Government loans[edit]
Canadian citizens, permanent residents of Canada living in any province for over a year, and protected persons[1] are normally eligible for loans provided by the federal government, through the CSLP, in addition to loans provided by their province of residence.
Loans issued to full-time students are interest free while a student is in full-time studies. Students receiving a Canada Student Loan (CSL) for the first time on or after August 1, 1995, are eligible for up to 340 weeks (~6.5 years) of interest-free status on their loan balance. Students in doctoral programs are eligible for an additional 60 weeks, up to 400 weeks (~7.5 years). Students with permanent disabilities and students who received their first CSL prior to August 1, 1995, are eligible for up to 520 weeks of assistance (10 years),[2] though certain provincial loans may have different limits.
Whether in receipt of student loans or not, students in full-time study are not required to repay their student loans. Depending on the issuing jurisdiction, interest begins to accumulate immediately upon leaving studies.
Assistance is available for students in part-time studies, with rules slightly different based on the program. Beginning January 1, 2012, the Government of Canada eliminated interest on part-time student loans while borrowers are in-study.
Student loan borrowers begin repaying their student loans six months after they graduate or leave school, although interest may begin after the Period of Study End Date. Grants may supplement loans to aid students who face particular barriers to accessing post-secondary education, such as students with permanent disabilities or students from low-income families.
Canada Student Loans of up to $210 per week of full-time study or 60% of the student's assessed need (the lesser of these) can be issued per loan year (August 1–July 31). Loans issued through provincial programs will normally provide students with enough funding to cover the balance of their assessed need. Part-time loans cannot exceed $10,000 in principal at any given time[3]
Students in professional programs[edit]
Most charter banks in Canada have specific programs for students in professional programs (e.g., medicine) that can provide more funds than usual in the form of a line of credit, sometimes with lower interest rates as well. Students may also be eligible for government loans that are interest free while in school on top of this line of credit, as private loans do not count against government loans/grants.[4]
The March 2011 federal budget announced a Canada Student Loan forgiveness programme for medical and nursing students to complement other health human resources strategies to expand the provision of primary health services. The programme is meant to encourage and support new family physicians, nurse practitioners and nurses to practise in underserved rural or remote communities of the country, including communities that provide health services to First Nations and Inuit populations.[5]
National Student Loan Service Center[edit]
The National Student Loans Service Centre (NSLSC) is an agency created by the Canada Student Loans Program (CSLP) where Canadian Federal loan holders manage their student loan. The NSLSC manages CSLP (Federal) loans as well as provincially-integrated loans for the following provinces: British Columbia, Saskatchewan, Ontario, New Brunswick, and Newfoundland and Labrador.
The NSLSC website (nslsc.ca) can be used to maintain student loan holders files, confirm enrolment, check disbursement status, apply for the Repayment Assistance Plan, as well as make payments on their loans.
Loan administration and repayment[edit]
The Canada Student Loan Program (sometimes referred to as the National Student Loan) is administered by National Student Loan Service Centre[6] a part of Human Resources and Social (Skills) Development Canada (HRSDC). Students have the choice of opting for a fixed interest rate of prime interest rate, or a floating interest rate. Newfoundland and Labrador and Prince Edward Island were the only provinces where there was no interest on the provincial loan, but as of March 28, 2014, the government of Nova Scotia also eliminated interest for all graduates who entered repayment after Nov. 1, 2007.[7] The government of British Columbia eliminated interest on its student loans on February 19, 2019. The Canadian federal government eliminated interest on its student loans as of April 1, 2023.[8]
In September 2010 the amount of student loans owed to the Government of Canada surpassed $15 billion.