Canada Student Loans Program
The Government of Canada is committed in making education more accessible to all Canadians. In this regard, measures are in place to financially assist borrowers in achieving the level of education they feel they need in order to participate fully in their community and in their personal life. At a glance, the Canada Student Loans Program (CSLP) helps finance post-secondary education by providing assistance to borrowers with demonstrated needs.
Where and how do I apply for financial assistance?
How much will I get?
What do I do, Who do I see?
I am continuing (or returning to) full-time studies without receiving further fiancial assistance. What do I do with my previous CSL's?
What happens if I return to school while my previous guaranteed Canada Student Loans are in Default with a collection company?
Where do I establish repayment arragements of a CSL?
What do I do if I am experiencing difficulties in repaying my CSL due to my limited fiancial resources?
What happens if my loan goes into default?
What are Canada Study Grants?
Where can individuals find more information?
How does the Program work
Where and how do I apply for financial assistance?
When students decide to apply for financial assistance to study at the post-secondary level, the student must apply to the Province from which they reside (The Province of residence is generally that in which the student has most recently lived for a period of at least 12 consecutive months, excluding time spent as a full-time student at a post-secondary institution).
**The Province will assess the application after documentation has been completed by the Educational Institution to be attended. Once the assessment is done the student will receive written notification and finally the Certificate of Eligibility Schedule 1 outlining the amount authorized and the specifics.
**In order to qualify for financial assistance the student must be a resident of a Province or territory that participates in the Canada Student Loans Program. The Province of Qu�bec, Nunavut and the Northwest Territories operate their own student loan assistance plans. The Government of Canada provides funding to assist them in administering their plans**
Educational Institutions must be designated for Canada Student Loans Purposes. In order to be recognized, Educational Institutions must apply by contacting Provincial Authorities in the Province where they want to be designated, financial aid offices.
The application forms for financial assistance can be obtained through educational institutions or student assistance offices. In Ontario students can also apply on-line through the OSAP web-site.
How much will I get?
These inquiries should be referred to the respective Provincial Authorities. Students who have access to the Internet can visit the Student Needs Assessment Software at:
http://www.CanLearn.ca/English/fin/debtfreeguide/csl/hrdcsnas/snasen.shtml
This will give them an idea of how much their assessment might be. This does not include funding they may receive from a Provincial government. If a student wants to appeal the amount awarded, or the refusal to receive financial assistance they can do so by contacting the appropriate Provincial Authorities. If the student resides in Ontario, they should contact the financial aid office at the educational institution. They will assess the appeal and advise accordingly.
Credit Checks for new CSL applicants
New Regulations on credit screening of CSL applicants came into force August 1, 1999. Section 14.3 of the Regulations state that a Certificate of Eligibility for a Canada Student Loan may be denied to first-time applicants, who are 22 years of age or older if:
In the three-year period before making the application, the individual has been more than 90 days overdue in installment payments on three or more loans or other debts higher than $1,000.00 and had control over the circumstances that led to the overdue installments.
A first-time applicant is an individual who has never been eligible to receive a Canada Student Loan. A first-time applicant is also an individual who appears as a new entry to provincial systems.
There is an Appeal process for those with circumstances beyond their control.
When an applicant is denied a CSL the province will give written notification and include a Student Information Bulletin outlining the appeal process. Appeals should be sent back to the province.
Remission
The Canada Student Loans Program does not have a remission program. This program only exists for Provincial loans. Callers should be directed to contact the Provincial Authorities where they obtained their loans. If the remission amount pays the Provincial loan in its entirety and some monies are remaining, only then can it be applied to their CSL.
Once the Schedule 1 (Certificate of Eligibility), is issued
What do I do, who do I see?
Students are required to obtain the signature of the Registrar for the educational institution they are attending, in order to confirm their enrolment. They are then required to find a participating lender to cash their CSL within 30 days of the educational institution signature.
List of Participating Financial Institution's
- Canadian Imperial Bank of Commerce
- Royal Bank of Canada
- Bank of Nova Scotia
- National Bank of Canada
- Credit Union Central of Canada
- Members of L'Alliance des caisses populaires de l'Ontario
- Members of La F�d�ration des caisses populaires acadiennes
- Members of La F�d�ration des caisses populaires de l'Ontario
- Members of La F�d�ration des caisses populaires du Manitoba.
I noticed an error on my Certificate of Eligibility, Schedule 1:
If an error is detected on the document the student should be referred to the appropriate Provincial Authorities for review.
I am continuing (or returning to) full-time studies without receiving further financial assistance. What do I do with my previous CSL's?
The student must provide the lending institution with a Confirmation of Enrolment (Schedule 2) to their lending institution. The Confirmation of Enrolment form is also available from campus financial aid offices, at their educational institution as well as from lenders. These documents must be signed by the Registrar of the educational institution attended. This will ensure that the Government of Canada continues to pay the interest on the loan. Otherwise, the lender will assume that the student has stopped studying and will expect loan repayment to begin.
**What happens if I return to school while my previous guaranteed Canada Student Loans are in default with a collection company?
The borrower must provide the collection company with a confirmation of full-time enrolment, financial statement and proof of all family income. Once this is done, payments may be put on hold for six months periods or for the duration they are in school as indicated in the document. Borrowers should be reminded that interest continues to accrue on the unpaid principal portion of their CSL.
Repayment
Where do I establish repayment arrangements of a CSL?
After a student ceases full-time study, the government stops paying the interest on the loans. Students must make repayment arrangements with the lender within six months of completing or withdrawing from their studies. Students are expected to contact their lenders within six months from the last confirmed Period of Studies End Date to establish the repayment of their CSL's. Further details on the repayment process can be obtained through the lenders. If the account is no longer with the lender and the caller is unaware of their loans whereabouts, they should be contacting the Canada Student Loans Program or Collection Services at
1-888-824-2110.
What do I do if I am experiencing difficulties in repaying my CSL due to my limited financial resources?
For borrowers who experience problems in repaying a Canada Student Loan, there are a number of options. Borrowers can be directed to their lenders where their financial situation can be reviewed and the different options available to borrowers will be discussed. Borrowers ultimately apply through their lenders. If the loan is in default with a collection company the borrower should be contacting the CSLP or the collection company to have their repayment schedule revised.
*Borrowers with loans in default are not eligible for assistance in the repayment of their CSL's.
Permanent disability
Students who are permanently disabled may apply to have their Canada Student Loans forgiven. The impairment from the disability must be to a degree that affects lifetime earning potential. Family income will also be taken into account. The documentation required for a forgiveness submission due to disability is available from lenders or by contacting the CSLP. Borrowers with loans in default cannot be considered for permanent disability forgiveness. Borrowers may qualify to have their loans removed from active recovery, where payments are not required and the account is permanently exempted from being selected for income tax set-off. For further details, they may contact Collection Services at 1-888-819-2516.
What happens if a loan goes into default?
Loans issued after August 1, 1995
Since August 1, 1995, the Government of Canada only provides guarantees for Canada Student Loans borrowers with disabilities and for minors. In all other cases, the lenders are now responsible for the recovery of loans once repayment has started.
For Canada Student Loans negotiated prior to August 1, 1995.
If a borrower fails to make the required loan payments for a 3 month period, the loan is in default and the lender claims reimbursement from the Government of Canada. The Government of Canada pays the full amount of the loan to the lender and then recovers the loan from the borrower. Interest on the loan continues to accrue and must be paid by the borrower. The Government of Canada employs a number of methods to recover defaulted Canada Student Loans negotiated prior to August 1, 1995;
Collection agencies are used by the Government of Canada to recover Canada Student Loans. These agencies operate under strict directives specifying what actions may be taken to recover loans. The agencies are instructed to either collect the outstanding amount in a lump sum or to set up a repayment schedule with the borrower. If borrowers wish to contact the collection company assigned to collect their CSL debt, they may do so by contacting the CSLP
at 1-888-432-7377 or Collection Services at: 1-888-824-2110.
**If borrowers are concerned about the collection practices of collection companies, or want to make a formal complaint, they may do so by contacting Collection Services at 1-800-667-0135.
Borrowers with loans in default are also identified and selected to have a lien placed on their personal income-tax returns. Borrowers who are receiving a refund will be notified from Canada Customs and Revenue agency that the refund was transferred to Human Resources Development Canada and applied towards their outstanding Canada Student Loan debt.
Interest Relief
The Interest Relief (IR) Plan is available to borrowers who experience problems in repaying their Canada Student Loan. Borrowers who wish to apply for Interest Relief benefits must do so through their lender. The Government of Canada will pay the interest on the loan whereas the borrower is not required to make payments on their CSL for the period approved. Once assessed the applicant will receive a letter from the lender or the CSLP advising them of the approval dates they are covered for. Accounts in default do not qualify for Interest Relief Benefits.
*WHILE ON INTEREST RELIEF, IF THE APPLICANT IS IN A POSITION TO MAKE PAYMENTS ON THEIR CSL, THEY SHOULD BE ADVISED THAT THE AMOUNT WOULD BE APPLIED DIRECTLY TO THE PRINCIPAL.
** Interest Relief appeals mut be forwarded to CSLP for review taking into consideration the applicant's evidence of exceptional expenses (i.e., medical costs over $250.00 not covered by medical insurance). **WE REQUIRE A COPY OF THE APPLICATION AND PROOF OF INCOME AS THERE IS NONE ON FILE (HELD AT LENDERS).
The income table was published in the Canada Gazette on August 1, 1998. It has also been revised on that date. The Plan approves benefits for qualified borrowers for periods of 6 months (effective October 1, 1998) to a maximum of 30 months (effective April 28, 1997).
As of December 1, 1996, all participating lenders are responsible for the processing and the approvals of the Interest Relief. Non-partcipating lenders must submit the original Interest Relief application form to the CSLP, Data Integrity for processing.
Extended Interest Relief:
After having exhausted the 30 months of Interest Relief, a borrower can request that their lending institution extend the loan repayment to 15 years. This would lower their monthly payments by nearly 25 percent at current interest rates. If after extending the repayment period t o 15 years, the borrower remains in financial hardship, Interest Relief may be extended during the five years after leaving school. Once the review is complete, the Canada Student Loans Program will send a letter explaining the decision.
Debt Reduction
In the event that the borrower remains in financial difficulties, the government may reduce the loan principal if their annual payments exceed a given percentage of their income. The maximum amount of debt reduction a borrower can receive is $10,000, or 50 percent of the principal of their loan, whichever is less. To qualify, 5 years must have passed since the borrower completed their studies and must have exhausted Interest Relief. For further details or application forms, borrowers should be advised to contact their lending institution.
**If applicants feel they have grounds for an appeal can do so by writing to the CSLP and provide supporting documentation.
Clearance and Rehabilitation
How do I apply for clearance in order to receive further financial assistance?
Borrowers with loans in default are placed on a restricted list for further assistance under the Canada Student Loans Program (CSLP). If they return to post-secondary studies and want to apply for further assistance, either by way of a new loan or by having a previous loan reinstated to interest-free status, they must send a written request to the Canada Student Loans Program, asking for clearance and also explaining their situation. They may also provide documentation supporting their request for further financial aid.
If the student has previous risk-shared loans in default, the student should contact the lender and rehabilitate the loan(s) with them. Once this has been done the lender must send a fax to the CSLP advising that the CSL is now in good standing and the CSLP will issue written clearance to the appropriate Provincial Authorities.
**Appeal** Borrowers wanting to appeal the refusal for clearance may do so by writing a letter explaining why they feel they should qualify.
Permanently disabled borrowers whose loans have been forgiven may qualify for further assistance.
Criteria for Rehabilitation/clearance:
Borrowers must have demonstrated every effort to discharge their CSL or must have cooperated with the collector of the CSL debt in the 12 months preceding the written request for clearance.
Bankruptcy: Canada Student Loans included in Bankruptcy proceedings must wait a period of 3 years following the date of the absolute order of discharge before clearance can be issued.
Canada Student Loans included in Bankruptcy declared after June 19, 1998 are not eligible to be discharged of their CSL until a period of 10 years has passed since the borrower completed his studies. Once the borrower has received the discharge or satisfaction piece in reference to Consumer Proposals the borrower must wait 3 years to receive clearance to apply for financial assistance.
*If you declare bankruptcy after June 19, 1998, you are not eligible to be discharged of your Canada Student Loan until 10 years after you have completed your studies. Your Canada Student loan will be listed in as one of your creditors (debts), but it will not be cleared by the bankruptcy proceedings.
As always, if a caller has complaints or appeals regarding this condition regarding bankuptcy, they can direct their inquiries to:
The office of the Superintendent in Bankruptcy
The mailing address for this office is a little further down this page.
Collection of accounts
If a borrower is calling concerning the repayment of a CSL debt which was included in Bankruptcy proceedings and is governed by the Legislation (Bill C-36) passed June 19, 1998, and wish to make payments towards their debt, they may do so by contacting Collection Services at: 1-800-667-3814
Where to appeal the latest changes affecting CSL's included in a Bankruptcy
Individuals can direct their inquiries and concerns to the Office of the
Superintendent in Bankruptcy. Their mailing address is:
473 Albert Street, 2nd Floor
Ottawa, Ontario, K1R 5B2
Telephone number is (613) 996-3964 or (613) 996-2994 Fax number is (613) 996-0949
What are Canada Study Grants?
Canada Study Grants expand opportunities for students with special needs. Students with permanent disabilities may be eligible for grants from the Government of Canada of up
to $5,000 per year to cover certain education-related expenses; High-need, part-time students may be eligible for grants from the Government of Canada of up to $1,200 per year to help pay the direct costs of their studies; Women in certain Ph D programs such as applied and physical sciences, mathematics and engineering may be eligible for grants from the Government of Canada of up to $3,000 per year for a maximum of three years; and the 1998 Budget added a new Canada Study Grant for students with dependents. Qualifying students with one or two dependents can receive up to $40 per week, and those with three or more dependents can receive up to $60 per week.
Where can individuals find more information?
Individuals who require an application form or more information about student financial assistance should contact the financial aid office at a post secondary institution, or the appropriate Provincial or Territorial student assistance office.
General information
How to apply for the different programs and benefits of the CSLP?
If the loan is with a lender they should be referred to the lender. The details and the application forms can be obtained from the lenders. If the account is in default the call should be directed to the CSLP.
17% Tax Credit:
Borrowers who are repaying their student loans will be allowed to claim a 17% tax credit on the interest portion of the amount paid on their student loan each year. Further details can be obtained by contacting their lender or Collection Services at 1-800-667-3814.
Canada Education Savings Grant:
The Canada Education Savings Grant (CESG), in association with existing Registered Education Savings Plan (RESP), has been made available to encourage parents to save for their children's education.
Inquiries concerning the Canada Education Savings Grant should be advised to contact the
1-888-276-3624. For service in French 1-888-276-3632. Additional information is also available:
http://www.hrdc-drhc.gc.ca/student_loans
Millenium Scholarships
The Canada Millennium Scholarship (CMS) supports access to post secondary education for all Canadians. For further information in English they should contact 1-888-432-7377. For service in French: 1-800-733-3765. Additional information is also available at:
http://www.hrdc-drhc.gc.ca/student_loans
Delivery address
Canada Student Loans Program
Human Resources Development Canada
15 Eddy Street, Room 10D4
Hull QC
K1A 0M5
Mailing address
Canada Student Loans Program
P.O. Box 2090, Station "D"
Ottawa, Ontario
K1P 6C6 Tel: 1-888-432-7377
Fax: 1-819-953-6057
Reference Canada 1-800-O-CANADA
Collection Services 1-800-667-0135 Collection companies complaints
Fax (819) 997-2404
Set-off removals (Garnishing of wages) 1-888-819-2516
1-819- 997-2404
Back to home page