How to Repay Your Loans

In the six-month period after your studies end, you must contact the lender and/or the National Student Loans Service Centre (NSLSC) to make arrangements to repay your loan. The terms and conditions of repayment will include the outstanding principal of your student loans, the interest rate(s), and your monthly payment amount. The process is called "consolidation." During the six-month period following the month in which your studies end, you are not required to make any loan payments. If you choose to do so, the payment will be applied against the principal. You are required to start making loan payments the first day of the seventh month following the month your studies ended. This is called your "consolidation date". As of your consolidation date, the amount of interest accrued in the six-month period after your studies ended is calculated and you can either pay the interest or add it to your loan principal (capitalized). If you choose to capitalize the interest, your lending institution or bank will adjust your monthly payment amount accordingly.

Assistance in Repaying Your Loans

Financial Counselling

When you finance your education with the help of federal and/or provincial student loans, it is important that once you have completed your studies, you assess the amount of your student loan debt, your living expenses, as well as your expected employment possibilities and salary ranges. Many educational, as well as financial institutions provide budget counselling services and/or offer courses in budgeting.

Revision of Terms

If you are unable to make payments on your Canada-Ontario Integrated Student Loan, you may ask the National Student Loans Service Centre to revise the repayment terms of your loan. A revision of terms can extend your repayment period for up to 15 years, thereby lowering your monthly payments.

Interest-Relief and Debt-Reduction Programs

While you are receiving interest relief, the Government of Canada and/or the Government of Ontario pays the interest for you, and you are not required to pay the interest on your loan or make monthly payments.

You must contact the NSLSC at 1-888-815-4514 to obtain a Canada-Ontario Integrated Interest Relief Program application if you have any of the following:

• Canada Student Loans negotiated on or after August 1, 2000, or
• Canada-Ontario Integrated Student Loans negotiated after July 31, 2001.

You must contact the financial institution (bank, credit union, or caisse populaire) holding the loan(s) to obtain applications for the provincial and/or federal interest-relief programs and/or federal debt-reduction program if you have either of the following:

• Canada Student Loans negotiated before August 1, 2000, or
• Ontario Student Loans negotiated before August 1, 2001.

If you have had student loans and subsequently declared bankruptcy on your provincial debt load, please contact the National Student Loans Service Centre at 1-888-815-4514 to determine the status of your government loans when bankruptcy proceedings have commenced.

Failing to Repay Your Loan

You are responsible for repaying your loan and any grant, bursary, and/or scholarship overpayment. If you do not make your payments, you will be considered in default. Your debt (loan and/or overpayment) will be turned over to a collection agency and your default will be reported to a credit bureau; as a result, your ability to obtain credit may be affected. You will be restricted from receiving further financial assistance until the default has been cleared. It is important to note that, while you are in default, the interest will continue to accrue on the unpaid balance of your loan. A discharge from bankruptcy will not include your Canada Student Loan, Ontario Student Loan, Part-Time Canada Student Loan, and/or Canada-Ontario Integrated Student Loan unless the bankruptcy was filed at least 10 years after you ceased to be a full-time or part-time student.

You are considered in default and are restricted from receiving additional OSAP assistance if:

• You did not repay an Ontario and/or a Canada Student Loan or a Canada-Ontario Integrated Student Loan.
• You did not repay a Part-time Canada Student Loan.
• You did not repay an Ontario Student Opportunity Grant, Loan Forgiveness, or an Ontario Study Grant overpayment.
• You did not repay a Bursary for Students with Disabilities, a Child-Care Bursary, an Ontario Special Bursary, or a Bursary for Students with Disabilities Attending Out-of-Country Postsecondary Institutions overpayment.
• You did not repay a Student Venture Capital loan.

Obtaining Clearance of a Default

For information on the procedures you must follow to clear your default, contact Cambrian College's Financial Aid office for information regarding clearance procedures. The Ministry and federal authorities review all clearance requests to determine whether you are eligible for further OSAP assistance. Please note that repayment of the default and/or overpayment is normally required before you can receive further funding.

Withholding Your Income Tax Refund

If you have defaulted on your Canada-Ontario Integrated Student Loan, and loan collection is unsuccessful, the Government of Canada and/or the Government of Ontario may direct Canada Customs and Revenue Agency to withhold your income tax refund and apply the proceeds against the amount owing. You will be advised that your income tax refund may be withheld, and you will have the opportunity to contact OSAP to make arrangements to repay the outstanding debt instead of having your income tax refund withheld.

Your lender is the:

National Student Loans Service Centre (NSLSC)

Remember to keep them informed of any address change!