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