How do I maintain interest-free status on the federal portion of my Canada-B.C. integrated student loan and when am I required to start making payments?
If you are enrolled in full-time studies at a designated institution, you are not required to make payments, nor is interest accrued, on the federal portion of your Canada-B.C. Integrated student loan.
When you are in-study or in the non-repayment period, you are in a 'funded term' whether you have new student loans or not, so if you withdraw or have an unsuccessful term, it may affect your eligibility for further assistance.
There are two situations where the outstanding federal portion of your Canada-B.C. integrated student loan can be placed into interest-free status which then means you are not required to begin repayment:
- 1 Returning students who receive further student loan funding
If you receive new student loan funding, you will not have to begin repayment and the federal portion of your Canada-B.C. integrated student loan will be placed into interest-free status if the Schedule 2 Confirmation of Enrolment has been received and approved by the National Student Loans Service Centre (NSLSC).NOTE: The confirmation of enrolment for the new student loan funding must be received by the NSLSC on or before the date you return to studies to ensure that your interest-free status for the federal portion of your Canada-B.C. integrated student loan begins as of the study period start date. If interest is owing on your student loan before the study start date, you will be required to pay the interest before your loan will be put into interest-free status.
- 2 Returning students who are not receiving further student loan funding
If you are a returning student and are not receiving further student loan funding, you must apply using the Schedule 2 Confirmation of Enrolment to ensure that you do not enter into repayment on your Canada-B.C. integrated student loan while you are in study.
For Confirmation of Enrolment, you must submit a Schedule 2 form:
- The online application is available on the StudentAid BC website; or
- Via the NSLSC online portal or a paper Schedule 2 application to the NSLSC.
The confirmation of enrolment must be received by the NSLSC on or before the date you return to studies to ensure your interest-free status begins on your study start date.
Note: If you return to full-time studies before your six-month non-repayment period ends but the Schedule 2 Confirmation of Enrolment form is received and approved after your full-time studies have commenced, any interest that has accrued after your six-month non-repayment period up to the date the complete and accurate Schedule 2 Confirmation of Enrolment is received at NSLSC must be paid, or you may, by request, have up to 3 months of interest added onto the principal of your loan.
As of November 1, 2019, interest that was previously charged during the six-month non-repayment period has been eliminated. Please note that the elimination of the interest during the six-month non-repayment period is not retroactive. If your six-month non-repayment period ended before November 1, 2019, this change will not apply to you.
Interest-free status for part-time time loans
To put part-time Canada student loans in interest-free status, complete a Schedule 2 Confirmation of Enrolment form and submit it directly to the NSLSC.