Frequently Asked Questions: Canada – BC integrated student loans

General FAQ’s

1. What does “integration" mean?

• "Integration" refers to the agreement between the Government of Canada and the Government of British Columbia to combine their respective student financial assistance programs. This integration includes activities related to the disbursement and repayment of both federal and provincial student financial assistance.

2. What is an integrated student loan?

• An integrated student loan has two lenders, the governments of Canada and British Columbia, however, in many ways it is administered as a single loan. An integrated loan has one administrator, the National Student Loans Service Center (NSLSC). The NSLSC disburses funds, provides loan balance information, accepts payments, and adjudicates applications for the Repayment Assistance Plan. The contact phone number for the NSLSC is 1-888-815-4514.

3. When does integration come into effect?

• There are two phases to integration. Phase one is the integration of the disbursement phase which came into effect August 1, 2011, and benefit students receiving loans or grants. Phase two is the integration of the repayment process which comes into effect July 2012 and will benefit students in the process of repaying their loans.

4. Why is StudentAid BC integrating with the Canada Student Loans Program?

• The main objective of integrating the two student financial assistance programs is to simplify the student experience by improving service and facilitating streamlined processes. Through integration, students have a single point of contact for managing their federal and provincial loans. The integration also enables both governments to be more efficient in the delivery of their respective student financial assistance programs.

5. How many other provinces have entered into similar agreements with the Government of Canada?

• Four: Ontario, Saskatchewan, New Brunswick, and Newfoundland and Labrador.

6. How will integration benefit B.C. students?

• Integrated student loans are easier for students to manage because there is one point of contact for disbursement, repayment and assistance. Students will be required to complete less documentation and contact fewer people to manage their loans. Integration of the disbursement process (which happened August 1, 2011), will allow students receiving loans and/or grants to manage them through one point of contact, the NSLSC. Integration of the repayment process (happening in July 2012), will allow students repaying their loans to make a single loan payment which will be automatically applied to both their federal and provincial loans.

7. Does integration change my eligibility for federal and provincial student financial assistance?

• No. Integration of student loans only impacts the way your loans are administered and managed.

8. Now that B.C. is integrated, how do I apply for student financial assistance?

• There is no change to the process of applying for student financial assistance. A single application to StudentAid BC will provide access to provincial and federal student financial assistance for full-time students.

9. Will I receive more money as a result of integration?

• No. Eligibility and the criteria for determining how much federal and provincial student financial assistance you may receive will not change as a result of integration.

10. I am a part-time student, are there any changes that affect me?

• No. The integration of the Canada and B.C. student financial assistance programs only impacts full-time loans. Only the federal government provides loans to students who study part-time. However, B.C. students who wish to study part-time in BC must still apply for a part-time student loan through StudentAid BC.

11. I am a returning student for the 2011-2012 school year. Is there anything I need to do to keep receiving financial assistance?

• Yes. You must continue to apply through StudentAid BC to receive funding (loans and grants) for the 2011-12 school year. If you are returning to post-secondary studies but not receiving any student loans or grants, you will still need to notify your lenders that you are returning to school by submitting an application to ensure your loans keep their interest-free status. You can apply online at www.StudentAidBC.ca (if you are attending a public B.C. post-secondary school), or you can obtain a paper copy of the federal Confirmation of Enrolment form (Schedule 2) at www.StudentAidBC.ca or CanLearn.ca and submit it to the NSLSC.

12. I'm studying in B.C., but B.C. is not my home province, will integration affect me?

• No. Only students who are residents of B.C. will be impacted.

13. Who can I contact if I have more questions about integrated student financial assistance?

• Visit StudentAidBC.ca, CanLearn.ca or call the NSLSC at 1-888-815-4514 and have your social insurance number (SIN) ready.

Repayment

1. I will be graduating/leaving school in spring 2011. Will integration change the way I repay my federal and provincial student loans?

• Yes. Any federal and provincial loans you received between August 1, 2000 and August 1, 2011, will remain two separate loan payments until July 2012. As of July 2012 integration will affect the way you repay your student loan. Your payment amounts will not change but you may be asked to repay your student loan over a longer period of time to ensure there is no increase to the amount of your monthly payment. You will also be making a single loan payment to one service provider, the NSLSC, where your loan payment will automatically be applied proportionally to both your federal and provincial loans. Call the NSLSC at 1-888-815-4514 for more information.

2. I will be graduating/leaving school at the end of the 2011-12 school year (for example April 2012). Will integration change the way I repay my federal and provincial student loans?

• Yes. If you go into repayment after July 2012 (when the integration of the repayment process is complete) you will see the benefits. Improvements will include one consolidation agreement, one place to seek assistance, and one place to make payments, the NSLSC.

3. Are the current debt management programs offered in B.C. impacted by this change?

• Yes. There will be some changes to current debt management programs offered in B.C. In July, 2012, the Interest Relief Program will be replaced by the Repayment Assistance Program. In addition, B.C. is aligning to a number of the Canada Student Loans Program (CSLP) debt management initiatives, including Revision of Terms. However, B.C. will continue to adjudicate and administer their provincial repayment programs, including the B.C. Loan Reduction Program, Loan Remission, Loan Forgiveness, and the Pacific Leaders Programs.

4. Will integration impact the rate of interest charged to students in repayment?

• No. Interest rates charged to students will not be impacted by integration. Students in repayment will continue to pay a floating rate of interest equal to the Prime Rate plus 2.5% per annum or a fixed rate of interest equal to the Prime Rate plus 5% per annum. Contact the NSLSC at 1-888-815-4514 for more details.

5. Who can I contact for more information about federal and/or provincial repayment assistance?

• Contact the NSLSC at 1-888-815-4514.

Students Currently in Repayment

1. I am currently repaying my B.C. Student Loan and/or Canada Student Loan. Are there any changes that affect me?

• Between now and July 2012, your repayment arrangements will not change. However, in July, 2012 your two loans will be integrated into one. Your single monthly payment towards your new integrated loan will be the same as your two current payments combined.

2. I’m currently on the Repayment Assistance Plan (and/or Interest Relief Program). Will I still be eligible now that my federal and provincial loans are integrated?

• Yes. Your eligibility for debt management programs like Repayment Assistance Plan and Interest Relief will not be affected because of integration. Repayment Assistance Plan will be available for eligible Canada Student Loans borrowers and Interest Relief will be available for all eligible B.C. student loans until July 2012. At which time B.C. is launching the Repayment Assistance Plan (replacing the current Interest Relief Program).

3. I am currently on Pacific Leaders (or B.C. Loan Forgiveness), what will happen once integration comes into effect?

• B.C. will continue to offer many of the loan forgiveness programs currently available. If you are receiving these benefits you will be notified of any changes.

4. Who can I contact for more information about repaying my federal and/or provincial loan?

• Contact the NSLSC at 1-888-815-4514.