So you’re ready to start paying your student loans back? Great! Make sure you have all the information you need so you don’t miss any crucial deadlines!
What do I do if I have a government student loan?
If you have a Canada Student Loan, you’ll have a six-month grace period before you’ll have to start paying off your student loan. Any of the following can trigger a grace period to start:
- You graduate from school.
- You decide to take time off from school or leave it completely.
- You transfer from full-time studies to part-time studies.
You don’t have to wait to start paying back your loan. If you graduate with a job waiting, and you have low living expenses (e.g. you can live at home rent-free), then try to start paying back your loan as fast as possible!
You may be able to make adjustments to your loan payments, such as lowering them – but this means that it’ll take longer to pay back your loan. Contact the National Student Loans Service to find out more information about what you owe and how to pay it back.
What do I do if I have a private student loan?
The process for paying back a private student loan will vary depending on who you borrowed money from. Before you graduate from school, you should:
- Make a list of all the banks or credit unions you borrowed money from.
- Find out how much you owe, and when you’ll be expected to start paying it back.
- Make a plan on how you’ll budget so you can start paying your loans back.
Don’t wait for lenders to contact you! It’s important to be proactive when you have loans to pay back so you don’t accidentally miss any payments. The last thing you want to do is to incur fines or penalties on top of your student loans.
What about student loan forgiveness?
Depending on the type of profession you studied for, you may be eligible for some student loan forgiveness – meaning you don’t have to pay back all of your student loans.
Family doctors and nurses working in areas considered “remote” may be eligible to have some or all of their student loans forgiven. A few things to keep in mind:
- Loan forgiveness is only available for outstanding Canada Student Loan balances. If your Canada Student Loan has been converted to a line of credit or private loan, it’s not eligible for loan forgiveness.
- Loan forgiveness only applies to the federal portion of a student loan, not the provincial or territorial portion of a student loan.
Don’t assume you’ll just be eligible for loan forgiveness. You can find more details about how to get started with applying for loan forgiveness here.
The Takeaway
It’s critical to be on top of paying back your student loans. Don’t wait for the government or your private lender to contact you – it’s your responsibility to be aware of what you owe, and when you’ll have to start paying it back!
