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{{Use dmy dates|date=July 2023}}
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'''Student Loans in Canada''' May help post-secondary students pay for their education in [[Canada]]. The federal government funds the Canada Student Loan Program (CSLP) and the provinces may fund their own programs or run in parallel with the CSLP. In addition, Canadian banks offer commercial loans targeted for students in professional.
{{Short description|Assistance for paying for education in Canada}}
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Government sponsored '''Student Loans in Canada''' was designed to help post-secondary students pay for their education in [[Canada]]. The federal government funds the Canada Student Loan Program (CSLP) and the provinces may fund their own programs or be integrated with the CSLP. In addition, Canadian banks offer commercial loans targeted for students in professional programs.


==Government loans==
==Government loans==
[[Canadian nationality law|Canadian citizens]], permanent residents of Canada living in any province for over a year, and protected persons<ref name="Determining Eligibility for Canada Student Loans">{{cite web|url=http://www.canlearn.ca/cgi-bin/gateway/canlearn/template.asp?a=student&l=en&sc=pay/apply/BC/ft/public/determine_eligibility/your_eligibility.shtml|title=Determining Eligibility for Canada Student Loans|access-date=2007-06-29|archive-url=https://web.archive.org/web/20070927222637/http://www.canlearn.ca/cgi-bin/gateway/canlearn/template.asp?a=student&l=en&sc=pay%2Fapply%2FBC%2Fft%2Fpublic%2Fdetermine_eligibility%2Fyour_eligibility.shtml|archive-date=2007-09-27|url-status=dead|df=}}</ref> are normally eligible for loans provided by the [[Politics of Canada|federal government]], through the CSLP, in addition to loans provided by their province of residence.
[[Canadian nationality law|Canadian citizens]], permanent residents of Canada living in any province for over a year, and protected persons<ref name="Determining Eligibility for Canada Student Loans">{{cite web|url=http://www.canlearn.ca/cgi-bin/gateway/canlearn/template.asp?a=student&l=en&sc=pay/apply/BC/ft/public/determine_eligibility/your_eligibility.shtml|title=Determining Eligibility for Canada Student Loans|access-date=2007-06-29|archive-url=https://web.archive.org/web/20070927222637/http://www.canlearn.ca/cgi-bin/gateway/canlearn/template.asp?a=student&l=en&sc=pay%2Fapply%2FBC%2Fft%2Fpublic%2Fdetermine_eligibility%2Fyour_eligibility.shtml|archive-date=2007-09-27|url-status=dead}}</ref> are normally eligible for loans provided by the [[Politics of Canada|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 assistance. 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).<ref name="Canada Student Loans - Eligibility">{{cite web|url=https://www.canada.ca/en/employment-social-development/services/education/student-loan/eligibility.html|title=Canada Student Loans - Eligibility|accessdate = 2018-09-12}}</ref>
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),<ref name="Canada Student Loans - Eligibility">{{cite web|url=https://www.canada.ca/en/employment-social-development/services/education/student-loan/eligibility.html|title=Canada Student Loans - Eligibility|accessdate = 2018-09-12}}</ref> 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.
As the length of North American graduate degree programs often exceed this 400 week maximum, students considering graduate study are advised to think carefully before taking out student loans. For example, an honours BA from a Canadian University takes four years, assuming satisfactory progress. MA programs in Canada vary in length from 1–3 years, with two years being the average minimum. A PhD takes, on average, 5 years to complete, although many students take significantly longer than this. Assuming a graduate student completes an honours BA (5 years), an MA (2 years), and a PhD (5 years), one can expect to be in university for at least 12 years. This is significantly longer than the 400 weeks maximum allotted to complete a degree by the National student loan program, and [[Graduate school|graduate students]] can easily find themselves in a position where they no longer qualify for student loans. Whether in receipt of student loans or not, students in full-time study are not required to repay their student loans; however, interest begins to accumulate immediately upon reaching the lifetime limit: quoting directly from [https://web.archive.org/web/20111015014412/http://www.canlearn.ca/eng/postsec/getloan/llsfa.shtml#limits NSLSC], "Once a lifetime limit has been reached, interest starts to accumulate on your loan.".<ref name="HRSDC - FAQ 13">{{cite web|url=http://www.canlearn.ca/eng/postsec/faq/index.shtml#_interest_loan_school|archiveurl=https://web.archive.org/web/20090430102937/http://www.canlearn.ca/eng/postsec/faq/index.shtml#_interest_loan_school|archivedate=2009-04-30|title=Frequently Asked Questions - 13|accessdate = 2009-06-19}}</ref><ref name="Lifetime Limits">{{cite web|url= http://www.canlearn.ca/eng/postsec/getloan/llsfa.shtml#limits|archiveurl= https://web.archive.org/web/20111015014412/http://www.canlearn.ca/eng/postsec/getloan/llsfa.shtml#limits|archivedate= 2011-10-15|title=Lifetime Limits on Student Financial Assistance|accessdate = 2011-10-07}}</ref>


Student financial assistance is available for students in part-time studies. Beginning January 1, 2012, the Government of Canada eliminated interest on 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 begins accumulating right away. 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.
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.
Students must apply for the Canadian and provincial loans through their provincial government. The rules for what determines your province of residence vary, but normally it is defined as where you have most recently lived for at least 12 consecutive months, not including any time you spent as a full-time student at a post-secondary institution. In most cases, the province of residence is the province one lived in before becoming a post-secondary student.


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&nbsp;1&ndash;July&nbsp;31). Loans issued through provincial programs will normally provide students with enough funding to cover the balance of their assessed need. Part-time loans can be made, but a student cannot be more than $10,000 in debt on part-time loans at any one time.<ref name="Canada Student Loans">{{cite web|url=https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/UCONT004209.html|title=Part-Time Canada Student Loan (PTCSL)|accessdate = 2011-10-07}}</ref> All Canadian students were also eligible for the [[Canada Millennium Scholarship]] Foundation Bursary (CMS Grant) until the program ended in 2008. There are also other grants provided by students' province of residence.<ref name="Ontario [[Undergraduate education|Undergraduate Student]] Alliance Issue Briefing on Student Financial Assistance">{{cite web|url=http://www.ousa.ca/uploaded_files/pdf_files/Issue%20Briefings/issuebriefingstudentfinancialaid.pdf|
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<ref name="Canada Student Loans">{{cite web|url=https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/UCONT004209.html|title=Part-Time Canada Student Loan (PTCSL)|accessdate = 2011-10-07}}</ref>
title=Ontario Undergraduate Student Alliance Issue Briefing on Student Financial Assistance|accessdate = 2007-08-09 |archiveurl = https://web.archive.org/web/20070926000611/http://www.ousa.ca/uploaded_files/pdf_files/Issue%20Briefings/issuebriefingstudentfinancialaid.pdf <!-- Bot retrieved archive --> |archivedate = 2007-09-26}}</ref>


==History==
==History==
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Prior to 1964, the national student loan program was known as the [[Dominion-Provincial Student Loan Program]]. This program was a matching grant partnership system between the federal and provincial governments. It was started in 1939 and ended with the start to the CSLP in 1964.
Prior to 1964, the national student loan program called eric eat d**k
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s known as the [[Dominion-Provincial Student Loan Program]]. This program was a matching grant partnership system between the federal and provincial governments. It was started in 1939 and ended with the start to the CSLP in 1964.


Some text from the Department of Human Resources and Social Development Canada:
Some text from the Department of Human Resources and Social Development Canada:
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In 1995, several important changes were made to Canada Student Loans. First, the Canada Student Financial Assistance Act was proclaimed, replacing the existing Canada Student Loans Act (which does not remain in force to this day) reflecting the changing needs of the parties involved in the loan process, including the conferred responsibility of the collection of defaulted loans to the banks themselves. The Government of Canada developed a formalized "risk-shared" agreement with several financial institutions, whereby the institution would assume responsibility for the possible risk of defaulted loans in return for a fixed payment from the Government which correlated with the amount of loans that were expected to be, or were, in default in each calendar year. During this period, the weekly federal loan amount was increased to a maximum of $165.
In 1995, several important changes were made to Canada Student Loans. First, the Canada Student Financial Assistance Act was proclaimed, replacing the existing Canada Student Loans Act (which does not remain in force to this day) reflecting the changing needs of the parties involved in the loan process, including the conferred responsibility of the collection of defaulted loans to the banks themselves. The Government of Canada developed a formalized "risk-shared" agreement with several financial institutions, whereby the institution would assume responsibility for the possible risk of defaulted loans in return for a fixed payment from the Government which correlated with the amount of loans that were expected to be, or were, in default in each calendar year. During this period, the weekly federal loan amount was increased to a maximum of $165.


On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC). There are two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions. Defaulted Canada Student Loans disbursed under this new regime are now collected by the [[Canada Revenue Agency]] which, by [[Order in Council]] dated August 1, 2005, became responsible for the collection of all debts due under programs administered by Human Resources and Social Development Canada.
On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC). There were two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions, but these two centers were merged into one. Defaulted Canada Student Loans disbursed under this new regime are now collected by the [[Canada Revenue Agency]] which, by [[Order in Council]] dated August 1, 2005, became responsible for the collection of all debts due under programs administered by Human Resources and Social Development Canada.
</blockquote>
</blockquote>


Due to the close nature of the CSLP and the provincial student loan programs, the changes in 1995 and 2000 were largely mirrored by the provincial programs. As a result of these changes, students who attended school before and after these transition years may find that they have up to 6 different loans to manage (pre-1995 federal & provincial; 1995-2000 federal & provincial; and post-2000 federal & provincial). The extent to which this is possible depends largely on a student's province of residence.
Due to the close nature of the CSLP and the provincial student loan programs, the changes in 1995 and 2000 were largely mirrored by the provincial programs. As a result of these changes, students who attended school before and after these transition years may find that they have up to 6 different loans to manage (pre-1995 federal & provincial; 1995-2000 federal & provincial; and post-2000 federal & provincial). The extent to which this is possible depends largely on a student's province of residence.

==Financial aid programs in Canada by province and territory==

* Alberta: [https://studentaid.alberta.ca/ Alberta Student Aid]
* British Columbia: [[StudentAid BC]]
* Manitoba: [[Manitoba Student Aid|Manitoba student aid]]
* Ontario: [[Ontario Student Assistance Program]]
* New Brunswick: [[Higher education in New Brunswick#Canada Student Loan and New Brunswick Student Loan|Canada Student Loan and New Brunswick Student Loan]]
* Newfoundland and Labrador: [[Higher education in Newfoundland and Labrador#Student Aid|Newfoundland and Labrador Student Aid]]
* Northwest Territories: [[NWT Student Financial Assistance]]
* Nova Scotia: [[Nova Scotia Student Assistance]]
* Nunavut: [[Financial Assistance for Nunavut Students (FANS)]]
* Prince Edward Island: [[PEI Student Loan]]
* Quebec: {{ill|Aide financière aux études|fr}}
* Saskatchewan: [[Saskatchewan Student Loans]]
* Yukon: [[Yukon Student Financial Assistance]]


==Students in professional programs==
==Students in professional programs==
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title=Building the Third Pillar: Reforming Ontario's Student Financial Aid System|accessdate=2007-08-09}}</ref>
title=Building the Third Pillar: Reforming Ontario's Student Financial Aid System|accessdate=2007-08-09}}</ref>


The March 2011 federal budget announced a Canada Student Loan forgiveness programme for medical and nursing students to complement other [[Health Human Resources|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.<ref>Government of Canada. 2011. [https://web.archive.org/web/20120117182452/http://www.actionplan.gc.ca/eng/media.asp?id=4122 ''Canada's Economic Action Plan'']: ''Forgiving Loans for New Doctors and Nurses in Under-Served Rural and Remote Areas''. Ottawa, 22 March 2011. Accessed 23 March 2011.</ref>
The March 2011 federal budget announced a Canada Student Loan forgiveness programme for medical and nursing students to complement other [[Health Human Resources|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 in Canada|First Nations]] and [[Inuit]] populations.<ref>Government of Canada. 2011. [https://web.archive.org/web/20120117182452/http://www.actionplan.gc.ca/eng/media.asp?id=4122 ''Canada's Economic Action Plan'']: ''Forgiving Loans for New Doctors and Nurses in Under-Served Rural and Remote Areas''. Ottawa, 22 March 2011. Accessed 23 March 2011.</ref>


==National Student Loan Service Center==
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==Loan administration and repayment==
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 Canada Student Loan (sometimes referred to as the National Student Loan) is administered by National Student Loan Service Centre<ref name="The National Student Loan Service Centre">{{cite web|url=http://www.canlearn.ca/cgi-bin/gateway/canlearn/id/nslsc.asp|archiveurl=https://web.archive.org/web/20070507122135/http://www.canlearn.ca/cgi-bin/gateway/canlearn/id/nslsc.asp|archivedate=2007-05-07|title=The National Student Loan Service Centre|accessdate = 2007-05-21}}</ref> under contract to Human Resources and Social (Skills) Development Canada (HRSDC). Students have the choice of opting for a [[fixed interest]] rate of [[prime rate|prime interest rate]] + 5%, or a floating interest rate of prime interest rate + 2.5%. 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.<ref name="The Government of Nova Scotia">{{cite web|url=https://novascotia.ca/news/release/?id=20140328001|accessdate = 2014-10-01}}</ref> The government of British Columbia eliminated interest on its student loans on February 19, 2019.In September 2010 the amount of student loans owed to the Government of Canada surpassed $15 billion—more than the debt of some provinces.


The NSLSC website ([http://nslsc.ca/ 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.
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==Repayment assistance==


⚫
==Loan administration and repayment==
⚫
CSLP offers a number of programs to assist students who find themselves facing financial difficulty during repayment. Among these programs are:<br>
⚫
The Canada Student Loan Program (sometimes referred to as the National Student Loan) is administered by National Student Loan Service Centre<ref name="The National Student Loan Service Centre">{{cite web|url=http://www.canlearn.ca/cgi-bin/gateway/canlearn/id/nslsc.asp|archiveurl=https://web.archive.org/web/20070507122135/http://www.canlearn.ca/cgi-bin/gateway/canlearn/id/nslsc.asp|archivedate=2007-05-07|title=The National Student Loan Service Centre|accessdate = 2007-05-21}}</ref> 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.<ref>{{cite web |title=Government Eliminates Interest on Nova Scotia Student Loans |url=https://novascotia.ca/news/release/?id=20140328001 |website=[[Nova Scotia]] |access-date=21 July 2023 |archive-url=https://web.archive.org/web/20230329074603/https://novascotia.ca/news/release/?id=20140328001 |archive-date=Mar 29, 2023 |language=en |date=11 May 2018 |url-status=live}}</ref> 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.<ref>{{Cite web |date= |title=National Student Loans Service Centre – What's New |url=https://www.csnpe-nslsc.canada.ca/en/what-is-new |access-date=2024-04-11 |website=www.csnpe-nslsc.canada.ca}}</ref>


In September 2010 the amount of student loans owed to the Government of Canada surpassed $15 billion.
⚫
;Interest Relief<ref name="HRSDC - Interest Relief">{{cite web|url=http://www.hrsdc.gc.ca/en/learning/canada_student_loan/interest_relief.shtml|archiveurl=https://web.archive.org/web/20070617075259/http://www.hrsdc.gc.ca/en/learning/canada_student_loan/interest_relief.shtml|archivedate=2007-06-17|title=HRSDC - Interest Relief|accessdate = 2007-06-29}}</ref>
⚫
:Interest Relief is designed to help students meet repayment obligations if they are temporarily unable to make payments on their government student loans because of unemployment or low income. Interest Relief is granted for periods of six months, up to a maximum of 30 months. Some exceptions, such as Canadian residency, may apply. Students may also be eligible for a further 24 months of Extended Interest Relief. Once approved for Interest Relief, students are not required to make payments on either the monthly interest or the outstanding principal of their loan(s) (the federal and/or provincial government will pay the interest on a student's behalf).


⚫
==Repayment assistance==
;Debt Reduction in Repayment<ref name="HRSDC - Debt Reduction in Repayment">{{cite web|url=http://www.hrsdc.gc.ca/en/learning/canada_student_loan/debt_reduction.shtml|archiveurl=https://web.archive.org/web/20070606024527/http://www.hrsdc.gc.ca/en/learning/canada_student_loan/debt_reduction.shtml|archivedate=2007-06-06|title=HRSDC - Debt Reduction in Repayment|accessdate = 2007-06-29}}</ref>
⚫
CSLP offers a number of programs to assist students who find themselves facing financial difficulty during repayment. These are provided to government-sponsored student loanholders. Among these programs are:<br>
:Debt Reduction in Repayment is designed to help students facing long-term financial difficulties manage the repayment of their Student Loan(s). DRR lowers the principal amount of a loan, thereby reducing the monthly loan payment to an affordable level based on [[family income]]. A student can receive up to three reductions (totalling up to $26,000) on their Canada Student Loan principal during their lifetime, depending on financial circumstances. Some have argued that we would not be in the position to have to look at debt reduction in the first place if the Canada student loan program didn’t exist, and that it should be ended before we look at reducing debts.


;Revision of Terms<ref name="HRSDC - Revision of Terms">{{cite web|url=http://www.hrsdc.gc.ca/en/hip/cslp/Revision.shtml|archiveurl=https://web.archive.org/web/20070606140922/http://www.hrsdc.gc.ca/en/hip/cslp/Revision.shtml|archivedate=2007-06-06|title=HRSDC - Revision of Terms|accessdate = 2007-06-29}}</ref>
;Repayment Assistance<ref name="HRSDC - Repayment Assistance Plan">{{cite web|url=https://www.canada.ca/en/services/benefits/education/student-aid/grants-loans/repay/assistance/rap.html|title=Repayment Assistance Plan – How it works |date=30 October 2020 }}</ref>
⚫
:Repayment Assistance is designed to help students meet repayment obligations if they are temporarily unable to make payments on their government student loans because of unemployment or low income. Repayment Assistance is granted for periods of six months. Some rules, such as Canadian residency, may apply. Once approved for Repayment Assistance, borrowers will be assessed for an affordable payment amount which may be zero or more. The Federal and/or provincial government will then assist in paying interest and/or principal so long as the borrower continues to be approved for the program. Borrowers can apply online on the NSLSC website.
⚫
:Revision of Terms is a feature that provides students with the flexibility to manage loan repayment in a way that is responsive to individual situations. It can be used to decrease the monthly payments by increasing the repayment period (from the standard 10 years up to 15 years) should a student find the standard terms difficult to maintain. This keeps the student in debt much longer. It can also be used to increase loan payments by reducing the repayment period, allowing more rapid repayment of a loan.


;Permanent Disability Benefit<ref name="HRSDC - Permanent Disability Benefit">{{cite web|url=http://www.hrsdc.gc.ca/en/learning/canada_student_loan/permanent_disability.shtml|archiveurl=https://web.archive.org/web/20070919032720/http://www.hrsdc.gc.ca/en/learning/canada_student_loan/permanent_disability.shtml|archivedate=2007-09-19|title=HRSDC - Permanent Disability Benefit|accessdate = 2007-06-29}}</ref>
;Revision of Terms<ref name="HRSDC - Revision of Terms">{{cite web|url=http://www.hrsdc.gc.ca/en/hip/cslp/Revision.shtml|archiveurl=https://web.archive.org/web/20070606140922/http://www.hrsdc.gc.ca/en/hip/cslp/Revision.shtml|archivedate=2007-06-06|title=HRSDC - Revision of Terms|accessdate = 2007-06-29}}</ref>
⚫
:Revision of Terms is a feature that provides students with the flexibility to manage loan repayment in a way that is responsive to individual situations. It can be used to decrease monthly payments by increasing the repayment period (from the standard 11.5 years up to 15 years) should a student find the standard terms difficult to maintain. It can also be used to increase loan payments by reducing the repayment period, allowing more rapid repayment of a loan.
:Permanent Disability Benefit allows for the reduction of loans for students who are experiencing exceptional financial hardship due to a permanent disability. The eligibility criteria varies based on date of loan negotiation and lender. A recent Access to Information request indicated that over 60% of applicants to this program were denied loan forgiveness.{{Citation needed|date=June 2013}}


⚫
;Severe Permanent Disability Benefit<ref name="HRSDC - Permanent Disability Benefit">{{cite web|url=http://www.hrsdc.gc.ca/en/learning/canada_student_loan/permanent_disability.shtml|archiveurl=https://web.archive.org/web/20070919032720/http://www.hrsdc.gc.ca/en/learning/canada_student_loan/permanent_disability.shtml|archivedate=2007-09-19|title=HRSDC - Permanent Disability Benefit|accessdate = 2007-06-29}}</ref>
* These programs are currently under revision and will gradually be replaced by the Repayment Assistance Program beginning in August 2009.
:Along with Repayment Assistance for borrowers with permanent disabilities, the Severe Permanent Disability Benefit is an additional program for borrowers with disabilities. It allows for the elimination of debt for students who are experiencing exceptional financial hardship due to a severe permanent disability.
* To qualify for these programs one must be a resident of Canada. Graduate students who are studying abroad and have exceeded their maximum allowable weeks of study do not qualify for any assistance in repaying their loans. Neither do other Canadians who no longer reside in Canada.


==References==
==References==
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==External links==
==External links==
*[http://www.canlearn.ca/ CanLearn.ca]
*[http://nslsc.ca/ NSLSC.ca]
*[https://web.archive.org/web/20130719032724/http://www.canlearn.ca/eng/main/help/contact/cao.shtml Provincial and Territorial Student Financial Assistance Offices]
*[https://web.archive.org/web/20130719032724/http://www.canlearn.ca/eng/main/help/contact/cao.shtml Provincial and Territorial Student Financial Assistance Offices]
*[http://www.casa.ca/ Canadian Alliance of Student Associations]
*[http://www.casa.ca/ Canadian Alliance of Student Associations]
Line 68: Line 84:
*[https://web.archive.org/web/20140824092723/http://www.ousa.ca/policy/issue-briefings/ Ontario Undergraduate Student Alliance Issue Briefings]
*[https://web.archive.org/web/20140824092723/http://www.ousa.ca/policy/issue-briefings/ Ontario Undergraduate Student Alliance Issue Briefings]
*[https://web.archive.org/web/20130531214446/http://www.aved.gov.bc.ca/studentaidbc/ StudentAid BC - Ministry of Advanced Education - Province of British Columbia]
*[https://web.archive.org/web/20130531214446/http://www.aved.gov.bc.ca/studentaidbc/ StudentAid BC - Ministry of Advanced Education - Province of British Columbia]
*[http://www.canadastudentdebt.ca/ CanadaStudentdebt.ca]
<!--{{North America topic|Student loans in}}-->
<!--{{North America topic|Student loans in}}-->


Latest revision as of 01:31, 12 April 2024

Government sponsored Student Loans in Canada was designed to help post-secondary students pay for their education in Canada. The federal government funds the Canada Student Loan Program (CSLP) and the provinces may fund their own programs or be integrated with the CSLP. In addition, Canadian banks offer commercial loans targeted for students in professional programs.

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]

History

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Prior to 1964, the national student loan program was known as the Dominion-Provincial Student Loan Program. This program was a matching grant partnership system between the federal and provincial governments. It was started in 1939 and ended with the start to the CSLP in 1964.

Some text from the Department of Human Resources and Social Development Canada:

The CSLP was created in 1964. Since its inception, the Program has supplemented the financial resources available to eligible students from other sources to assist in their pursuit of post-secondary education. Between 1964 and 1995, loans were provided by financial institutions to post-secondary students who were approved to receive financial assistance. The financial institutions also administered the loan repayment process. In return, the Government of Canada guaranteed each Canada Student Loan that was issued, by reimbursing the financial institution the full amount of loans that went into default.

In 1995, several important changes were made to Canada Student Loans. First, the Canada Student Financial Assistance Act was proclaimed, replacing the existing Canada Student Loans Act (which does not remain in force to this day) reflecting the changing needs of the parties involved in the loan process, including the conferred responsibility of the collection of defaulted loans to the banks themselves. The Government of Canada developed a formalized "risk-shared" agreement with several financial institutions, whereby the institution would assume responsibility for the possible risk of defaulted loans in return for a fixed payment from the Government which correlated with the amount of loans that were expected to be, or were, in default in each calendar year. During this period, the weekly federal loan amount was increased to a maximum of $165.

On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC). There were two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions, but these two centers were merged into one. Defaulted Canada Student Loans disbursed under this new regime are now collected by the Canada Revenue Agency which, by Order in Council dated August 1, 2005, became responsible for the collection of all debts due under programs administered by Human Resources and Social Development Canada.

Due to the close nature of the CSLP and the provincial student loan programs, the changes in 1995 and 2000 were largely mirrored by the provincial programs. As a result of these changes, students who attended school before and after these transition years may find that they have up to 6 different loans to manage (pre-1995 federal & provincial; 1995-2000 federal & provincial; and post-2000 federal & provincial). The extent to which this is possible depends largely on a student's province of residence.

Financial aid programs in Canada by province and territory

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Students in professional programs

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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

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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

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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.

Repayment assistance

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CSLP offers a number of programs to assist students who find themselves facing financial difficulty during repayment. These are provided to government-sponsored student loanholders. Among these programs are:

Repayment Assistance[9]
Repayment Assistance is designed to help students meet repayment obligations if they are temporarily unable to make payments on their government student loans because of unemployment or low income. Repayment Assistance is granted for periods of six months. Some rules, such as Canadian residency, may apply. Once approved for Repayment Assistance, borrowers will be assessed for an affordable payment amount which may be zero or more. The Federal and/or provincial government will then assist in paying interest and/or principal so long as the borrower continues to be approved for the program. Borrowers can apply online on the NSLSC website.
Revision of Terms[10]
Revision of Terms is a feature that provides students with the flexibility to manage loan repayment in a way that is responsive to individual situations. It can be used to decrease monthly payments by increasing the repayment period (from the standard 11.5 years up to 15 years) should a student find the standard terms difficult to maintain. It can also be used to increase loan payments by reducing the repayment period, allowing more rapid repayment of a loan.
Severe Permanent Disability Benefit[11]
Along with Repayment Assistance for borrowers with permanent disabilities, the Severe Permanent Disability Benefit is an additional program for borrowers with disabilities. It allows for the elimination of debt for students who are experiencing exceptional financial hardship due to a severe permanent disability.

References

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  1. ^ "Determining Eligibility for Canada Student Loans". Archived from the original on 27 September 2007. Retrieved 29 June 2007.
  2. ^ "Canada Student Loans - Eligibility". Retrieved 12 September 2018.
  3. ^ "Part-Time Canada Student Loan (PTCSL)". Retrieved 7 October 2011.
  4. ^ "Building the Third Pillar: Reforming Ontario's Student Financial Aid System" (PDF). Retrieved 9 August 2007.
  5. ^ Government of Canada. 2011. Canada's Economic Action Plan: Forgiving Loans for New Doctors and Nurses in Under-Served Rural and Remote Areas. Ottawa, 22 March 2011. Accessed 23 March 2011.
  6. ^ "The National Student Loan Service Centre". Archived from the original on 7 May 2007. Retrieved 21 May 2007.
  7. ^ "Government Eliminates Interest on Nova Scotia Student Loans". Nova Scotia. 11 May 2018. Archived from the original on 29 March 2023. Retrieved 21 July 2023.
  8. ^ "National Student Loans Service Centre – What's New". www.csnpe-nslsc.canada.ca. Retrieved 11 April 2024.
  9. ^ "Repayment Assistance Plan – How it works". 30 October 2020.
  10. ^ "HRSDC - Revision of Terms". Archived from the original on 6 June 2007. Retrieved 29 June 2007.
  11. ^ "HRSDC - Permanent Disability Benefit". Archived from the original on 19 September 2007. Retrieved 29 June 2007.
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