Once you've determined Where to Make Payments and When to Make Payments, you need to figure out how. The process differs for each loan provider, but they generally ask you to follow similar steps.

Step 1. You will be notified by mail that your loan repayment is about to begin. If you haven't received anything by mail, make sure you contact your loan provider(s) before your 6-month grace period is over to determine your loan repayment terms. You’ll want to review all aspects of your loan(s) and finalize details concerning:

• the total amount of your loan (if you have multiple loans, find out the total amount of your loans from all years managed by that provider)
• the interest rate that will be applied to your loan(s)
• the monthly amount that will be withdrawn from your bank account, the bank account from which it is to be withdrawn and the date on which it will be withdrawn every month (if you're set up for direct withdrawals)
• how to send monthly payments to your loan provider(s), normally via cheque (if you're not set up for direct withdrawals), and
• how long it will take to pay back your loan(s).

Remember—depending on your loan program(s), you may have to contact more than 1 loan provider. Check Where to Make Payments for details.

Step 2. Once you have read the loan repayment papers that your loan provider(s) mailed you and you agree with the repayment schedule outlined, if necessary, sign the papers and return them to the loan provider(s). Even if you don't return the papers to your loan provider, payments will be withdrawn from your account on file.

Returning the papers gives you the opportunity to:

• make changes to the repayment schedule
• confirm the repayment schedule, and
• apply for assistance now or in the future, should you be unable to make your payments.

For more information on assistance available, see the Can't Repay? section.

Step 3. At the end of the 6-month grace period, start making your monthly payments, either through direct withdrawals or manually by sending your payment to your loan provider(s) by cheque or through online or telephone banking.

How to pay off your loan faster:

• Make lump sum payments. This is one of the fastest ways to get rid of debt. Any payments you make while attending school are applied directly to the principal of your loan. This means that the total amount of your loan will decrease, resulting in less interest charged in the long run. Payments made during the 6-month grace period first pay off your accumulating interest. Any remaining funds are applied to your outstanding loan principal, which again would decrease the total amount of your loan and overall interest charges.
  
  If you make a lump sum payment during the 6-month grace period, the interest that has built up (accrued) on your loan since you left school will be reduced. You'll also receive credit toward payments on interest during the grace period on your income tax receipt.
  
  Once you start repaying your loan, you can make lump sum payments at any time. These payments will first be applied to any interest outstanding from the date of your last payment, and then will go toward the principal of your loan.

• Increase the size of your monthly payments. The amount you pay over and above your minimum monthly payment is applied directly toward the principal of your loan. Again, this tactic shrinks your total loan amount, which in turn reduces the amount of interest you'd be paying on your loans.