Defaulting on a student loan will make you ineligible for future loans.
Defaulting on a student loan from Manitoba Student Aid will make you ineligible for future student loans in Canada. In order to become eligible again, you must repay your original student loan. There are programs available to help you make the payments on your loan and avoid going into default, or get back on track if you have already defaulted on your loan.
Instructions
Having trouble paying your Manitoba Student Loan?
1. Apply for interest relief. If you are having difficulty making the payments on your student loan, or have stopped making payments, you may apply for interest relief. If approved, the Government of Canada will pay the interest on your loan for a period of six months, during which time you will not be required to make any payments on your loan.
2. Re-apply for interest relief once every six months. If you are approved for interest relief, it will only last for six months. If you continue to require interest relief after the six months have ended, you must reapply. You may reapply for interest relief for a total of 54 months.
3. Submit an application for debt reduction in repayment to Manitoba Student Aid. If you have exhausted 54 months of interest relief and are still having difficulty repaying your student loan, you can apply directly to Manitoba Student Aid for debt reduction in repayment. Through this process your overall debt owing to Manitoba Student Aid can be reduced by up to 50 percent, or $6,667.00, whichever is less. A similar program is available for any Canada student loans you may hold.
4. Re-apply for a Manitoba student loan once your previous loan is no longer in default. You do not need to pay back the entire loan before re-applying for a new loan, but any existing student loans (regardless of province) must not be in default at the time of applying for a new loan.
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