Interest Rates for Canada Student Loans
The conditions of repayment for your Canada Student Loan are set at the time you enter repayment.
You can select a Definition of fixed interest rate or defintion of floating (variable) interest rate when it comes time to begin repaying your student loan.
For Canada Student Loans issued on, or after August 1, 1995:
- the fixed interest rate is prime + 5 percent and;
- the floating rate is prime + 2.5 percent.
For Canada Student Loans issued prior to August 1, 1995: the annual interest rate for loans in repayment is published in the Canada Gazette, Part 1 each year, (3.875 percent for the 2011-12 loan year).
Full-time and Part-time students:
- If you are a full-time or part-time student and you provide confirmation of enrolment to the National Student Loans Service Centre (NSLSC), the Government of Canada will pay the interest on your federal student loan while you are in school. If you have loans issued prior to August 1, 2000, you must advise the appropriate loan holder (the financial institution that issued them and/or the NSLSC).
- Whether you are studying full-time or part-time, you will need to begin repaying your student loan six months after you graduate or leave school; however, interest accumulates during this six-month period. While you are studying, you are neither required to make loan payments nor does interest accumulate. Additionally, your loan for full-time studies will enter repayment status if you switch from full-time to part-time studies.
Tips for Managing Interest Rates
- The Loan Repayment Estimator helps you estimate the monthly payments you'll need to make to repay your Canada Student Loan or other government student loans.
- Start making payments as soon as possible. Payments made during the six-month non-repayment period will go towards paying off your loan principal. This will decrease the total amount of your loan, resulting in less interest charged in the long run.
For more information on student loan payments visit: