Repaying Full-Time Loans

The National Student Loan Service Centre NSLSC opens in new window (1-888-815-4514) manages the repayment of your student loans on behalf of the Government of Canada and the Government of Newfoundland and Labrador.

When do you pay back your loan

It is time to start repaying your loan when you:

  • have graduated from your studies;
  • have transferred to part-time studies;
  • have left school; or
  • are taking time off school for more than six months.

For the first six months after you leave school, you will not have to make payments to your Canada Student Loan or NL Student Loan. This is called your six month non-repayment period or grace period. You should be aware that during this period, interest does accumulate on your Canada Student Loan. The NL Student Loan is always interest free.

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Making payments on your Loan

When you are nearing the end of your 6 month non-repayment period you should receive a notice that your loan repayment is about to begin. If you have not received anything by mail, make sure you contact NSLSC 1-888-815-4514 . It is your responsibility to contact NSLSC to set up a repayment schedule. If you do not make contact, your loan payments may be automatically withdrawn from your bank account.

You will want to review all aspects of your loan(s) and finalize details concerning:

  • how much you owe;
  • the interest rate that will be applied to your loan(s);
  • the bank account you will use to repay the loan;
  • the monthly amount that will be withdrawn from your bank account;
  • the date it will be withdrawn;
  • how long it will take to pay back your loan(s).

Monthly payments can be made to NSLSC through automatic withdrawal, by cheque, online banking or telephone banking.

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Interest Rates on Your Student Loans

  • No interest will accumulate on the Newfoundland and Labrador portion of your student loan.
  • The interest rate on your Canada Student Loan is prime plus 2.5% floating.
  • You have the option of a one-time lock in on your Canada Student Loan at prime plus 5%.

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If you can't make a payment

Worried that you can't make your loan payment? Already missed a payment? There are repayment assistance options that may be able to help. Contact the National Student Loans Service Centre (NSLSC) opens in new window for more information.

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Reducing your Newfoundland and Labrador Student Loan

Newfoundland and Labrador Debt Reduction Grants

This program allows for up to the full amount of the Newfoundland and Labrador Student Loan to be converted into a non-repayable grant for eligible programs. There is no application process. Students are automatically assessed after the Student Financial Services Division receives notification that the student has graduated.

Eligibility

You are eligible for a Debt Reduction Grant if:

  • you successfully complete at least 80% of a full course load each semester or academic year as determined by the school;
  • you apply and are deemed eligible for loan assistance for at least half of the required length of the program** and borrow in excess of $165 per week of study during a semester or academic year; and
  • within 10 years after the program start date, you graduate from a post-secondary program within the province (or other eligible program) that is at least 80 weeks in duration.

**If you are a work-term student, the program length will be based on your total number of academic terms plus any work-term semesters for which you were deemed eligible for student loans.

Grants are calculated on the basis of a semester or academic year; however, benefits are not paid until you graduate. Canada Millennium Bursaries or Transition Grants previously awarded are subtracted from the total Debt Reduction Grant for which you are eligible.

In certain situations, borrowers may qualify for a Debt Reduction Grant if they are taking less than 80% of a full course load. For example, this would include borrowers approved by the Student Financial Services Division for assistance for full-time studies while taking less than 80% of a full course load and students with permanent disabilities. However, to be eligible for the full Debt Reduction Grant, these students must be successful in all courses for which the reduced course load was approved.

Borrowers may also be eligible for the Debt Reduction Grant if they demonstrate that extenuating circumstances beyond their control have caused them to be unsuccessful in completing 80% of a full course load. In such cases, approval for the grant will be determined upon review of a written appeal.

Attending Schools outside the Province

Borrowers who attend a designated school outside the province may also be eligible for the Debt Reduction Grant if they went out of province for at least one of the following reasons:

  • the program was not offered in Newfoundland and Labrador or was substantially different from any program in the province;
  • the program was at the graduate level;
  • the student was not admitted to the program in the province due to limited enrolment;
  • the student did not meet the entrance requirements of the school in the province, but did for the same program in another jurisdiction;
  • the student received transfer credits toward, or advanced standing into the program, which significantly reduced the program length; or
  • the student's spouse went out of province to attend a program of study that is eligible for the Debt Reduction Grant.

Note: Borrowers are required to provide the Student Financial Services Division with appropriate documentation to support their case.

Programs Less Than 80 Weeks in Duration

Borrowers may be eligible to receive Debt Reduction Grants for programs that are less than 80 weeks in duration if the program(s):

  • is completed after the student graduated from a previous program that was at least 80 weeks in duration and qualified for the Debt Reduction Grant; and
  • is deemed to advance the student in their particular field of study or significantly enhance the student's employability.

Required Documentation

A separate application is not required; however the Student Financial Services Division requires the following information to determine a student's eligibility:

  • transcript of marks;
  • percentage of a full course load the student completed per semester;
  • confirmation of graduation (this can be a copy of the relevant degree, certificate or diploma); and
  • confirmation of the graduation date and the number of weeks of the program.

Note: This information can be submitted by your educational institution using the Debt Reduction Program Monitoring Form that is sent to them. If the school does not provide this information to the Student Financial Services Division, the borrower is encouraged to submit the information directly.

Under the Debt Reduction Grant Program, borrowers must respond to all requests for required documentation from the Student Financial Services Division within 2 years of graduation.

Note: Borrowers who do not apply for financial assistance during the final period prior to graduation should contact the Student Financial Services Division so that their eligibility for a Debt Reduction Grant can be determined.

Borrowers may appeal decisions made by the Student Financial Services Division pertaining to Debt Reduction Grants. However, appeals will not be considered prior to the release of a debt reduction notice.

Deadline: You must submit your appeal within one year from the date you were notified of the original decision.

All Debt Reduction Grants are subject to audit, which could result in overpayments. In such cases, the amount overpaid will be added to the balance of the provincial student loan.

Note: In cases where the provincial portion of the loan has been paid in full, the student will receive the remaining debt-reduction funds in the form of a cheque.

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Early Childhood Education Grants

No application is required. The Student Financial Services Division will notify you if you meet the eligibility requirements. If you qualify, the outstanding balance of the provincial loan borrowed while you were studying Early Childhood Education will be forgiven by converting into a non-repayable grant upon confirmation that you have met all requirements.

You qualify if:

  • you graduate from an approved Early Childhood Education program within the province;
  • you have applied and been deemed eligible for assistance for at least half of the required length of the program;
  • you borrow more than $165 per week of study during a given semester;
  • you completed the program within the normal length of the program plus a grace period of up to one academic year (two semesters); and
  • you obtain full-time employment (at least 30 hours per week) in a licensed family home or child-care centre within the province for a period of at least 24 months.

Note: In cases where the provincial portion of the loan has been paid in full, the student will receive the balance of the grant in the form of a cheque.

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