Repayment
During your studies
While you are pursuing your studies, the government pays the interest on your student loan for full-time or part-time studies.
Temporary interruption of your studies
If you temporarily interrupt your full-time or part-time studies, you may postpone the repayment of your student loan.
Upon completing your studies: the six-month option
At the beginning of the month following the completion of (or withdrawal from) your full-time or part-time studies, the government ceases to pay the interest on your debt, which then becomes your responsibility.
If you have ceased or completed your studies, but you have not concluded a loan repayment agreement with your financial institution, you benefit from the six-month option.
After the six-month option
At the end of the six-month option, you must repay your student debt.
Repaying your student debt |
|
You have a business relationship with your financial institution. It provided the funds for your student loan, thus it is the creditor you must repay. You must therefore enter into a repayment agreement with the person in charge of your file with your financial institution. |
If you are in financial difficulty, who should you notify? |
|
If you cannot begin repaying your student debt or respect your repayment agreement due to your financial situation, you must first contact the person in charge of your file at your financial institution, who can best advise you on your options, taking into account your financial situation. |
To obtain the telephone number of the person in charge of your file at your financial institution, click on the student loan centre related to that institution.
If necessary, you can apply to defer repayment of your student debt under the Deferred Payment Plan.
If you fail to repay your student debt
If you do not make the payments scheduled in your student loan repayment agreement, the Ministère de l’Éducation, du Loisir et du Sport will be required to repay your debt to your financial institution and your file will be transferred to the Service du recouvrement (debt collection service). The consequences will be as follows:
- You will no longer be eligible under the Deferred Payment Plan.
- Your Québec income tax and provincial sales tax refunds will be applied to the repayment of your student debt, in accordance with section 31 of the Act respecting the Ministère du Revenu.
- You will no longer be eligible under the Loans and Bursaries Program if more than 50% of your student debt is not repaid.
- Your financial institution could inform credit-rating agencies.
Are you in financial difficulty?
If you are unable to repay your student debt, contact the person in charge of your file at your financial institution immediately. He or she can best advise you on the courses of action available, taking into account your financial difficulties.
Aide financière aux études also offers various measures for people in precarious financial circumstances that enable them to postpone repayment of their student debt.
You have a student debt and a file with the Service de recouvrement
Don’t forget that you are still responsible for your student debt, even if the Ministère de l'Éducation, du Loisir et du Sport guaranteed the loan. If you fail to repay your financial institution, the Ministère will honour its loan guarantee, but in turn it will become your creditor. You will then owe your debt to the Ministère. You will be required to make a new repayment agreement with the person in charge of your file at the Service du recouvrement (debt collection service) of the Direction de la gestion des prêts, Aide financière aux études.
Tax credit
From the time you begin repaying your student debt until the time it is fully repaid, you receive a tax break. The governments of Québec and Canada grant you a non-refundable tax credit on the interest paid on your student loan. Each year, your financial institution will send you proof of payment of that interest. You must include that document with your income tax return.
Additional information
For additional information regarding the Deferred Payment Plan, you can contact your financial institution or our client services at 418-643-3750 (Québec City), 514-864-3557 (Montréal) or 1-877-643-3750 (toll-free elsewhere in Canada and the United States).
Has your situation changed? Do you plan on moving?
Remember that, until your student debt is fully repaid, you are responsible for informing Aide financière aux études of any change of address. You can do so quickly and easily at On-Line Access to Your File!, under the tab Your information.
