Government Sponsored Student Loans Repayment Seminar

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Government Sponsored Student Loans Repayment
Seminar
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Agenda

• In Study
• Payment Examples
• How to be Debt Free Faster
• Debt Management Options

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Government Sponsored Student Loans

• Interest is paid by Government while you are a
  full-time student
• Repayment begins 7 months after your End of Study
  date
• If you return to school full-time you need to
  notify your Loan Servicer
• This Grace Period is not interest free in all
  programs

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Repayment

• Consolidation occurs the first day of the
  seventh month after End of Study Date
• e.g. EOSD April 30th --gt Consolidation November
  1st
• You must sign and return the Consolidation
  Agreement
• Depending on when you received your loans, you
  may have loans with more than one loan servicer.
• Separate payments are required for each loan

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Payment Examples

• your monthly payment is determined by the
  principal balance plus any accrued interest plus
  the interest rate over the term
• information for illustration purposes only, your
  loan servicer will calculate your repayment
  schedule

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How much interest will I pay?

• your monthly payment is determined by the
  principal balance plus any accrued interest plus
  the interest rate over the term
• information for illustration purposes only, your
  loan servicer will calculate your repayment
  schedule

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Payment Comparisons

• your monthly payment is determined by the
  principal balance plus any accrued interest plus
  the interest rate over the term
• information for illustration purposes only, your
  loan servicer will calculate your repayment
  schedule

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How Can I Be Debt-Free Faster?

• Repaying your loan quickly will incur the least
  interest
• Options to consider as your finances permit
• Request an amount larger than the minimum
  calculated for the term
• Request Weekly or Bi-Weekly payments
• Make an annual lump sum
• Increase the monthly amount by 10, or 25 or
  100 in each year
• Pay your loan in full at any time without penalty

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Debt Management Tools

• Contact your loan servicer immediately if you
  foresee financial difficulties
• Check out these government programs
• Interest relief
• Revision of Terms
• Debt reduction
• Loan Remission or Forgiveness

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Interest Relief

• Debt management tool offered by all programs
• Approval based on family income, family size and
  payment level
• Once approved
• No payments required
• Government pays the interest
• Contact loan servicer to apply prior to missing
  payments

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Revision of Terms

• Changes the term and your monthly payment based
  on financial situation
• Options
• extending the term to maximum
• interest only payments
• re-amortization after lump sum payments
• Payments are required each month based on the
  Revision of Terms agreement

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Debt Reduction in Repayment

• Eligibility
• Must have used at least 30 months of the Interest
  Relief program
• Must be at least 5 years past End of Study Date
• Must apply to have your loan principal reduced if
  your payments exceed a given percentage of your
  income
• Contact your loan servicer to apply

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Bankruptcy

• Declaring bankruptcy is no longer an option to
  avoid student loan payments
• Federal government regulations will not forgive
  student loan debt on bankruptcy unless you have
  been out of school ten years
• Check out debt management tools available
• Contact your loan servicer to discuss options
  before missing payments

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Managing Your Student Loan

• Some Loan Servicers now have on-line services to
  provide access to information and details of your
  student loan
• You can
• Check the status of your student loan
• Check the balance of your loan(s)
• Review details of new loans youve recently
  received
• Update your Mailing and Permanent Addresses and
  other contact information on-line
• Review your loan payment and transaction history
• Receive helpful information about your loan in
  your Personal Message Centre

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Tips from your Loan Servicer

• Sign and return the Consolidation Agreement
• Maintain contact with your loan servicer
• Always keep address up to date
• Remember you will have a tax credit in repayment
• Contact your loan servicer with any questions
  about your file or to change any information

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Contacts

• For additional information
• www.Canlearn.ca
• National Student Loans Service Centre Public
  Institutions Division
• 1 888 815- 4514
• CIBC National Student Centre 1 800 563-2422
• Royal Bank Student Centre 1 800 363-3822
• Bank of Nova Scotia 1 888
  284-3044