In Canada, individuals can apply for student loans to help them pay for post-secondary education expenses. For many Canadians, this assistance is necessary for them to pursue higher education and allows them to achieve their educational and career goals.
After your schooling is finished, however, you must begin repaying your student loans. Managing your loan repayments can be tough when you’re starting out in the workforce or searching for employment, so we’ve put together this list of things you need to know about student loan repayment in Canada.
When Do I Have to Repay My Loan?
You must begin student loan repayment when:
– You have graduated from school
– You have changed from full-time studies to part-time
– You have left school
– You are taking a period of time off from school that is more than 6 months
For 6 months after you leave school, you will not have to make any payments on your provincial student loan or Canada Student Loan. However, it is important to note that interest still accumulates during this time period. At this point, you can:
– Start making interest payments immediately
– Pay the 6 months of interest as a lump sum before making your regular payments
– Have the interest amount added to your total loan after the 6 month non-repayment period
It is your own responsibility to contact your loan provider to set up your student loan repayment schedule. If you fail to make contact, your loan payments could automatically be withdrawn from the account where your loans were deposited when payment is due.
It is important to work the amount of your student loan repayment into your monthly budget once you’ve finished school. To figure out how much you’ll be paying monthly, use the Government of Canada’s Loan Repayment Estimator.