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Student Loans & Repayment

Important Change:

As of August 1, 2011, the governments of Canada and BC will integrate their full time student financial assistance programs – Canada Student Loans and StudentAidBC.

Integration will simplify the management of your federal and provincial student loans. These loans will be managed as a single Canada-BC integrated loan.

For more information, visit http://www.aved.gov.bc.ca/studentaidbc/integration.htm.

StudentAidBC

StudentAidBC is an assistance program combining federal and provincial funds. It is a need‑based program, so the amount of assistance you are eligible for is based upon your financial situation and in some cases, that of your family.

By completing the StudentAidBC application, you are applying for funding from all sources. The resulting award type and amount will be determined by an assessment of need done according to guidelines and criteria set by the provincial government.

StudentAidBC applications require approximately six weeks to process. In order to receive your funding at the start of classes, it is suggested you submit your application for fall semester funding no later than July 15, and your application for spring semester funding by November 15. Students can apply on-line at www.studentaidbc.ca or can submit a paper application available from the Financial Awards office.

Students must complete separate applications for each semester of study and will therefore need to submit two separate applications for one academic year.  If you are applying for funding for two semesters, you can apply for more than one semester at the same time. 

Application Deadline

Your application must be received by StudentAidBC at least 6 weeks before the study period end date.

Details regarding all financial aid programs can be found on the StudentAidBC website or in the General Information guide included with the StudentAidBC application. Additionally, students can contact representatives of StudentAidBC at:

StudentAidBC
Ministry of Science and Universities
PO Box 9173 Stn Prov Govt
Victoria, BC V8W 9H7

Phone:             (604) 660-2610 if calling from the Lower Mainland
Toll-free:          1-800-561-1818
Fax:                 (250) 356-9455
Internet:           www.studentaidbc.ca

Student Loan Programs Outside British Columbia

For students who have not fulfilled BC residency requirements (12 consecutive months of residency, none of which are full-time post-secondary study) but wish to apply for student loans, please contact the appropriate home province for information and applications:

Repayment of Your Canada and British Columbia Student Loans

You are reminded that both your Canada and BC student loans are due six months after you cease full‑time studies (defined as 60% of a full course load). Payments on these student loans are not required during this period, or for a six-month period after you leave school; however, it is your responsibility to contact your lenders to arrange terms of repayment before the expiry of this six-month period.

Any federal and provincial loans you received between August 1, 2000 and August 1, 2011, will remain two separate loan payments until July 2012. As of July 2012 the integration of Canada Student Loans and StudentAid BC will integrate your two loans into one, allowing students to make a single loan payment.

For further information on how the integration changes affect you, visit StudentAidBC at http://www.aved.gov.bc.ca/studentaidbc/integration-faq.htm.

Canada student loans and BC student loans are interest-free while attending full-time, post-secondary studies. Interest begins accruing on your student loans as soon as your study period is complete and will be added to your loan principle once repayment begins.

Remaining on Interest-Free Status

If you have previous student loans, are currently enrolled full-time but do not have student loans, you must tell your lenders that you are back in full-time studies. Failure to do so could result in your loans going into repayment during your full-time studies. If you have previous BC student loans, you can request confirmation of your enrolment electronically at www.studentaidbc.ca. Click on ‘Apply for Interest-Free Status On-line’.

The on-line interest-free application replaces both the BC student loan Certificate 2 and Canada student loan Schedule 2 forms. 

If you are unable to complete the on-line application or if you are an out of province student, please visit our Financial Awards office or contact your home province.

Interest Rate in Repayment

Interest rates are calcuated at the time of consolidation. If you have a Canada – BC integrated student loan, the interest rate is either a floating interest rate (the prime plus 2.5 percent) or a fixed rate (the prime rate plus 5 percent).

If you have a Canada Student Loan and a BC student loan that are not integrated:

• For direct lend Canada student loans, the interest rate can be a floating interest rate (prime rate plus 2.5 percent) or fixed rate (prime rate plus 5 percent).
• For BC student loans the interest is a floating interest rate (prime rate plus 2.5 percent).

Repayment Assistance Plan for Canada Student Loans

Effective August 1, 2009, the federal government introduced the new student loan Repayment Assistance Plan (RAP) to assist borrowers who are experiencing difficulties paying back their student loan debt. The plan allows the borrowers to manage their debt by making affordable payments.

Student loan borrowers must apply for the Repayment Assistance Plan. Enrolment is not automatic. Please visit CanLearn’s Repayment Assistance Plan web site, http://www.canlearn.ca/eng/after/repaymentassistance/rpp.shtml for further information.

The new Repayment Assistance Plan replaces the Federal Interest Relief and Debt Reduction in Repayment measures. Borrowers who were approved for these programs before August 1, 2009 may remain on the programs until their approved period ends or they may apply for the Repayment Assistance Plan.

Interest Relief Program for BC Student Loans

The Interest Relief Program helps former students in repayment who are finding it difficult to pay back their BC loans because of low income. Under the program, the BC government pays the interest on your outstanding BC student loans. During this time, you do not have to make any loan payments. Interest relief is normally approved for six-month periods for a maximum lifetime benefit of up to 30 months. Should you have difficulty repaying your BC student loans, contact the lenders holding your loans to obtain an application form. 

If you continue to have difficulty making your loan payments after 30 months of interest relief, discuss your situation with your lenders as you may be eligible for extended interest relief, revision of terms or debt reduction.

For more information on repaying your BC Student loans, please visit StudentAidBC. 

Loan Repayment Estimator

If you would like to estimate your montly loan payments, you can visit the following website: http://tools.canlearn.ca/cslgs-scpse/cln-cln/50/crp-lrc/af.nlindex-eng.do

Borrower's Responsibilities

As a student loan borrower, it is your responsibility to:

• keep a current address and telephone number on file with each of the lenders (service bureau or bank) that hold your loan files;
• contact each lender (service bureau or bank) before the expiry of the six-month grace period to discuss repayment terms;
• make regular payments as specified in the loan repayment agreement;
• reinstate each previous student loan to interest-free/payment-free status by sending a Canada Student Loan Schedule 2, BC Student Loan Certificate 2, or other provincial interest-free status form to the bank and/or service bureau at the start of each new academic session.

Lender Contact Information

Direct-Lend Student Loans (issued on or after August 1, 2000)

National Student Loans Service Centre
Phone: 1.888.815.4514
Website: https://nslsc.canlearn.ca/eng/default.aspx

BC Student Loans Service Bureau
Phone: 1.877.535.7680
Website: https://www.bcslservicebureau.com

Risk-Shared Loans (issued between August 1, 1995 and July 31, 2000)

CIBC                         1.800.563.2422
Royal Bank                1.888.359.4770
Bank of Nova Scotia    1.888.284.3044

Guaranteed Loans (issued prior to July 31, 1995)

CIBC                         1.800.563.2422
Royal Bank                1.888.359.4770
Bank of Nova Scotia    1.888.284.3044

Defaulting on a Canada Student Loan

Failure to repay your loans in a timely manner will result in you defaulting on your student loans. It is your responsibility to ensure your loans are in good standing to avoid defaulting. If you default on your loans, your lenders, the Government of Canada, and the Province of British Columbia will take steps to recover the debt, which may include reporting you to a credit agency, using a private collection company, or taking legal action. Additionally, future income tax refunds may be withheld and applied to your defaulted loan debt. Under legislation introduced in 1998, your Canada student loans or provincial student loans cannot be absolved through bankruptcy for a period of 10 years after the end of your studies.

If you have defaulted on a student loan, you will not be eligible for further student loans unless your borrowing privileges are reinstated. To be considered for reinstatement, you must have made every effort towards meeting your obligations during the preceding 12 months or show that the default was due to circumstances beyond your control. To request reinstatement, you must contact the federal government at:

Canada Student Loans
Canada Student Loans Program
Student Assistance Branch
Box 2090 Stn D
Ottawa, ON K1P 6C6
Phone: (819) 994-1844
Toll-free: 1-888-815-4514
Fax: (819) 953-6057

Credit Counselling Canada

Credit Counselling Canada is a non-profit organization governed by a volunteer board of directors. Member agencies are community based and managed by professional staff. The mandate of Credit Counselling Canada includes ensuring all Canadians have access to not-for-profit counselling and advocacy for issues related to money management and the wise use of credit. Credit Counselling Canada understands that anyone can experience financial problems and helps people through counselling, debt repayment programs and education. For more information, or to find a credit counsellor near you, visit Credit Counselling Canada’s website at www.creditcounsellingcanada.ca. You can also contact the BC Branch directly at www.nomoredebts.org, or 1-888-527-8999.

Student Line of Credit

Most of Canada’s chartered banks currently offer lines of credit to Canadian students. Monthly interest must be paid by the borrower while in school, but payments on loan principal can be deferred until the student is no longer in school. A co-signer is often required. For further details, contact a loans officer at your bank. Students should also inquire at their bank about special banking packages, with reduced user fees, which are often made available to students.