Six months after you have completed full-time study, whether you have graduated, transferred to part-time studies, withdrawn, or you are taking time off, you must begin repaying your student loan. This repayment phase is called Student Loan Consolidation. Any grants you received do not have to be repaid.
The National Student Loan Service Centre (NSLSC) manages repayment of your loan. Prior to your loans entering the repayment phase, the NSLSC will send you a Consolidation Letter that outlines your repayment terms and your minimum monthly payment. You can negotiate your payment options with the NSLSC. Some options are to:
- Change the monthly payment amounts;
- Pay in lump sum; or
- Pay out your loan early.
To compare different repayment options, check out the Loan Repayment Calculator through the National Student Loans Service Centre.
Contact the NSLSC if you have not received your repayment information one month before your loans consolidate.
You are not required to make a payment for six months after completing your studies. Interest will accumulate during this time. Any unpaid interest accumulated during this six-month period will be added to your principal balance at the time of consolidation.
Your first loan payment is due on the last day of the seventh month after your period of study ends.
How to Pay off Your Student Loans Faster
Make lump-sum payments: Lump-sum payments help reduce the total interest paid on your loan. Payments made while still in school, during your non-repayment (grace) period, or even after you begin repayment are first applied to any outstanding interest and then directly toward the principal.
Increase the amount of your monthly payments: The amount you pay above your minimum monthly payments is applied directly to the principal.
Managing Your Debt – Repayment Assistance Plan (RAP)
As a borrower, you are required to repay your loan. Missing payments could damage your credit rating. Your student loan could go into default. Contact the National Student Loans Service Centre at 1-888-815-4514 before you miss a payment. There are options available to help you manage your payments and avoid defaulting.
The Repayment Assistance Plan (RAP) makes it easier to manage your debt. You pay back what you can reasonably afford, based on your family income and size. Monthly payments are limited to no more than 20 per cent of your gross family income. No borrower on RAP will have a repayment period lasting more than 15 years. If you have a permanent disability, your RAP repayment period will not last longer than 10 years. If you earn very little income, you might not be required to make loan payments until your income increases. Contact the National Student Loans Service Centre to apply.
Monitoring Your Account
Set up an online account with the National Student Loan Service Centre to manage repaying your loan.
For questions on maintaining or repaying your loan, contact:
National Student Loans Service Centre
Mississauga ON L5A 4M4
Tel: Within North America: 1-888-815-4514
Outside North America with an international access code: 1 800 2 225-2501
Countries outside of North America without an international access code:
Call the Canadian operator at 800 0800 096-0634, then call collect: 905-306-2950
National Student Loans Service Centre (NSLSC)