Maintaining and Repaying Your Loan
I'M HAVING TROUBLE REPAYING MY NOVA SCOTIA STUDENT LOAN. WHAT ARE MY OPTIONS?
Enhanced Repayment Assistance Program - Nova Scotia Student Loans
Purpose
The Enhanced Repayment Assistance Program is a debt management tool designed to help borrowers manage repayment of their Nova Scotia Student Loans.
The program is rooted in a single guiding principle: no borrower should be asked to make monthly payments that he or she cannot afford.
How it works
Under the Enhanced Repayment Assistance Program, borrowers’ monthly affordable payments are based on their gross household income. The Enhanced Repayment Assistance Program allows borrowers to better manage their debt without compromising their ability to afford a reasonable standard of living.
Eligible borrowers can access the Enhanced Repayment Assistance Program for a maximum of 54 months, renewable every six months through re-application. The Enhanced Repayment Assistance Program replaces the Interest Relief Program, which allowed borrowers a maximum of 30 months of repayment assistance.
The Enhanced Repayment Assistance Program applies only to Nova Scotia Student Loans and not to Canada Student Loans.
Under the Enhanced Repayment Assistance Program, a borrower’s monthly Nova Scotia Student Loan payments will not exceed 7% of his or her monthly gross family income.
Sample Monthly Nova Scotia Student Loan Payments Under the Enhanced Repayment Assistance Program (based on an outstanding balance of $12,000)
Family Size of One (not married, does not have a common-law partner, does not have dependents)
Family Size of Two (married, has a common-law partner, or has one dependent)
Family Size of Three
Family Size of Four
How to apply
- Borrowers who are applying for debt management
assistance for the first time and went into repayment prior to November
1, 2007 should contact the Royal Bank Atlantic
Student Loan Centre at 1-800-565-1446. No formal
application is required and borrowers will not
be asked to submit documents confirming their
income.
- Borrowers who are applying for debt management
assistance for the first time and went into repayment on or after
November 1, 2007 should contact Resolve Corporation at 1- 877-283-1687
(within North America) or 905-306-2460 (outside North America, call
collect). No formal application is required and borrowers will not
be asked to submit documents confirming their income.
- Borrowers who are currently using the Interest
Relief Program and went into repayment prior to November 1, 2007 should contact the Royal Bank Atlantic Student Loan Centre at 1-800-565-1446.
- Borrowers who are applying for the Interest
Relief Program and went into repayment on or after November 1, 2007 should
contact Resolve Corporation at 1- 877-283-1687
(within North America) or 905-306-2460 (outside North America, call
collect).
- Borrowers who have already used up to 30 months
of Interest Relief are eligible to apply for up to 24 months of
debt management assistance under the Enhanced Repayment Assistance
Program.
If you went into repayment prior to November 1, 2007, contact
the Royal Bank Atlantic Student Loan Centre at 1-800-565-1446.
Borrowers
who went into repayment on or after November 1, 2007 should contact
Resolve Corporation at 1- 877-283-1687 (within North America) or 905-306-2460
(outside North America, call collect).
As part of this call, borrowers will be asked to provide information about their:
- Family size
- Gross monthly household income
- Nova Scotia Student Loans held by all household members
Payment Deferral Program
Purpose
The Payment Deferral Program provides borrowers the opportunity to defer payment of their Nova Scotia Student Loan.
How it works
Borrowers can qualify in one of two ways:
- All borrowers who have completed their studies can defer payments on their Nova Scotia Student Loan for up to 12 months.
- Borrowers participating in an approved internship/residency/apprenticeship or who are articling can defer payments on their Nova Scotia Student Loan for the duration of these programs.
During the deferral period, the borrower is not required to make payments on his or her loan. Interest accrued during the deferral period will be added to the borrower’s loan balance at the Province’s preferred lower rate of interest, and amortized over the remaining repayment period of the loan or they can pay it in a lump sum.
How to apply
No application is required. Borrowers who went in repayment before November 1, 2007 can access the Payment Deferral Program by contacting the Nova Scotia Student Assistance Office at:
902-424-8420 (within Metro Halifax)
1-800-565-8420 (toll free within Canada)
Borrowers who want to apply for the Payment Deferral Program and went into repayment on or after November 1, 2007 should contact Resolve Corporation at 1- 877-283-1687 (within North America) or 905-306-2460 (outside North America, call collect). No formal application is required.
Revision of Terms
Purpose
Revision of Terms can help borrowers who are unable to meet their monthly Nova Scotia Student Loan repayment obligations by extending their repayment period.
How it works
Borrowers are normally required to repay their Nova Scotia Student Loan over 9.5 years (or 114 months) but can extend this repayment period for up to 14.5 years (or 174 months). While this option provides the borrower with more affordable monthly payments, it also increases the overall cost of repaying the loan.
How to apply
Students who went into repayment prior to November 1, 2007 can apply for Revision of Terms by contacting the Royal Bank Atlantic Student Loan Centre at 1-800-565-1446 by contacting the RBC Atlantic Student Loan Centre at 1-800-565-1446.
Students who went into repayment on or after November 1, 2007 can apply
for Revision of Terms by contacting Resolve Corporation at 1- 877-283-1687
(within North America) or 905-306-2460 (outside North America, call
collect).
Permanent Disability Benefit Program
Purpose
Effective November 1, 2005 Nova Scotia implemented the Permanent Disability program which can help borrowers who have a permanent disability and are experiencing difficulty repaying their Nova Scotia Student Loan.
How it works
The Permanent Disability Benefit Program allows complete forgiveness of your Nova Scotia Student Loan. Students who have qualified for the Permanent Disability Benefit Program offered by the Canada Student Loans Program are eligible for this program.
How to apply
To apply for the Permanent Disability Program, borrowers should download the printable application form.
This form must be completed and returned to the Nova Student Assistance Office at:
Department of Education
Student Assistance Office
PO Box 2290, Halifax Central
Halifax, NS B3J 3C8
Applicants must include a copy of the letter from the Canada Student Loans Program approving them for the federal Permanent Disability Benefit
Enhancements for Borrowers in Bankruptcy
Purpose
Enhancements for borrowers in bankruptcy are designed to help borrowers who are having difficulty repaying their Nova Scotia Student Loan as a result of participation in a bankruptcy-related event.
How it works
Borrowers can benefit in one of two ways:
Borrowers who have participated in a bankruptcy-related event while in full-time study may be eligible for interest-free status on their Nova Scotia Student Loan while they are in study, and may remain eligible to receive new student loans for a maximum of three years.
Borrowers who have participated in a bankruptcy-related event while in repayment are eligible for a number of debt management measures, including the Enhanced Repayment Assistance Program and the Debt Reduction Program.
Borrowers who have declared bankruptcy are ineligible to have their Nova Scotia Student Loans discharged for 7 years (and 5 years if a borrower can demonstrate exceptional financial hardship).
How to apply
Borrowers who have or will be participating in a bankruptcy-related event should contact the Nova Scotia Student Assistance Office at:
902-424-8420 (within Metro Halifax)
1-800-565-8420 (toll free within Canada
