Interest Free Period

Reg.: Schedule 2, ss. 24(1)(c), 32

During the interest free period, loans are placed in Interest Free Status. This means the student does not have to repay their loan and the loan amount will not accrue interest.

As interest for part-time Canada Student Loans and full-time Canada Student Loans has been permanently elminated, interest will not accue regardless of whether a student is in interest free status or not. For Canada Student Loans, interest-free status may also be referred to as payment-free status. 

Interest free status is available in the following situations:

• While in part-time studies, students can have their outstanding Alberta Student Loans and their outstanding Part-Time Canada Student Loans placed in interest free status.
  • If the student applies for part-time funding and receives Canada part-time funding, this process will be initiated when the certificate is cashed
    
    
• In instances where the part-time student does not receive additional Canada part-time funding when they apply for part-time funding, or does not reapply for part-time funding:
  
  
  • If the student has outstanding Alberta Student Loans, the student must submit a completed Confirmation of Registration-Reinstatement of Interest Free Status for Alberta Student Loans (Form B) to the Alberta Student Aid Service Centre.
    
    
  • If the student has outstanding part-time Canada Student Loans, the student must sign on to the National Student Loan Service Centre Online Services to confirm enrollment to ensure they maintain interest free status for their Part-Time Canada Student Loans. While interest is waived for part-time Canada Student Loans, loan payment is still required unless the student confirms their part-time enrollment.

Part-time students are not eligible for interest free status on full-time Canada Student Loans.

While in part-time studies, students are required to repay their full-time Canada Student Loans. 

See the Repayment Chapter for information on interest free status for full-time students.

Students should visit Keep your loans interest free on studentaid.alberta.ca for steps to take to keep their loans in interest-free status.

Defaulted Loans

If a student defaults on a Part-Time Canada Student Loan, eligibility for future student funding (both full-time and part-time and both Canada Student Loans and Alberta Student Loans) is affected. The student must meet Canada Student Financial Assistance Program’s requirements to rehabilitate the default. The rehabilitation requirements are found on the Government of Canada website under Rehabilitate your Canada Student Loan.