Forms and Publications

Repaying Your Loans

Are you graduating or leaving school? Then it’s time to take charge of your finances.

Understanding your loan

Your government student loan(s) may come from

the federal government; and/or
your provincial/territorial government.

This means you could have more than one loan to pay back. Contact the National Student Loans Service Centre (NSLSC) and/or your provincial or territorial student financial assistance office for more information — visit CanLearn.ca for a contact list.

Crunching the numbers

CanLearn.ca has online tools to help.

Not sure how much you will be paying each month? Try the Loan Repayment Estimator.

Finding it hard to make ends meet? See if you could qualify for assistance using the Repayment Assistance Estimator.

Setting up repayment

The NSLSC will send your Consolidation Agreement by mail before you are required to start making payments. The Agreement sets the terms for the repayment of your Canada Student Loan; this is the federal portion of your loan. You’ll have to make a number of decisions, including the type of interest rate and how long you’ll take to repay your loan. Depending on your situation, you might also receive another Consolidation Agreement by mail for your provincial or territorial student loan.

You don’t have to make any payments on your Canada Sudent Loan for the first six months after you leave school; however, interest will be added to your loan during these six months.

You don’t have to make any payments on your Canada Student Loan for the first six months after you leave school; however, interest will be added to your loan during these six months.

Note: Loan providers will try to contact you via mail or telephone, but you are in charge of setting up and managing your loan payments even if they cannot reach you.

Choosing your interest rate

For your Canada Student Loan, you can choose between a:

1. Fixed interest rate – this is 5% higher than the prime rate at the time you consolidate your loans. The fixed rate never changes.

2. Floating interest rate – this is always 2.5% higher than the prime rate. The prime rate can increase or decrease throughout the year.

Helping you repay your loan

Missing payments can have serious and long-term consequences. Contact the NSLSC before you miss a payment. The federal government can provide you with a number of options, such as the Repayment Assistance Plan (RAP) or the Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD).

With RAP or RAP-PD, your payments could be lowered or put on hold until you can afford them.
You must apply for this assistance through the NSLSC — enrolment is not automatic.

More information

National Student Loans Service Centre
Toll Free: 1 888 815-4514 (within North America)
800 2 225-2501 (outside North America)
TTY: 1 888 815-4556
Provincial or territorial student financial assistance office
CanLearn.ca/repay

You can order this publication by contacting:

Publications Services
Human Resources and Skills Development Canada
140 Promenade du Portage
Phase IV, 12th Floor
Gatineau, Quebec
K1A 0J9

Fax: 819-953-7260
Online: http://www.hrsdc.gc.ca/publications

This document is available on demand in alternative formats (Large Print, Braille, Audio Cassette, Audio CD, e-Text Diskette, e-Text CD, or DAISY), by contacting 1 800 O-Canada (1-800-622-6232). If you have a hearing or speech impairment and use a teletypewriter (TTY), call 1-800-926-9105.

Paper
Cat. No.: HS48-7/2010
ISBN: 978-1-100-52447-4

PDF
Cat. No.: HS48-7/2010E-PDF
ISBN: 978-1-100-16975-0