In February 1998, the Government of Canada announced a number of measures to help make education more accessible for all Canadians. This booklet provides information on the Canada Student Loans Program and Canada Study Grants available through the Government of Canada.

In February 1998, the Government of Canada announced a number of measures to help make education accessible for all Canadians. This booklet includes information on the following:

Post-secondary education is a big investment in time, money and effort. It is well worth it to take the time to evaluate the institution you are considering.

You should ask if the institution has been designated. Designated schools are those which have been approved for Canada Student Loans by a province or territory.

If you are a full-time student, or you are planning to become one, you may qualify for a subsidized loan through the Canada Student Loans Program.

The Government of Canada pays the interest to the lender for you until you leave full-time studies. Interest accumulates on your loan after you leave full-time studies, but you are not required to make any payments for six months. After this grace period, you are responsible for repaying the loan.

You do not have to make any payments on a Canada Student Loan while you are in school full-time.

Students who have difficulty making payments after leaving school may qualify for Interest Relief or, in some cases, debt reduction.

To be eligible for a full-time Canada Student Loan, you must fulfill all of the following:

* The province of Quebec, Nunavut and the Northwest Territories operate their own student assistance plans. The Government of Canada provides funding to assist them in providing their plans.

Depending on your need, you can borrow up to a maximum of $165.00 for each week of your study period. Provincial assistance is also available, as well as Canada and provincial grants programs (where the latter exist) or other scholarships or bursaries.

Your financial need is calculated using the formula:

If you have access to the Internet, you can get an idea of how much your loan might be by using the Student Needs Assessment Software, an interactive Web program. The Web address is http:/Iwww.hrdc-drhc.gc.ca/student_loans/engraph/snas.html

Note: This does not include funding you may receive from a provincial government.

Go to your educational institution or the provincial or territorial student assistance office nearest you. Obtain an application form and follow the instructions.

Financial aid offices at most colleges and universities, as well as admissions offices at private and provincial schools, have information materials and application forms for both the Canada and provincial student loans programs.

To be eligible for a part-time Canada Student Loan, you must fulfill all of the following:

The amount of money you can borrow depends on your individual circumstances. The amount will be based on costs calculated by your provincial or territorial authority. These costs include:

Since 1995, the Government of Canada has provided Canada Study Grants - formerly Special Opportunity Grants - to provide assistance to students with permanent disabilities, high-need part-time students, and women in certain doctoral studies. In 1998, the government introduced a new Canada Study Grant to help full- and part-time student loan recipients with dependents finance their education.

Unlike student loans, Canada Study Grants do not have to be repaid.

If you have a permanent disability such as deafness, blindness, other physical or learning disabilities, you may be eligible for a Canada Study Grant of up to $5,000 a year to cover exceptional education-related costs associated with your disability. To be eligible, you must:

The grant may cover such exceptional expenses as the costs of a tutor, an interpreter, attendant care, or special equipment.

To apply, you must first complete an application for a full-time or part-time Canada Student Loan (available from your provincial or territorial student assistance office) to establish your financial needs. You then submit a separate application form for the Canada Study Grant (CSG) to the same office.

Part-time students with demonstrated financial need may qualify for a grant of up to $1,200. To be eligible, you must meet the requirements for a part-time Canada Student Loan. In addition, you will be required to:

If you are a female student pursuing full-time doctoral studies, you may qualify for a Canada Study Grant of up to $3,000 a year for a maximum of three years. This special grant is intended to help increase the participation of women in certain fields of study at the doctoral level.

To be eligible for this grant, you must apply and qualify for Canada Student Loan assistance for the current academic year. The eligible fields of study are:

Engineering and applied sciences: Engineering (all fields), Aerospace Sciences, Architecture, Forestry.
Agriculture and biological sciences: Agriculture, Biophysics, Biochemistry, Botany, Microbiology, Veterinary Sciences, Zoology.
Mathematics and physical sciences: Astronomy, Chemistry, Computer Science, Environmental Studies, Geography, Geology and Related Fields, Mathematics, Metallurgy, Materials Science, Meteorology, Oceanography and Water Studies, Physics, Resource Management.
Arts, social sciences and related fields: Business Administration, Commerce, Management, Administrative Studies, Economics, Music, Philosophy, Political Science, Religious Studies, Theological Studies.
Other: Dental Specialties, Physical Education, Law and Jurisprudence.

Information and application forms are available from the student assistance office in your province or territory, from financial assistance offices at most colleges and universities, as well as from admissions offices at vocational schools. In some provinces, you submit your application directly to your educational institution. In others, you apply directly to the provincial or territorial student assistance office.

Canada Student Loans, like any other loans, have to be repaid. Payments begin six months after you cease being a full-time student.

While you are repaying your student loan, you will be allowed to claim a 17 percent tax credit on the interest portion of the amount paid on your student loan each year.

If you default on your loan, your lender and the Government of Canada will take steps to recover the debt, which may include reporting you to a credit agency, using a private collection company, or taking legal action. Under legislation introduced in 1998, you can not avoid repaying your Canada Student Loan or provincial student loans through bankruptcy for a period of ten years after the end of your studies.

Once you have received a full-time Canada Student Loan, it is your responsibility to:

Having trouble repaying your loan? The Interest Relief Plan may help you. The Government of Canada may pay the interest on your loan.

Discuss your situation with the lending institution that issued your loan. Your lender may agree to revise the repayment terms.

In addition, the Government of Canada offers an Interest Relief Plan and debt reduction to help borrowers facing financial hardship.

If you have difficulty making your loan payments because of low income, the Interest Relief Plan may be available to you. 

While you are on Interest Relief, the Government of Canada pays the interest on your loan. Interest Relief is normally approved for six-month periods up to a maximum of 30 months throughout the lifetime of the loan.

Application forms are available from the lender holding your student loans. For further information contact HRDC or your provincial/territorial student assistance office.

To be eligible for Interest Relief, your total family income must be below a level determined by the size of your family and the size of your monthly loan payment. Special circumstances may also qualify you for Interest Relief. For example, if you have had to pay for unexpected emergency health-related expenses or emergency home repairs, you may be eligible.

Provided you meet the income conditions, you are eligible to apply if:

If you continue to have difficulty making your loan payments after 30 months of Interest Relief discuss your situation with your lending institution or your student aid office.

Other options available to help you:

In the event that you remain in financial difficulty, the government will reduce your loan principal if your annual payments exceed a given percentage of your income. The maximum amount of debt reduction will be $10,000 or 50 percent of the principal of your loan, whichever is less. To qualify, five years must have passed since you completed your studies and you must have exhausted Interest Relief.

The Canada Student Loan Program is just one option to consider when deciding how to finance your education. In addition to a federal student loan, you may also be eligible for a student loan from the province or territory in which you live. Eligibility for federal and provincial loans is generally assessed using a single application form, but these programs have somewhat different requirements. For details on student financial assistance programs, see your provincial/territorial financial assistance office.

In addition, some corporations, unions, churches, religious institutions, service groups and foundations offer scholarships and/or bursaries. Lenders (banks and credit unions) offer a variety of special student packages. Some companies also offer scholarships to children of their employees.

For additional information, consult the Internet, commercially available books or inquire directly from the institution you wish to attend for information on where and when to apply.

Youth Link is a publication which lists work, study, scholarships and travel programs for youth funded by the Government of Canada. It is available free of charge (Catalogue No. Y-002-05-98E) from:

University Scholarships and fellowships are also offered by the federal granting councils:

Additional information on the Canada Student Loans Program may be obtained from:

This brochure can be obtained in alternative formats through InfoTouch. Call 1-800-788-828, on Touch-Tone phone or through teletypewriter (TTY). Requested documents are automatically produced in the format selected and mailed directly to the caller.

Human Resources Development Canada
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Fax: (819) 953-7260