Deferred Payment Plan
If you qualify for the Deferred Payment Plan, the government will exempt you from repaying your student loans to your financial institution for a renewable 6-month period and will continue to pay the interest on your loan during that period. You will not have to repay the government for the interest it paid on your behalf.
Do you have loan disability insurance with your financial institution
If you become disabled and are covered under a loan disability insurance policy, you must also file a claim with your insurer. If your claim is approved, you must inform us immediately to avoid needlessly depleting your months of eligibility under the Deferred Payment Plan.
Eligibility requirements
To be eligible under the Plan,* you must prove that for a period of four consecutive months your gross monthly income was below the eligibility threshold determined for your family situation. The months in question will be determined according to the period concerned by your application.
You can consult the table relating to the maximum monthly income according to family situation.
* Your debt may be contracted under the Loans and Bursaries Program or the Loans Program for Part-Time Studies.
Plan limits
If you qualify for the Deferred Payment Plan, your application will cover a period of six months. You can renew your participation under the Plan, however, you must file a new application for each new six-month period to re-establish your eligibility.
You can file an application under this Plan during the five years that follow your six-month option . Your application can be retroactive to a maximum of three years.
Note that your application can cover a period of less than six months if, during the deferred payment period, you resume your studies or attain the 24-month cumulative maximum allowed in a student’s lifetime.
What happens afterward?
As soon as you are no longer eligible under the Plan, you must contact the person in charge of your file at your financial institution and begin making the monthly payments scheduled under your loan repayment agreement.
How to file an application
To benefit under the Deferred Payment Plan, you must:
- Fill out and send the on-line form Application for the Deferred Payment Plan.
- Check the Required documents section to find out which documents you must send us to ensure that your application is processed. That section continues to be available at all times.
- Print the transmittal slip, which is also available in the Required documents section of the form.
- Send us the required documents, in particular, proof of your gross monthly income for the period that is specified in your form. Remember to include the transmittal slip.
Important! You must file a new application for each new six-month period of participation under the Plan to re-establish your eligibility.
Useful terms
Employment-assistance allowance: Financial assistance paid by Emploi-Québec to a person who is participating in a manpower training measure
Employment assistance: Last resort financial assistance (social assistance) provided by the Ministère de l'Emploi et de la Solidarité sociale
Employment insurance (EI): Income replacement benefit (unemployment insurance) paid by Human Resources and Skills Development Canada
Parental insurance: Income replacement benefit paid by the Ministère de l’Emploi et de la Solidarité sociale to an eligible person who takes a maternity leave, a paternity leave, a parental leave or an adoption leave.
Effective date of eligibility under the Plan: Around six months after the termination of your studies
Dependent child:
A dependent child is single, does not have any children of his or her own and is:
- under 18 years of age
- 18 years of age or over, studying full-time and deemed to be living with his or her parents
- 18 years of age or over, studying full-time and not living with his or her parents if they are expected to contribute toward the cost of his or her education
Single parent: A borrower who is single, widowed, divorced, separated (legally or de facto) or whose spouse cannot be located, and who has custody of a child at least 25 percent of the time.
Period concerned: The period during which you wish to be exempt from repaying your student debt and for which you must prove that your income does not exceed the eligibility threshold established for your family situation. The period concerned can cover a period in the past or the future, but the start date cannot be more than two months from the application filing date.
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.
