Frequently Asked Questions
- What Relief Is Available If My Student Loan Is Not Yet 5 Years Old?
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<p>Interest Relief and Debt Reduction in Repayment are debt management measures for borrowers who are in repayment and experiencing financial hardship.</p>
<h3>Interest Relief (IR)</h3> <p>IR provides relief to borrowers who are experiencing temporary financial hardship. While borrowers are receiving IR, they are not required to make any payments on their student loan (interest OR principal) and the Government of Canada pays the monthly loan interest.</p>
<p>Borrowers may receive up to 54 months of IR. Up to 30 months of IR is available at any point in repayment. Borrowers who use up their 30 months and have not been out of school for 5 years (as indicated by the post-secondary end date specified on the initial application for IR), may receive up to an additional 24 months of extended IR.</p>
<h3>Debt Reduction in Repayment (DRR)</h3> <p>DRR is a targeted debt management measure available to assist borrowers who have exhausted IR and who continue to experience exceptional long-term financial difficulty. The measure provides a reduction in the borrower’s loan relative to the borrower’s income.</p>
<p>Borrowers in financial difficulty may be eligible for an initial reduction of their loan principal of up to $10,000. Borrowers who continue to experience difficulty in repaying their student loans may be eligible for two additional reductions of up to $5,000 each. In order to be eligible, twelve months must elapse between each reduction. Borrowers will be required to make a minimum monthly loan payment of $25 in order to qualify for the second or third reduction.</p>
<p>As these provisions could change at any time we recommend that you contact the student loan authorities directly for up to date details of their present policies.</p>
<p><strong>Whom to Contact For Clarification:</strong></p>
<p><strong>National Student Loans Service Centre</strong></p>
<p><strong>Public Institutions Division: 1-888-815-4514<br /> Private Institutions Division: 1-866-587-7452</strong></p>
<p>E. & O. E.</p>
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.