Student Loan Program Student Loan Program Information Presentation Information Presentation UPEI Presentation UPEI Presentation th , 2009 November 19 th , 2009 November 19
Today’ ’s Presentation s Presentation Today Overview of the student program Overview of the student program Grants and bursaries available Grants and bursaries available Student responsibilities w hile in school and after Student responsibilities w hile in school and after school is complete school is complete Repayment scenarios Repayment scenarios Repayment assistance programs Repayment assistance programs Opportunity for questions Opportunity for questions
What is the Student Loan Program? What is the Student Loan Program? PEI Student Financial Services administers both PEI Student Financial Services administers both the federal and provincial student loan the federal and provincial student loan programs. programs. All loan applications and approvals are done All loan applications and approvals are done through Student Financial Services. through Student Financial Services. Students apply for a new loan for each year of Students apply for a new loan for each year of study. study.
How Much Can I Be Approved For? How Much Can I Be Approved For? Canada Student Loan provides up to $210 per Canada Student Loan provides up to $210 per w eek of study w eek of study PEI Student Loan provides up to $165 per w eek PEI Student Loan provides up to $165 per w eek of study of study For UPEI (34 w eeks of study), the maximum For UPEI (34 w eeks of study), the maximum funding available per year of study is $12,750.00 funding available per year of study is $12,750.00
Assistance You Don’ ’t Have to Pay Back t Have to Pay Back Assistance You Don Canada Access Grant for Student from Low - Canada Access Grant for Student from Low - Income Families Income Families Canada Student Grant for Full- Canada Student Grant for Full -time Students time Students w ith Dependants w ith Dependants George Coles Bursary George Coles Bursary
How Is the Loan Distributed? How Is the Loan Distributed? Federal Student Loan Federal Student Loan - September - September - administered through Canada Post - administered through Canada Post - loan is held w ith National Student Loans - loan is held w ith National Student Loans Service Centre Service Centre Provincial Student Loan Provincial Student Loan - January - January - administered through a PEI Credit Union - administered through a PEI Credit Union - loan is held w ith a PEI Credit Union - loan is held w ith a PEI Credit Union
What Are My Responsibilities What Are My Responsibilities While in School? While in School? Confirm w ith BOTH the National Student Loans Confirm w ith BOTH the National Student Loans Service Centre and the Credit Union that you Service Centre and the Credit Union that you have returned to school have returned to school Provide a copy of a Schedule 1 or Schedule 2 to Provide a copy of a Schedule 1 or Schedule 2 to both of the above institutions by October 31 st st both of the above institutions by October 31 each year each year Advise each institution if you do not return to Advise each institution if you do not return to school school Advise each institution if you have any change in Advise each institution if you have any change in contact information (address, telephone, email) contact information (address, telephone, email)
What Are My Responsibilities What Are My Responsibilities When I Finish School? When I Finish School? You w ill be contacted by BOTH the National You w ill be contacted by BOTH the National Student Loans Service Centre and the Credit Student Loans Service Centre and the Credit Union to begin repayment. Union to begin repayment. If you have moved since receiving your last loan, If you have moved since receiving your last loan, advise both institutions of your change of advise both institutions of your change of address. address. If you graduate in April, you w ill begin If you graduate in April, you w ill begin repayment in November of that year. repayment in November of that year.
How Much Will My Payment Be? How Much Will My Payment Be? You w ill have tw o separate payments to make: You w ill have tw o separate payments to make: Federal Loan – Federal Loan – to the National Student Loan to the National Student Loan Service Centre Service Centre Provincial Loan – Provincial Loan – to the Credit Union to the Credit Union Your payment amount w ill depend on the Your payment amount w ill depend on the amount you have borrow ed w hile in school amount you have borrow ed w hile in school You w ill have a maximum of 9.5 years to repay You w ill have a maximum of 9.5 years to repay your loan your loan You may be eligible for a debt reduction grant You may be eligible for a debt reduction grant
Debt Reduction Program Debt Reduction Program You must apply for this grant w ithin one year of You must apply for this grant w ithin one year of graduation graduation You may receive up to $2,000 per year of study You may receive up to $2,000 per year of study If you receive more than $6,000 in loans in one If you receive more than $6,000 in loans in one year of study, you are eligible for a grant for that year of study, you are eligible for a grant for that year year
If You Received Maximum Loan Each Year If You Received Maximum Loan Each Year Total Federal Loan Borrow ed: $28,560.00 Total Federal Loan Borrow ed: $28,560.00 Interest Rate: 4.5% Interest Rate: 4.5% Repayment Period: 114 months (9.5 years) Repayment Period: 114 months (9.5 years) Monthly Payment Amount: $308.34 Monthly Payment Amount: $308.34 Total Provincial Loan Borrow ed: $22,440.00 Total Provincial Loan Borrow ed: $22,440.00 Interest Rate: 4.5% Interest Rate: 4.5% Repayment Period: 114 months (9.5 years) Repayment Period: 114 months (9.5 years) Monthly Payment Amount: $242.27 Monthly Payment Amount: $242.27 Total Monthly Payments: $550.61 Total Monthly Payments: $550.61
Sample Repayment Sample Repayment (w ith Debt Reduction) (w ith Debt Reduction) Total Federal Loan Borrow ed: $28,560.00 Total Federal Loan Borrow ed: $28,560.00 Interest Rate: 4.5% Interest Rate: 4.5% Repayment Period: 114 months (9.5 years) Repayment Period: 114 months (9.5 years) Monthly Payment Amount: $308.34 Monthly Payment Amount: $308.34 Total Provincial Loan Borrow ed: $14,440.00 Total Provincial Loan Borrow ed: $14,440.00 Interest Rate: 4.5% Interest Rate: 4.5% Repayment Period: 114 months (9.5 years) Repayment Period: 114 months (9.5 years) Monthly Payment Amount: $155.90 Monthly Payment Amount: $155.90 Total Monthly Payments: $464.24 Total Monthly Payments: $464.24
What If I Can’ ’t Make My Payments t Make My Payments What If I Can Both the federal and provincial programs offer Both the federal and provincial programs offer repayment assistance programs for those repayment assistance programs for those students experiencing difficulties in repaying students experiencing difficulties in repaying their loan. their loan. FEDERAL – – Repayment Assistance Plan Repayment Assistance Plan FEDERAL PROVINCIAL – – Interest Relief Program Interest Relief Program PROVINCIAL
Questions Questions To dow nload a copy of the presentation visit To dow nload a copy of the presentation visit w w w .peicreditunions.com w w w .peicreditunions.com
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