If you received a loan through the Québec government’s Loan and Bursaries Program and you have now completed your studies, the time has come to find out about the conditions for paying back your loan. Here are a few tips to help you prepare a repayment plan that fits your budget.

Managing your student debt

You can start paying back your loan as soon as you finish your studies. Alternatively, you can choose to take advantage of a six-month exemption period. This means you won’t have to make any payments for six months, but interest charges will be added to your student debt. Note that you can opt to pay the interest charges as they are applied.

Want to pay your debt off faster?

So much the better! You’ll avoid interest charges. But before you make arrangements with your financial institution, be sure to prepare a budget. This will tell you how much money you have available each month to put towards your debts.

It’s best to set realistic repayment goals because, if you have difficulty making ends meet, it could affect your credit rating and your ability to obtain other loans or even to rent an apartment. Consult your financial institution for advice.

Want to compare various debt repayment scenarios? This calculator This link will open in a new window can help you.

Unable to pay back your debt just now?

You have a six-month grace period after completing your studies to begin paying back your loan. Interest will be added to your debt during that time. Once the grace period is over, you’ll need to make a repayment agreement with your financial institution.

If you’re strapped for cash and unable to start repaying your loan, contact your financial institution to work out an arrangement. Also, see whether you’re eligible for the Deferred Payment Plan This link will open in a new window so that you can postpone repaying your debt for a few months.

Remember that you can take advantage of a tax credit on interest paid on a student debt. Consult the Association coopérative d’économie familiale (ACEF) for your region or a budget counseling service for assistance.

Insight

Did you know?

There’s a Loan Remission Program This link will open in a new window that applies if you complete your program of study within the normal time limit. This program forgives 15% of the student loan debt of anyone who completes their studies within the given period and who received a bursary under the Loans and Bursaries Program This link will open in a new window in each year of study.

End of the insight