Government Student Loans

Government Student Loans

Many students fully or partially finance their education through the Canada Student Loan Program which is administered by their home province.  One application to your province of residence (where you have lived for 12 consecutive months without being a full-time student) will take care of both your Canada Student Loan money and your Provincial Loan money.  

There are a number of things you need to understand about the government student loan programs before proceeding:

• The student loan program is a needs-based program; that is, the student and their family cannot afford the total cost of post-secondary education (PSE)
   
• The basic philosophy behind the student loan program is that the responsibility for PSE lies with the student and their family; not the taxpayer.  What the student and their family cannot afford together will be subsidized (through student loans) by the government
   
• This is a LOAN and must be repaid upon graduation
   
• Loans are interest-free to students while in full-time studies.  For example, if a student borrows $5,000 a year for a four-year degree, that student will graduate with a $20,000 debt; not $20,000 plus four years of accumulated interest
   
• While this loan is interest free to the student while in full-time studies, the government is paying millions of dollars annually on in-course interest
   
• FULL-TIME STATUS for student loan purposes is defined as a minimum of 60% of a full course load.  That is a minimum of three half units of credit PER TERM.  Three in the Fall and three in the Winter.  No averaging.  You cannot take four courses in one term and two in the other and consider them 60%.  It must be THREE PER TERM.  It is the student's responsibility to inform their provincial student assistance department if they drop below full-time status.  In Newfoundland, full-time status is 80% (or four courses per term).
   
• Click here to find out what happens if you withdraw from university or drop below full-time status after you have processed a government loan
   
• Students are expected to successfully complete academic programs for which aid is received.  NS students must successfully complete at least 60% (three units) of a full course load each year.  Check other provincial websites to determine their definition of successful academic progress.

STUDENT STATUS:

Single Dependent Student

A dependent student considered to be financially dependent on a parent, step-parent, guardian, sponsor or other supporting relative.  The amount of your loan will reflect this contribution, whether or not your parent actually contributes.  You are a single Dependent student UNLESS you fit into one of the other three categories.

Single Independent Student

You are considered independent if you meet ONE of the following conditions:

• You have no parent, guardian, sponsor or other supporting relative OR
• You have been out of high school for four (4) years OR
• You have two periods of 12 consecutive months each when you were not a full-time student OR
• You are widowed, separated or divorced and are not the custodial parent of any children OR
• You are a ward of a government agency.

Same-sex relationship, Common-Law and Married Students

For NS Student Loan purposes, you are living in a common-law or same-sex relationship if:

• you filed your most recent Income Tax Returns as a common-law couple OR
• You and your partner have been living in a conjugal relationship and are raising any children of whom you both are the natural or adoptive parents.  Your spouse is expected to contribute financially.  The amount of your loan will reflect this contribution, whether or not your spouse actually contributes.

Single Parent Student

This category is only for single students who are custodial parents.  This includes parents who have:

• legal custody and full responsibility for support
• shared custody and shared financial support.  Your loan entitlement reflects how much time your children actually live with you.

Even though you may financially support your child, and your child visits you, you do NOT fit into this category UNLESS you are the custodial parent.

STUDENT RESIDENCY: In its simplistic format, you are considered to be a resident of the province where you last lived for 12 consecutive months without being a full-time student.  As a graduating high school student, that would be where your parents lived for 12 consecutive months prior to the start of PSE.  Check your provincial student loan department for further clarification (see contact information below).

NOTE:  Any full-time student who, after applying for and or processing a student loan, is thinking about changing their course load and subsequently drop to part-time status should contact the Financial Aid Office prior to withdrawing from their courses.  It is important you understand the financial impact of your decision before you act.

PART-TIME STUDENT LOANS:  Part-time students requiring financial assistance may apply for a Part-Time Canada Student Loan.  These interest-bearing loans are calculated on the basis of a student’s financial situation and cover basic university expenses such as tuition, books and some transportation. 

Repayment of these loans begins 30 days after the loan is negotiated.  Applications can be downloaded from your provincial student assistance office.  Section F of the application must be completed by the Financial Aid Manager at your institution.  You must be registered in your courses before your Financial Aid Office can complete this section. 

NATIONAL STUDENT LOAN SERVICE CENTRE

PROCESSING A GOVERNMENT STUDENT LOAN

OTHER FORMS OF STUDENT AID