Canada Student Loans are the federal government's primary tool for helping post-secondary students pay for their education. Administered by the National Student Loans Service Centre (NSLSC), these loans are available to eligible students at designated colleges and universities across Canada.
Whether you're applying for the first time or trying to understand your repayment options after graduation, this guide covers everything you need to know about Canada Student Loans in 2025.
The National Student Loans Service Centre manages Canada Student Loans on behalf of Employment and Social Development Canada (ESDC). It handles loan disbursement during school and repayment after you graduate. The NSLSC is your main point of contact for anything related to your federal student loan — checking your balance, updating contact information, applying for repayment assistance, or making payments.
To be eligible for Canada Student Loans, you must:
You apply through your provincial or territorial student aid office, not directly to the NSLSC. Each province has its own portal, and most coordinate with the federal government to deliver a combined funding package:
After submitting your application and receiving approval, you must sign a Master Student Financial Assistance Agreement (MSFAA) if it's your first time. Funds are deposited to your school account for tuition, with the remainder going to your bank account.
The federal government calculates your need based on your program costs (tuition, books, living expenses) minus your expected contributions (from your income, savings, and family). The maximum federal loan is approximately $100 per year, though most students receive less. Your total package also includes provincial aid, which varies by province.
Grants are assessed at the same time as loans. Full-time students from low-income families can receive up to $4,200 per year in Canada Student Grants — money that does not need to be repaid.
Since April 1, 2023, Canada Student Loans carry zero interest. This applies during school, during the 6-month non-repayment period after graduation, and throughout your entire repayment period. This is a major benefit — it means every dollar you pay reduces your actual debt, with nothing going to interest charges.
Note that provincial student loans may still carry interest depending on your province. Check with your provincial student aid office for details.
Once you leave school or drop below a 60% course load, you have a 6-month grace period before repayment begins. During this time, you don't have to make any payments, and no interest accumulates on your federal loan. You can make voluntary payments if you want to get ahead.
After the 6-month period, you'll make monthly payments to the NSLSC. The standard repayment term is up to 10 years. Your payment amount depends on your total balance. There are no prepayment penalties, so you can pay off your loan faster at any time.
If your income is low after graduation, the Repayment Assistance Plan (RAP) caps your payments at 20% of your income and can lead to loan forgiveness if you're on RAP for 10 years.
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