Canada student loans are a type of funding that a significant number of Canadians take on to help pay for their studies. Whether it's a national student loan, a provincial loan, or a combination of the two, these can be a huge help for anyone pursuing post-secondary education.
Student loans can be majorly overwhelming. You need to consider eligibility, interest rates, application timelines, and repayment schedules.
That's why we've put together this guide – we've looked at all aspects of Canada student loans and their alternatives so that you can be informed and feel confident about your choice and your future.
Key Takeaways
- Canada student loans, or Canada government student loans (Canada GSL) are funds loaned by the government to students pursuing post-secondary education.
- Your eligibility for these loans depends on your citizenship/residency, financial need, the length of the program you're attending, and a few other details.
- The two major types of student loans are federal loans and provincial/territorial loans.
- While each province and territory has a student loan program of some kind, details regarding eligibility, loan amounts, and repayment terms vary between regions.
- Federal student loans no longer charge interest, but provincial/territorial loans may have variable or fixed rates.
What is a student loan in Canada?
Canada student loans (aka Canada GSL) are money provided by the government to post-secondary students based on financial need. Unlike other credit options, no interest is charged while students are enrolled in school - and federal student loans are completely interest-free.
Student loans can pay for:
- Tuition
- Textbooks
- Living expenses
- Transportation
Loans must be repaid, whereas grants require no repayment.
There are federal (national) and provincial/territorial student loan programs, with options available across Canada.
Eligibility for student loans in Canada
You can apply for a Canada student loan if you meet the following eligibility criteria:
- Status: Be a citizen, permanent resident, or designated protected person
- Financial need: Demonstrate financial need
- Length of program: Be enrolled in a program lasting 12+ weeks at a designated institution
- Course load (full-time): 60%+ course load, or 40%+ for disabled students
- Course load (part-time: 20%-59% course load, or 20%-39% for disabled students
- Credit: Pass a credit check if 22+ and a first-time borrower
- Lifetime limit: Not exceed the funding limit of 340 weeks (400 for doctoral studies, 520 for students with disabilities)
To determine the amount of your loan, the National Student Loans Service Centre (NSLSC) will review your application.
These factors may affect the amount of your loan:
- Family income amounts
- Number of dependents you or your parents have
- Province/territory
- Tuition amounts
- Disability status
The average Canadian student owes about $30,600 after getting a bachelor’s degree.
Types of student loans in Canada
There are two major types of student loans in Canada: federal and provincial/territorial.
Federal vs. provincial student loans in Canada
Federal student loans are provided by the Government of Canada. They are managed through the Canada Student Loans Program (CSLP) with consistent terms and conditions, and are interest-free.
Provincial student loans are offered by individual provinces and territories, with unique eligibility criteria, loan amounts, and repayment rules.
Depending on your province, you may apply with a single application or separate applications for federal and provincial loans.
Federal student loans in Canada
A federal student loan in Canada does not have to be paid back until you’re out of school.
Use this Student Aid Estimator to estimate the financial help you might receive.
Eligibility for federal student loans
To qualify for federal student loans in Canada, you must fit eligibility criteria around residency status, financial need, course load, length of program, and designated institution.
Applying for federal student loans
To secure a federal Canada Student Loan, you must apply through the student aid office for your province or territory of residence.
Where: You'll find applications for student loans in Canada here: Canada Student Grants and Loans – Apply with your province or territory
Even if there aren't any Canada Student Loans available through your province or territory, there will be links to applications for scholarships, grants, loans, and other forms of financial assistance.
When: At least 2 months before your program’s start date – every year
This ensures you'll receive funding in time for the beginning of your school term. Note that you have to re-apply for student loans every year.
How: Online or through Canada Post
To apply by mail, print the application found online or contact your provincial or territorial student aid office to request a paper copy.
Your mailed application should include copies of a government-issued photo ID, a document confirming your SIN, and a void cheque (or enter banking info on the form). Copy both sides of each item.
There are alternative formats available, including Braille.
Required documents for federal student loan applications in Canada
You will need these documents to fill out an application for federal student loans.
Read carefully, as it’s extensive and some information may require research on your part.
| Everyone | Special circumstances |
|---|---|
| Personal information: * Phone numbers * Home address * Email address * Birth date * Gender | Dependent applicants: * Names of parents/guardians * Income info from line 15000 of parent/guardian's tax return * Number and names of parent/guardian's other dependents * Number and names of parent/guardian's dependents pursuing further education |
| SIN | Married/Common-law applicants: * Spouse/partner's name, birth date, SIN * Spouse/partner's info from line 15000 of tax return |
| Info from line 15000 of your income tax return (total income from last year) | Applicants with dependents: * Names and birth dates of all dependents * Childcare expenses |
| Emergency contact(s): * Name(s) * Contact info | Applicants attending multiple schools: * Name of primary school and any other schools attended * Any airfare costs incurred |
| Banking info: * Transit number * Institution number * Account number | Applicants with permanent disabilities: * Proof of the disability (copy of medical letter, of learning disability assessment, or documentation showing you receive disability assistance) * Estimate of fees for assessments * Estimate of equipment costs |
| Academic info: * Name of educational institution * Tuition amounts * Program length * Start and end dates * Student ID (if known) | Permanent residents and protected persons: * Date of arrival in Canada * Date of arrival in current home province/territory |
| Financial info: * What your parents can/will contribute * Any scholarships or awards received * Expected reduction in annual income while studying | Other: * Some situations require details of the applicant's employment history |
Approval for federal student loans
After your application has been processed, you'll receive a Notice of Assessment that tells you if you qualified and what types of funding are available.
If you were approved, your school must provide a confirmation of your enrollment.
Then, you'll read and sign a Master Student Financial Assistance Agreement with the terms and conditions of your loan. You'll also provide the name of your financial institution and account information so the government can deposit money each term.
Finally, the government will send a portion directly to your institution and the rest will be sent to you via cheque or direct deposit.
If you were not approved or need more money, reach out to your provincial aid office to be reconsidered.
Provincial and territorial student loans in Canada
Each province/territory offers its own student loan programs. Eligibility, loan amounts, and repayment terms vary by province. Some are combined with federal loans, while others are separate.
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
- Yukon
Integrated federal-provincial: British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Ontario, Saskatchewan
In these provinces, students can use a single application to apply for both federal and provincial funding. Federal and provincial loans are combined into a single debt.
Loans are managed by the National Student Loans Service Center (NSLSC), and students make a single monthly payment.
- British Columbia: StudentAid BC
- Manitoba: Manitoba: Manitoba Student Aid
- New Brunswick: New Bunswick Canada: Student Financial Services
- Newfoundland and Labrador: Newfoundland & Labrador Education: Student Aid
- Ontario: OSAP: Ontario Student Assistance Program
- Saskatchewan: Saskatchewan Student Aid
Separate federal and provincial: Alberta, Nova Scotia and Prince Edward Island
In these provinces, students can use a single application to apply for both federal and provincial funding. However, provincial student loans are delivered separately from federal student aid.
Federal loans are managed through the NSLSC and provincial loans are managed by the provincial student aid office. Students will make two separate payments.
- Alberta: Alberta Student Aid
- Nova Scotia: Nova Scotia Canada: Financing Your Education
- Prince Edward Island: PEI Student Loans, Bursaries, Grants and Awards
Special cases: Northwest Territories, Nunavut, Quebec, Yukon
- Northwest Territories: NT Student Financial Assistance
- Nunavut: Financial Assistance for Nunavut Students (FANS)
- Quebec: Quebec: Financial Aid for Studies
- Yukon: Yukon: Financial Support for Students
Northwest Territories: There are no federal loans available to students here. Instead, the territory offers 2 types of loans for students: remissible loans and repayable loans.
Remissible loans are a living allowance, and your loan interest can be forgiven if you return to NWT after your education is complete. Repayable loans are for educational expenses and must be repaid.
Nunavut: There are no federal loans available to students here. Instead, the territory offers loans to full-time students via the Department of Education.
If you attended secondary school in Nunavut, you’re eligible for grant money. Long-term residents of Nunavut can have their loans forgiven.
Quebec: There are no federal loans available to students here. Instead, the province offers loans and grants to full-time and part-time students.
Yukon: There are no territorial student loans available to students here. Instead, Yukon students can apply for territorial grants and federal loans.
Pros and cons of student loans in Canada
| Pros | Cons |
|---|---|
|
|
Nearly 300,000 students are in a Repayment Assistance Plan (RAP) with adjusted payments because they cannot afford their loan payments.
Students in Alberta, Saskatchewan, Nova Scotia, and PEI face the highest debt loads.
In provinces that offer loans with variable interest rates, your payment amount will be impacted by fluctuations in the prime rate.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Interest rates on Canada student loans
As of April 1st, 2023, federal student loans no longer charge interest.
Provincial student loans may have variable or fixed rates, depending on the province, and may fluctuate based on the prime rate.
| Areas with only a fixed rate option | Areas with only a floating rate option | Areas with both options | Areas with no individual rates |
|---|---|---|---|
| * None | * Northwest Territories: prime - 1% * Nunavut: prime - 1% * Ontario: prime - 1% * Quebec: prime + 0.5% | * Alberta: prime + 2% (fixed) and prime + 1% (float) * New Brunswick: prime + 2% (fixed) and prime (float) * Saskatchewan: prime + 2% (fixed) and prime (float) | * British Columbia * Manitoba * Newfoundland * Nova Scotia * Nunavut * Prince Edward Island |
We didn't add the Yukon to this table since it doesn't have its own loans.
How to repay student loans in Canada
Your federal loans have a 6-month grace period where no payments are due. Some provincial loans will begin to accumulate interest during the grace period.
You can make payments during the grace period if you choose.
This is an opportune time to set up your federal repayment plan with NSLSC by connecting your bank account and setting up automatic withdrawals so you never miss a payment.
Note that delayed repayment and/or interest-free loans may be available to these people:
- Students who are also reservists
- Students leaving for an operation as part of the Canadian Forces
- Students taking a leave of absence due to medical or parental reasons
Grace periods for student loan repayment in Canada
The grace period is 6 months for federal and provincial student loans in Canada, except in PEI, where it’s 12 months. During this time, no payments are due.
This grace period begins when you:
- Finish your education and graduate from your program
- Transfer from full-time to part-time
- Decide to leave school
- Decide to take time off from school
On federal loans, no interest accumulates during this period - or at any point.
On provincial loans, you may or may not start accumulating interest during this period – it depends on your location.
| Province/Territory | Interest during grace period? |
|---|---|
| Alberta | No |
| British Columbia | No |
| Manitoba | No |
| New Brunswick | Yes |
| Newfoundland | No |
| Northwest Territories | No |
| Nova Scotia | No |
| Nunavut | No |
| Ontario | No |
| Prince Edward Island | No |
| Quebec | Yes |
| Saskatchewan | Yes |
Yukon is not included in this table as it doesn’t have its own loans.
Repayment Assistance Program
The Repayment Assistance Program (RAP) is an application-based program that can help you reduce your student loan payments partially or entirely if you can’t afford them.
- RAP stage 1: The government pays your interest for 6 months while you pay the principal. This can continue for up to 10 years or 60 months.
- RAP stage 2: The government pays your interest and principal. This begins after 10 years or 60 months of RAP stage 1. It lasts until you reach 15 years after leaving school at which point you no longer have to make payments.
To apply for RAP, go online at the NSLSC website or apply by mail with a paper application. Each application approval lasts for 6 months, so you'll need to reapply if you’re still struggling to make payments.
Students with permanent disabilities are automatically enrolled in RAP stage 2 and can continue receiving RAP up until 10 years after leaving school.
Student loan forgiveness in Canada
Loan forgiveness options in Canada are available for some professions and provinces. There are also hardship and bankruptcy options.
Student loan forgiveness for nurses and doctors
Eligible nurses and doctors can apply to get their federal student loans forgiven.
- Doctors: Up to $60,000 forgiven over 5 years
- Nurses: Up to $30,000 forgiven over 5 years
- Student loan must be in good standing
- Must work in an under-served or remote community
- Must work 400+ hours of in-person service over 12 months
Forgiveness applies after each year of service. You have to keep making interest-only payments during the year, and you have to reapply every year.
Student loan forgiveness in BC
Eligible BC students can get their provincial student loans forgiven.
- 20% forgiveness per year up to 5 years
- 100% forgiveness after 5 years of qualified work
- Worked 99-400 in-person hours in eligible role at publicly-funded facility in a shortage area
- Student loan is not in default
- Not enrolled in full-time studies
- Graduated from accredited institution
Student loan forgiveness in Quebec (Quebec Loan Remission)
Eligible QC students can get some of their provincial loans forgiven.
- 15% loan forgiveness
To be eligible, you must have received a bursary from Loans and Bursaries each year.
You must also have completed your studies within a specified period:
- 27 months for a college-level technical program
- 24 months for an undergraduate university program, over 3 years
- 32 months for an undergraduate university program, over 4 years
- 16 months for a master’s program without a thesis
- 20 months for a master’s program with a thesis
- 32 months for a doctorate program
Student loan forgiveness in Nova Scotia
Eligible NS students can get some or all of their provincial loans forgiven.
- Up to $20,400
- Up to 5 years
- Graduated from Nova Scotia non-professional program
- Completed your degree within 8 years of beginning it
- Student loan was issued on or after August 1, 2015
Student loan forgiveness in PEI (PEI Debt Reduction)
Eligible PEI students can get a grant to reduce their provincial loan balance.
- Up to $2,000 per year of study if you started school before Aug 1, 2018
- Up to $3,500 per year of study if you started schooling after July 31, 2018
- PEI resident
- Borrowed at least $6,000 in federal or provincial loans each year
When applying, you must submit a copy of your certificate, degree, or diploma. You must also submit your loan statement balances from the National Student Loans Service Centre (NSLSC) and Edulinx-PEI (dated within the past 4-weeks)
If you graduated after July 31, 2018, the deadline to apply is 3 years after your graduation date. You must also include 2 pieces of evidence that you were a resident of PEI for at least 6 months before you applied.
Bankruptcy and hardship provisions for student loans
Bankruptcy is a legal process that can help you clear your debts (including student loans) if you're unable to repay them.
Eligibility:
- 7 years out of school: You can discharge your student loans through bankruptcy.
- 5 years out of school: You can discharge sooner in cases of extreme financial hardship.
Filing for bankruptcy can result in the forgiveness of student loans, but it damages your credit and your assets may be seized. Before you consider bankruptcy, explore the Repayment Assistance Plan (RAP) for federal student loans.
Should you pay off student debt while in school?
A good strategy is to balance debt repayment with your current needs and financial priorities.
Minimize debt while in school: Borrow only what you need. If you’re able, work part-time to limit your future debt. Find a student bank account that doesn’t charge fees.
Budget based on interest rates: High-interest loans may warrant early payments. Consider building an emergency fund before you start repaying your loans.
While it’s wise to pay off your student debt as soon as possible, remember to focus on your studies – good grades can improve your job prospects (and future income).
Check out these helpful financial literacy resources for students: Financial Basics.
Other ways to pay for your education in Canada
If you need to borrow money for your education, here are some alternatives to student loans:
| Type | Pros | Cons |
|---|---|---|
| Student line of credit | * Your credit score can improve if payments are made on time * You only owe the precise amount you use | * No access to help from RAP * No tax credit for interest paid |
| Student credit card | * Can provide cash back, rewards, and/or perks * Helps build money management skills | * Very high interest * Lower credit limits |
| Personal loan | * Helpful for consolidating with other debt * Reliable fixed payments | * Not always available for young students * Costly fees and penalties |
| Alternative lenders | * Easy application process * Fast access to funds | * Interest payments start immediately * High interest rates |
Canada student grants
Student grants are free money to fund your education.
How to get them: There aren't any separate forms or applications necessary for Canada Student Grants. Your Canada student loan application automatically enters you into consideration for grants as well as loans. Your family income affects your eligibility.
$4,200 payment: The Canadian government is increasing the Canada Student Grant to $4,200 per year from $3,000 per year for full-time students.
Part-time students, disabled students, and students with dependents are eligible for other grants.
Work-study and scholarships
Work-study is offered by many Canadian universities. In these positions, students earn money while working on campus. Inquire with your institution’s financial aid office.
Scholarships are highly competitive, but winning one can help you pay for a big chunk of your education in Canada. Be cautious of any scholarship that requires you to pay money to submit an application.
Look for corporate-sponsored bursaries and other programs geared toward specific academic fields, like science and the arts.
FAQ
How much student loan can you get in Canada?
If eligible, you may get up to 100% of your tuition and living expenses covered. This may look like a combination of federal and provincial loans. The actual number is usually assigned per week of study, like $200 per week.
What is the $4,200 Canada student grant 2024?
For one year, the Canadian government is extending the increase in full-time Canada Student Grants to $4,200 from $3,000 per year. This lasts until the end of the 2024-2025 school year and it depends on your eligibility.
What are current student loan rates in Canada?
Federal student loans no longer incur interest, as of April 1, 2203. Your provincial loans will have individual interest rates, and you can ask your provincial aid office. For instance, in Alberta it’s the prime rate + 1%.
Do student loans get forgiven after 10 years in Canada?
Some students who are enrolled in a plan with RAP (Repayment Assistance Program) may be eligible to get their federal student loans forgiven after 10 years. It’s not automatic and it does not apply to provincial loans.
What is a student loan?
A student loan is a sum of money that students can borrow to help pay for expenses related to their post-secondary education. The most popular provider is the Canada Student Loan program, a federally funded program.
What is a national student loan?
A national or federal student loan is part of the Canada Student Loan program. Students are able to borrow funds from the federal government and use it to help fund their post-secondary education without having to worry about interest accumulation. Provincial/territorial loans are also available.
How do student loans work?
You begin by applying for a federal, provincial/territorial loan, or both – do this every year you're in school. On approval, necessary funds are sent to your school and you. Repayment starts six months after graduation.
Can you tell me how to apply for student loans?
The easiest method is to go to the NSLSC website and fill out the online application found there. If you prefer a non-government loan, make an appointment with your chosen bank or financial institution and speak with a representative.
Do student loans affect credit scores?
Yes, your payment consistency is considered by the credit bureaus in the same way it considers car loans and/or mortgages. Missing and/or falling behind on payments can significantly affect your score, so create a reasonable, reliable repayment plan.
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