Repaying your student loan

You must repay your student loan to the financial institution to which you gave your guarantee certificate to obtain your loan at the beginning of your studies.

The participating financial institutions (Student Loan Centre) are the following:

• Desjardins Group (1 866 388-3373)
• Bank of Montreal (1 800 263-1132)
• Laurentian Bank of Canada (1 800 263-3546)
• National Bank of Canada (1 888 835-6281)
• Royal Bank of Canada (1 800 297-3250)

Your financial institution will send you a notice 6 months after the end of your studies. If you interrupted your studies temporarily and plan to continue them, you may be able to postpone the repayment of your loan. In addition, if you studied on a full-time basis, received a bursary each year and completed your program on time, you may be eligible for a 15% loan remission.

At the end of your studies, you have three choices for repaying your loan:

• Wait for the notice from your financial institution, which you will receive 6 months following the end of your studies, to start repaying your loan and the interest. The interest calculated during this period will be added to the amount of the loan to be repaid.
• Contact your financial institution and start repaying your loan and interest immediately.
• Contact your financial institution and repay only the interest. After the end of the 6-month period following the end of your studies, you will have to start repaying your loan.

The interest rate is the Bank of Canada preferential rate  plus 0.50%.

It is possible to agree with your financial institution on a fixed rate, i.e. a rate established in advance that does not change during the term of your agreement.

Each year you will receive a non-refundable tax credit. Your financial institution will send you a statement to attach to your income tax return (tax return).

You may stop repaying your loan when you return to your studies. The following conditions must be met:

• You were studying on a full-time basis and are returning to study on a full-time basis. Ask your educational institution to confirm your full-time student status.
• You were studying on a part-time basis and are returning to study on a part-time basis. Ask your educational institution to confirm your part-time student status.

If you have been studying on a full-time basis and are returning to your studies on a part-time basis, you will have to continue to repay your loan.

If you believe that your financial situation does not allow you to repay your loan as agreed, contact your financial institution. They will advise you on the alternatives available to you, taking into account your difficult financial situation.

Alternatively, you can apply for the deferred payment plan which will allow you to reduce the amount of your payments for a renewable period of 6 months.

Lastly, if you stop repaying your loan, your financial institution will transfer your file to the Collection Department, which will ask you to enter into a repayment agreement.

This transfer has the following consequences:

• You can no longer make an application for the Deferred Payment Plan.
• Your provincial tax refunds and Social Solidarity credits (if you have them) will be used to pay off your loan, without notice even if you make payments.
• Unless there is a separate agreement, you will no longer be eligible for the Loans and Bursaries Program.