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. A fixed interest rate is set at point of time while a variable or floating interest rate fluctuates. The interest on your loan(s) accrues daily and is calculated monthly (applied to your loan balance).

Canada Student Loans | Interest is Permanently Eliminated

The Canada Student Financial Assistance Program eliminated interest on student loans as of April 1, 2023. Canada student loans issued after this date are interest free.

Students are still responsible to pay any interest that may have accrued on their Canada loans before April 1, 2023.

Canada Student Loans Prior to April 1, 2023

• Floating (or Variable) Rate: Prime Rate
• Fixed Rate: Prime Rate + 2%

The Canada Student Financial Assistance Program used the prime rates declared by Canada’s five largest banks to calculate its prime rate for Canada student loans issued before April 1, 2023. The prime rate is calculated by eliminating both the highest and the lowest of the five rates and then using the average of the remaining three.

Alberta Student Loans | Interest Rate Change

For Alberta student loans, the interest rate charged is the prime rate as declared by the Canadian Imperial Bank of Commerce (CIBC):

• CIBC Current Posted Prime Rate 

Floating and fixed interest rates on Alberta student loans is reduced to the prime rate as of July 1, 2023.

• Floating (or Variable) Rate: Prime Rate
• Fixed Rate: Prime Rate

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%.