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student loan consolidation loan

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									                    STUDENT FINANCIAL SERVICES



       REPAYING YOUR STUDENT LOAN


                                                 Make note of critical dates:
                                                 As you embark on an exciting new phase in your life, make sure that your
       Don’t let your student loan debt          student loans remain in good standing so they don’t cause unnecessary
                                                 financial difficulties or go into default. Know what the critical dates are!
           weigh you down ……. be
                                                 Key points to help you avoid problems:
     informed and make smart decisions
                                                 • Take your loan seriously - defaults will affect your future credit rating
                                                 • Know important dates such as the consolidation date (see below)
                                                 • Make sure that you get in touch with your lender whenever required
                                                 • If you have negotiated more than one loan, you may be responsible for
                                                   making repayment arrangements with more than one lender (see the
                                                   OSAP web site for details at http://osap.gov.on.ca/)
                                                 • If you move, advise your lender(s) promptly of your new address
                                                 • Always read all correspondence from your lender(s) to ensure that you
                                                   are taking all necessary actions
                                                 • If you’re having problems making your payments, explore available
                                                   options for relief before you start missing your payments (See Loan
                                                   Management on the OSAP web site)

                                                 When do I begin to repay my student loan?
                                                 You are required to begin repaying your Canada and Ontario Student Loans
                                                 six months after you finish your full-time studies. Interest, however, begins to
                                                 accrue from the time you stop being a full-time student.

                                                 Will my lender/service provider contact me when I have to
                                                 begin repayments?
                                                 Your lender may send you a letter. However, whether or not you receive one,
                                                 it is still your responsibility to contact your lender, the National Student Loans
                                                 Service Centre, within the six-month period to complete a consolidation
                                                 agreement. This agreement confirms the outstanding principal of all your
                                                 student loans, the interest rate, and the monthly payment amount.
                                                 If you negotiated loan(s) prior to August 1, 2000, you may also be required to
                                                 sign consolidation agreements with the bank that issued them.


STUDENT FINANCIAL SERVICES
Web: www.yorku.ca/osfs
Phone: 416-872-9675
Am I responsible to repay the full amount of my loans?                           Do I have to continue making repayments if I go back to full-
You may be eligible for loan forgiveness programs that may reduce the total      time studies?
amount of outstanding loans. Visit the OSAP website for more details on the      If you decide to return to full-time studies, you must ensure that your
Loan Forgiveness and the Ontario Student Opportunity Grant.                      outstanding student loans are placed in interest-free status so that you do not
                                                                                 have to repay the loans or interest while in school.
What happens if I don’t finish my degree?                                        Once you begin classes, you need to download the Continuation of Interest
You are responsible to repay your student loans regardless of the reason you     Free Status/Confirmation of Enrolment form that is available on the OSAP
cease to be a full-time student.                                                 web site, complete it and take it to the financial aid office at your school to
                                                                                 confirm your registration status. The updated information will then be sent to
Who do I make my payments to?                                                    your lender.
Student loans received prior to August 1, 2000, must be repaid to the
financial institution (bank) that is holding your student loan account.          What happens if I don’t repay my student loans?
Loans that were received on or after August 1, 2000, are repaid to the
government through the National Student Loans Service Centre.                    If your student loan account goes into arrears because you are not making
                                                                                 repayments and if you have not attempted to communicate with your
How will my monthly repayment amount be determined?                              lender(s), you will be considered in default and can, potentially, face a
Your repayment terms and the interest rate will be determined by the amount      number of serious consequences:
of your principal balance plus any accrued interest. These terms are set at      • Your debt will be turned over to a collection agency
the time of consolidation.                                                       • Your default will be reported to a credit bureau and as a result, your
There are 2 interest options available:                                               ability to obtain credit may be impaired
    1) Fixed rate: the interest rate does not change during the term of your     • If the loan collection is unsuccessful, the government can pursue other
        loan                                                                          available avenues such as garnishee of wages, withholding your income
    2) Floating rate: the interest rate on your loan will change whenever the         tax refund, etc.
        financial institution announces a change in the prime rate. This         • If you decide to return to post-secondary studies and require additional
        could affect the expected time it takes to repay your loan.                   funding, you will be unable to receive further OSAP assistance until the
Discuss these options with your lender when completing the consolidation              default has been cleared
agreement                                                                        • The interest will continue to accrue on the balance of your loan while you
                                                                                      are in default
If I experience difficulties repaying my loans, what can I do?
If you are temporarily unable to repay your loans because of low income,         Make sure that your lender knows how to contact you. Communicate with
illness or other extenuating circumstances, explore the following options with   their customer service personnel before problems arise. They are interested
your lender to avoid going into default status:                                  in helping you meet your financial commitment. Take the opportunity to
• Discuss your financial situation with your lender before serious problems      discuss your circumstances so you can explore every possible avenue.
     are created
• Ask about a revision of your repayment schedule (lower monthly                 If your loan account is with the National Student Loan Service Centre, their
     payments)                                                                   phone number is: 1-888-815-4514
• Ask about Interest Relief Plans (where the government temporarily
     ceases your payment obligations)
• Ask about Loan Forgiveness Program/Ontario Student Opportunity Grant           Out-of-province Students
• Ask about Debt Reduction in Repayment (DDR) programs                           If you are a student with provincial loans from a province other than Ontario,
                                                                                 please contact your provincial authority or visit their web site for complete
                                                                                 information on how to meet your repayment obligations.

								
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