What do first-timers need to know about student loans in Canada?

By FastBuySale Newsroom · 5 Nov 2026 · 24m ago

Do Canada Student Loans charge interest?

Student loans in Canada work differently from most debt: no interest is charged on Canada Student Loans, you don't make payments while you are in school, and repayment starts only after a six-month non-repayment period once you finish your studies. If you then struggle to pay, the federal Repayment Assistance Plan (RAP) can cut your payment, or reduce it to zero for six months at a time, depending on your family income.

The catch for first-timers is the provincial part. Many students have an integrated loan with a federal (Canada) portion and a provincial portion, and according to the National Student Loans Service Centre (NSLSC), interest may still accrue on the provincial portion in some provinces, such as Ontario and Saskatchewan.

No. The Government of Canada says no interest is charged on Canada Student Loans. You are still responsible for any interest that may have accrued on your loan before April 1, 2021.

If your loan has a provincial part, interest may still apply. The NSLSC's table shows the Canada portion is interest-free for every loan type, while the provincial portion accrues interest for Canada-Ontario and Canada-Saskatchewan integrated loans. The provincial portion is interest-free for British Columbia, New Brunswick, Newfoundland and Labrador and Manitoba integrated loans. Contact your province or territory, or the NSLSC, for your rate.

While you are in school you don't have to make payments and your loan is interest-free, but you must confirm your enrolment every semester or year to keep that interest-free and payment-free status, the NSLSC says.

If you have a provincial portion that charges interest, see how it grows over time with our

Readers evaluating Canada Student Loans should separate marketing claims from the actual rule text that governs their account or product. When two summaries disagree, the governing document or statute wins. If a rule depends on your age, filing status, or income band, re-check it when any of those facts change. Life events quietly move people across thresholds they last reviewed years earlier.

When do I start repaying?

After your period of study end date, your loan enters a six-month non-repayment period. You don't have to make payments during those six months, but interest may begin to accrue on the provincial portion.

During that period the NSLSC says you can start payments right away to pay off the loan faster, pay any accumulated interest as a lump sum before regular payments, or add the interest to your balance, which increases the interest you pay over the life of the loan.

Before repayment, you receive a notification in your NSLSC account inbox showing your amount owing, repayment start date, payment amount, payment method, interest rate and how long it will take to repay. A Loan Repayment Estimator is available too.

Payments are then withdrawn automatically from the account your loan was deposited into, if you had arranged direct deposit. Pre-authorized payments are described by the Government of Canada as the easiest way to avoid missing a payment.

A useful habit is to write down your goal, time horizon, and cash buffer before you change any election related to Canada Student Loans. Decisions made during a stressful week are the ones people reverse later at a cost. Educational explainers like this one cannot replace personalized advice for complex situations such as divorce orders, inherited accounts, or cross-border tax residency. Escalate those cases to a qualified professional.

Can I change my payments?

Yes. Full-time borrowers can customize payments online in their NSLSC account: increase payments to repay faster, lower them to make them more affordable, or extend repayment time up to 174 months to make payments smaller.

The government notes that some provincial loans still have interest, so lowering payments or extending your repayment time means paying more interest.

You can change your payment due date, and set up weekly or bi-weekly payments by adding multiple payment dates in the month. Part-time loan borrowers who want to change their monthly payment should contact the NSLSC.

Compare a shorter versus longer repayment term on any interest-bearing portion with our

Keep digital and paper copies of confirmations after every change. Screenshots of election pages, email receipts, and year-end statements make tax season and job changes far less chaotic. Compare fees the same way you would compare two similar listings before you buy: look at what you pay each year, what you get, and whether a simpler option meets the same need.

What is the Repayment Assistance Plan (RAP)?

RAP helps if you are having financial difficulty and can't make your payments. Depending on income, you may qualify for reduced payments or no payments at all. There is also RAP-D for borrowers with disabilities.

Eligibility: you live in Canada (or are a reservist or spouse of a deployed reservist, or on an international internship of a year or less), your loans are in repayment, meaning at least six months have passed since you graduated or left school, and you are up to date on your payments.

If your monthly gross family income is below the threshold for your family size, you may not need to make payments for six months: $3,866 for a family of one, $4,535 for two, $5,556 for three, $6,412 for four, $7,170 for five, $7,854 for six and $8,483 for seven or more. Earn more and you may still qualify for reduced payments. Provincial thresholds may differ.

If approved, the government pays any interest on the federal part not covered by your reduced payment, and starts paying down principal and remaining interest after 60 months of RAP or 10 years after you finish school. On RAP-D the government pays principal and interest your reduced payment doesn't cover.

The maximum time in repayment after leaving school is, in most cases, 15 years, or 10 years for persons with a disability. You must reapply every six months, online through the NSLSC or by mail. Borrowers with Prince Edward Island loans must also apply with their province.

Note: once the federal government has paid toward your principal on RAP, you can't receive more student grants or loans until you repay your unpaid loans (this doesn't apply to RAP-D).

If a rule depends on your age, filing status, or income band, re-check it when any of those facts change. Life events quietly move people across thresholds they last reviewed years earlier. Automation helps. Calendar reminders for annual reviews, automatic transfers, and beneficiary checkups reduce the chance that a good plan dies from neglect.

What happens if I miss payments or default?

Missing payments can hurt your credit rating and make it hard to catch up, the NSLSC warns. If you default, you could miss out on income tax refunds and be unable to get further grants or loans, and you may deal with a collection agency or legal action.

If you miss payments for 270 days or more (nine months), your loan is sent to the Canada Revenue Agency or your province or territory for collection. You can bring it back into good standing through loan rehabilitation.

Tax credit: the NSLSC says a student loan tax credit lets you deduct some of the interest you pay each year, including payments made during the non-repayment period. Your Interest Paid statement arrives in your secure inbox at the start of each calendar year.

Related guides: and

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