CanLearn.ca - Student Financial Assistance

Transcription

Now and Tomorrow
Excellence in Everything We Do
Canada Student Loans
and Grants
TR A DE SCHOO L, CO LLEG E & U NIV ERSIT Y
Guide to
Federal Student
Financial Assistance
LC-096-03-12
CanLearn.ca
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© Her Majesty the Queen in Right of Canada, 2011
Paper: Cat. No.: HS48-2/2011E ISBN: 978-1-100-18010-6
PDF:
Cat. No.: HS48-2/2011E-PDF
ISBN: 978-1-100-18011-3
Table of Contents
This Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Section 1: Financing Your Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Canada Student Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Canada Student Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Other forms of student financial assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Other online resources to help plan and pay for education . . . . . . . . . . . . . . . . . . . 11
Section 2: While You Are in School . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 3: Repaying Your Student Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Repayment assistance measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Repayment Assistance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Repayment Assistance Plan for Borrowers with a Permanent Disability . . . . . . . . 18
Revision of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Repayment assistance for borrowers with a severe permanent disability . . . . . . . 18
Section 4: Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 5: Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
This guide reflects information and policies in effect at the time of printing (31/03/2011).
Any changes to the program will be posted online at CanLearn.ca
CanLearn.ca | Canada Student Loans and Grants
1
This Guide
What does your future hold? Take control by getting a
post-secondary education. Higher education opens up a
whole new world of opportunities. Financial assistance
from the Canada Student Loans Program can help you
reach your goals. After all, education is your best
investment.
This Guide to Federal Student Financial Assistance will
tell you everything you need to know about Canada
Student Loans and Grants. It explains how to get them,
how to manage them and, in the case of loans, how to
repay them. It includes a glossary of terms used in the
Canada Student Loans Program, and it lists phone
numbers and Web addresses for the offices you may
want to contact.
There are many types of funding sources to consider in
deciding how to pay for your post-secondary education.
Government funded student loans and grants are just a
couple of your options. You may also be able to use
money you make from a part-time job, family contributions, and bursaries or scholarships. Be sure to borrow
only the money you need.
In addition to reading this Guide, you can visit CanLearn.ca
to find out more about planning and paying for studies
after high school. The website has detailed information
about:
• Canadian universities, colleges and trade schools; and
• Budgeting and financial planning.
CanLearn.ca also provides various online tools such as
the Program Search, Student Financial Assistance
Estimator, and the Repayment Assistance Estimator to
help you plan and eventually pay for your post-secondary education.
Since 1964, the Canada Student Loans Program has
been helping students achieve their educational goals.
2
TRADE SCHOOL, COLLEGE & UNIVERSITY
SECTIO N 1:
Financing Your
Education
The Government of Canada offers several forms
of financial assistance for students pursuing studies after
high school, including Canada Student Loans and
Canada Student Grants.
Canada Student Loans
Canada Student Loans are provided by the Government
of Canada in most provinces and territories to help
students pay for university, college or trade school.
• In Alberta, Manitoba, Nova Scotia, Prince Edward
Island and Yukon, Canada Student Loans are available
alongside provincial or territorial student financial
assistance.
• In British Columbia, Saskatchewan, Ontario,
New Brunswick, Newfoundland and Labrador, the
Government of Canada and each provincial government
have partnered to provide financial assistance jointly
through Integrated Student Loans.
• In Quebec, the Northwest Territories and Nunavut,
Canada Student Loans and Grants are not available.
These jurisdictions operate their own financial assistance
programs.
For more information contact your provincial or territorial
student financial assistance office. (See Section 5,
page 22, for contact information.)
NOTE: If you are a full-time student seeking Canada Student
Loans and Grants, no matter where you are going to school,
you must apply to your province or territory of permanent
residence.
You are a permanent resident of the province or territory
where you, or your family, have most recently lived for at least
12 consecutive months, not including any time you spent as a
full-time student at a post-secondary educational institution. If
you are a resident of Quebec, the Northwest Territories or
Nunavut, you are not eligible for Canada Student Loans and
Grants.
Am I eligible?
To be eligible for Canada Student Loans and Grants,
you must:
• Be a Canadian citizen or a permanent resident of
Canada, or be designated a “protected person” under
the Immigration and Refugee Protection Act ¹;
• Be a permanent resident of a province or territory that
issues Canada Student Loans;
• Demonstrate financial need;
• Be enrolled in a degree, diploma or certificate program
that runs for at least 12 weeks in a 15-week period and
is offered by a designated post-secondary institution;
• Be taking at least 60 percent of a full course load if you
are a full-time student, or between 20 and 59 percent
of a full course load if you are a part-time student; and
• Pass a credit check if you are 22 or older and are
¹ A protected person is someone facing persecution in their country
of nationality. Protected persons are designated by the Immigration
and Refugee Board or by Citizenship and Immigration Canada.
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applying for student loans and grants for the first time.
A list of all the designated educational institutions where
students are eligible to receive Canada Student Loans
is available at CanLearn.ca.
Are there any other conditions?
• If you’ve already received a Canada Student Loan, your
previous loan must be in good standing and you must
be maintaining satisfactory grades.
• Providing false or misleading information on your
student loan application could restrict you from receiving
student financial assistance (e.g. loans, grants,
interest-free status or repayment assistance) for up to
five years.
• You must not have already exceeded the maximum
lifetime limit, which is 340 weeks of assistance for fulltime studies. The table below explains the lifetime limits.
You are eligible for a
maximum of…
if you are…
340 weeks
a full-time student who
received a Canada
Student Loan for the first
time on or after
August 1, 1995.
400 weeks
enrolled in full-time
doctoral studies.
520 weeks
a student with a
permanent disability.
OR
received a Canada
time before `
August 1, 1995.
4
Can I get a student loan from my province or
territory of permanent residence and a Canada
Student Loan from the Government of Canada?
Yes, when you apply, you are automatically assessed for
Canada Student Loans and Grants and a provincial or
territorial student loan. You are not required to apply for both
a student loan in your province and a Canada Student Loan
or Grant—these are completed through one application
process.
• The Government of Canada provides up to a maximum
of $210 in loans per week of study, depending on your
level of assessed need.
• Your province or territory of permanent residence will also
provide financial assistance in the form of provincial or
territorial student loans. Amounts vary between provinces
and territories. Contact your provincial or territorial student
financial assistance office for more information.
See page 22 for contact information.
Who administers my student loans?
Although you apply for a Canada Student Loan and a provincial student loan through a single application, you will
receive one loan, or two, depending on your province or territory of permanent residence.
Province or territory of
permanent residence
Alberta
Manitoba
Nova Scotia
Prince Edward Island
One loan or two?
Explanation
Administered by
TWO
One from the Government of
Canada (Canada Student Loan)
and one from your provincial
government.
For provincial or territorial
student loan:
financial institution, service
provider, or provincial
student financial assistance
office
For Canada Student Loan:
National Student Loans
Service Centre (NSLSC)
British Columbia
Saskatchewan
Ontario
New Brunswick
Newfoundland and
Labrador
ONE
One Integrated Student Loan,
delivered jointly by the federal
and provincial governments.
NSLSC
Quebec
Northwest Territories
Nunavut
ONE
These jurisdictions operate their
own provincial or territorial
student loan programs and do
not participate in the Canada
Student Loans Program.
These programs are partly
funded by federal government
transfers.
Provincial or territorial
government
Yukon
ONE
A Canada Student Loan. Yukon NSLSC
offers a grant program, but not a
student loan program.
5
Once you receive your loan—
National Student Loans Service Centre (NSLSC)
The NSLSC is responsible for administering your Canada
Student Loans (the federal portion of your loan) and
Integrated Student Loans. The NSLSC can help you with
any questions or concerns regarding repayment of your
loans.
The NSLSC:
• Processes your loans and grants;
• Arranges for your loan funds to be deposited to your
bank account;
• Helps you keep track of the amount of your loan and
the amount you have to repay;
• Works with you to set up a loan repayment schedule;
and
• Administers repayment assistance programs.
National Student Loans Service Centre online
You can also log on to the NSLSC website to check the
status of your issued Canada Student Loans.
How do I apply?
You apply to your province or territory of permanent
residence for student financial assistance.
• You are only required to complete one application when
applying for most federal and provincial loans and most
federal grants.
• Apply through your provincial student financial
assistance website. Visit CanLearn.ca or see Section
5, page 22, of this Guide for contact information.
• You can complete and submit your application online or
print the application, fill it out by hand and send it by
mail.
• Paper applications may be available at your high school
or your provincial or territorial student financial assistance
office.
• Your provincial or territorial student financial assistance
office will assess your loan application, confirm your
eligibility and determine the amount of federal and
provincial or territorial financial assistance that you
may be eligible to receive.
• Check the balance of your loan(s);
Most student loan applications are assessed within four
to six weeks. When you apply online, you may still be
required to submit signed declarations in some provinces
or territories, however, you will still receive the results
of your assessment faster.
• Update your mailing and permanent addresses and
other contact information;
When you apply to your province or territory you are
automatically assessed for:
• Review your loan payment and transaction history; and
• Canada Student Loans;
• Receive information about your loan in your Personal
Message Centre.
• Canada Student Grants; and
Through the NSLSC website, you can:
• Check the status and details of student loan you’ve
already received;
Visit CanLearn.ca to access the NSLSC website.
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• Financial assistance from your province or territory.
When is the deadline to apply?
Deadlines vary. Check with your provincial or territorial
student financial assistance office for specific deadline
information. Missing a deadline could prevent you from
receiving some or all of your student loan funding.
Remember that the earlier you apply, the earlier you will
receive your assessment and financial assistance.
How long can I receive student
financial assistance?
Student financial assistance includes loans and grants
and/or interest-free status while in studies.
For a maximum of…
340 weeks
How much loan funding will I receive?
The amount of financial assistance you may be eligible
for is based on your assessed financial need. It is
different for each student.
Your assessed need is calculated based on the difference between your allowable costs (which may include
educational, living and transportation costs) and your
resources (your own contribution and that of your
parents, spouse or common-law partner).
ALLOWABLE COSTS minus RESOURCES = ASSESSED NEED
Use the Student Financial Assistance Estimator, an
online tool available at CanLearn.ca, to find out how
much federal student financial assistance you could be
eligible for.
Can I receive a student loan if I study abroad?
Yes, if you attend a designated post-secondary educational institution on a full-time basis. If you plan to study
outside Canada, contact your provincial or territorial
student financial assistance office or check the “List of
Designated Educational Institutions” on CanLearn.ca.
400 weeks
520 weeks
if you are…
received a Canada
time on or after
August 1, 1995.
doctoral studies.
a student with a
OR
received a Canada
time before
August 1, 1995.
Can I appeal the decision if my loan application
is not approved or if I am not satisfied with the
assessment results?
Yes, first contact your provincial or territorial student
financial assistance office to ask for a review of your loan
application assessment. If you still wish to appeal a
decision, you must submit a written appeal, along with
any supporting documentation to your provincial or
territorial student financial assistance office. The appeal
process may take four to six weeks.
7
Overawards
Canada Student Grants
What is an overaward?
When you apply and qualify for a Canada Student Loan,
you are automatically assessed for one or more of the
Canada Student Grants listed below. A separate
application is only required for the Grant for Services and
Equipment for Students with Permanent Disabilities. All
Canada Student Grants will be disbursed in two portions,
one at the beginning of the school year and one again at
the mid-point of your school year. You may be eligible to
receive more than one grant at the same time. It should
be noted that under certain circumstances, a grant can
be converted into a loan.
An overaward is student financial assistance you
received for which you were not eligible. An overaward
can occur if your application is reassessed due to a
change in your circumstances. For example, if you
discontinued studies during a study period, if your
income changed, or if an audit of your application
uncovered inaccurate information, your provincial/
territorial Student Financial Assistance Branch may
determine that you have received an overaward.
Overaward amounts may be deducted from future
student financial assistance awarded under the Canada
Student Loans and Grants Program.
Remember that grants are money that you
do not pay back.
1. Grant for Students from
Low-Income Families
Students who qualify for a Canada Student Loan and
meet the eligibility requirements for the Grant for
Students from Low-Income Families can receive $250
per month of full-time studies. This grant is available for
all years of a university undergraduate, college or trade
program that is at least two years (60 weeks) in duration.
You may receive more money than your assessed need,
as Low-Income Grant amounts are fixed. The
low-income threshold table used to assess eligibility for
this grant can be found on CanLearn.ca.
Example A – If you qualify for the Grant for Students
from Low-Income Families and demonstrate an
assessed need of $1,400, you would receive $2,000 in
grant assistance for an eight-month undergraduate
academic program ($250 per month of study). In this
case, the grant would more than cover your assessed
need and no Canada Student Loan would be provided.
Example B – If you qualify for the Grant for Students
from Low-Income Families and demonstrate an
assessed need of $7,000, you would receive $2,000 in
grant assistance for an eight-month undergraduate
academic program ($250 per month of study), plus $5,000
as a student loan.
8
2. Grant for Students from
Middle-Income Families
4. Grant for Students with
Permanent Disabilities
Students who qualify for a Canada Student Loan and
meet the eligibility requirements for the Grant for Students
from Middle-Income Families can receive $100 per month
of full-time studies. This grant is available for all years of a
university undergraduate, college or trade school that is
at least two years (60 weeks) in duration. You may receive
more money than your assessed need, as middle-income
grant amounts are fixed. The middle-income threshold
table used to assess eligibility for this grant can be
found on CanLearn.ca.
Students with permanent disabilities can receive $2,000
per academic year. You may receive more money than
your assessed need, as grant amounts are fixed.
Example A – If you qualify for both a Canada Student
Loan as well as this grant, and demonstrate an assessed
need of $600, you would receive $800 in grant assistance
for an eight-month undergraduate academic program
($100 per month of study). In this case, this grant would
more than cover your assessed need and no loan would be
provided.
Example B – If you qualify for both a Canada Student
Loan as well as this grant, and demonstrate an assessed
need of $1,500, you would receive $800 in grant assistance for an eight-month undergraduate academic
program ($100 per month of study), plus $700 in Canada
Student Loans.
IMPORTANT: To ensure you meet all the application
requirements for this grant, please contact your provincial
or territorial student financial assistance office. The
application process differs depending on the province or
territory.
5. Grant for Services and Equipment for Students
with Permanent Disabilities
Students with permanent disabilities who have exceptional
education-related costs associated to their permanent
disability, such as tutors, note-takers, interpreters, braillers
or technical aids may receive up to $8,000 per academic
year. Once your application is processed, you will receive
written notification of your eligibility. A separate application
form is required for this grant.
3. Grant for Students with Dependants
Students from low-income families who qualify for a Canada
Student Loan and meet the eligibility requirements can
receive $200 per month of full-time studies, per child
under 12 years of age. Students may also qualify for the
Grant for Low-Income Students if they are enrolled in
an undergraduate academic program of at least two
years in duration.
Example – If you have one child and qualify for both a
Canada Student Loan as well as this grant, and you
demonstrate an assessed need of $3,000, you would
receive $1,600 under the Grant for Students with
Dependants for an eight-month undergraduate academic
program.
Example – If you qualify for both a Canada Student Loan
as well as this grant, and you demonstrate an assessed
need of $1,400, you would receive a grant of $2,000,
because the amount of this grant is fixed. In this case, the
grant would more than cover your assessed need and you
would not receive a Canada Student Loan.
Example A – If you meet the eligibility criteria for both a
Canada Student Loan as well as this grant, and you need
$6,400 for exceptional services and equipment, you will
be eligible to receive a grant of $6,400.
Example B – If you meet the eligibility criteria for both a
Canada Student Loan as well as this grant, and you need
$10,000 for exceptional services and equipment, you will
be eligible to receive a grant of $8,000 towards those
expenses.
IMPORTANT: To ensure you meet all the application
requirements for this grant, please contact your provincial
or territorial student financial assistance office. The
application process differs depending on the province or
territory and you will be required to provide receipts for
expenses incurred.
9
6. Grant for Part-Time Studies
Part-time students from low-income families may be
eligible for up to $1,200 per academic year.
The amount provided under this grant will not exceed
your assessed need. For example, if you demonstrate
$800 of assessed need, you will then receive a grant of
$800.
7. Grant for Part-Time Students
with Dependants
Part-time students with up to two children under 12 years
of age may be eligible for $40 per week of study, and
part-time students with three or more children may be
eligible for $60 per week of study. This grant is available
for part-time students with dependants who have an
assessed need that exceeds the part-time grant of
$1,200.
IMPORTANT: Part-time students with disabled dependants 12 years of age or older may be eligible for this
grant. In these particular cases, proof of the disability in
the form of a medical certificate or documentation
proving receipt of federal or provincial disability assistance
would be required.
How an early withdrawal may affect your
Canada Student Grant:
How a reassessment (audit) may affect your
Canada Student Grant:
If a reassessment of your application determines that you
provided inaccurate information rendering you ineligible
for a full- or part-time Canada Student Loan, all or part of
a Canada Student Grant that has been issued will be
converted to loan in accordance with the conditions
stated on your loan agreement.
Other forms of student financial assistance
Federal fellowships and scholarships
The Government of Canada offers more than just
Canada Student Loans and Grants. As part of its
commitment to reducing financial barriers and improving
access to post-secondary education, it funds federal
scholarships and fellowships.
University fellowships and scholarships are also offered
by the following federal granting councils:
• Canadian Institutes of Health Research
at www.cihr-irsc.gc.ca
• Natural Sciences and Engineering Research
Council of Canada at www.nserc-crsng.gc.ca
• Social Sciences and Humanities Research
Council of Canada at www.sshrc-crsh.ca
If you withdraw from studies or change from
full- to part-time status within 30 calendar days from the
first day of classes, all or part of a Canada Student Grant
that has been disbursed for the respective period of
studies will be converted to a loan in accordance with the
conditions stated on your loan agreement. You will have the
opportunity to repay the grant overaward immediately or
this amount will be added to your outstanding loan
principal on the period of study end date.
The Apprenticeship Incentive Grant (AIG) is a taxable
cash grant of $1,000 per year, up to a maximum of
$2,000 per person. The grant is available to registered
apprentices once they have successfully completed their
first or second year/level (or equivalent) of an apprenticeship program in one of the designated Red Seal trades.
Note: If you are able to provide documentary evidence
within six months that your withdrawal from studies or
your change from full- to part-time studies was as a
result of unforeseen and unavoidable circumstances
beyond your control, the decision to convert the grant
into a loan may be reconsidered.
• Increase access to apprenticeships in the Red Seal
trades by helping apprentices cover expenses, such as
the purchase of tools and other materials required for
on-the-job learning and travel expenses associated with
classroom training;
10
Apprenticeship Incentive Grant (AIG)
Specifically, the AIG is meant to:
• Encourage the apprentice’s progress through the
technical and on-the-job training requirements in the
early years of their apprenticeship program, building
momentum towards certification; and
• Promote interprovincial mobility by increasing the
number of apprentices who remain in the Red Seal
them
trades and complete their program, which
to work across Canada.
Apprenticeship Completion Grant (ACG)
The ACG is a taxable cash grant offering a maximum of
$2,000 per registered apprentice after they successfully
complete their apprenticeship training and obtain
journeyperson
in a designated Red Seal
trade, on or after January 1, 2009.
The Apprenticeship Completion Grants objectives are to:
• Increase access to apprenticeship in the Red Seal
trades by helping apprentices cover expenses such as
the purchase of tools and other materials required for
on-the-job learning and travel expenses associated
with classroom training;
• Encourage the apprentice’s progress through the
technical and on-the-job training requirements in the
early years of their apprenticeship program, building
and
momentum towards
• Enable interprovincial mobility by increasing the
number of apprentices who remain in the Red Seal
trades and get their journeyperson
Through the AIG and the ACG, apprentices who have
in a designated
received their journeyperson
Red Seal trade could be eligible to receive a maximum
grant of $4,000.
More information about the AIG and ACG can be found
at www.servicecanada.gc.ca.
Scholarships
Scholarship Search
CanLearn.ca provides a scholarship search function
in collaboration with yconic.ca. This tool is a
Canadian service devoted to helping high school, college
information on scholarships,
and university students
assistance
bursaries, grants and other forms of
available from the private sector and
organizations.
Other online resources to help plan and pay for
education.
Youth.gc.ca
Youth.gc.ca is a website for Canadians from 15 to 30 years
of age who are looking for information and tools on
training, employment and careers. It features more than
250 programs, services and resources that can help
youth make the transition from school to work. It also
provides contact information, including Web addresses,
and an index of programs and organizations.
Check out Youth.gc.ca to
out about:
• Awards, bursaries, fellowships, grants and scholarships;
• Career information tools;
• Educational and other assistance;
• Entrepreneurship;
• Job-search tools;
• Skills development and learning opportunities;
• Travel; and
• National and international work experience
opportunities.
11
SECTI O N 2
While You
Are in School
Tips to help you manage your loan
• Open and read any mail you receive regarding
your Canada Student Loans and/or Grants.
• Keep all your Canada Student Loan
documentation in one place.
• Include your loan account number on all
correspondence with the National Student Loans
Service Centre (NSLSC).
• Create an NSLSC online student loan account
at CanLearn.ca so you can access information
about your loan(s), change your mailing address
and view other personal account information.
• Stay in touch—notify your loan administrators
(NSLSC and/or financial institution) if you:
•• change your address, name or phone number;
•• leave school or transfer to another school; or
•• change your graduation date.
• Call your loan administrator if you have any
questions.
12
Do I need to make payments on my student loan
while I’m still studying?
No, you are not required to make any payments on your
loan while in school. Additionally, the Government of
Canada and/or your province or territory will cover the
interest on your Canada Student Loan while you are in
school, as long as you do not exceed the maximum
lifetime limit of assistance (340 weeks for full-time
students).
What would cause interest to be charged to my
loan if I’m still studying?
If you have received loans as a full-time student
and have received more than the lifetime limit of
assistance, you have options. You can make payments
on your loans, pay only the monthly interest, or not make
any payments at all until you complete your education.
Note that interest does accumulate on loans once you
have exceeded the maximum number of weeks as
outlined in the table below.
For a maximum of…
if you are…
340 weeks
received a Canada
time on or after
August 1, 1995.
doctoral studies.
a student with a
400 weeks
520 weeks
OR
received a Canada
time before
August 1, 1995.
What happens to my loans if I decide to take
a year off school?
You will be asked to begin repaying your student loans,
which will include any accrued interest six months after you:
• graduate;
• leave school; or
• take time off from your studies; or.
• switch from full-time to part-time studies
Your first loan payment will be due on the last day of the
seventh month after the end date of your most recent
period of study. Interest does accumulate on your federal
student loan during this six-month non-repayment period.
However, if at any point you return to studies advise your
lenders by confirming your enrolment, your loan may return
to interest-free status.
Example:
• Date of end of studies: April 30, 2011
• Date six-month non-repayment period begins (interest
starts accruing): May 1, 2011
• Date six-month non-repayment period ends:
October 31, 2011
• First loan payment due date: November 30, 2011
What happens if I decide to go back to school?
When you return to school within six months from your
last confirmed day of studies, you will not be required to
pay the interest on your loans, providing you confirm your
enrolment with the National Student Loans Service
Centre. Your school’s student financial assistance office
or the National Student Loans Service Centre will supply
you with the required documents.
Do I need to confirm my enrolment if I am not
getting a loan this year?
Yes, if you hold previous student loans and you are not
planning to apply for a student loan this year (or if you did
not qualify for student loans this year), you must submit
your confirmation of enrolment to the National Student
Loans Service Centre and to any other loan provider you
have. This will ensure that you are not asked to begin
repaying your loan while you are enrolled as a full-time
student and you will remain in either interest-free or
non-repayment status. Students studying on a part-time
basis are not required to make payments; however,
interest will accrue.
13
SECTIO N 3:
Repaying Your
Student Loan
The repayment period for all student loans begins on the
date you complete your studies, leave school or exceed
the maximum lifetime limit (340 weeks for full-time
studies, with some exceptions). This period continues
until you’ve repaid all the money you borrowed.
As a borrower, you are required to fulfill your obligations
and responsibilities, so it’s important to fully understand
the terms and conditions of your loan. Student loans are
real loans—similar to car loans and mortgages—and you
have to pay them back.
What am I responsible for?
You are responsible for:
• Signing a Consolidated Canada Student Loan
Agreement;
The Consolidated Student Loan Agreement is a legal
document that includes the details and arrangements
you have agreed to with your financial institution and/or
the National Student Loans Service Centre regarding the
repayment of your student loans.
During the six-month non-repayment period after you
leave school, the National Student Loans Service Centre
will mail you a Consolidated Student Loan Agreement for
your Canada Student Loan(s) or Integrated Student
Loan(s).
This agreement provides information about:
• The total loan amount;
• Repaying your student loan and the interest that
accumulates; and
• Your interest rate;
• Advising your lenders (example, the NSLSC) of any
changes to your contact information.
• The amount of each loan payment; and
What does consolidation mean?
Consolidation means combining loans received over
multiple years into a single loan. In the case of student
loans, it means arranging to repay all your federal loans
received after August 1, 2000, federal/provincial integrated
loans or provincial or territorial loans into one payment.
Loans received prior to August 1, 2000, will have
a separate consolidation agreement administered
by your financial institution.
14
• Your payment schedule;
• How long it will take to repay your loan (your
amortization period).
Make sure to read, complete and return your agreement.
A signed agreement will allow you to apply for repayment
assistance if you experience financial difficulty.
You may need to sign more than one agreement,
depending on what types of student loans you have and
who holds them. Contact your provincial or territorial
student financial assistance office (contact information
on page 22) for more information.
Province or territory of
permanent residence
Are you
How many consolidation agreements
repaying one will you need to sign?
loan or two?
Administered by
Manitoba
Nova Scotia
TWO
You will need to sign two consolidation
agreements; one from the Government of
Canada (Canada Student Loans) and one
from your provincial government.
For provincial or
territorial student loan:
financial instution,
service provider, or
provincial student
financial assistance
office
For Canada Student
Loan: NSLSC
British Columbia
TWO
(Visit CanLearn.ca and
www.StudentAidBC.ca for
upcoming changes to
repayment of student loans
for BC borrowers.)
If you enter repayment before July 2012,
you may be required to sign two consolidation agreements; one from the
Government of Canada (Canada Student
Loans) and one from your provincial
government. All borrowers in repayment
after July 2012 will be required to sign one
new consolidation agreement for the
repayment of your Integrated Student
Loan delivered jointly by the federal and
provincial governments.
For provincial or
territorial student loan:
financial instution,
service provider, or
provincial student
financial assistance
office
For Canada Student
Loan: NSLSC
Alberta
ONE
You will only sign a consolidation agreement with the NSLSC for your Canada
Student Loan. Signing your master loan
agreement to receive your Alberta funding
means that it acts as your consolidation
agreement on your Alberta Student Loan.
For provincial student
loans: financial Instituion
For Canada Student
Loan: NSLSC
Saskatchewan
Ontario
New Brunswick
Newfoundland
and Labrador
ONE
You will need to sign one consolidation
agreement for the repayment of your
Integrated Student Loan, delivered jointly
by the federal and provincial
governments.
NSLSC
Yukon
ONE
NSLSC
You will need to sign one consolidation
agreement for your Canada Student Loan,
as Yukon only offers a grant program.
15
When is my first loan payment due?
After you graduate or leave school, you have a period of
time before you have to begin repaying your student loan.
This six-month non-repayment period begins the first day
of the month after you graduate or leave school. No
payments will be required, but interest will accumulate
during this period.
Your first loan payment is due on the last day of the
seventh month following your period of study end date,
or the date you withdraw from your studies.
Example:
• Date of completion of studies: April 30, 2011
• Date six-month non-repayment period begins (interest
starts to accrue): May 1, 2011
• Date six-month non-repayment period ends: October 31, 2011
• First loan payment due date: November 30, 2011
Do I repay my Canada Student Loan to the
National Student Loans Service Centre or to a
financial institution?
• For Canada and Integrated Student Loans received on or
after August 1, 2000, you make your payments to the
National Student Loans Service Centre.
• For Canada Student Loans received before
August 1, 2000, you make your payments to a financial
institution.
What is the interest rate on my Canada
Student Loan?
When you receive your Consolidated Student Loan
Agreement, you can choose between a fixed or floating
interest rate.
• Fixed interest rate – 5 percent higher than the prime rate
at the time you consolidate your loans. The fixed rate
never changes.
• Floating interest rate – always 2.5 percent higher than the
prime rate. The prime rate can increase or decrease
throughout your repayment period. If you choose the
floating interest rate, you will have the option to change to
a fixed rate at any time.
16
Use the Loan Repayment Calculator on CanLearn.ca to
see which option is best for you.
Interest rates for integrated and separate provincial loans
may be different. Check with your province or territory for
more information.
Can I claim a tax credit for the interest I pay on
my Canada Student Loan?
Yes, the student loan tax credit allows you to deduct the
interest that you pay on your student loans each year. This
credit applies to interest payments you make on both your
federal and provincial student loans. The appropriate
documents will be sent to you by mail for you to use when
you file your taxes.
The credit does not apply to interest payments you may
make on any loans held with a private lender, such as a
student line of credit with a financial institution.
What if I have difficulty repaying my loan?
The Government of Canada offers repayment assistance
measures that are designed to make it easier for you to
pay back your student loan (if you qualify).
Some provinces and territories have their own repayment
assistance programs that are separate from the federal
government. You should contact your province or territory
for more information.
As with all other types of loans, having a student loan
means you are responsible for making your loan payments
on time. If you are having difficulty repaying your loan,
contact the National Student Loans Service Centre to ask
questions, get clarification and find out more about the
repayment assistance measures offered by the
Government of Canada.
What happens if I do not make my student
loan payments?
If you haven’t made payments on your student loans, your
loan will be considered delinquent and at risk of default,
which can impact your credit rating. A poor credit rating
can affect your ability to get loans, lease an apartment, or
be hired for certain jobs.
Repayment Assistance Measures
Repayment Assistance Plan (RAP)
This plan helps borrowers who are having financial
difficulty repaying their student loans. The RAP makes it
easier for student loan borrowers to manage their debt
by allowing them to pay back what they can reasonably
afford.
Under the RAP:
• No borrower should have a repayment period of more
than 15 years.
• Affordable loan payments are based on income and
family size. You will not be required to make loan
payments that exceed 20 percent of your gross
family income.
• You need to apply for the RAP every six months.
Enrolment is not automatic.
• In certain cases, borrowers may not be required to
make any loan payments until their income increases.
Use the Repayment Assistance Estimator tool on
CanLearn.ca to estimate your monthly payment.
How does the RAP work?
Depending on your financial circumstances, the RAP has
two stages to help you fully repay your student loan
within 15 years.
Stage I: This stage usually applies to the first five years
of the Plan.
• Student loan borrowers who qualify for Stage I may be
required to make affordable payments. These affordable
payments go toward the loan principal. Paying the loan
principal first helps to reduce the total debt.
• The Government of Canada will cover the interest that
the borrower’s calculated affordable payment does not
cover.
Stage II: This stage starts once the borrower completes
Stage I, or has been in repayment for 10 years.
• The Government of Canada will continue to cover
interest and will begin to cover the principal of the loan
not met by the borrower’s affordable loan payment.
• The balance of the loan should be gradually paid off to
ensure that no student loan debt remains after 15 years.
• Throughout this period, borrowers must meet the same
eligibility criteria and application process and will make
affordable payments, if applicable.
Am I eligible?
For the RAP you must:
• Be a resident of Canada;
• Have signed and returned your Consolidated Student
Loan Agreement to the National Student Loans Service
Centre; and
• Meet the financial elgibility criteria for RAP.
How do I apply?
You need to apply for the RAP. Enrolment is not
automatic.
• Call the National Student Loans Service Centre
(NSLSC) at 1-888-815-4514 to request an application
form, or to get more information.
• Complete and submit the form to the NSLSC.
• Provide the required documentation.
• Applications are also available on CanLearn.ca.
• You can also fill out the forms for the RAP online.
Simply sign into your NSLSC Online Services account
on CanLearn.ca and select “Repayment Assistance”
to go through a step-by-step process to complete
an application. Once completed, all you have to do is
print, sign and date it, and send it to the NSLSC by
mail or fax.
• Borrowers will not make payments exceeding 20
percent of their gross family income towards loans
covered by the RAP. In cases where the borrower has
very low income, no payments are required.
17
IMPORTANT: To qualify for the RAP, a signed Consolidated Student Loan Agreement must be on file at the
NSLSC. If this is has not been received for your file, one
will be created for you online to print, sign and return with
your application.
• Complete the application form and submit it to
the NSLSC.
Repayment Assistance Plan for Borrowers
with a Permanent Disability (RAP-PD)
The RAP-PD helps borrowers with a permanent disability
who are having difficulty paying their student loans. The
RAP-PD makes it easier for student loan borrowers to
manage their debt by paying back what they can
reasonably afford.
If you are unable to repay your student loans, you can
contact the National Student Loans Service Centre
(NSLSC) to request a Revision of Terms. A Revision of
Terms helps decrease your monthly payment by
extending the amount of time over which you pay back
your loan. However, as you are paying over a longer
period, you will accumulate and pay more interest on
your loan.
Under the RAP-PD:
How do I apply?
• Loan payments are based on income, ability to pay and
disability accommodation costs (uninsured medical
expenses, special care and other expenses).
• Sign in to your NSLSC online account on CanLearn.ca
and use the “Customize your Repayment Calculator” to
create a Revision of Terms request online. This tool
shows you the impact of your changes to the interest
you pay and your loan term. When complete, all you
have to do is print, sign and date your request and send
it to the NSLSC by mail or fax.
• Borrowers will not make payments exceeding 20
percent of their gross family income towards loans
covered by the RAP-PD.
• You need to apply for the RAP-PD every six months.
Enrolment is not automatic.
• In certain cases, borrowers may not be required to
make any loan payments until their income increases.
• No borrower with a permanent disability, who is on the
RAP-PD should have a repayment period longer than
10 years.
How do I apply?
You need to apply for the RAP-PD. Enrolment is
not automatic.
• Call the National Student Loans Service Centre
(NSLSC) at 1-888-815-4514 to request an application
form, or to get more information about the RAP-PD.
• You can also fill out the forms for the RAP-PD online.
Simply sign into your NSLSC Online Services account
on CanLearn.ca and select “Repayment Assistance” to
go through a step-by-step process to complete an
application. Once completed, all you have to do is print,
sign and date it, and send it to the NSLSC by mail or
fax.
18
• Provide required supporting documentation.
Revision of Terms
• Call the NSLSC at 1-888-815-4514 or call your financial
institution for more information.
Repayment Assistance for Borrowers with a
Severe Permanent Disability
The Permanent Disability Benefit
If you have a severe permanent disability that prevents
you from working and/or going to school, and you will
never be able to repay your loans, you may be able to
have your loans cancelled. Call the National Student
Loans Service Centre (NSLSC) at 1-888-815-4514 to
find out about the application and approval process.
SECTIO N 4:
Glossary
Affordable Loan Payment: The monthly repayment
amount that does not present financial hardship for the
borrower. It is calculated based on the borrower’s family
income and family size. The affordable loan payment is
calculated as part of a Repayment Assistance Plan/
Repayment Assistance Plan for Borrowers with
a Permanent Disability application.
Assessed Need: This is the difference calculated
between allowable educational costs and the financial
contributions that you are expected to make, including
savings, income from part-time and summer jobs, and
parental and/or family contributions (if applicable).
Certificate of Eligibility and Canada Student Loan
Agreement: Otherwise known as your student loan
documents, the Certificate of Eligibility and Canada
Student Loan Agreement confirm your acceptance of the
terms and conditions of your loan.
Confirmation of Enrolment: This is the act of having
your school sign and date your loan certificate to confirm
you are in full-time studies. By either completing this
document online or having your school send it to your loan
providers, you will keep your student loan interest-free
and ensure that you do not have to begin repaying your
loan while you are still in full-time studies.
Consolidated Student Loan Agreement: This is a legal
document that includes the details and arrangements
agreed upon by you and your financial institution and/or
the National Student Loans Service Centre regarding the
repayment of your student loans. You may need to sign
more than one agreement, depending on what types
of loans you have and who holds your loans.
Default: Your Canada Student Loan is considered to be
in default when you are behind on your payments for nine
or more months and collection activities are required.
Defaulting on your loan can disqualify you from receiving
future student financial assistance or from applying for
repayment assistance under the Repayment Assistance
Plan.
Delinquent: Your Canada Student Loan is considered to
be delinquent when you are behind in your
regularly-scheduled monthly payments.
Dependant: A dependant child (including adopted, foster
and step-child) who is:
• 18 years of age or younger and is wholly dependent on,
and under control of, the student or the student’s
spouse/common-law partner; or
• A full-time student at a secondary or post-secondary
institution and who meets the definition of a “single
dependent student.”
Designated institution: A post-secondary educational
institution that meets provincial and federal eligibility
criteria, so that students attending the institution can
apply for government-sponsored student financial
assistance. Contact your provincial or territorial student
financial assistance office or visit CanLearn.ca for
a list of designated institutions.
Disbursement: This is the payment of your loan money to
you once your loan document has been processed.
19
Financial Institution: This is a bank, credit union or
caisse populaire. These institutions hold Canada Student
Loans issued before August 1, 2000.
Fixed Rate: A fixed rate is a stable interest rate.
Floating Rate: A floating rate is an interest rate that varies
over time according to the prime rate.
Integrated Student Loan: The Government of Canada
and some provinces have combined their student loan
programs to create integrated loans for full-time students.
An integrated loan combines funding from both levels
of government. If you reside in British Columbia, Ontario,
Saskatchewan, New Brunswick, or Newfoundland and
Labrador, you may be eligible for an Integrated Student
Loan, which means that you will receive one loan from the
two governments. When it comes time to repay your loan,
you will have a single repayment plan rather than paying
back the provincial and federal loans separately.
Interest: This is the fee you pay to borrow money.
The percentage used to calculate the interest on your loan
is the interest rate. When it comes time to repay your loan,
you can select a fixed or floating interest rate.
Interest-free Status: While you are in school full-time,
the Government of Canada pays the interest on your
federal student loan as long as you provide confirmation of
your enrolment to the National Student Loans Service
Centre (NSLSC). If you have loans issued prior to August
1, 2000, you must advise the appropriate loan holder (your
bank and/or the NSLSC).
Low-Income Threshold: Low-income thresholds are
levels below which a family of a given size will devote a
larger share of income to necessities such as food, shelter
and clothing compared to a family with an average
income.
Middle-Income Threshold: The middle-income threshold
is a measurement of the cost of living that accounts for
how much money families of various sizes will need to pay
for shelter, food, household operation, child care, furnishings and equipment, clothing, transportation, health and
personal care, and other miscellaneous expenses.
National Student Loans Service Centre (NSLSC):
The NSLSC manages all Canada Student Loans and
20
Integrated Student Loans issued on or after
August 1, 2000. The NSLSC processes your loan certificate, arranges for your loan funds to be deposited to your
bank account, helps you keep track of the amount of your
loan and the amount you have to repay, administers
repayment assistance programs and works with you to set
up a loan repayment schedule. You can contact the
NSLSC by calling 1-888-815-4514. You should also
register for a NSLSC online account to help keep track of
and manage your loan.
Non-Integrated Loan System: A system in which the
federal and provincial or territorial governments do not
combine loans. If this is the case in your province or
territory of permanent residence, you will receive and
repay two separate loans. However, you only have to
submit one application.
Non-repayment period: The six-month period after you
graduate or leave school during which you are not required
to make loan payments. However, interest on your loan
builds up during this period and you are responsible for
paying this interest. You can choose to add it to your
principal, but if you do, you will not be able to claim the
interest on your income tax return. Please note that
this is not the same as interest-free status.
Parental Contribution: The amount that parents of single
dependent students are expected to contribute toward the
costs of their children’s education, based on financial
ability. Parental contributions vary according to family
income and size.
Period of Study Commencement/End Date: The period
of study is the length of time that the designated
educational institution considers to be a typical school year
(e.g. September to April). The commencement date is the
first day of the month you begin studies and the end date
is the last day of the last month of studies. For example, a
typical school year is from September 1 to April 30.
Permanent Disability: A functional limitation caused by
a physical or mental impairment that restricts the ability of
a person to perform the daily activities necessary to
participate in studies at a post-secondary school level or
the labour force and is expected to remain with the person
for the person’s expected life.
Post-Secondary Education: Education received after
completing high school/secondary school.
Post-Secondary Educational Institution: This can
include colleges, technical institutions, universities, trade
schools, vocational institutions and career colleges.
Prime rate: The rate used as a base to calculate the
interest applied to a Canada Student Loan. This prime rate
is calculated using the interest rates declared by the five
largest Canadian financial institutions as their prime rate.
The Canada Student Loans Program calculates its prime
rate by eliminating both the highest and the lowest of those
five rates and taking the average of the remaining three.
The five institutions include the Bank of Montreal, the
Canadian Imperial Bank of Commerce, the Bank of Nova
Scotia, the Royal Bank of Canada and TD Canada Trust.
Red Seal Program: The Interprovincial Standards
“Red Seal” Program (also known as the Red Seal
Program) was established more than 50 years ago to
provide greater mobility across Canada for skilled workers.
Today, it represents a standard of excellence for the
industry. Through the Program, tradespersons can obtain
a Red Seal endorsement on their provincial/territorial
certificates by successfully completing an interprovincial
Red Seal examination. The Interprovincial Standards
“Red Seal” Program acknowledges their competence and
ensures recognition of their certification throughout
Canada without further examination.
Required Payment: The required payment is calculated
during the assessment phase of the application process
for the Repayment Assistance Plan/Repayment
Assistance Plan for Borrowers with a Permanent Disability.
It does not necessarily equal the payment levels established
by borrowers on their Consolidated Loan Agreement.
Severe Permanent Disability: A functional limitation
caused by a physical or mental impairment that prevents
a borrower from performing the daily activities necessary
to participate in studies at a post-secondary school level
and the labour force and is expected to remain with the
person for their expected life.
Principal: This is the original student loan amount borrowed, excluding interest charges. This may also include
any grants that were converted to loans.
Protected Persons: Immigrants who have been granted
refugee protection by Citizenship and Immigration Canada
or the Immigration and Refugee Board of Canada. This
includes Convention Refugees and “persons in need
of protection.” For more information on the protected
person status, go to www.cic.gc.ca.
Student Financial Assistance: This includes student
loans, grants, bursaries, work-study programs or any other
type of financial payment (including interest-free status
for students going to school full-time) that help students
manage the cost of post-secondary education.
Province or Territory of Permanent Residence: You
are a permanent resident of the province or territory where
you have most recently lived for at least 12 consecutive
months, not including any time you spent as a full-time
student at a post-secondary educational institution.
Repayment Assistance Plan (RAP): The Repayment
Assistance Plan is available for borrowers who experience
financial difficulty when repaying their student loan debt.
The Plan makes it easier for student loan borrowers to
manage their debt by allowing them to pay back what
they can reasonably afford.
21
SECTIO N 5:
Contact
Information
If you have provincial or territorial student loans in
addition to any student loans you may have received
from the Government of Canada, you must contact the
institution in the province of your permanent
residence holding those loans.
National Student Loans Service Centre
(NSLSC)
Provincial and Territorial Student Financial
Assistance
1-888-815-4514 (within North America)
Alberta
800-2-225-2501 (outside North America plus appropriate
country code)
TTY: 1-888-815-4556
https://nslsc.canlearn.ca/
Canada Student Loans Program
Canada Student Loans Program
Human Resources and Skills Development Canada
P.O. Box 2090, Station D
Ottawa, Ontario K1P 6C6
CanLearn.ca
[email protected]
Student Funding Contact Centre
780-427-3722 (Edmonton)
1-800-222-6485
British Columbia
StudentAid BC
250-387-6100 (Victoria area)
604-660-2610 (Lower Mainland)
1-800-561-1818
TTY: 250-952-6832
www.studentaidbc.ca
Manitoba
Manitoba Student Aid
204-945-6321 (Winnipeg)
1-800-204-1685
TTY: 1-866-209-0696
www.manitobastudentaid.ca
22
New Brunswick
Student Financial Services
506-453-2577 (Fredericton area or outside toll-free area)
1-800-667-5626
Student Financial Services
902-368-4640
www.studentaid.gnb.ca
Newfoundland and Labrador
Student Financial Aid Division
709-729-5849
Fax: 709-729-2298
1-888-657-0800
www.ed.gov.nl.ca/studentaid
The Northwest Territories
Student Financial Assistance
867-873-7190
1-800-661-0793
www.nwtsfa.gov.nt.ca
Nova Scotia
Student Assistance Office
902-424-8420
1-800-565-8420
TTY: 902-424-2058
www.studentloans.ednet.ns.ca
Nunavut
Student Assistance Office
1-877-860-0680
867-473-2600 (Baffin)
1-800-567-1514 (Baffin)
867-645-5040 (Kivalliq)
1-800-953-8516 (Kivalliq)
867-983-4031 (Kitikmeot)
1-800-661-0845 (Kitikmeot)
www.studentloan.pe.ca
Ontario
Student Financial Assistance Branch
1-877-672-7411
Students attending a post-secondary institution in
Ontario must contact the financial aid office at their
post-secondary institution for assistance.
TTY: 1-800-465-3958
www.osap.gov.on.ca
Quebec
Aide financière aux études reception and enquiries desk
418-643-3750 (Quebec City)
514-864-3557 (Montreal)
1-877-643-3750 )
www.afe.gouv.qc.ca
Saskatchewan
Student Financial Assistance Branch
306-787-5620 (Regina area and outside Canada)
1-800-597-8278
www.student-loans.sk.ca
Yukon
Student Financial Assistance
867-667-5929
1-800-661-0408, local 5929 (within Yukon)
www.education.gov.yk.ca/advanceded/sfa
www.edu.gov.nu.ca
23
For more information:
Visit CanLearn.ca and click on the
National Student Loans Service
Centre
or
call the National Student Loans
Service Centre at
1-888-815-4514

CanLearn.ca - Student Financial Assistance

Transcription

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