💼 PAYROLL & INCOME · UPDATED 2026
Student Loan Repayment Calculator
Calculate your Canadian student loan payoff date, monthly payments, and total interest — including federal NSLSC loans (0% interest since 2023) and provincial loans.
Federal Student Loans in Canada Are Now Interest-Free
As of April 1, 2023, the federal government eliminated interest on Canada Student Loans permanently. This means federal student loan balances no longer accumulate interest — every dollar of your payment goes directly to reducing your principal. This is one of the most significant changes to Canadian student lending in decades and dramatically reduces the long-term cost of federal student debt. If you graduated before April 2023 and had federal student loan interest, that interest stopped accruing on your federal portion from that date forward.
Provincial student loans are a different story. Most provinces continue to charge interest on their portion of student loans. The provincial interest rate varies by province and loan type — typically prime plus 1% (floating) or prime plus 2% (fixed). British Columbia eliminated provincial student loan interest in 2019. New Brunswick, Manitoba, and Prince Edward Island have also made their provincial loans interest-free. Check with your province's student loans office for your specific rate.
The Repayment Assistance Plan (RAP)
If your student loan payments are unaffordable relative to your income, the Repayment Assistance Plan (RAP) limits your monthly payments to a manageable percentage of your income — and covers any shortfall from the government side. Under RAP, you never pay more than 20% of your family income toward your student loans, and if your income is below a threshold (approximately $25,000 for a single person), your payments could be $0. After 10 years on RAP (15 years for borrowers with permanent disabilities), the remaining balance is forgiven. Apply through your provincial student loan authority or the NSLSC website.
Frequently Asked Questions
How long do I have to repay my Canadian student loans?
The standard repayment period for Canada Student Loans is 10 years (120 months). If you need lower payments, you can extend to a maximum of 14.5 years (174 months) under the Revised Repayment Assistance Plan. Since federal loans are now interest-free, extending your repayment period no longer increases your total cost — it simply spreads the same principal over more months. For provincial loans with interest, extending repayment increases total cost, so pay those off faster if possible.
Can I claim student loan interest as a tax deduction in Canada?
You can claim a 15% federal non-refundable tax credit on interest paid on qualifying student loans under the Canada Student Financial Assistance Act or equivalent provincial legislation. However, since federal student loans are now interest-free, this credit only applies to provincial loans that still charge interest. You can carry forward unclaimed interest amounts for up to 5 years. Private student loans and bank lines of credit used for education do not qualify for this credit — only government-issued student loans do.
Should I pay off my student loans or invest in my TFSA/RRSP?
With federal student loans now at 0% interest, the mathematical case for investing instead of aggressive early repayment is very strong. Any investment returning more than 0% is better than paying off a 0% loan early. For most Canadians, maximizing TFSA contributions (which earn market returns tax-free) while making minimum federal loan payments is the optimal strategy. For provincial loans with 4–7% interest, the decision is more nuanced — compare your provincial loan rate to your expected investment return to decide the right balance.
What happens to Canadian student loans if I move abroad?
Your student loan obligation does not disappear if you leave Canada. You remain responsible for repayment regardless of where you live, and the NSLSC can pursue collection internationally. However, you will no longer qualify for RAP while living outside Canada. If you plan to live abroad temporarily, contact the NSLSC to make repayment arrangements in advance. Defaulting on student loans has serious consequences including credit damage and CRA collections — it is always better to set up a manageable payment plan than to default.
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