Interest begins to accrue as of the period of study end date as shown on the last loan certificate or Confirmation or Enrolment Form. However, effective August 1, 2009, no new interest will accumulate on the Newfoundland and Labrador portion of your student loan. This change is automatic – no application is required and this applies to all outstanding provincial student loans with the exception of loans with a judgment awarded. Salary or any other source of income has no implication on the elimination of interest. Interest owing up to and including July 31, 2009 is still required to be paid.
Six months after you have completed your studies, whether you have graduated, withdrawn, or are taking time off, you will need to begin repaying your student loan. This is called student loan consolidation, which means that your student loans enter the repayment phase. For example, if you finish school on April 16th, your student loans will consolidate on November 1st, and your first loan payment will be due at the end of that month, on November 30th.
For the first six months after your post-secondary studies, you do not have to start repaying your loans, although interest does accumulate on your student loan during this period. However, effective August 1, 2009, no new interest will accumulate on the provincial portion of your student loan. This six-month grace period is meant to give you enough time to find a job and start to make money before beginning the repayment of your student loans.
The interest rate on Canada Student Loan payments is prime plus 2.5% and you have the option of a one time lock in at prime plus 5%.
Effective August 1, 2009, no new interest will accumulate on the Newfoundland and Labrador portion of your student loan. This change is automatic – no application is required and this applies to all outstanding provincial student loans with the exception of loans with a judgment awarded. Salary or any other source of income has no implication on the elimination of interest. Interest owing up to and including July 31, 2009 is still required to be paid.