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Student Loan Calculator

2025
Loan Details
$
$

Used for RAP eligibility (threshold: $40,000.00)

Federal: 0% (interest-free). Provincial varies.

$
Repayment Summary

Time to Repay

6.3 years

Total Repaid

$30,000.00

Total Interest

$0.00

RAP Eligible

No

Cost Breakdown
Amortization Summary
Loan balance$30,000.00
Interest rate0% (interest-free)
Monthly payment$400.00
Months to repay75
Years to repay6.3
Total interest paid$0.00
Total amount repaid$30,000.00
Recommended payment (10-yr)$250.00
Frequently Asked Questions

Everything you need to know about Canadian student loan repayment

Yes, since April 1, 2023, Canada Student Loans are permanently interest-free. This means no interest accumulates on the federal portion of your student loan. You still need to make regular payments on the principal. However, provincial student loans may still charge interest depending on your province -- check with your provincial student loan authority for current rates.
It varies by province. Some provinces like British Columbia and Manitoba have eliminated interest on their provincial student loans. Others still charge interest, typically at the prime rate or prime plus a margin. Ontario charges prime + 1% on provincial student loans. Quebec manages its own loan program through Aide financiere aux etudes. Check with your province for current rates.
The Repayment Assistance Plan helps borrowers who are having difficulty repaying their Canada Student Loans. If your gross family income is below approximately $40,000 for a single borrower (threshold varies by family size), your required monthly payment may be reduced or even set to $0. Under Stage 1 RAP, the government pays the interest. Under Stage 2 (after 60 months), the government also pays down the principal. You must reapply every 6 months.
Canada does not have broad student loan forgiveness like some US programs. However, Canada Student Loans are automatically forgiven after 15 years of RAP. There is also the Canada Student Loan Forgiveness for Family Doctors and Nurses program, which forgives up to $60,000 for doctors and $30,000 for nurses and nurse practitioners who work in underserved rural or remote communities for a specified period.
Yes, interest paid on qualifying student loans (Canada Student Loans, Canada Apprentice Loans, and provincial student loans) is eligible for a non-refundable federal tax credit of 15% of the interest paid. You can carry forward unused interest amounts for up to 5 years. Since federal loans are now interest-free, this credit primarily benefits those with provincial loans that still charge interest.
If you are struggling with payments, apply for the Repayment Assistance Plan (RAP) before missing payments. Missing payments will negatively impact your credit score. If you do not make payments for 270+ days, your loan goes into default and is sent to the CRA for collections. The CRA can then garnish wages, seize tax refunds, and withhold GST/HST credits. Always contact the National Student Loans Service Centre proactively.
Repayment of Canada Student Loans begins 6 months after you leave full-time studies (the grace period). During this 6-month period, no interest accrues on the federal portion (since it is interest-free), and no payments are required. Provincial loan grace periods and interest policies vary. Some provinces charge interest during the grace period, so check your provincial terms.

CRA-Aligned: This calculator reflects the interest-free status of federal Canada Student Loans since 2023. Provincial loan terms vary. RAP eligibility thresholds are approximate and depend on family size. Contact the National Student Loans Service Centre for a definitive assessment.

More Information
Understanding Student Loans in Canada

How Canadian student loans, repayment, and interest work

How do Canada Student Loans work?

The Canada Student Loans Program (CSLP) provides loans and grants to help pay for post-secondary education. The federal government covers up to 60% of assessed need, and provinces may top up the remaining 40%. Since 2023, federal student loans have been interest-free — you only repay the principal amount you borrowed. No interest accrues during or after your studies.

When do you start repaying student loans?

Repayment begins six months after you finish full-time studies — this is called the grace period. During the six-month grace period, no interest accrues on the federal portion (since it is interest-free). You can start making payments during the grace period if you choose. Once repayment starts, the standard repayment term is 9.5 years.

What is the Repayment Assistance Plan (RAP)?

The RAP helps borrowers who are struggling to make payments. Stage 1 reduces your monthly payment to an affordable amount based on your income — if you earn less than $40,000 per year with no dependants, your payment may be zero. Stage 2 begins after 60 months of RAP and the government starts paying down your interest and principal. No borrower has to repay for more than 15 years after leaving school.

Is student loan interest tax-deductible?

Interest paid on federal and provincial student loans qualifies for a non-refundable tax credit at the 15% federal rate. However, since federal student loans became interest-free in 2023, this credit now mainly benefits borrowers with older loans or provincial loans that still charge interest. The unused credit can be carried forward for up to five years.

What grants are available?

Canada Student Grants do not need to be repaid. Full-time students from low-income families can receive up to $4,200 per year. Part-time students can receive up to $1,800. Students with permanent disabilities can receive up to $22,000 per year. Students with dependants also qualify for additional grants. Grant amounts are based on family income and study period.

Can student loans be discharged in bankruptcy?

Student loans are only dischargeable in bankruptcy or consumer proposal if you have been out of school for at least seven years. In some cases of financial hardship, a court may grant a discharge after five years. This is different from other debts, which can be discharged immediately through bankruptcy. Plan your repayment strategy carefully.

How does loan forgiveness work for certain professions?

Canada offers loan forgiveness for family doctors and nurse practitioners who work in underserved rural or remote communities. The program forgives up to $60,000 of federal student loans over five years ($12,000 per year). Some provinces offer additional forgiveness programs for teachers, nurses, and other professionals who work in high-need areas.

CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.

Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms

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