Interest Rates

While you are in school, you do not have to make payments and no interest accrues on your student loans. Your last day of school is your Period of Study End Date. The first day of the next month, your loan status changes and you will need to manage your Canada and Alberta student loans separately.

Alberta Student Loans

There is no interest on your loan for 6 months, starting from the first day of the month, after your Period of Study End Date. During this 6 months, your loan status is "In Grace". At the end of the 6 months, your loan status changes to "In Repayment". When your Alberta student loan is In Repayment, interest will begin to accrue and you will be expected to make your first payment.

Canada Student Loans

Interest on your Canada student loan starts accruing immediately after you stop studying full-time. You will not be required to make any payments until six months from your last date of study. 

 

Interest Rates for Student Loans 

There are two types of student loan interest rates – fixed and floating. Both are based on the prime rate. The interest on your loans accrues daily, but you pay it at the end of each month.

 

Prime Rate

The prime rate is calculated monthly and is a reference point based on the variable rate of interest declared by the Canadian Imperial Bank of Commerce (CIBC). Changes to the prime rate affect your loan repayment

When the prime rate changes, the interest will change, but your total monthly payments will remain the same.

    • If the prime rate increases, more of your payment goes to interest. 
    • If the prime rate decreases, more of your payment is applied to your balance.

 

Floating Rate

Interest on your student loan is automatically set at the floating rate. If you have a floating rate, your interest rate will change along with the prime rate.

Alberta student loans

      • The floating rate is the prime rate (the lowest rate of interest for most banks). 

Canada student loans

      • The floating rate is prime plus 2.5%.


Fixed Rate

You can request a fixed interest rate. If you choose a fixed rate, your loans must remain at the fixed rate of interest until they are repaid in full.

Alberta student loans

      • prime rate plus 2% 

Canada student loans

      • prime rate plus 5%