CANADA STUDENT LOANS PROGRAM
1. INTRODUCTION:
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.
At a Glance:
1.
The Canada Student Loans Program helps you finance your education.
2. Loans are available for full-time and part-time studies,
3. Canada Study Grants are available to qualified students
including: students with disabilities, students with dependents,
high-need part-time students, and women in certain fields of doctoral
studies.
Improving
Your Options: Better Access to Education
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:
1. Canada Study Grants
up to $3,120 for eligible students with dependents.
2. Education tax credits for part-time students, previously
available only to full-time students.
3. Improved Interest Relief for up to 30 months (over the life
of the loan) after leaving school, depending on your income and
financial situation.
4. A Reduction Program for borrowers facing serious financial
hardship after leaving school.
5. Tax relief for interest payments on federal and provincial
student loans.
2. CANADA STUDENT LOANS PROGRAM
Choosing a
School
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.
Things to consider:
1.
the institution's track
record (length of time in operation, teacher qualifications,
graduation rates etc.);
2. scholarship and financial assistance programs;
3. courses offered;
4. job placement rate;
5. refund policy.
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.
Full-time Students
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.
Are you eligible?
To be eligible for a
full-time Canada Student Loan, you must fulfill all of the following:
1.
be a Canadian citizen or permanent resident of Canada;
2. be a resident of a province or territory that participates
in the Canada Student Loans Program.* (Generally, your province or
territory of residence is where you have most recently lived for at
least 12 consecutive months excluding full-time attendance at a
post-secondary institution);
3. demonstrate to the provincial or territorial student
assistance office, by completing an application form, that the
financial resources available to you are not enough to cover your
educational costs;
4. enroll or be qualified to enroll in at least 60 percent of a
full-time course load at a designated post-secondary educational
institution;
5. students with permanent disabilities may enroll in 40
percent of a full-time course load; and
6. enroll, or be qualified to enroll, in a program leading to a
degree, diploma or certificate. (The program must be at least 12 weeks
in length within a period of 15 consecutive weeks.)
*
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.
How much can you borrow?
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 Assessed Need
Your financial need is
calculated using the formula:
Assessed Costs - Assessed
Resources Assessed Need
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.
Your Assessed Costs
1.
education
costs (tuition, compulsory fees, books and supplies);
2. living expenses including child care costs. (The amount
allowed for living expenses depends on your situation - for example,
whether you are a dependent student living at home, or a manied
student with dependents of your own.);
3. city you choose to live in is not taken into account.
Your Assessed Resources
1.
income you
earned during the four month period before you enroll;
2. income you may earn while in school;
3. resources available from parents, spouse or other sources.
How to apply
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.
Part-Time Students
1.
Canada
Student Loans for part-time studies are available to supplement other
financial resources such as your own earnings, your spouse's earnings,
as well as scholarships and bursaries.
2. You are responsible for making interest payments on these
loans while you are studying.
3. However, if your income is below a certain level you may be
eligible for the Interest Relief Plan. Under this plan, the Government
of Canada will temporarily make the interest payments for you.
4. Low-income part-time students and students with dependents
may also be eligible for a non-repayable study grant.
Are you
eligible?
To be eligible for a
part-time Canada Student Loan, you must fulfill all of the following:
1.
be a Canadian citizen or
permanent resident and living in Canada;
2. be a resident of a province or territory that participates
in the Canada Student Loans Program. You may apply to the province in
which you will be attending school;
3. enroll, or be qualified to enroll, in a designated
post-secondary educational institution in courses which are part of a
program leading to a degree, diploma or certificate. Designated
schools are those which have been approved for Canada Student Loans by
a province or territory;
4. enroll, or be qualified to enroll, in between 20 percent and
59 percent of a full-time course load;
5. students with permanent disabilities may enroll in between
20 percent and 39 percent of a full-time course load to be considered
eligible for loans;
6. have a gross family income of no more than that shown in the
table. (Gross family income means the amount before taxes and includes
wages, liquid assets, income from investments and monetary gifts.)
Size of Family = Maximum
Income
1 (single student) =
$26,100
2 (married student with no children, or single parent with one
child) = $34,800
3 = $43,600
4 = $50,500
5 = $56,300
6 = $62,400
7 = $68,300
8 = $72,600
9 = $75,200
10 = $78,200
How much can
you borrow?
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:
1.
tuition and compulsory
school fees;
2. textbooks and supplies;
3. a small allowance to cover incidentals;
4. an allowance for local transportation to and from classes;
and
5. an allowance for child care expenses incurred during class
hours.
How to apply
1.
Go to your
educational institution or the provincial or territorial student
assistance office nearest you.
2. Depending on the province or territory in which you live,
you may be asked to submit your application directly to either your
post-secondary institution or to the student assistance office.
3. Financial aid offices at most colleges and universities, as
well as admissions offices at private and provincial schools, also
have information materials and application forms for the Canada
Student Loans Program.
Fast Facts:
Full-Time Student Loans
1.
Most students in full-time studies at designated institutions are
eligible to apply
2. You may be able to borrow up to $165/week of study, depending on
your need.
3. The Government of Canada pays the interest on your loan while you
are in school. You make no payments until after you leave full-time
studies
4. $4,000 on a $25,000 debt over 4 years is interest subsidy paid by
the government on your behalf
5. To apply, obtain an application form from your educational
institution or a student assistance office.
Loans for Part-Time Studies
1.
Eligibility depends on your gross family income level.
2. The amount you can borrow depends on your individual circumstances.
3. You are responsible for paying interest on the loan while studying,
and to start full repayment six months after your studies end.
4. To apply, contact your educational institution or a student
assistance office listed in this booklet.
5. Low-income part-time students may be eligible for a non-repayable
Canada Study Grant.
6. Students with dependents may be eligible for a Canada Study Grant.
7. Part-time students may be eligible for interest relief when they
begin repaying their loans.
3. CANADA STUDY GRANTS (CSG)
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.
Students with Disabilities
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:
1.
Have a permanent disability
which limits your ability to participate fully in post-secondary
studies or in the labour force (proof required);
2. If you are applying as a full-time student, you must be
enrolled in courses that represent at least 40 percent of a full-time
course load.
3. If you are applying as a part-time student, you must be
enrolled in courses representing at least 20 percent of a full-time
course load.
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.
High-need Part-time Students
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:
1.
explain why you can only
study on a part-time basis (e.g. you have family or other
responsibilities that do not permit full-time study); and
2. have a gross income of no more than that shown in the
following chart.
Size of Family = Maximum
Income
1 (single student) =
$14,100
2 (married student with no children, or single parent with one
child) = $23,300
3 = $31,900
4 = $37,800
5 = $47,300
6 = $48,600
7 = $53,000
8 = $56,800
9 = $60,100
10 = $62,700
Applications may be submitted
to:
1.
The student
assistance office in your province or territory; or
2. financial assistance offices at most colleges and
universities.
Students with Dependents*
*
Budget 1998
Full-time and Part-time
Students with Dependants
If you have children or
other dependents, and can demonstrate financial need in excess of $275
per week in combined federal and provincial loans, you may be eligible
for a new Canada Study Grant.
Full-time students with
dependents
A grant will be available
to full-time students with dependents who qualify if their assessed
need is in excess of $275 per week.
1.
Students with one or two
dependents: $40 per week.
2. Students with three or more dependents: $60 per week.
Part-time
students with dependents
In order to qualify for
the grant for part-time Students with dependents you must first
qualify for assistance under the part-time Canada Student Loans
Program.
The Canada Study Grant (CSG)
for part-time students with dependents:
1.
Effective August 1, 1998 a grant will be available to part-time
students with dependents to assist them with their education
costs.
2. Eligible students will qualify for grants if they have
assessed need in excess of, and after receipt of, the maximum
grant for high-need part-time students ($1,200) and Canada Student
Loan for part-time students ($4,000).
3. In conjunction with the Canada Study Grant for high-need
part-time students (Maximum of $1,200), the aggregate amount of
CSG assistance for part-time students shall not exceed $3,120 in
any given loan year. Therefore, the CSG for part-time students
with dependents will be available for up to $1,920 in any given
loan year, to assist in covering allowable education costs.
Students with one or
two dependents: $40 per week.
Students with three or more dependents: $60 per week.
(See also: High-need
Part-time Grant and CSLP for part-time students.)
Women in
Doctoral Studies
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.
4. REPAYING YOUR LOANS
Canada Student Loans, like
any other loans, have to be repaid. Payments begin six months after you
cease being a full-time student.
Tax Relief Effective in 1998
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.
Defaulting
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.
Understanding the Rules and
Responsibilities
Once you have received a
full-time Canada Student Loan, it is your responsibility to:
1.
understand and respect the
terms and conditions spelled out in detail in your loan agreement;
2. tell your lender and the student financial assistance
officer at your school or provincial student assistance office of any
changes in your situation such as a change in name or marital status,
a change in your status as a full- or part-time student, or a change
of address;
3. provide your lender with proof of enrollment for each study
period that you are enrolled, even if you are not applying for a new
loan;
4. keep track of the amounts you borrow each year;
5. as soon as possible after the end of your period of study,
see your lender and complete a Consolidated Student Loan Agreement
within six months of ceasing to be a student; and
6. repay your student loan. If you are a full-time student, you
will be required to start repayment of your student loan on the last
day of the seventh month after ceasing to be a student; however, you
can start repayment earlier if you are in a position to do so. If you
are a part-time student, you are required to make interest payments
even while enrolled, and start full repayment on the last day of the
seventh month after ceasing to be a student.
Important Note
Stay in touch with your
lender. By communicating changes in your situation you ensure that
your credit rating is protected, and that you remain eligible for
future student loans.
Debt
Reduction
The Interest Relief Plan
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.
What is Interest Relief?
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.
Where Can I Apply?
Application forms are
available from the lender holding your student loans. For further
information contact HRDC or your provincial/territorial student assistance
office.
Who is Eligible?
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:
1.
you are currently living in
Canada or on a international internship;
2. you have signed a Consolidated Student Loan Agreement;
3. you have not already received Interest Relief for the
maximum period allowed (30 months); and
4. you have not defaulted on any Canada Student Loans for which
the government has already reimbursed your lender.
If you face
prolonged financial hardship
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:
Extended Interest Relief
1.
After you
have exhausted the 30 months of Interest Relief, you can request that
your lending institution extend the loan repayment period to 15 years.
This would lower your monthly payments by nearly 25 percent at current
interest rates.
2. If, after extending the repayment period to 15 years, you
remain in financial hardship, Interest Relief may be extended during
the five years after leaving school.
Debt
Reduction
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.
Fast Facts: Making Your
Payments
1. Full-time students must
start repaying their loans six months after they leave school.
2. Establish a relationship with your bank - talk to your lender as
early in the process as possible.
3. Part-time students make interest-only payments one month after
obtaining a loan, and start payment of both principal and interest six
months after completing studies.
4. If you have difficulty making payments, discuss your situation with
the lender - defaulting on your loan has serious consequences
5. If you face financial difficulty, a number of options are available
- including revising the terms, of your loan, Relief and a temporary
suspension of payments, and - in certain circumstances - reduction of
the principal by the government on your behalf.
5. OTHER OPTIONS FOR
FINANCING YOUR EDUCATION
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:
Public Inquiries Centre
Human Resources
Development Canada
140 Promenade du Portage, Phase IV
Hull, Quebec K1A 0J9
Fax: (819) 953-7260
Youth Information Line: 1-800-935-5555
University Scholarships and
fellowships are also offered by the federal granting councils:
Medical Research Council
of Canada
Holland Cross
Tower B, 5th Floor
1600 Scott Street, (Postal locator 3105A)
Ottawa, Ontario K1A 0W9
Tel: (613) 941-2672
Fax: (613) 954-1800
Natural Sciences
Engineering Research Council
350 Albert
Street, 10th Floor
Ottawa, Ontario K1A 1H5
Tel: (613) 996-3078, (613) 992-7788
Fax: (613) 992-5337
Social Sciences and
Humanities Research Council
Constitution
Square Tower 2
350 Albert Street, 10th Floor
P.O. Box 1610
Ottawa, Ontario K1P 6G4
Tel: (613) 992-7788 or 996-3078
Fax: (613) 992-1787
(SSHRC funding is only for doctoral and post-doctoral levels of
study.)
6. FOR MORE INFORMATION
Additional information on the
Canada Student Loans Program may be obtained from:
The Learning and Literacy
Directorate
Human Resources
Development Canada
P.O. Box 2090, Station "D"
Ottawa, Ontario K1P 6C6
Tel. (819) 994-1844
Toll Free 1-800-432-7377
TTY Line: (819) 994-1218
Internet: http://www.canlearn.ca
(English)
http://www.cibletudes.ca
(French)
Provincial and Territorial
Student Assistance Offices
Newfoundland
Student Aid Division
Department of Education
Thompson Student Centre
P.O. Box 8700, 3rd floor
St. John's, Newfoundland A1B 4J6
1-888-657-0800 Tel: (709) 729-5849
Fax: (709) 729-2298
www.edu.gov.nf.ca/studentaid
Prince Edward Island
Student Aid Division
Department of Education
P.O. Box 2000,
105 Rochford St., Shaw Building, 3rd floor
Charlottetown, PEI C1A 7N8
Tel: (902) 368-4640
Fax: (902) 368-6144
www.gov.pe.ca/educ
Nova Scotia
Student Assistance Office
Department of Education and Culture
P.O. Box 2290, Halifax Central
Halifax, Nova Scotia B3J 3C8
Tel: (902) 424-8420
Fax: (902) 424-0540
1-800-565-8420 (within Nova Scotia)
Tel TDD: (902) 424-2058
www.ednet.ns.ca
New Brunswick
Student Services Branch
Department of Advanced Education and Labour
P.O. Box 6000, 548 York Street
Fredericton, New Brunswick E3B 5H1
Tel: (506) 453-2577 1-800-667-5626
Fax: (506) 444-4333
www.gov.nb.ca/ael/stuaid/guide.htm
Quebec*
Service de I'accueil et
des renseignements
Aide financiers aux etudes
Ministere de I'Education
1035, rue De La Chevrotiere
Quebec (Quebec) G1R 5A5
(418) 646-5245 (a exterieur du Quebec)
Pour le service telephonique interactif
(514) 646-4505 (Quebee)
(514) 864-4505 (Montreal)
1-888-345-4505 (Ailleurs au Quebec)
Ontario
Student Support Branch
Ministry of Training, Colleges and Universities
P.O. Box 4500, 189 Red River Road, 4th floor
Thunder Bay, Ontario P7B 6G9
Tel: (807) 343-7260
1-800-465-3013 (Ontario only)
1-900-565-6727 (for students outside of the province a $2 charge
applies)
1-800-465-3958 (TDD-Ontario only)
http://osap.gov.on.ca
Manitoba
Student Financial
Assistance
Department of Education and Training
409-1181 Portage Avenue
Winnipeg, Manitoba R3G 0T3
Tel: (204) 948-6321 or (204) 945-2313 (out of province)
1-800-204-1684 (in Manitoba)
Fax: (204) 948-3421
www.edu.gov.mb.ca
Saskatchewan
Student Financial
Assistance
Post-Secondary Education and Skills Training
Room B21, 3085 Albert Street
Regina, Saskatchewan S4P 3V9
Tel: (306) 787-5620
Fax: (306)787-7537
www.sasked.gov.sk.ca
Alberta
Alberta Learning
Information Service
Advance Education and Career Development
Information and Counseling Services concerning student funding are
available at all Alberta Career Development Centres. Please consult
the telephone directory for the centre nearest you.
www.alis.gov.ab.ca/leaming/finance.html
British Columbia
Student Services Branch
Advanced Education, Training and Technology
2nd Floor, 1106 Cook Street
Victoria, B.C. V8V 3Z9
Tel: (250) 387-6100
Lower Mainland
P.O. Box 9173
Station Provincial Government Victoria, B.C. V8W 9H7
Tel: 1-800-561-1818 (in British Columbia)
Fax: (250) 356-9455
www.est.gov.bc.ca
Yukon
Students Financial
Assistance Unit
Department of Education
P.O. Box 2703
Whitehorse, Yukon Y1A 2C6
Tel: (867) 667-5929
Fax: (867) 667-8555
www.yesnet.yk.ca/sites/sfa
Northwest Territories*
Student Financial
Assistance
Department of Education, Culture and Employment
P.O. Box 1320 Yellowknife, N.W.T X1A 2L9
Tel: (403) 873-7190 or 1-800-661-0793
Fax: (403) 873-0336 or 1-800-661-0893
Nunavut*
Nunavut Department of
Education
1-800-661-0793
*
The
province of Quebec, the Northwest Territories and Nunavut operate
their own student assistance plans. If you are a resident of Quebec,
the Northwest Territories or Nunavut, you should contact their offices
for further information.
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.
Enquiries Centre
Human Resources Development
Canada
140 Promenade du Portage Phase IV,
Level 0
Hull, Quebec K1A 0J9
Fax: (819) 953-7260
|
| |
| |
| |
