Maintaining Interest-Free Status and Repaying Your Loan

Interest Free Status

• If you are returning to full-time studies and not taking out another student loan, you must notify National Student Loan Service Centre that you are currently in full-time studies.
• A Schedule 2 for Canada Student Loans is obtained and filled out by the Student Access Centre on the 1st floor of the Administration Building.
• These forms can only be filled in by the Student Access Centre when the student is currently in full-time studies.
• A completed Schedule 2 needs to be mailed or faxed to NSLSC and a copy needs to be sent to the lending institution(s) holding your provincial loan (i.e. Royal Bank).
• Call your lenders after two weeks to ensure that they received confirmation of your enrolment.
• Failure to notify lenders of full-time status can result in your loans entering repayment.

Loan Repayment

• Your entire student loan is interest free as long as you remain a full-time student. Your Nova Scotia Student Loan remains interest free for 6 months after the date written on your loan document as the end of your study period. However, your Canada Student Loan portion accrues interest starting from the date shown on your loan document as the end of your study period, but you have 6 months before you must begin repaying the loan(s).
• It is your responsibility to contact your financial institution(s)—your lenders—to make repayment arrangements. It is also important to stay in touch with your lender and to keep your lender informed of your current address.
• Nova Scotia Student Loan repayments are taken directly from your bank account.
• If your Nova Scotia Student Loan and your Canada Student Loan are at different banks, you must keep in touch with both.

Canada Student Loans Repayment Assistance Program (RAP):

Starting August 1, 2009, the federal Repayment Assistance Plan (RAP) will replace the old federal Interest Relief and Debt Reduction in Repayment programs, and students currently accessing these programs will be transitioned to RAP.

This program is designed to help students experiencing financial difficulties in repaying their Canada Student Loans.

Under RAP:

• No student will repay Canada Student Loans for longer than 15 years.
• Students will have to start making payments after their grace period ONLY if their gross annual income exceeds $20,210.
• Payments will not exceed 20% of their income.
• Payments will be applied to loan principal first - the Government of Canada will pay any unpaid interest.

Students can apply for RAP by contacting NSLSC.

Debt Reduction After Graduation:

• Students are eligible if they have received a Nova Scotia Student Loan beginning August 1, 2003 and beyond, attended an approved educational institution and successfully graduate from the program, which they received the Nova Scotia Student Loan for.
• Any award will be paid directly to the lender, and applied against your Nova Scotia Student Loan balance.
• Awarded based on student's loan profile, with a graduated rate awarded for each year of Nova Scotia Student Loan, up to a maximum of program length plus one extra year. Applications are available at the NS Student Assistance website.
• Employment Bonus Award - If you work full-time in Nova Scotia and can demonstrate 50 weeks of full-time employment in Nova Scotia in the three year period following graduation, you can receive an additional 50% of the amount of Debt Reduction for which you received at graduation. You can download and complete an application online.
• Repayment Bonus Award - If you make 12 payments on your Nova Scotia Loan within three years of graduation (full principle plus interest), you will receive an additional 20% of the amount of Debt Reduction for which you received at graduation.

As of August 1, 2009, the federal Interest Relief, Extended Interest Relief and Debt Reduction in Repayment programs will be replaced by the new RAP.