canada Student Loan (CSL) forgiven.

Reservist benefit

If you are a member of the Canadian Forces Reserves and have been deployed on designated operations, are about to be deployed, or are away from your studies receiving training specific to an upcoming deployment, you may be eligible for the Reservist Benefit.

Your loan is considered delinquent when you are behind in your regularly scheduled monthly payments. If your loan becomes delinquent your credit score will suffer which may prevent you from getting credit for future purchases.

Your loan is in default if you miss payments on your Student Loan for nine months (270 days) or more. When this happens, your loan is no longer integrated which means you will need to manage your loans with both the Federal Government and the Provincial Government.

You will be required to set up two separate repayment plans, one for each part of your loan:

• For your Canada Student loan, contact the Canada Revenue Agency at 1-866-336-7565
• For your New Brunswick Loan, contact Service New Brunswick – Central Collection Services at 1-855-806-2472 (option 2) or email [email protected]
   

How can a defaulted loan affect you?

When your student loan is returned to government due to default:

• your tax refunds and/or GST and HST credits may be withheld and applied toward your outstanding student loan debt
• you will not be able to access the Repayment Assistance Plan
• you will not be eligible for future federal and provincial student financial assistance
• you may be contacted by a collection agent
• you may be subject to having your salary garnished
• you may no longer be eligible to benefit from other government programs