Student Financial Services Student Loan Presentation for Morell

Student Financial Services Student Loan Presentation for Morell High School May 2, 2017

Steps to Student PSE Planning Determine Program of Studies What are my resources? Is there any other bursaries or sources of loans? www. studentloan. pe. ca Where do I go to Study? What are my costs? Do I need a student loan? How much can I receive in student loans and grants? What happens when I finish my studies? If I am unable to pay my student loans what can I do?

Two Loans – One Application Canada Student Loan (CSL) &Canada Study Grants if Entitled Provincial Student Loan (PSL) www. studentloan. pe. ca

General Information � Who Can Apply? � A Canadian citizen or landed immigrant / permanent resident � A resident of Prince Edward Island � A full-time student at a designated post-secondary institution. � Full-time applications � Online applications open early June. � It can take 4 -6 weeks to process an application. � For classes starting in September, students must apply before July 14 th to guarantee an assessment prior to September 1 st. � Awards cannot be issued after the end of a student’s study period www. studentloan. pe. ca

Canada Student Grants are available in addition to student loans based on student category, family size, income level, and program length. Each applicant it automatically assessed for eligibility for the following Canada Student Grants: � Canada Study Grants - up to $375/ mo – based upon income and qualifying program of full-time studies � Students With Dependents - $200/ mo for students with children under 12 yrs of age. � Students With Permanent Disabilities - $2, 000 per year � Special Services and Equipment for Students with Permanent Disabilities – Max $8, 000 / yr www. studentloan. pe. ca

Canada Student Loan � Funding of up to $210 per week of study � Disbursed during the 1 st semester of your program � Repayment begins 6 months after your end date of study � Interest charged on balance beginning the day after your end date of study (currently 5. 2%) � Funding provided by the Canada Student Loans Program (CSLP) � Note - Provincial loans are interest free and have 12 month grace period before beginning repayment. www. studentloan. pe. ca

Student Loans � Maximum Federal loan per traditional university/colleg e school year: � $7, 140 � Maximum Provincial Loan per traditional university/colleg e school year: � $6, 018 � MAX LOAN: � $13, 158 www. studentloan. pe. ca Student loans are based on financial need. The maximum amount a student can borrow is: � Canada Student Loan - $210 per week of study � CSL funding is issued at the beginning of a study period. � Provincial Student Loan - $177 per week of study � PSL funding is issued mid-way through a study period. Repayment � Canada Student Loan repayment begins 6 months after your last day of school. � Provincial Student Loan repayment will being up to 1 year after your last day of school.

Full-Time Grant Income phase out amounts Table 1 Income for grant thresholds and phase-out slope by family size (a) Family size 1 2 3 4 5 6 7+ (b) (c) Previous year’s Monthly gross annual family phaseincome for maximum out grant rates www. studentloan. pe. ca $30, 000 $42, 426 $51, 962 $60, 000 $67, 082 $73, 485 $79, 373 1. 19% 0. 86% 0. 74% 0. 71% 0. 68% 0. 65% 0. 63% (d) = (b)+($375/(c)) rounded to nearest dollar Previous year’s gross annual family income with no grants (i. e. grant cut-off) $61, 513 $86, 031 $102, 638 $112, 817 $122, 229 $131, 177 $138, 897

Sample Canada Study Grant Fulltime Table 1 Income for grant thresholds and phase-out slope by family size (a) Family size (b) Previous year’s gross annual family income for maximum grant (c) Monthly phase-out rates (d) = (b)+($375/(c)) rounded to nearest dollar Previous year’s gross annual family income with no grants (i. e. grant cut-off) 4 *$60, 000 0. 71% $112, 817 Example family size = 4, with prior year gross annual family = $65, 000. Grant Amount would be calculated as follows for 8 month program. Must be at least 60 weeks for Diploma or undergrad Degree. * For dependent students only accounts for parents income 150 threshold ITR. of $60, 000 = 8 mo *$375 = $3, 000 Maximum Grant ifline below Grant amount due to over income threshold = Min ($3, 000, $3, 000 -. 071 * ($65, 000 -$60, 000) = Min ($3, 000, $3, 000 - $355) Grant = $2, 602 Estimates only actual results may vary www. studentloan. pe. ca

My Path Student Dashboard www. studentloan. pe. ca

My Path Check Status www. studentloan. pe. ca

My Path Completing Pre-Study Report www. studentloan. pe. ca PSR Needs to be completed to receive PSL

Paying for my student loans As an example, assume a student borrowed, Canada Student Loans $34, 117, Provincial Student Loans$13, 455, to earn Bachelor Degree at a Maritime University. Totaled borrowed $47, 572 maximum loan that can be borrowed for a four year undergrad degree = (4*34* ($210+$175) = $52, 360. Graduation date April 30, 2017. q. Federal Loan repayment amount $34, 117 plus Capitalized interest of $894. 33 = $35, 011. 23. First payment date = November 30, 2017. Monthly payment amount = $389. 85. Amortization period = 114 months = 114/12 = 9. 5 years to pay off. Federal Interest Rate = Prime 2. 7% plus floating rate of 2. 5% = 5. 2%. Estimate interest to be paid $92/month, or $10, 488 if loan is held full-term. q. Provincial Loan repayment amount = $13, 435, no capitalized interest = $13, 435. First payment date = May 31, 2018 (one year Grace Period) and no interest. Amortization period = 114 months, monthly payment amount = $117. 85. Plus potential for Provincial Debt Reduction Grants of up to $2, 000 per year of eligibility. q. Combined Monthly Loan payments CSL =$389. 85+ PSL = $117. 85 = www. studentloan. pe. ca $507. 70

Canada Student Loans and Grant for Part-Time Studies ● Available for programs or courses of less than 12 weeks in length or when taking less than 60% of a full course load for programs and courses of 12 weeks or more. ● Application is a paper application (no online option at this time) available on our website. ● When submitting your application include your 2016 notice of assessment , and a copy of the health card for any dependent children in your care. ● For students whose income is under the low-income threshold they are eligible for up to $1, 800 in grant funding each loan year (Aug 1 to Sept 1). ● Applications should be received in our office no later than 3 weeks before your end date of study. www. studentloan. pe. ca

Provincial Bursaries for eligible students attending; George Coles and Island Student / Skills Awards See PEI Bursaries Home page for details University of PEI Holland College Maritime Christian College Collège de l'Île www. studentloan. pe. ca

One must work hard to plant the seeds to reap www. studentloan. pe. ca the benefits of harvest

Seeds of Success � Goals Set both short and long term Celebrate accomplishments � Change Constant -need to be flexible – life long learning People /Team /Collaborative work skills � Debt Management– Personal Finance Exercise caution – Anxiety --Fiscal Realities � Empowerment tudentloan. pe. ca Explore, Examine and Experience Don’t be afraid to ASK for Assistance Like the person you are - overcome fear Unlock your potential

Contact Information for Student Loans Visit us online at www. studentloan. pe. ca Email us at studentloan@gov. pe. ca Call us at (902) 368 -4640 Canada Student Loan Webpage http: //www. canlearn. ca/eng/index. shtml www. studentloan. pe. ca

www. studentloan. pe. ca