ASSISTANCE FOR REPAYING LOANS

Effective January 1, 2008, an amendment was made to BC student loan agreements. The option to repay BC student loans at a fixed prime interest rate, plus not more than 5 percent per year, was discontinued.

All BC student loans are now consolidated at the floating prime interest rate, plus 2.5 percent per year thus allowing the interest applied to BC student loan(s) to be calculated using today’s lower interest rates. 

For further information on repaying your BC student loan(s), please contact the British Columbia Student Loan Service Bureau at:

Toll-free in Canada/U.S.: 1-877-535-7680
Outside North America: 1-416-503-6681
Email: customerservice@bcslservicebureau.com  

1. Making Loan Payments While Still in School:

You may want to start repaying your student loans while you are still attending school. Any payments you make will be applied directly to the outstanding principal balance of your loan, so starting your repayments early will reduce your debt load after graduation. Contact StudentAid BC for more information.

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2. Payments After Finishing School:

Whether you have finished your program, transferred to part-time studies, are taking time off or have withdrawn from school completely, you must contact the lender(s) who holds your student loans to arrange repayment within six months of leaving your studies. Each student's requirements may vary depending on individual circumstances. Canada student loan payments are made to the National Student Loans Service Centre. British Columbia student loan payments are made to the BC Student Loan Service Bureau.

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3. On-Line Interest Free Student Loans:

If you are still studying full-time, but are no longer receiving funding through StudentAid BC, you need to apply for interest-free status to delay paying back your student loan. This online interest-free application can only be used by students attending BC public post-secondary schools at this time. You can fill in an online form at StudentAid BC. It will be sent electronically to NVIT for confirmation of enrollment and then to your loan providers for assessment.

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4. Grant Overawards:

Grant overawards result if a student drops below the full-time course load requirements and has their grant eligibility withdrawn. Students with grant overawards must fully repay the grants before receiving further loan funding; however, students in full-time studies can receive interest-free status to postpone repayment of current grant overawards (up to a maximum of 340 weeks, only for grant overawards incurred after August 1, 2000). Grant overawards are repaid directly to the Revenue Services of British Columbia.

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5. Repayment Assistance:

If you are having difficulty making monthly payments on your Canada or BC student loans, you may be eligible for debt management programs. The federal and provincial governments offer programs that can help you repay your Canada and BC student loans. Some are debt management programs designed for people having difficulty making their monthly payments. They help you avoid the consequences of defaulting on your student loans. Others are programs designed to encourage people to work in certain areas or professions.

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6. Loan Reduction:

This program is designed to help you reduce your BC student loan debt to a more manageable level after graduation. If you qualify, the provincial government will pay down your outstanding BC student loans according to the loan remission formula. You remain responsible for repaying all other student loan debts; including Canada student loans and any loans you may have received from other provinces. Loan remission encourages personal responsibility and helps students complete their study program in the shortest time possible, thus reducing the amount they need to borrow for their education. Students are encouraged to apply for loan remission after each credential earned.

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7. Defaults:

A loan is considered delinquent when a student is unable or unwilling to make the monthly payment on a student loan. You can apply to be reinstated for StudentAid BC funding. If your student loans are in default, but you want to return to full-time studies using StudentAid BC, apply for interest-free status or debt management programs. Your first step is to apply for reinstatement of your eligibility. Learn more about reinstatement after default.

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8. BC Interest Relief Program:

This BC Interest Relief Program helps people who have difficulty repaying their British Columbia Student Loan because of low income and financial hardship. If you qualify, the BC government will pay the interest on your British Columbia Student Loan for six-month periods up to a maximum of 30 months. During this time, you do not have to make any B.C. loan payments. If you continue to have financial problems, you may also qualify for extended interest relief of up to 54 months during the first five years of student loan repayment. The BC Interest Relief Program becomes available to you once you have consolidated your student loans. You may apply at any time during your repayment period.

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9. Early Childhood Educator Loan Assistance Program:

The Ministry of Children and Family Development (MCFD) recognizes the importance of recruiting and retaining qualified Early Childhood Educators (ECE’s). In response to this, the MCFD in partnership with the Ministry of Advanced Education and Labour Market Development (AVED) has implemented the British Columbia Early Childhood Educator Loan Assistance Program. Under this program, recent ECE graduates may be eligible for a maximum award of $2,500 to assist in the repayment of their British Columbia Student Loans. How does it work? If you are a full-time regular employee at a licensed daycare facility your British Columbia Student Loans debt will be reduced by up to $1,250 for each of the first and second year you are employed as an early childhood educator. If you are a part-time regular employee (working two days or less per week), the amount of your loan assistance award will be pro-rated accordingly. 

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10. B.C. Debt Reduction in Repayment Program:

Th BC Debt Reduction in Repayment Program helps those who have exhausted all their BC interest relief time, have had their repayment period extended to 174 months, and are still unable to repay their debt due to low income and financial hardship. The debt reduction in repayment program takes your total outstanding student loan debt, your family’s gross income and your current combined student loan monthly payments and puts them through a formula. This determines if StudentAid BC will lower your B.C. student loan debt and by how much. Award amounts vary depending on your situation. To qualify for the B.C. debt reduction in repayment program you must meet all the following conditions:
• All the BC interest relief available to you has been used.
• You have a student loan amortization period of at least 174 months.
• At least 60 months must have passed since your most recent study period end date.
• Your BC student loans are in good standing.

Additional notes regarding eligibility criteria:
• If you declared bankruptcy after May 11, 2004, you can still apply for the BC debt reduction in repayment program if you meet all other eligibility criteria.
• If your StudentAid BC file is under audit, your application will not be processed until the completion of the audit.
• If your loan is held at Revenue Services of BC, you are not eligible to apply.

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11. Pacific Leaders Loan Forgiveness:

The automatic registration process for BC government employees with outstanding BC student loans is almost finished. If you’re eligible, your registration letter will arrive at your home by regular mail in the next few days. Included in the letter is a consent section you must fill in and return to StudentAid BC. Please do this as soon as possible, so we know you want to take part and can keep you in the Pacific Leaders Loan Forgiveness Program. If you have questions about your letter or anything else about the program, please call StudentAid BC at 387-6100 in Victoria, 604 660-2610 in Vancouver, and 1-800-561-1818 anywhere else in BC, and ask to speak with a repayment counsellor.

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