Student loans in Canada: interest and repayment explained
Quick summary
Interest on federal Canada Student Loans and Canada Apprentice Loans was permanently eliminated on April 1, 2023, so new interest does not build on the federal part of your loan. Interest that built up before that date is still owed. Repayment starts six months after your studies end, and if payments are hard to manage, the Repayment Assistance Plan (RAP) can lower or pause them. Provincial loans can follow different rules, so check your province too.
Is there interest on student loans?
Not on the federal part. The Government of Canada announced that interest on Canada Student Loans and Canada Apprentice Loans was permanently eliminated from April 1, 2023. That means your federal balance does not grow with interest while you study or while you repay.
What you still owe
Interest that accrued before April 1, 2023 is still owed. If you borrowed before then, your balance may include it. Check your balance and payment with the National Student Loans Service Centre (NSLSC).
When repayment starts
Government of Canada says repayment begins six months after your studies end. That six-month period is the grace period. You can change your payment amount and frequency, update your bank details, and make extra payments through the NSLSC or your online banking.
Help if payments are too high (RAP)
The Repayment Assistance Plan (RAP) is for borrowers whose loans are in repayment, who live in Canada, and whose payments are up to date. If your gross family income is below the monthly threshold for your family size, you may not need to make payments for six months.
| Family size | Monthly gross family income threshold |
|---|---|
| 1 person | $3,866 |
| 2 people | $4,535 |
| 3 people | $5,556 |
| 4 people | $6,412 |
| 5 people | $7,170 |
| 6 people | $7,854 |
| 7 or more people | $8,483 |
- The government says thresholds may differ for the provincial part of a loan.
- RAP has time limits: the maximum time in repayment after you leave school is 15 years, or 10 years for a person with a disability. After 60 months in RAP, or 10 years after leaving school, the government pays the remaining principal and interest.
- Apply online through the NSLSC or by mail. You need to reapply every six months. Prince Edward Island borrowers also apply with their province.
Try our RAP income check and our student loan repayment calculator.
Provincial loans
Many borrowers have a federal part and a provincial part. Quebec, the Northwest Territories and Nunavut do not take part in the federal program, and provinces set their own rules for provincial loans, including interest. We have not yet confirmed each province's rules, so check your province's student aid website and the NSLSC to see which part of your loan has interest.
What to do now
- Contact or sign in to the NSLSC to check your balance, the date repayment starts and your payment.
- Find out if you have a provincial loan, and check its interest rules on your province's student aid site.
- If a payment is hard to make, apply for RAP before you miss one.
- If you can pay more, make extra payments through the NSLSC or online banking.
- Keep your contact and bank details up to date so you do not miss a notice.
Questions people ask
Do federal student loans charge interest in Canada?
No. Interest on Canada Student Loans and Canada Apprentice Loans was permanently eliminated from April 1, 2023. Interest that built up before that date is still owed.
Do provincial student loans have interest?
It depends on the province. The federal change did not change provincial rules, so check your province's student aid website.
When do I start paying back my student loan?
Six months after your studies end, according to the Government of Canada.
What if I cannot afford my payments?
Apply for the Repayment Assistance Plan (RAP). If your gross family income is below the threshold for your family size, you may not need to pay for six months.
How long can I be in repayment?
The maximum time in repayment after leaving school is 15 years, or 10 years for a person with a disability. After 60 months in RAP, or 10 years after leaving school, the government pays the remaining principal and interest.
Do I need to reapply for RAP?
Yes. You reapply every six months, online through the NSLSC or by mail.
Can I make extra payments?
Yes. You can make additional payments through the NSLSC or your online banking.