Maintaining and Repaying Your Loan

I AM REPAYING MY NOVA SCOTIA STUDENT LOAN. HOW CAN I REDUCE MY DEBT?

Debt Reduction Program

All students who received a Nova Scotia Student Loan (NSSL) in the time period of August 1, 2003 to July 31, 2008 can apply for Debt Reduction when they graduate. Awards will be applied against the balance of your Nova Scotia Student Loan. All awards are calculated based on the loan amount outstanding after awards received from the Canada Millenium Scholarship Foundation.

Applications are available by contacting the Student Assistance Office or by clicking here.

To qualify for the program, you must meet each of the following criteria:

• Qualified for and negotiated a Nova Scotia Student Loan between August 1, 2003 and July 31, 2008.



• Studied at an Educational Institution in Canada.



• Successfully graduated from the program for which you obtained the Nova Scotia Student Loan. The program may be completed at an institution other than that at which the borrower began their studies. However, the institution must be within Canada.

Include with your completed application:

• University Graduates: a complete transcript, including transfer credits (if applicable) and date of graduation.
• Community Colleges or Private Career College Graduates : copy of your transcript and diploma.

Debt Reduction is awarded based on a student’s loan profile, with a graduated rate awarded for each year of Nova Scotia Student Loan, up to a maximum of program length plus one extra year.

The table below shows the percentage of Debt Reduction you would qualify for based on your Nova Scotia Student Loan year for academic years after 2003/2004.

Year of Nova Scotia Student Loan	NS Student Loan	Debt Reduction %	Debt Reduction Award
Yr 1 of NSSL for program	$5100	15%	$765
Yr 2 of NSSL for program	$5100	25%	$1275
Yr 3 of NSSL for program	$5100	35%	$1785
Yr 4 of NSSL for program	$5100	45%	$2295
Yr 5 of NSSL for program (extra year)	$5100	15%	$765

NOTE: If you received a Millennium Scholarship for a loan year, this award will be deducted from your Nova Scotia Student Loan and Debt Reduction will be calculated on the remaining amount.

Transferring Credits when you switch Programs

Since Debt Reduction is based on successful completion of the program for which you obtained a Nova Scotia Student Loan, transfers of credits to a new program will only be eligible if a minimum of 3 full credits are transferred per academic year. For example, if a student enrols in a BA program, but transfers to a BSc program, a minimum of 3 full-time credits for each year of the BA program must be transferred for that loan year to be considered for Debt Reduction.

If you qualified for and received Debt Reduction, you may be eligible for two (2) additional awards.

Employment Bonus Award

If you work in Nova Scotia full-time, and can demonstrate 50 weeks of full-time employment in Nova Scotia in the three year period subsequent to graduation, you can receive an additional 50% of the amount of Debt Reduction that you received at graduation. You can download and complete the application by clicking here.

Repayment Bonus Award

If you make 12 payments on your Nova Scotia Student Loan (or a lump-sum payment of an equivalent amount) within three years of graduation (full principal plus interest), you can receive an additional 20% of the amount of Debt Reduction that you received at graduation.

Please contact the Student Assistance Office for further information on these two additional awards.

Nova Scotia Student Grant

Starting August 1, 2008, debt reduction will be replaced by a new grant. The first 20 percent of your Nova Scotia Student Loan will be a grant—you don’t pay it back. This grant may be worth up to $1,560 each year. You do not have to apply separately for the grant. Everyone who gets a Nova Scotia loan will get this 20 percent grant automatically.