Repayment

Beginning Repayment

Repayment Status

Student loan borrowers who are not in an interest free period are considered to be in repayment status. The service provider(s) will notify students of details related to repayment (e.g. payment amount, payment due date, outstanding principal owing) before the student transitions from an interest free period into repayment.

Grace Period

Repayment of Alberta Student Loans begins on the first day of the seventh month after the period of study end date (last day of the last month of studies). The six months immediately prior to repayment start date is known as the Grace Period. Interest does not accrue during the Grace Period.

Non-Repayment Period

Repayment of Canada Student Loans begins on the first day of the seventh month after the period of study end date. The six months immediately prior to the repayment start date is known as the non-repayment period.

On November 1, 2019, interest will no longer accrue during the six month non-repayment period. Prior to that date, interest will accrue during the non-repayment period.

This is also applicable to Part-Time Canada Student Loans.

Amortization

Amortization terms (i.e., the time period the loan repayment is spread out over) are set based on the outstanding balance when loans enter repayment:

  • 36 months for loans up to $3,000
  • 72 months for loans between $3,001 to $6,000
  • 114 months for loans $6,001 and over.

Amortization terms may be revised at the borrower’s request. See the Change of Repayment Terms section below.

Loan Interest Rates

For direct Alberta Student Loans:

  • By default, the interest rate charged is set at a floating rate (Canadian Imperial Bank of Commerce’s prime rate + 1%).
  • On a one-time basis, students can request a fixed rate (Canadian Imperial Bank of Commerce’s prime rate + 2%).

For direct Canada Student Loans, students can contact National Student Loans Service Centre (NSLSC) or check the Government of Canada website for current interest rates for Canada Student Loans. Canada Student Loan interest rates are determined by the Canada Student Loans Program.

Tax Credit on Interest Paid

A 17% tax credit is available on the interest portion of Alberta Student Loan and Canada Student Loan payments. Service providers will provide borrowers with statements summarizing interest payments. Borrowers may contact Canada Revenue Agency for information about interest payment tax credits.