Your Canada Student Loan lenders will consider you to be in repayment status six months after you cease to be a full-time student. Your first payment will be due at the end of the seventh month.
Your Manitoba Student Loan lenders will consider you to be in repayment status six months after you cease to be a full-time student. In this case, your first payment will be due at the beginning of the eighth month.
For example: If you ceased to be a full-time student in April 2006, you would be considered to be in repayment on November 1, 2006. Your first payment would be due on December 1, 2006.
How long it takes to repay your loans depends on you. By paying slightly more than the minimum payment each month, you will pay your loans off faster, and will pay less interest over the long run. Options are available, so please contact each of your lenders to discuss a repayment schedule that works for you.
NOTE: If you continue your studies as a full-time student, it is your responsibility to inform each of your lenders. Otherwise, you will automatically be considered to be in repayment status, and payments may be taken from your bank account. For more information, please see Maintaining/Reinstating Interest-Free or Payment-Free Status.
How you make your Canada and Manitoba Student Loan payment and the payment options available to you is dependant on when (which year) your loan was issued. Please refer to the sections below to determine what options are available.
Canada Student Loans Issued before August 1st, 2000
The repayment of your Canada Student Loan(s) needs to be made to the financial institution that holds the Canada Student Loan. Contact your lender for payment options (example, Royal Bank, CIBC, etc.). Refer to the telephone number in the contact section to obtain further information about repayment options.
Canada Student Loans Issued on or after August 1st, 2000
The repayment of your Canada Student Loan(s) needs to be made to the National Student Loan Service Centre. Refer to the telephone number in the Contact section to obtain further information about payment options.
Manitoba Student Loans Issued before August 1st, 2001
The repayment of your Manitoba Student Loan(s) needs to be made to the financial institution that holds the student loan. Contact your lender for payment options.
Manitoba Student Loans Issued on or after August 1st, 2001
The repayment of your Manitoba Student Loan can be processed in a variety of ways. The most common and preferred method of repayment is a preauthorized debit (PAD) to your Bank account. The PAD is set up by Manitoba Student Aid just prior to your first payment due date. If you want to apply additional payments to your Manitoba Student Loan, you have the following options available to you:
You can mail or drop off a cheque, payable to Manitoba Student Aid at:
Manitoba Student Aid
401-1181 Portage Avenue
Winnipeg, MB, R3G 0T3.
You can make additional payments at the Manitoba Student Aid Inquiry counter through Interac at 401-1181 Portage Avenue. Remember to bring your Interac card.
Canada and Manitoba Student Loans, like any other loans, must be
repaid. Always remember that the repayment history of your student
loans becomes a part of your personal credit rating.
Depending on when you began borrowing student loans, you may have up to four different lenders, and thus four separate student loans.
When the time comes to repay your student loans, you will be making payments to all of your lenders.
You must advise all of your lenders of changes if any of the following occurs:
If you received Canada Student Loans for part-time studies, you are not required to make payments while enrolled. Six months after you cease to be a student, you will be considered to be in full repayment status. Your first full payment will be due at the end of the seventh month.
In July 2008, the Bankruptcy and Insolvency Act was amended so that obligations for student loans can no longer be extinguished by an order of discharge. This means that student loan debt survives bankruptcy actions and remains payable for a period of seven years after the end of your studies.
If you are having difficulty making the minimum monthly payment on your student loan there are debt management programs available to you. By not making required payments, you will be considered in default of your loans. This has serious consequences for your credit rating and your future ability to obtain credit (loans, mortgages, credit cards, etc.). By informing your lenders of your situation, you give them the opportunity to work with you through the difficult times. If you have student loans issued on or after August 1, 2001 you may qualify for the Repayment Assistance Plan or the Repayment Assistance Plan for Borrowers with a Permanent Disability. If you have student loans issued prior to August 1, 2001 please contact your lender for repayment assistance options.
The Repayment Assistance Plan (RAP) is available to borrowers who are having difficulty paying back their student loan debt. The Plan makes it easier for student loan borrowers to manage their debt by paying back what they can reasonably afford (affordable payment) instead of the normal required payment amount.
Under the Plan:
In certain cases borrowers may not have to make any student loan payments until their income increases. The new RAP replaces the Interest Relief and Debt Reduction in Repayment measures on direct loans.
RAP has two stages to help student borrowers fully repay their student loan within 15 years (or 10 years for borrowers with permanent disabilities), depending on their financial circumstances. Applications are approved for periods of 6 months at a time. Borrowers must submit a new application for each 6 month term.
Stage I: This stage applies to the first five years.
Stage II: This stage is available for borrowers who continue to experience financial difficulty. It starts once the borrower completes Stage I, or has been in repayment for 10 years after they leave school or complete their studies.
For RAP you must:
You must apply for RAP. Enrolment is not automatic.
Note: Student loan borrowers who received student loans before August 1, 2001 are not eligible for RAP on their Manitoba Student Loans. They may still apply for Interest Relief through their financial institution or Debt Reduction in Repayment through MSA.
If you are a student loan borrower with a permanent disability, the following provincial student loan repayment measures are available:
Contact Manitoba Student Aid (MSA) if you are experiencing financial difficulty. Staff can help you understand the repayment assistance measures available.
RAP-PD is available to borrowers with a permanent disability who are having difficulty repaying their student loan debt. RAP-PD makes it easier for borrowers with a permanent disability to manage their student debt by paying back what they can reasonably afford.
Under The Plan:
How to apply:
You must apply for RAP-PD. Enrolment is not automatic.
Note: Student loan borrowers who received student loans before Aug 1, 2001 are not eligible for RAP-PD on their Manitoba Student Loans. They may apply for Interest Relief through their financial institution. Applications for Debt Reduction in Repayment are made through MSA.
The governments of Canada and Manitoba may forgive your student loans if you are unable to repay because of a permanent disability. If you are a borrower with a severe permanent disability who is prevented from working and going to school and who will never be able to repay your loans, you may benefit from having your loans immediately forgiven under the Permanent Disability Medical Forgiveness program.
You must first receive forgiveness on your Canada Student Loans before being considered for forgiveness of your Manitoba Student Loans. For more information, please call: 1-888-726-6596.
While you are in repayment, you will be able to claim a tax credit of 17% of the interest you have paid each year on your student loans. For more information, please contact each of your lenders.
National Student Loans Service Centre
Manitoba Student Aid Branch
204-945-6321 or 1-800-204-1685
Royal Bank - Canada Student Loans Centre
CIBC - National Student Centre