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 Aide Financiere aux Etudes that you are currently in full-time studies.
• A Confirmation of Student Status - Full-Time form can be obtained and filled out by the Student Access Centre on the 1st floor of the Administration Building. This form is also available online.
• This form can only be filled out for students who are currently in full-time classes.
• The completed form must be mailed to Aide Financiere aux Etudes.
• Students must call the lender after two weeks to ensure that the lender received confirmation of your enrollment.
• Failure to notify the lender of full-time status can result in your loans entering repayment.

Loan Repayment

• Shortly before you must begin repaying your student debt, your financial institution's student loan centre will contact you to conclude a repayment agreement.
• If you complete your full-time studies or withdraw during or at the end of the previous winter term, you are responsible for the interest charges on loans as of December 1, and must start repaying the loan debt (principal and interest) as of June 1.
• During the 6-month period immediately following the completion of or your withdrawal from your studies, you can benefit from a partial exemption, i.e. you do not have to begin repaying your student debt. You will become responsible for the interest charges the month immediately following your end-of-study date.
• You may either make monthly interest payments, or have the interest capitalized, i.e. converted into principal and added to your outstanding debt.
• You must arrange repayment of your student loans with the financial institutions which hold your loans. Remember to make these arrangements within six months after the end date of your full-time studies.

Loan Remission Program:

• The purpose of the Loan Remission Program is to forgive 15 percent of the student loan debt of any person who completed his or her studies within the prescribed period and who has received a bursary under the Loans and Bursaries Program for every year of study.
• The prescribed period is usually 32 months for an undergraduate program spread over a 4-year period. However, the duration of some programs may vary.

Eligibility Criteria:

To be eligibile for the program, you must:

• Have completed a program leading to an undergraduate degree within the presecribed period. a loan remission may also be granted for previous college studies provided they meet the eligibility requirements;

OR

• Have received a bursary under the Loans and Bursaries Program every award year while studying in that program. If you meet these requirements and you wish to benefit from the Loan Remission Program, you must send the completed Loan Remission Application to Programme de Remise de Dette at Aide Financiere aux Etudes.

Details : - The amount awarded is equivalent to 15% of the student loans contracted during the terms of study in the program for which the application is made. - You must meet the requirement for the degree or diploma at the level of study for which you are applying for loan remission. If you previously started another program and then withdrew, you are not excluded from the Loan Remission Program. Only those terms in which you were enrolled full-time will be considered. These terms of study do not have to be consecutive. - The loan remission is transmitted to the lending institution so that it may deduct the amount from the student loan debt or pay the balance out to you. - The loan remission is taxable, and a tax slip will be issued. - The loan remission may not be applied against loans contracted under the Loan Guarantee Program for the Purchase of a Microcomputer.

Having Trouble Paying Back Your Loan?

• If you are unable to repay your student debt, contact the person in charge of your file with your financial institution immediately. He or she can best advise you on the courses of action available, taking into account your financial difficulties.

Deferred Payment Plan:

• The Deferred Payment Plan is intended for individuals who are unable to repay the student loans they contracted under the Loans and Bursaries Program or the Loans Program for Part-Time Studies. Through this program, you could defer payment of your student loan debt for several months.
• If you are unable to repay your student debt, contact the person in charge of your file with your financial institution immediately. He or she can best advise you on the courses of action available, taking into account your financial difficulties.
• If you qualify, the government will pay the interest on your student loan debt to your lenders for a period of six consecutive months. You will not have to make your monthly payments during this time nor will you have to repay the government for the interest it paid on your behalf.
• You may participate in the Plan for a lifetime total of 24 months over the five years following the end of your partial exemption period (6-month grace period immediately following your end-of-study month).
• Application for the Deferred Payment Plan is available online.