Interest Rates
Fixed and Floating Interest Rates
There are two types of student loan interest rates – fixed and floating. Both are based on the prime rate. The interest on your loan(s) accrues daily, and is calculated monthly (applied to your loan balance).
| Interest: The amount paid by a borrower to a lender for the use of money. Interest charge is typically expressed as an annual percentage. |
Prime Rate and Interest Rate
Each of Canada’s five major banks post their prime rate. The interest rate charged on student loans is based on the prime rate.
For Alberta student loans, the interest rate charged is the prime rate as declared by the Canadian Imperial Bank of Commerce (CIBC):
Canada Student Loans | Interest is Permanently Eliminated
Students are still responsible to pay any interest that may have accrued on their Canada loans before April 1, 2023.
Canada Loans Prior to April 1, 2023:
The Canada Student Financial Assistance Program uses the prime rates declared by Canada’s five largest banks to calculate its prime rate for Canada student loans. CSFAP calculates its prime rate by eliminating both the highest and the lowest of the five rates, and then calculates the average of the remaining three.
Student Loan Interest Rates (different rates are charged on your loans)
| Alberta Student Loans | Canada Student Loans | Prior to April 1, 2023 |
| Floating (or Variable) Rate: Prime Rate |
Floating (or Variable) Rate: Prime Rate |
| Fixed Rate: Prime Rate |
Fixed Rate: Prime Rate + 2% |
Alberta Student Loans | Interest Rate Change
Floating and fixed interest rates on Alberta student loans is reduced to the prime rate as of July 1, 2023.
Alberta Loans Prior to July 1, 2023:
The floating rate is CIBC prime rate plus 1%, and the fixed rate is CIBC prime rate plus 2%.