Canadian Student Loans Now at 0% Federal Interest: How to Use the New Calculator and Repayment Assistance
Key impact: If you have a federal student loan, you are no longer charged interest on that portion since April 2023. This means your monthly payments go further toward paying down your principal, and your total debt burden is lower.
What Changed?
Since April 1, 2023, the Government of Canada eliminated interest on all federal student loans and apprentice loans. This applies to both new and existing loans. Provincial loan portions may still charge interest, so you need to check your specific province’s rules.
How Much Can You Save?
Let’s look at an example. If you earn $55,000 per year and have a $300 monthly student loan payment, your take-home pay is reduced by about 8.3%. Without interest, that $300 goes entirely toward reducing your debt, not paying interest charges.
Who Is Affected?
- Current students with federal loans
- Graduates still repaying federal loans
- Apprentices with federal apprentice loans
- Anyone who has a Canada Student Loan or Canada Apprentice Loan
What You Should Do
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Use the new calculator – Enter your annual income, monthly loan payment, and province to see your personalized impact. The tool shows how much your take-home pay is reduced.
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Check your provincial loan – Some provinces still charge interest on their portion. Contact your provincial student loan office to confirm.
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Apply for Repayment Assistance Plan (RAP) if you are struggling to make payments. RAP caps your monthly payments at 20% of your family income. After 15 years (or 10 years if you have a disability), any remaining balance can be forgiven.
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Log in to the National Student Loans Service Centre (NSLSC) to manage your account and apply for RAP online.
What Is the Repayment Assistance Plan?
If your income is low, RAP can help. Your monthly payment is capped at 20% of your family income. If your income is very low, your payment could be $0. After 15 years (or 10 years for persons with disabilities), any remaining balance is forgiven.
Bottom Line
The 0% federal interest on Canadian student loans is a major win for borrowers. Use the calculator to see your savings, check your provincial loan rules, and apply for RAP if you need help. Every dollar you pay now goes directly to reducing your debt, not paying interest.