Overview
Loans are interest-free while you’re in school and in other special circumstances. There may be steps you need to take to keep your loans in interest-free status.
Interest-free status for current full-time students
While you’re in school studying full-time you don’t have to make payments and your loans are interest-free. When you finish studying, your loans enter a 6-month grace period where you still don’t have to make payments and no interest accrues. At the end of your 6-month grace period, your loan enters repayment status.
Interest-free status is available for full-time and part-time students.
In some circumstances, you need to tell Student Aid that you’re still a student in order to maintain interest-free status.
Important Notice
Interest accumulation for Canada loans is permanently eliminated as of April 1, 2023. This means interest will not accrue on full- and part-time Canada loans, including loans currently in repayment. Students are still responsible to pay any interest that may have accrued on loans before April 1, 2023.
Note: Interest for Canada loans was also waived between April 1, 2021 to March 31, 2023. This means interest has not accrued during this period for full- and part-time Canada Student Loans.
See the tables below for information on how to keep your loans interest-free:
|
How to keep your loans interest-free as a full-time student |
|
|
Is this the first time you received loans? |
Your loans are automatically interest-free |
|
Do you have loans from a past year and applied for full-time student aid this year? |
Your loans are automatically interest-free |
|
Do you have loans from a past year but aren’t applying for student aid again this year?
|
If you have Alberta and Canada loans, or only Canada loans:
If you only have Alberta loans: |
Interest-free status for current part-time students
|
How to keep your loans interest-free and in non-repayment as a part-time student |
|
|
Is this the first time you received loans? |
Your loans are automatically interest-free |
|
Do you have loans from a past year and applied for part-time student aid this year? |
If you have only Alberta loans, submit: If you have part-time Canada loans, they are automatically interest-free when you cash a new part-time loan. Full-time Canada loans are interest-free while you’re a part-time student. |
|
Do you have loans from a past year but aren’t applying for student aid this year?
|
If you have only Alberta loans, submit:
If you have part-time Canada loans:
|
| Full-time Canada loans are interest-free while you’re a part-time student. However, you’ll need to start making regular payments on your Canada student loans after the end of your 6-month grace period. | |
Special circumstances
The following situations are eligible for interest-free status:
- Medical residents: If you’re a medical resident, you can have interest-free status on your Alberta loans.
- Parental leave: If you’re taking a break from full-time or part-time studies for parental leave, you can have interest-free status on your Alberta loans.
- Canadian Forces Reservist: If you’re a full-time student and you stop your full-time study to serve in a designated operation, you can have interest-free status on your Canada and Alberta loans.