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 non-repayment or grace period where you still don’t have to make payments and no interest accrues.
Alberta Student Loans | Grace Period Extension - Effective July 1, 2023
The grace period for Alberta student loans is extended from six to 12 months. This change benefits students who completed studies on or after December 1, 2022.
The non-repayment or grace period is:
- Canada student loans - the first 6-months after the last day of school
- Alberta student loans - the first 12-months after the last day of school
Grace Period - Prior to December 1, 2022
Interest accrues on Alberta student loans and repayment begins 6-months after the last day of school.
At the end of your non-repayment or 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 and non-repayment status.
Notice: Interest accumulation on full- and part-time Canada student loans in repayment is permanently eliminated as of April 1, 2023. Borrowers continue to be responsible to pay any interest having accrued on Canada loans before April 1, 2023.
See the tables below for information on how to keep your loans interest-free:
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How to keep your loans payment and interest-free as a full-time student |
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Is this the first time you received loans? |
Your loans are automatically interest-free |
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Do you have loans from a past year and applied for full-time student aid this year? |
Your loans are automatically interest-free |
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Do you have loans from a past year but aren’t applying for student aid again this year?
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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
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How to keep your loans payment and interest-free as a part-time student |
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Is this the first time you received loans? |
Your loans are automatically interest-free |
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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. 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 non-repayment period. |
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Do you have loans from a past year but aren’t applying for student aid this year?
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If you have only Alberta loans, submit:
If you have part-time Canada loans:
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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.
- 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.