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Paying Back Your Canada Student Loan

It is time to start repaying Your Canada Student Loan when you have completed your studies if you have transfered to part-time studies, have left school or you are taking time off school for more than six months.

For the first six months after you leave school, you will not be required to make payments to your Canada Student Loan or your provincial student loan. This is known as your six month non-repayment period. During this period, interest does accumulate. You can either choose to do the following:

  • Start making the interest payments right away;
  • Before your regular payments you first of all pay the six months’ interest as a lump sum; or
  • After the six month non-repayment period, you have your loan providers add the interest amount to your total loan.

Before you start making payments after the six months non-repayment period, you will need to contact your loan provider(s) to set up a repayment schedule. Loan providers will try to contact you via phone or mail, but it is your responsibility to set up and manage your loan payments should in case they are not able to reach you.

If you don’t contact them, your loan payments may start to be automatically withdrawn after the six month non-repayment period from the same bank account where your loans were deposited (if you had arranged for direct deposit).

How to make payments

A notification will be sent to you that your loan repayments are about to begin. If you have not received anything by mail, you should contact your loan provider(s) before your six month non-repayment period is over. It will be better for you to review all aspects of your loan(s) and finalize details concerning:

  • The exact amount you owe;
  • The amount of interest that will be applied to your loan(s);
  • The exact bank account you will be using to repay the loan;
  • How much will be withdrawn from your bank account monthly;
  • The exact date it will be withdrawn (if you are set up for automatic withdrawals);
  • How payments will be sent monthly to your loan provider(s) (normally via cheque if you are not set up for automatic withdrawals); and
  • How long it will take to pay back your Payments

Set up a loan repayment schedule

After you have agreed with the repayment schedule given to you by your loan provider, you will have to sign and return it. Even if they do not receive your signature, payments will still be withdrawn from your account on file.

Returning the repayment schedule gives you:

  • An opportunity to make changes to the repayment schedule;
  • The opportunity to confirm the repayment schedule; and
  • A chance to get help if you are having trouble making payments.

Where to make payments

Loans are issues seperately by the federal and provincial/territorial government in some provinces and territories. This simply mean that you could have more than one loan to pay back.

If you have received part-time student loans you applied for and will be repaying a part-time Canada Student Loan. You will be required to manage and repay your loan through the NSLSC.

Special circumstances

If your student loan was received through a financial institution, you must contact them directly and arrange to repay your loan.

Help to repay your loan

The federal government can provide you with a number of repayment assistance options, which may put your payments on hole until you can of for them or lower your payments. You must apply for this assistant as enrolment is not automatic.

You can also see students financial aids in BC college of Optics in Vancouver.