Interest Rates

Alberta student loans

There is no interest on your loans for the first six months from your last date of study. This is called your “grace period”. At the end of your six month grace period, interest will begin to accumulate on your Alberta student loan and you will be expected to make your first payment.

Canada student loans

Interest on your Canada student loan starts accumulating 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. 

Calculating Interest 

Floating Rate

Interest on your student loan is automatically set at the floating rate. Your bank can provide you with the most current prime rate information.

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% 


The interest on your loans accumulates daily, but you pay it at the end of each month.

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, you pay more interest. 
    • If the prime rate decreases, you pay less interest, and more of your payment is applied to the loan balance.