Maintaining Interest-Free Status and Repaying Your Loan

Maintaining Interest Free Status

• If you are returning to full-time studies and not taking out another Canada student loan, you must notify National Student Loan Serivce Centre that you are currently in full-time studies.
• A Schedule 2 for Canada-New Brunswick integrated loans can be obtained and filled out by the Student Access Centre on the 1st floor of the Administration Building.
• This form can only be filled out for students who are currently in full-time classes.
• The completed form needs to be mailed or faxed to NSLSC.
• If the student had loans dated before August 1, 2001, he or she must provide a Schedule 2 form to any other lenders that the student may have other than NSLSC.
• Call the lender(s) after two weeks to ensure that they received confirmation of your enrolment.
• Failure to notify your lender(s) of your full-time status can result in your loans entering repayment.
• Information regarding Interest Free Status for Nunavut Loans will be posted soon.

Loan Repayment

• You must contact FANS immediately after graduating or leaving full-time studies. You must begin to repay the loan within 6 months of the completion of your schooling.
• FANS office will issue a consolidation agreement outlining the arrangements for repayment. You must sign and date this agreement within 6 months of leaving full-time studies. If you fail to sign and return the agreement, you may lose your remission and may be placed in default.
• The interest rate for loans is set at the time repayment begins. The rate set is 1% below the prime interest set by the the Bank of Canada on January 1st of the year you complete full-time studies.

Repayment Assistance:

Remission:

• The FANS program can forgive a certain portion of your primary loan.
• You must meet the all three of the following eligibility critieria:
• You received a primary loan.
• You successfully competed 60% of a full course load in the year in which the loan was received.
• You have reside in Nunavut since completing your studies.
• For every 3 consecutive months that you reside in Nunavut after leaving full-time studies, $750 from your account will be forgiven.
• To apply, you must sign and date the consolidation loan agreement, write in the comments section "applying for remission" and arrange for an original certified copy of your transcript to be sent to the FANS office. This transcript must be received before the remission process can begin on your student loan.
• You must send FANS a statutory declaration every three months to confirm your residency in Nunavut until the entire remissible portion of your loan is forgiven.

Contact National Student Loan Service Centre at 1-888-815-4514 for information on any of the following repayment assistance programs for Canada Student Loans.

Interest Relief:

• Available to borrowers who are experiencing undue hardship in repaying their loan due to low income.
• If approved you will not be charged interest on your student loan and you will not be required to make monthly loan payments during approved periods of Interest Relief.
• Interest Relief is approved for 6-month periods, up to a maximum of 30 months at any point during the repayment of your student loan.

Extended Interest Relief:

• If you are still unable to make your payments after having exhausted all Interest Relief, you may be eligible to receive Extended Interest Relief.
• You must not have been out of school for more than 60 months (5 years).
• You can extend Interest Relief benefits for up to 54 months from when you left school.

Debt Reduction Repayment:

• This program is designed to reduce the outstanding principle balance of the federal portion of student loans.
• Debt reduction lowers the principle amount of your loan and reduces your monthly loan payment to an affordable level based on your income.
• You may qualify if:
• Five years have passed since you last attended a post-secondary institution;
• You have exhausted all Interest Relief; and
• Your loan payments exceed a given percentage of your income.
• You can receive up to three reductions on your loan principle in your lifetime, up to a total of $26,000, depending on your financial circumstances.

Revision of Terms

• You may be able to make arrangements to pay only the interest portion of your loan payments or to extend the repayment period for up to 15 years.