Before coming to market, initial public offerings (IPOs) must issue a  prospectus describing the company and its risks. Virtually every prospectus  I’ve ever seen is written in unreadable legalese. I doubt any analysts not  associated with the investment banks that wrote them bother to even glance  at them. The investment banks are paid unbelievable sums to underwrite  IPOs. Underwriters can make as much as $20 billion a year issuing IPOs.

After reading the prospectus, the analyst produces reports promoting the  issue. The report gets picked up in the chat rooms and the hype is on.  IPO prices can be manipulated in many ways by the issuers and the  underwriters. In addition to analyst reports, popular IPOs are sold by allocation  only to those willing to either buy additional shares after the IPO or  give additional business to the underwriters. With buyers in place before the  initial offering, the offering price can be raised increasing returns to the  issuer and the underwriter. When the price pops on the opening, insiders are  given the opportunity to unload shares at tremendous profits.

The only non-insiders who are happy with IPOs are volatility junkies. In  a bull market, many IPOs double and triple in price the day of the offering.  When their popularity wanes, they drop back to the initial price or lower. In  a bear market, new IPOs are rare. The few that come to market often  collapse below the IPO price. However, the investment bankers retain their  billions of profits.

IPOs can be thrilling and depressing. The winners make great chat on  the Internet and conversation at parties. Every once in a while, a winner  will grow into a great company such as Microsoft. The losers are just part  of the gamble for real speculators. Most investors will find IPOs outside  their comfort zone.

You must immediately notify your school’s financial aid office if you:
- Reduce your enrollment status to less than half-time.
- Withdraw from school.
- Stop attending classes.
- Fail to re-enroll at the end of a term.
- Change your name, local or permanent address, or e-mail address while enrolled.

You must make on-time, monthly loan payments. You must repay the total amount of your loan, including any interest that accrues, even if you:
- Don’t complete your education.
- Are dissatisfied with your education.
- Don’t find a job in your field.

You must notify your loan holder if you:
- Change your address, telephone number or e-mail address.
- Change your name (for example, maiden name to married name).
- Fail to enroll at least half-time for the loan period certified or at the school that certified your Master Promissory Note.
- Withdraw from school or attend school less than half-time.
- Transfer to another school.
- Graduate.
- Change employers, employment address or employment status.
- Experience any change that affects your ability to repay your student loan.

Repaying your student loan is an important responsibility. To help you manage repayment, this guide provides helpful information about your rights and responsibilities as a borrower and the repayment options available to you. In addition to outlining the repayment process, this guide also provides tips for successful repayment.

Exit Counseling

If you have a Stafford or Grad PLUS loan, federal law requires you to participate in an exit counseling interview when your enrollment status falls below half-time or just before you graduate (whichever comes first). At that time, your school will contact you to schedule your interview and tell you whether you can complete it on campus or online.

During the interview, your rights and responsibilities are explained and you’re asked to update important loan record information such as your address, telephone number, employer and repayment plans.

BorrowerRights

You may prepay your loan at any time or make payment in full without penalty. You may request a deferment or forbearance during your repayment period. Deferments are entitlements, which means they must be granted to eligible borrowers. However, most forbearances are granted at the loan holder’s discretion.

Maintaining You Canada Student Loan As a part-time student, you may be eligible to borrow a cumulative amount of $4,000 (principal and interest) over the period of your studies in total Canada Student Loans.

Part-time loans are not subsidized, and you have to make interest payments while you are in school. If your gross family income is below a certain level while you are in school, however, you may qualify for Interest Relief (see Loan Repayment Help).

If you are continuing your part-time studies but not receiving additional Canada Student Loans, you need to ensure that your financial institutions and/or NSLSC are informed of your in-study status. To do this, you will need to pick up a Confirmation of Enrolment form (Schedule 2) from the NSLSC or from your educational institution, have it properly completed, and provide it to your financial institution and/or NSLSC.

If you are receiving a new Canada Student Loan, your Certificate of Eligibility (Schedule 1A) acts as your confirmation of enrolment.

If you qualify for a Canada Student Loan, you (or the school you plan to attend) will receive a letter of assessment, a Certificate of Eligibility (Schedule1A), an instruction sheet, and a loan agreement within four to six weeks of your application.

Complete your loan documents and have your post-secondary institution complete the Confirmation of Enrolment section of your Certificate of Eligibility. (Note: in some cases, enrolment may have already been confirmed electronically — contact the financial assistance office at your post-secondary institution for more information.)

Submit your completed loan documents in person to a designated Canada Post outlet within 30 days of the day your school signed your Certificate of Eligibility.

If you provide a void cheque, your funds will be deposited directly into your bank account within a week of the NSLSC receiving your properly completed loan documents or within a week of the disbursement date
on your Certificate of Eligibility, whichever is later. Allow an additional week to receive your funds if a cheque is being mailed to you.

Important Deadlines

Since final deadlines can vary among provinces and territories, check with your provincial or territorial Student Financial Assistance Office for deadline information.

You can pick up a loan application from your educational institution or your provincial or territorial Student Financial Assistance Office – some provinces and territories offer on-line applications. After you (and your school) have completed and signed all the necessary documents, forward your loan application to your provincial or territorial Student Financial Assistance Office for assessment. To avoid any delays in the assessment of your application or the disbursement of your funds, make sure all required documentation is included with your application. If you have any questions about the loan application, contact your Student Financial Assistance Office.

Your provincial or territorial Student Financial Assistance Office assesses your complete loan application, confirms your eligibility, assesses your financial need, and determines the amount of federal and provincial loans and grants you will receive.

The National Student Loans Service Centre (NSLSC) will look after everything you might need from the Canada Student Loans Program once your loan application has been processed and you have received a loan document.
The NSLSC is divided into two divisions:
1. Public Institutions Division to assist students attending public universities and community colleges; and
2. Private Institutions Division to assist students attending trade schools, private vocational schools or career colleges.

Determine your educational needs. Understanding your goals will help narrow the list of programs and institutions you may want to attend.

Assess your financial situation.

A full review of your finances and financing options may help you decide what type and length of program to pursue. It may also reveal that there are other financing options open to you. For help in considering your financial options, including available scholarships and bursaries, visit the “Financing” section of CanLearn.

The Canada Student Loans

Program (CSLP) is only one part of the Government of Canada’s commitment to Canada Student

Financial Assistance

The CSLP helps to make postsecondary education affordable for many Canadians by providing loans and grants to eligible full- and parttime students with demonstrated financial need. Its purpose is to supplement, not to replace, the financial resources that you (and your family, where applicable) are expected to contribute.

Since August 1, 2001, the Government of Canada and the governments of Ontario and Saskatchewan have partnered their respective full-time loans to create Canada–Ontario Integrated Student Loans and Canada–Saskatchewan Integrated Student Loans.

If you decide a Canada Student Loan is the right option for you, consider the following:
A. Is your chosen school designated for the Canada Student Loans Program? Ensure that it is by checking with your provincial or territorial Student Financial Assistance Office.
B. Are you eligible? The CSLP works in partnership with the provinces/territories to deliver financial assistance to parttime students. Quebec, Nunavut and the Northwest Territories do not directly participate in the CSLP and operate their own student financial assistance programs.