What is loan consolidation?


Consolidation means your lender has given you a "repayment date." It starts on the first day of the seventh month after you stopped attending full-time studies or withdrew from classes.

The National Student Loans Service Centre (NSLSC) will automatically send you a consolidation agreement, approximately 45 days before you enter repayment.

Your consolidation agreement shows:

  • The details of your current outstanding Canada-B.C. integrated student loans balance.
  • Your monthly payment and when it is due. Please note that your payments will be prorated to your Canada and BC student loan debt, based on each loan’s portfolio outstanding balance.
  • How long you have to repay.
  • The interest rate charged on your loan.
  • The bank account from which payments will be withdrawn.

Your credit rating stays in good standing (not restricted, not in default/delinquent/bankruptcy, no provincial or federal overaward restrictions) with Canada-British Columbia integrated student loans and/or other BC and Canada student loans (risk-sharing or guaranteed) when you meet the terms of the consolidation agreement and repayment schedule by making your monthly payments on time.

The consolidation agreement lets you:

  • Review your loan information.
  • Change the bank account that payments are withdrawn from.
  • Increase the amount of your monthly payment.
  • Change the interest rate.
  • Pay your non-repayment period interest.
  • Change the day your monthly payment comes out of your account. If you do not arrange a different schedule, your payment will automatically come out on the last day of the month.
Please sign and return the consolidation agreement to the NSLSC . If you do not, payments will automatically be withdrawn directly from the bank account that you provided when you negotiated your master student financial assistance agreement.
Important: If you plan on applying for loan forgiveness any payments you make prior to your approval for loan forgiveness will not be used in the calculation for eligibility; therefore, you will not be eligible for loan forgiveness on payments made prior to your loan forgiveness application being reviewed and approved.
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