Rendimiento del proceso

Section 3 – Repayment of Grant Overawards for Students Continuing Their Studies Section 4 –Repayment Assistance Plans

Section 5 – B.C. Completion Grant (Formerly the B.C. Loan Reduction program) Section 6 – B.C. Completion Grant for Graduates

Section 7– Revision of Terms

Section 8 – BC Loan Remission Program

Section 9 – Pacific Leaders B.C. Loan Forgiveness Program Section 10 – B.C. Loan Forgiveness Program

Section 11 – Canada Student Loan Forgiveness for Family Doctors and Nurses Section 12 – Canada Student Loans Program Severe Permanent Disability Benefit Section 13 – British Columbia Provision for Students with Severe Disabilities Section 14 – Default Canada-B.C. Integrated Loans

Section 15 – Default B.C. Risk-Sharing and Guaranteed Loans Section 16 – Rehabilitation after Default

Section 17 – Death of Student

Chapter 11: Repayment, Default and Rehabilitation 2015-2016

Section 1: Interest-Free Status for Canada-B.C.

Integrated Loans

PURPOSE

To ensure that students who are enrolled in full-time studies at a designated post-secondary institution are not required to pay interest or make principal payments on their outstanding student loans.

POLICY

Students eligible for interest-free status are not required to make interest or principal payments on their outstanding Canada-B.C. integrated loan. In order to be eligible, students must be enrolled full time in a program of study that has been designated by StudentAid BC. Students who are in interest-free status are in a ‘funded term’

whether they have new loans or not; therefore, withdrawals and unsuccessful terms during this time may affect their eligibility for further student financial assistance.

CRITERIA

There are two situations in which outstanding student loans can be placed into interest-free status.

Returning students who receive further student loan funding

If a student qualifies for and receives new student loan funding, their outstanding Canada-B.C. integrated loan will be placed into interest-free status once the confirmation of enrolment for the new student loan funding is

received by the National Student Loans Service Centre as outlined in Chapter 4. These students are not required to provide separate confirmation of enrolment for interest-free status for an outstanding Canada-B.C. integrated loan.

The confirmation of enrolment for the new student loan funding must be received by the National Student Loans Service Centre on or before the date the student returns to studies to ensure that their interest-free status for their outstanding Canada-B.C. integrated loan begins as of the study period start date. If interest is owing on their outstanding Canada-B.C. integrated loan before the study start date, the student will be required to pay the interest before their loan will be put into interest-free status, except as provided in the discussion below.

Returning students who are not receiving further student loan funding

A student must submit a Confirmation of Enrolment to the National Student Loans Service Centre to put their outstanding Canada-B.C. integrated loan in interest-free status. To submit a confirmation of enrolment, a student must apply for interest-free status by submitting:

 the online application available at studentaidbc.ca/maintain/interest-free or

 a paper Schedule 2 application to the National Student Loans Service Centre, or

the National Student Loans Service Centre online portal at https://csnpe-nslsc.cibletudes-canlearn.ca/Eng/Default.aspx

Chapter 11: Repayment, Default and Rehabilitation 2015-2016

StudentAid BC Policy Manual Effective date: August 1, 2015 134

The confirmation of enrolment must be received by the National Student Loans Service Centre on or before the date the student returns to studies to ensure the student’s interest-free status begins as of their study start date.

If interest is owing, the student will be required to pay the interest, or the student may request to have up to three months of interest added to the loan principal before their loan will be put into interest-free status.

The student’s loan will be placed in interest-free status as of the first day of their non-repayment period, up to and including their new study end date if:

 the student returns to full-time studies before their six-month non-repayment period ends and

 the confirmation of enrolment for interest-free status is received by the National Student Loans Service Centre before the non-repayment period ends.

The student will not be placed in interest-free status as of the first day of their non-repayment period if:

 the student returns to full-time studies before the six-month non-repayment period ends and

 the confirmation of enrolment for interest-free status is received by the National Student Loans Service Centre after the non-repayment period ends.

In this case, the interest that accrued during the non-repayment period will be added onto the principal of the loan.

Any interest that has accrued after the non-repayment period up to the date the confirmation of enrolment is received by the National Student Loans Service Centre must be paid. However, the student may, by request, have up to three months of interest added onto the principal of the loan, before the approval of the interest-free status.

A maximum of three months accrued interest can be added onto the principal of a student’s loan once in a lifetime of the student’s loan. Upon approval of a student’s interest-free status, the student will be placed in interest-free status as of the date the confirmation of enrolment is received by the National Student Loans Service Centre, up to and including their new study end date.

Ineligible for interest-free status

A student is not eligible for interest-free status if any of the following circumstances apply:

1. A student cannot use secondary level (high school) courses towards the full-time status requirement.

2. A student is employed full time during the study period and is also enrolled in full-time studies.

3. A student submits notification of interest-free status after the study period end date for which they are applying for interest-free status.

4. A student owes outstanding interest.

5. A student is not eligible for interest-free status on the federal portion of their Canada-B.C. integrated loan.

6. A student does not meet the Canada Student Loans Program and Canada Student Financial Assistance Regulations (SOR/95-329) requirements for interest-free status.

7. A student is restricted by StudentAid BC as a result of an audit.

Chapter 11: Repayment, Default and Rehabilitation 2015-2016

8. A student has reached the lifetime maximum weeks for interest-free status:

 340 weeks for students not in doctoral programs,

 400 weeks for students in doctoral programs or

 520 weeks for students with a permanent disability.

Note: All funded terms are included in the calculation for the lifetime maximum. This includes interest-free periods for which no student loan funding was issued.

Interest-free status on federal part-time time loans

To put part-time Canada student loans in interest-free status, students must submit a paper Schedule 2 (Confirmation of Enrolment) form to the National Student Loans Service Centre or apply online at The National Student Loans Service Centre portal at:

http://www.canlearn.ca/eng/common/documents/forms/repayment_assistance.pdf

Interest-free status: Loans prior to August 1, 2000

Students with loans prior to August 1, 2000 must submit the completed Schedule 2 (Confirmation of Enrolment) form directly to the financial institution holding their loan to obtain interest-free status.