# Achieving a "True" Grace Period New
In order to achieve a “true” grace period of 6 months (without any interest accruing on your outstanding loan), you must pay off the entire provincial portion of your loan prior to the start of your grace period. The provincial portion of the loan is usually significantly less than the federal portion so, for some, it may be doable. Note that after the 6 month grace period, even if the provincial portion is paid off, the federal portion will begin to accrue interest.
To check the amount of your provincial loan, log into your NSLSC account. Once you’re on your dashboard, under “Funding Summary”, click the link to your loan. You should see a breakdown of your loan with the interest rates.
How to pay off provincial portion in lump sum:
- Obtain a bank draft totalling the full provincial loan amount and make it out to the National Student Loans Service Centre (NSLSC). In the “RE” line put your student loan number. (can be found in the same “Funding Summary” page)
- Write a letter in the format below and mail it to NSLSC’s office in Mississauga. Their address can be found on the “Contact Us” section of their website.
Letter Format
NSLSC full address
Memorandum to: National Student Loans Service Centre (NSLSC)
Subject: What the bank draft is for and your student loan number
Letter body: Explain that you have authorized the NSLSC to use the attached bank draft to pay off just the provincial portion of your student loan (include your loan number and the amount).
Sign off: Your full name typed and a line for your signature and date.
Note
We recommend signing by hand just to be on the safe side.