When payments are not required


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. 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. 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 the repayment period and to ensure interest doesn’t accrue on the federal portion of 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.
    One application will place the outstanding Canada Student loan into interest-free status and defer entry into the repayment phase for the B.C. portion of the student loan.

The confirmation of enrolment must be received by the NSLSC 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.

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, the interest that accrued on the federal portion of your Canada-B.C. integrated student loan during your non-repayment period will be added onto to the principal of the loan. 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.

If you return to full-time studies after your six-month non-repayment period ends, any interest that has accrued must be paid, or you may, by request, have up to 3 months of interest added onto the principal of your loan.

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.

When am I not eligible for non-repayment or interest-free status?

You are not eligible to be in non-repayment or interest-free status on your Canada-B.C. integrated student loan if:

  1. 1 You are enrolled in full-time studies but also have full-time employment during your study period
  2. 2 You submit the Schedule 2 Confirmation of Enrolment after your study period end date and you have outstanding interest
  3. 3 You do not meet the Canada Student Loan Program and Canada Student Financial Assistance Regulations (SOR/95-329) requirements
  4. 4 You are restricted due to a review of the information you provided
  5. 5 You have reached the lifetime maximum weeks for interest-free status

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

What is the maximum number of weeks I can receive student loan funding, and interest does not accumulate on the federal portion of the Canada-B.C. integrated student loan?

All Canada-B.C. integrated loans, Canada Student Loans and B.C. Risk-Sharing and Guaranteed Loans are subject to a maximum number of weeks.

The lifetime maximum weeks for student loan funding are:

  • 340 weeks for non-doctoral programs
  • 400 weeks for doctoral (including all weeks accumulated during bachelor and master’s studies) for students in doctoral (PhD-level) studies
  • 520 weeks for persons with permanent disability

If you have reached the lifetime maximum weeks, you are not entitled to receive further student financial assistance (loans, grants or federal interest-free status) and interest will begin to accumulate on the federal portion of your student loan to the end of your study period. This includes all weeks of study for which your loan, grant or interest-free status was granted. If you reach the maximum number of weeks where payment is not required, student financial assistance will be continued to the end of the study period in which you are currently enrolled.

However, if you remain in continuous full-time studies, you can apply for payment deferral by submitting the Schedule 2 Confirmation of Enrolment form. This will also put you in interest-free status. All interest that has accumulated on the federal portion of your Canada-B.C. integrated student loan, unless paid, will be added to the principal amount of your outstanding loan balance. You will be required to start making payments six months after the completion of your full-time studies.