Managing Loans While at School
Enrolment status and contact information
Did you know that when you signed your loan document, you agreed to update your loan providers on your contact information while you're at school, and whether you're still in school?
Repayment starts 6 months after the last end-of-study date that the NSLSC received from you. (Your end-of-study date is indicated on your loan document.) If you return to school, but don't receive additional loans, the NSLSC has no way of knowing that you are back at school unless you tell them.
If you don't provide proof of your ongoing studies, your loan could go into repayment and you could be required to start making monthly payments before you're ready to do so. In extreme cases, your loan could go into default and be sent to a collection agency. This could affect your credit rating.
Fortunately, it’s easy to avoid such a situation.
Update your contact information
If you have received Canada Student Loans or Integrated Student Loans (from Saskatchewan, Ontario, New Brunswick or Newfoundland and Labrador), then keep in touch with the National Student Loans Service Centre (NSLSC).
- Log in to the NSLSC's Web site to check on the status of your loan and update your contact information.
- Or call them at 1-888-815-4514 (outside North America, it's 800-2-225-2501, TTY: 1-888-815-4556).
If you're a full-time student who has received provincial or territorial stand-alone loans, then:
- you may need to touch base with a financial institution or a government office directly
- you may need to keep in touch with the NSLSC if you have a Canada Student Loan
- contact your Provincial or Territorial Student Assistance Office to find out how to keep your enrolment status and contact information current.
Update your end-of-study date
Whether you take out a new student loan for upcoming studies or not, your existing loan holder(s) need to know that you are still in school. If not, you'll lose the interest-free status on your existing loans, and you'll have to start repaying loans earlier than expected.
All your lenders must receive Confirmation of Enrolment information, completed by your post secondary institution. This proves you have registered at school for upcoming studies. If you are taking out a new loan, the Certificate of Eligibility form contains a Confirmation of Enrolment section to be completed. If you're not taking out a new loan, in most provinces, a Confirmation of Enrolment (Schedule 2) form must be filled out.
You must contact your Provincial or Territorial Student Assistance Office to find out what to do to ensure your lenders get your Confirmation of Enrolment information, and get it on time. These rules vary from one jurisdiction to the next across Canada. Even whether you're studying within your province/territory of residence or outside of it affects the procedures you must follow.
Each year, a number of student files are selected for audit. If your application form is chosen, the information supplied will be checked for completeness and truthfulness. Penalties are applied where appropriate. For example, access to further funding may be limited or denied in some cases.
You may be asked to submit any of the following:
- copies of income tax returns
- T4 slips
- bank statements
- rent receipts
- letters from your employers confirming your earnings
- receipts for tuition and books
- child care receipts
- separation/divorce agreement
- any other documentation that would help verify the information in your application.
It's a good idea to keep a file of all of the documents you used in your student loan application, including a working copy of your application.
You may need to refer back to this information during the school year, or you may be required to submit these documents for audit purposes. If you don't do what an auditor asks you to do within the allowed time, your loan could be revoked and you might not be able to get further assistance.
It's an offence to knowingly give false or misleading information on loan application forms or other documents. The consequences? You might have to repay your student loans right away and/or face criminal prosecution.