Repaying Your Student Loans

Reducing Your Payments

Lowering the amount of your required monthly payment may also be an option for you. If you are unable to pay the payment amount is listed in the terms and agreements of your original loan, you may be able to apply for a Revision of Terms that can lower your payment and extend the term of your repayment.

For Canada Student Loans or Integrated Student Loans, a revision of terms can extend the repayment period up to 15 years.

There are two ways to apply a revision of terms to your loan.

You can decrease your payments for a short period.

• You can temporarily extend the term of your loan to lower your payment
• During this period you will still be responsible for making payments at the adjusted amount and interest will still accrue
• At the end of the designated period, your payments and interest will revert to the amount in your original agreement.

You can extend the full term of your loan to permanently lower your payments

• This will lower your payments for the full term of your loan
• Keep in mind your loan will take longer to pay back
• You will also pay significantly more interest

Contact the NSLSC or the Financial Institution that holds your loans for more details on Revision of Terms.

Decrease the Amount that You Owe

Debt Reduction programs are available on Canada Student Loans for total reductions up to $26,000. Some provinces also offer Debt Reduction programs but their terms may differ. Contact the National Student Loans Service Center and/or your Provincial Student Assistance Office for more information.

There are eligibility requirements you must meet to qualify for Debt Reduction. Also the amount you qualify for depends on your financial situation. Click here for more information on eligibility and the application process.

Permanent Disability

If you are permanently disabled, you may have difficulty meeting your financial obligations. If you qualify for the Permanent Disability Benefit, you will not have to repay your loans.

This benefit applies to Canada Student Loans and integrated loans in Saskatchewan, New Brunswick, Newfoundland, and Labrador.

There are two main eligibility requirements. You must have a permanent disability and you must be experiencing financial hardship repaying your loan.

There are also special criteria that apply to this loan depending on what type of loan you have.

You can contact the National Student Loans Service Center for an application package.

Tax Relief

The Government of Canada offers help to students in the form of tax relief. These include tax credits or claims for:

• interest paid on your loans
• Public transit passes
• $400 per month on your tax form for full-time studies
• A non-refundable textbook tax credit of $65 for each month you are enrolled in a course that entitles you to a full-time education tax credit

Check out the Canada Revenue Agency’s Student and Income Tax Brochure for more information.

If student loans is causing you to behind on paying off your credit cards.

Call a counsellor today if you feel you need credit card help Consolidated Credit Counselling Services of Canada, Inc. can be reached at at 1-888-287-8506.