Canada Student Loan question when you quit school?
I got accepted to a program this coming september and i'll be getting student loan for it. But right now i'm not sure if i should quit my job just to go back to school. I want to try the program to see if it's right for me My question is if I go to school and after a few days decided to quit school and just work, do I have to pay back the student loans/bursaries right away or will i be getting the 6 month before paying back the loans?
Financial Aid - 2 Answers
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1 :
If you decide that you are not going to complete your program, you must call the National Student Loans Service Centre immediately to inform them. The school will automatically send your name in if you do quit, so it is in your best interest to tell the NSLSC first. You should get a 6-month grace period before you would have to pay back the loans. The sentence below is from the CanLearn/NSLSC website (link below): 19) Q. What happens if I have received loans but cannot finish my program? A. You should advise your loan holders as soon as possible. You will have to start making payments on your loans 6 months after you leave school, unless you qualify for debt management assistance. See the Can't Repay? section to find out about programs for students who are having trouble repaying their loans. I hope the program works out for you!
2 :
you still get the 6 months. Please check the refund policy of the school you plan to attend. since in most provinces the loan documents go to the school first, the school will take their tuition fees out of your loan. You only have a short period of time to withdraw from the program and get the school to refund the fees back to the student loan people. After that, they keep their portion of the loan and you are responsible for paying it back. Also if you attend school, get your student loan and then quit, you may be placed on academic probation and getting student loans again may be difficult or even impossible. Depending on the school you may be identified as a "runner" ie someone who only enrolled to get the student loan and had no intention of staying in school. If that happens, say goodbye to getting student loans again and say goodbye to your hope of ever having good credit, getting car loans, buying a house, getting a credit card. Best advice is to not negotiate your loans until you decide if you are going to continue. Then if you decide you are leaving, you can return the loan document (essentially giving them back their money) and you will not owe them anything.
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