Advanced Education and Literacy
Repaying Your Loans
- When is my First Payment due?
- How do I make payments on my loans?
- Where do I Repay my Student Loans?
- What if my Personal Information/Situation Changes?
- Part-time Student Loans
- Bankruptcy
- What if I have problems making my payments?
- Repayment Assistance
- Repayment Assistance for Borrowers with a Permanent Disability
- Tax Credits
- Contacts
When is my First Payment Due?
Your Canada Student Loan lenders will consider you to be in repayment status six months after you cease to be a full-time student. Your first payment will be due at the end of the seventh month.
Your Manitoba Student Loan lenders will consider you to be in repayment status six months after you cease to be a full-time student. In this case, your first payment will be due at the beginning of the eighth month.
For example: If you ceased to be a full-time student in April 2006, you would be considered to be in repayment on November 1, 2006. Your first payment would be due on December 1, 2006.
How long it takes to repay your loans depends on you. By paying slightly more than the minimum payment each month, you will pay your loans off faster, and will pay less interest over the long run. Options are available, so please contact each of your lenders to discuss a repayment schedule that works for you.
NOTE: If you continue your studies as a full-time student, it is your responsibility to inform each of your lenders. Otherwise, you will automatically be considered to be in repayment status, and payments may be taken from your bank account. For more information, please see Maintaining/Reinstating Interest-Free Status.
How do I make payments on my loans?
How you make your Canada and Manitoba Student Loan payment and the payment options available to you is dependant on when (which year) your loan was issued. Please refer to the sections below to determine what options are available.
| Canada Student Loans Issued before August 1st, 2000 |
| The repayment of your Canada Student Loan(s) needs to
be made to the financial institution that holds the Canada
Student Loan. Contact your lender for payment options (example,
Royal Bank, CIBC, etc.). Refer to the telephone number in
the contact section to obtain further information about repayment
options. |
| Canada Student Loans Issued on or after August 1st, 2000 |
| The repayment of your Canada Student Loan(s) needs to
be made to the National Student Loan Service Centre. Refer
to the telephone number in the Contact section to obtain further
information about payment options. |
| Manitoba Student Loans Issued before August 1st, 2001 |
| The repayment of your Manitoba Student Loan(s) needs to
be made to the financial institution that holds the student
loan. Contact your lender for payment options. |
| Manitoba Student Loans Issued on or after August 1st, 2001 |
|
The repayment of your Manitoba Student Loan can be processed in a variety of ways. The most common and preferred method of repayment is a preauthorized debit (PAD) to your Bank account. The PAD is set up by Manitoba Student Aid just prior to your first payment due date. If you want to apply additional payments to your Manitoba Student Loan, you have the following options available to you:
|
Where do I Repay my Student Loans?
Canada and Manitoba Student Loans, like any other loans, must be
repaid. Always remember that the repayment history of your student
loans becomes a part of your personal credit rating.
Depending on when you began borrowing student loans, you may have
up to four different lenders, and thus four separate student loans.
- Canada Student Loans are currently handled through a lender called the National Student Loans Service Centre. This has been the case since August 1, 2000. Your Canada Student Loan is the loan that you received in the first half of your study period each year.
- Manitoba Student Loans are currently handled through the Manitoba Government, Manitoba Student Aid Branch. Your Manitoba Student Loan is the loan that you receive at the mid-point of your study period each year.
- Prior Canada Student Loans and Manitoba Student Loans were handled through various lenders, primarily the Royal Bank and CIBC.
When the time comes to repay your student loans, you will be making payments to all of your lenders.
What If My Personal Information/Situation Changes?
You must advise all of your lenders of changes if any of the following occurs:
- You have completed your program, have withdrawn from full-time studies, or have dropped below the minimum course load.
- You have returned to full-time studies. For more information, please see Maintaining/Reinstating Interest-Free Status.
- Your personal information (name, address, phone number) has changed.
- Your bank account has changed.
Part-time Student Loans
If you received Canada Student Loans for part-time studies, you are required to make interest payments even while enrolled. Six months after you cease to be a student, you will be considered to be in full repayment status. Your first full payment will be due at the end of the seventh month.
Bankruptcy
In June 1998, the Bankruptcy and Insolvency Act was amended so that obligations for student loans can no longer be extinguished by an order of discharge. This means that student loan debt survives bankruptcy actions and remains payable for a period of ten years after the end of your studies.
Repayment Assistance
If you are having difficulty making the minimum monthly payment on your student loan there are debt management programs available to you. By not making required payments, you will be considered in default of your loans. This has serious consequences for your credit rating and your future ability to obtain credit (loans, mortgages, credit cards, etc.). By informing your lenders of your situation, you give them the opportunity to work with you through the difficult times. If you have student loans issued on or after August 1, 2001 you may qualify for the Repayment Assistance Plan or the Repayment Assistance Plan for Borrowers with a Permanent Disability. If you have student loans issued prior to August 1, 2001 please contact your lender for repayment assistance options.
Repayment Assistance Plan
The Repayment Assistance Plan (RAP) is available to borrowers who are having difficulty paying back their student loan debt. The Plan makes it easier for student loan borrowers to manage their debt by paying back what they can reasonably afford (affordable payment) instead of the normal required payment amount.
Under the Plan:
- No borrower should have a repayment period of more than 15 years (or 10 years for borrowers with permanent disabilities) from the last full time period of study end date.
- Affordable student loan payments are based on the borrower’s family income and family size.
- Borrowers will not make payments exceeding 20 percent of their family income towards loans covered by RAP.
In certain cases borrowers may not have to make any student loan payments until their income increases. The new RAP replaces the Interest Relief and Debt Reduction in Repayment measures on direct loans.
How does the RAP work?
RAP has two stages to help student borrowers fully repay their student loan within 15 years (or 10 years for borrowers with permanent disabilities), depending on their financial circumstances. Applications are approved for periods of 6 months at a time. Borrowers must submit a new application for each 6 month term.
Stage I: This stage applies to the first five years.
- For five years student loan borrowers who qualify will make affordable payments (or no payment) toward their loan principal. Paying the student loan principal first reduces the total debt.
- The Province of Manitoba will cover the interest amount owing that the borrower’s affordable payment does not cover.
- Borrowers will not make payments exceeding 20 percent of their income towards student loans covered by RAP.
- Borrowers could be enrolled in this stage for up to 5 years during a 10 year period from the last full time period of study end date.
Stage II: This stage is available for borrowers who continue to experience financial difficulty. It starts once the borrower completes Stage I, or has been in repayment for 10 years after they leave school or complete their studies.
- The Province of Manitoba will continue to cover the interest and begin to cover a portion of the student loan principal amount (i.e. the difference between the affordable payment and the required payment).
- The balance of the loan should be gradually paid off so that no student loan debt remains after 15 years of leaving school (or 10 years for borrowers with a permanent disability).
- Throughout this period, the same eligibility criteria, application process and affordable payments as in Stage 1 will apply.
Am I eligible?
For RAP you must:
- be a resident of Canada; and
- be unable to afford the required monthly payment (as calculated by Manitoba Student Aid (MSA) on the basis of a standard loan repayment period).
How do I apply?
You must apply for RAP. Enrolment is not automatic.
- Download the application form or request an application from MSA by phone.
- Complete and sign the application form and submit it to MSA with all the required supporting documentation.
- Call MSA at (204) 945-6321 or toll-free (in Canada and the US) at 1-800-204-1685 for information about your eligibility for RAP.
Note: Student loan borrowers who received student loans before August 1, 2001 are not eligible for RAP on their Manitoba Student Loans. They may still apply for Interest Relief through their financial institution or Debt Reduction in Repayment through MSA.
Repayment Assistance for Borrowers with a Permanent Disability
If you are a student loan borrower with a permanent disability, the following provincial student loan repayment measures are available:
- Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD)
- Permanent Disability Medical Forgiveness
Contact Manitoba Student Aid (MSA) if you are experiencing financial difficulty. Staff can help you understand the repayment assistance measures available.
Repayment Assistance Plan for Borrowers with a Permanent Disability
RAP-PD is available to borrowers with a permanent disability who are having difficulty repaying their student loan debt. RAP-PD makes it easier for borrowers with a permanent disability to manage their student debt by paying back what they can reasonably afford.
Under The Plan:
- Loan payments are based on family income, family size, and disability-related expenses (allowable uninsured medical expenses, special care and other expenses directly related to the disability).
- Borrowers will not make payments exceeding 20 percent of their income towards loans covered by RAP-PD.
- In certain cases borrowers may not have to make any loan payments until their income increases.
- No borrower with a permanent disability should have a repayment period longer than 10 years from the last full time period of study end date.
- Applications are approved for periods of 6 months at a time. Borrowers must submit a new application for each 6 month term.
How do I apply?
You must apply for RAP-PD. Enrolment is not automatic.
- Download the application form from the “Print It” section on our website or request an application from MSA by phone.
- Complete and sign the application form and submit it to MSA with all the required supporting documentation.
- Call MSA at (204) 945-6321 or toll-free (in Canada and the US) at 1-800-204-1685 for information about your eligibility for RAP-PD.
Note: Student loan borrowers who received student loans before Aug 1, 2001 are not eligible for RAP-PD on their Manitoba Student Loans. They may apply for Interest Relief through their financial institution. Applications for Debt Reduction in Repayment are made through MSA.
Permanent Disability Loan Forgiveness
The governments of Canada and Manitoba may forgive your student loans if you are unable to repay because of a permanent disability. If you are a borrower with a severe permanent disability who is prevented from working and going to school and who will never be able to repay your loans, you may benefit from having your loans immediately forgiven under the Permanent Disability Medical Forgiveness program.
You must first receive forgiveness on your Canada Student Loans before being considered for forgiveness of your Manitoba Student Loans. For more information, please call: 1-888-726-6596.Tax Credits
While you are in repayment, you will be able to claim a tax credit of 17% of the interest you have paid each year on your student loans. For more information, please contact each of your lenders.
Contacts
National Student Loans Service Centre
1-888-815-4514
Manitoba Student Aid Branch
(204) 945-6321
1-800-204-1685
Royal Bank - Canada Student Loans Centre
1-800-363-3822
CIBC - National Student Centre
1-800-563-2422
