Repayment Essentials
Introduction

Amortization

The period of time over which you agree to pay back a loan via a series of regular payments.

Your Monthly Payment Amount

Your monthly payment amount is calculated:

Your Loan Balance
(Principal + Interest)                             =  Monthly Payment
Divided by the amortization period
(no. of months to pay in full)

Amortization

The period of time over which you agree to pay back a loan via a series of regular payments:

If you shorten your amortization you: If you increase your amortization you:
  • Decrease the number of months it will take you to pay off your loans
  • Increase your payment amounts
  • Pay less interest
  • Increase the number of months it will take you to pay off your loans
  • Decrease your payment amounts
  • Pay more interest

Alberta Student Aid determines your Amortization, or the number of months to pay, based on your outstanding balance when you enter repayment:

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