Government Student Loans

Many students fully or partially pay for their university 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.

• The student loan program is a needs-based program. That means the students and their families can’t afford the total cost of post-secondary education on their own (PSE).
• The basic philosophy behind the student loan program is that the responsibility for PSE lies with the students and their families, not the taxpayer. What the students and their families can’t afford together will be subsidized through student loans by the government.
• This is a loan (not free money) and it must be repaid after the students graduate.
• Loans are interest-free to students while they’re studying full-time. For example, if a student borrow $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 full-time students, 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’s a minimum of three half units of credit per term: three in the fall and three in the winter. (There is no averaging, which means you can’t take four courses in one term and two in the other and consider them 60%; it must be three per term.) It’s the students’ 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 has been received. Nova Scotia 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.

TIP: To get an idea of how much you may be eligible to receive in Canada Student Loan funds, try the Student Financial Assistance Estimator interactive tool at c http://tools.canlearn.ca/cslgs-scpse/cln-cln/40/sfae-eafe/sfae-eafe-0-eng.do.

This is a student who is 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 or guardian actually contributes. You are a single dependent student unless you fit into one of the other three categories.

Single Independent StudentYou 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 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 StudentsFor Nova Scotia 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 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.

TIP: You can only receive student loan funding for your program length plus one year; for example, with a four-year degree you can only receive funding for five years.

Single-parent StudentThis 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.

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 before the start of PSE. Check your provincial student loan department for clarification (see contact information below).

NOTE: Any full-time students who, after applying for and/or processing a student loan, are thinking about changing their course load and subsequently dropping to part-time status should contact the Financial Aid Office before withdrawing from their courses. It’s important that students understand the financial impact of their decision before they take action.

Part-time students who need financial help 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.

Contact Provincial Student Loan Offices

TIP: Keep a complete file of all transactions regarding your student loan. Never send anything for which you do not keep a copy in your file.

• Access the National Student Loan Service Centre
• Processing a Government Student Loan
• Other Forms of Student Aid