Repaying Your Loan
Learn when and how to pay back your student loan debt and see if you qualify for help repaying your loan.
What you need to repay?
You are responsible for repaying all the loans you borrowed to help fund your education as per the terms and conditions detailed on your Master Student Financial Assistance Agreement (MSFAA).
Approximately six weeks before entering repayment, you will be contacted by the National Student Loans Service Centre (NSLSC) about repayment details.
When do you start repayment?
It is time to start repaying your loan 6 months after:
- you have graduated from your studies;
- you have dropped courses to below the full-time status;
- you leave school for any reason or are taking time off school for more than six months.
For the first six months after you graduate or leave your studies (the non-repayment period), you will not have to make payments to your Canada Student Loan or your New Brunswick Student Loan. You can start making payments during the non-repayment period by contacting the NSLSC.
Note: To help pay off your student loan sooner, you can make extra payments beyond your regular scheduled payment plan at any time. You can even make payments while you are in school. Contact the NSLSC for further details.
Do you qualify for help repaying your student loans?
If you are having trouble repaying your student loans or want to take advantage of cost-saving benefits, there are options available. Find out more.
If you do not repay your loans
Your loan is considered to be delinquent when you are behind in your regularly scheduled monthly payments. If your loan becomes delinquent your credit score will suffer which may prevent you from getting credit for future purchases.
If you missed payments on your Canada/New Brunswick Student Loan for nine months (270 days) or more, your loan is considered to be in default. If the loan defaults, it is no longer considered to be integrated and:
i. the Federal government will then collect on the federal portion of your loan through the Canada Revenue Agency (CRA); and
ii. the Provincial government will collect on the provincial portion of your loan through the Servce New Brunswick-Corporate Collections Services.
How Can a Defaulted Loan Affect You?
When your student loan is considered to be in default:
- you will be disqualified from receiving future student financial assistance or from applying for the Repayment Assistance Plans;
- you may get reported to a credit agency;
- your ability to use credit purchases (get a car loan, a mortgage, a cellphone plan, etc.) will be affected;
- credit agencies can take legal action.
You may also contact the National Student Loans Service Centre at 1-888-815-4514 for additional questions or concerns regarding the repayment of your student loan.