Stages of a Student Loan

Your student loan goes through three different stages. It starts when you begin school and receive your funding. We will be here every step of the way to offer support.

Learn more about the different stages of a student loan.

In Study

While you are in school, you are not required to make any payments and your loan is interest-free during this time. It is important to confirm your enrolment every semester or year that you are in study to maintain your interest-free status.

Non-Repayment Period

After your Period of Study End Date Period of Study End Date tooltip , your loan status is in a non-repayment (grace) period for six months.

You do not have to make payments while your loan is in the six-month non-repayment period. However, depending on your loan type, interest may begin to accrue. See the table below to understand how this applies to your loan type.

Loan Type Canada Portion Provincial Portion
Canada Student Loan No Interest Refer to your province or territory for information
Canada –Ontario Integrated Student Loan No Interest Interest Accrues
Canada – British Columbia Integrated Student Loan No Interest No Interest
Canada – New Brunswick Integrated Student Loan No Interest Interest Accrues
Canada – Saskatchewan Integrated Student Loan No Interest Interest Accrues
Canada – Newfoundland and Labrador Integrated Student Loan No Interest No Interest
Part Time Canada Student Loan No Interest Not Applicable

During the six-month non-repayment period, you can:

  • start making payments right away to pay your loan off faster;
  • pay any accumulated interest as a lump sum prior to making your regular payments; or
  • add the interest amount to your outstanding loan balance. Note: This will increase the amount of interest you will pay over the course of your loan repayment period.

Before you enter repayment, you will receive a repayment notification in your NSLSC account inbox. It's important to take the time to understand your loan details, such as:

  • Amount owing
  • Repayment start date
  • Payment amount
  • Payment method
  • Interest rate, and
  • How long it will take to pay back your loan

You can also use the Loan Repayment Estimator to estimate your monthly payments.

Your loan payments will start to be automatically withdrawn after the six-month non-repayment period from the same financial institution account where your loan(s) were deposited (if you had arranged for direct deposit).

In Repayment

Repayment begins at the end of the six-month non-repayment period. This is when you start making regular loan payments. Log in to your secure NSLSC account to view your loan details, such as:

  • Amount owing
  • Repayment start date
  • Payment amount
  • Payment method
  • Interest rate, and
  • How long it will take to pay back your loan

Never miss a loan payment by signing up for Pre-Authorized Debit. It is the easiest way of ensuring your payments are made on time.

Learn more about Payment Options

During repayment, you can customize your payment terms and make repaying your loan work with your current financial situation. Learn more about the different repayment options available by visiting the Repaying Your Loan page.

Missing payments on your student loan(s) can negatively affect your credit rating and make it hard to catch up on payments. If you default on your student loan, you could miss out on your income tax refunds and be unable to obtain further grants or loans. In addition, you may have to deal with a collection agency or face legal action.

To avoid these situations, it is important to become familiar with all your repayment options. You should take the time to set up a payment schedule that works for your current financial situation.

Government of Canada Tax Credits for Student Loans

A student loan tax credit allows you to deduct some of the interest that you pay on your student loan each year, including payments made during the non-repayment period. You will receive your Interest Paid statement in your secure inbox at the beginning of each calendar year.

For more information, visit how to claim the interest paid on your tax return.

In Collections

If you default on your student loan by missing payments for 270 days or more (nine months), your loan will be sent to the Canada Revenue Agency (CRA) or your Province and/or Territory for collection.

You can bring your loan back into good standing by applying for Loan Rehabilitation.

Learn more about collection and applying for Loan Rehabilitation.

Who to Contact
Government Phone number
Federal and/or Saskatchewan Loans (Canada Revenue Agency) 1-866-864-5823 (Within Canada)

1-613-248-4463 (Out of country callers)

1-866-602-9454 (For Income Tax Receipt inquiries on interest paid on loans sent to collections.)
Ontario (Collection Management Unit) 1-800-387-5604 - Toll-free in Ontario

416-326-0500 - Local
British Columbia 1-866-345-3930 (Within Canada)

1-250-405-4968 (Out of country callers)

1-250-405-4412 or 1-250-405-4410 (Fax)
New Brunswick 1-855-806-2472 – Toll-free
1-506-444-2054 – Fax
Nbstudentloan@gnb.ca - e-mail
Newfoundland and Labrador 1-877-520-8800
1-709-729-6465