The Canada Student Financial Assistance Program
The Canada Student Financial Assistance Program offers grants and loans to full-time and part-time students to help pay for their post-secondary education.
Key Details About the Program
How the Funding Works
The Government of Canada partners with most provincial and territorial governments to provide student grants and loans. Students apply based on their province or territory of residence, and the funding amount is calculated during the application process.
How Much Can Students Get?
The amount students can receive depends on several factors, including:
List of Federal Student Grants
Students' eligibility for Canada Student Grants is calculated based on their province or territory. These grants include:
Maximum Lifetime Limit for Student Aid
Full-time students can receive student aid for a maximum of 340 weeks. Students enrolled in doctoral studies can receive aid for up to 400 weeks. Students with a disability may be eligible for up to 520 weeks of educational assistance.
In addition to grants and loans, students can use their Registered Education Savings Plan (RESP) funds to help pay for their studies.
Stages of a Student Loan
1. In Study
While in school, students do not need to make any payments, and the loan is interest-free. It's important to confirm enrollment every semester to maintain interest-free status.
2. Non-Repayment Period
After the study period ends, students enter a non-repayment period for six months. During this time, no payments are required, but interest may accrue on the provincial portion of the loan. The table below explains how this applies to different loan types:
| Loan Type | Canada Portion | Provincial Portion |
|---|---|---|
| Canada Student Loan | No Interest | Not Applicable |
| 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 | No Interest |
| Canada – Saskatchewan Integrated Student Loan | No Interest | Interest Accrues |
| Canada – Newfoundland and Labrador Integrated Student Loan | No Interest | No Interest |
| Canada – Manitoba Integrated Student Loan | No Interest | No Interest |
| Part-Time Canada Student Loan | No Interest | Not Applicable |
3. Elimination of Canada Student Loan Interest
As of April 1, 2023, the Government of Canada permanently eliminated the accumulation of interest on all Canada Student Loans, including loans currently being repaid. However, students are still responsible for paying interest that may have accrued on their loans before this date.
4. Repayment Period
Repayment begins at the end of the six-month non-repayment period. During repayment, students will be required to make regular loan payments. Students can view loan details, including the amount owing, repayment start date, payment amount, and method by logging into their National Student Loans Service Centre (NSLSC) account.
Can Students Pause Loan Payments?
Students may be able to delay repayments under specific circumstances, such as if they are full-time students, a reservist, or need leave for medical or parental reasons. If students are experiencing financial difficulty, they can apply for the Repayment Assistance Plan (RAP) or RAP for Borrowers with Disabilities (RAP-D).
Defaulting on a Student Loan
If students miss payments for 270 days or more, their loan will be sent to the Canada Revenue Agency (CRA) or relevant provincial or territorial authorities for collection. This can affect tax refunds and future loan eligibility. Students can rehabilitate their loan to bring it back into good standing.
Loan Agreement
The Master Student Financial Assistance Agreement (MSFAA) outlines the terms of accepting and repaying student loans. Students only need to sign this agreement once, unless they take a two-year break from school or move to a different province/territory.
For more information on the Canada Student Financial Assistance Program, visit the official page: Canada Student Loans
Posted on 15 November 2024