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Answers to your questions

Applying for loans and bursaries
2 important months: September and January
The importance of being honest
When and how to pay back school loans
What if you can’t pay them back right away?

Applying for loans and bursaries

Are you filling out your application? Every detail requires your attention.

There are 6 steps:

1. Send in your application for financial aid to Aide financière aux études (AFE), online or by mail.
2. You will receive a Financial Assistance Statement from the AFE.
3. Your educational institution's financial aid office will send you a guarantee certificate and a loan agreement.
4. Sign the loan agreement and bring it, and the guarantee certificate, to your caisse or to a caisse near you.
5. Your caisse will send your documents to the Desjardins Group Student Service Centre.
6. Money is deposited directly into your chequing account¹.

2 important months: September and January

Mark these 2 months on your calendar!

Aide financière aux études (AFE) tracks the income you earn. On the financial aid application, declare how much income you've earned since January and how much you expect to earn before December 31.

Then, twice a year–in September and January–fill out the "Confirmation of Financial Resources" form, which is available on the AFE Web site. In September, confirm how much you've earned since January of that year. The following January, indicate your earnings for the previous year.

These forms must be filled out in order to receive your money.

The importance of being honest

If you receive financial aid, when you confirm your income, keep in mind that it doesn't pay to make a false declaration. Since the program has been reviewed, financial aid is now paid in the form of a year-long loan authorization. If you are entitled to a $3,000 loan and a $2,000 bursary, you will receive a loan authorization for $5,000.

At the end of the school year, your income will be checked by the Ministère du Revenu and if your declaration matches, your financial institution will be reimbursed for the amount corresponding to the bursary allotted. If your income is higher, the first $1,000 in financial assistance that was paid will become a loan. Any amount over $1,000 will be recovered when you receive financial assistance payments during the following year and added to your student debt.

When and how to pay back school loans

Why the rush to pay off my student loans?
It might be tempting to pay off other loans first because of the low interest rate on student loans. But your financial institution has to follow the rules. If you take out new loans, you still have to keep making the payments on your student loan. It's your responsibility.

I don't have to pay a penny for 6 months.
Actually, interest starts accruing as soon as you are no longer a full-time student. Six months later, you have to start paying back your debt, including both the principal and the interest. The interest accumulated during those first 6 months can be paid in full or be added to your debt.

Obviously, if you find a job right after finishing school, you may start repaying the loan before the end of the 6 month period. Simply call the Desjardins Group Student Service Centre.

What are the terms and conditions?
Some time before your first payment is due, you will receive a letter from the Desjardins Group Student Service Centre listing your repayment terms (amount to be paid each month and the repayment period). The repayment period will depend on the size of your loan.

Some people opt for a short repayment period to minimize the interest Interest: Fee you are charged for borrowing money from a financial institution (expressed as a percentage of the amount borrowed). . But before you commit to a quicker repayment plan, be sure to assess your financial situation and ability to pay.

If the proposed repayment terms don't work for you, or if you have neglected to inform the government that you are still a full-time student, contact the Desjardins Group Student Service Centre to let them know.

All debt consolidation automatically includes Loan Insurance: an added benefit to cover your debts in the event of disability or death. To make changes to your insurance, contact the Desjardins Group Student Service Centre.

I have to put my studies on hold for a while.
You can defer paying off your student debt for up to 2 school terms if you temporarily stop studying full time for reasons such as the following: you have just given birth to or adopted a child, you are suffering from a temporary disability or you have been elected officer of a student association. Simply fill out the AFE form for this purpose and provide the necessary supporting documents.

Do I qualify for loan remission?
If you completed your program within the normal time period, you may be entitled to a loan remission equivalent to 15% of your total student loan debt. To qualify, you must have received bursaries every year of your undergraduate university studies and, of course, you must have earned all your credits and obtained your degree within the prescribed time.

Am I entitled to a tax credit on my student loans?
The provincial government grants you a non-refundable tax credit equal to 23% of the interest you pay on your student loans each year. You're also entitled to a similar tax credit from the federal government equal to 17% of the interest paid. You qualify for both tax credits until you have paid off your student loans.

To find out more, see Pay off your student loan.

What if you can't pay them back right away?

No job, no money… I can't make the payments!

Deferred Payment Plan
Offered by l'Aide financière aux études (AFE), the Deferred Payment Plan can give you a 6-month grace period before you have to make your first payment. You can, over the 5 years following the end of this grace period, get additional deferrals of up to total of 24 months (4 periods of 6 months each).

To qualify for the program, your expected gross monthly employment income must be under $1,521 for the next 3 months.

If you have family responsibilities, this amount is increased by $228 for each child. If you are a single parent and at least 1 of the children lives with you, the amount increases by another $115.

To find out more, see Pay off your student loan.

	By e-mail	Contact the Desjardins Group Student Service Centre.
	Online	Go to the Aide financière aux études du gouvernement du Québec website.

1. To avoid complicating the financial aid payments, it is important that you be the only account holder. If the financial aid payments must be deposited into a joint account or into a parental account in a child's name, your periodic or monthly payments will be delayed so they can first be validated.