Government Sponsored Student Loans Repayment Seminar

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Government Sponsored Student Loans Repayment
Seminar
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NSLSC Agenda

• In Study
• How is Repayment Calculated
• 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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Repayment Planner example only
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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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Ontario Debt Reduction

• Ontario Student Opportunity Grant
• eligibility determined by government
• No application is required
• minimum course length is two-term program based
  on 21 - 40 weeks in length per year
• ministry will send payment directly to your loan
  servicer

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Debt Reduction in Repayment

• There are separate Canada and Ontario programs
• 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
• osap.gov.on.ca
• National Student Loans Service Centre Public
  Institutions Division 1 888 815 4514
• National Student Loans Service Centre Private
  Institutions Division 1 866 587 7452
• CIBC National Student Centre 1 800 563 2422
• Royal Bank Student Centre 1 800 363-3822
• Bank of Nova Scotia 1 888
  284-3044