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. Because Saskatchewan loans are officially integrated with Canadian student loans, students who took loans out after August 1, 2001, have one national lender.
• A Schedule 2 for Canada-Saskatchewan 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, 2001, the student must provide an Integrated Schedule 2 form to the Royal Bank as well as the National Student Loan Service Centre.
• Call the lender(s) after two weeks to ensure that they received confirmation of your enrolment.
• Failure to notify lender(s) of full-time status can result in the loans entering repayment.

Repayment

• The Student will enter into loan repayment six months following completion of full-time study, whether the student has graduated, transferred to part-time studies, withdrawn or is taking time off.
• During this six-month grace period, interest will accrue on the student loan(s); however, the student is not required to make payments on our loan(s) until the seventh month.
• During the grace period, loan providers holding the student loans will attempt to contact the student about loan repayment. The NSLSC will send a letter and Consolidation Agreement, prior to the loan(s) entering repayment, that outlines repayment terms and the minimum monthly payment amount.
• This Agreement will consolidate the loans received over the years from the NSLSC into one loan and set the terms of the repayment schedule.
• If the student has loans dating before August, 2001, at the end of his or her study period, the student must contact a Student Loans Officer at the Royal Bank as well as the National Student Loan Service Centre (NSLSC) to negotiate repayment within 6 months.
• If the student got his or her first Student Loan after August, 2001, the student only has one repayment, so only needs to contact the National Student Loan Service Centre:

National Student Loan Centre
Public Institutions Division
PO Box 4030
Mississauga, ON L5A 4M4
1-888-815-4514

Royal Bank Western Student Centre
1-888-359-4770

Interest Relief:

As of August 1, 2009, the Interest Relief program for Canada-Saskatchewan Integrated student loans will be replaced by the new federal Repayment Assistance Program (RAP).

• Interest Relief is available to borrowers who are experiencing undue hardship in repaying their loan due to low income.
• If approved for Interest Relief, students will not be charged interest on student loans and will not be required to make monthly loan payments during approved periods of Interest Relief.
• Interest Relief is approved for six-month periods, up to a maximum of 30 months at any point during the repayment of the student loan.
• Extended periods of Interest Relief may also be available if the student meets the eligibility criteria and has not been out of school for more than 60 months (5 years).
• For Saskatchewan loans cashed before August 1, 2001 students need to contact previous lenders (probably the Royal Bank).
• For Saskatchewan loans cashed after August 1, 2001 and for all Canada student loans, students need to contact the National Student Loans Centre.

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.