Last updated: March 2025 — Canadian student loans are interest-free during your studies and offer flexible repayment options after graduation. In 2024, the federal government permanently eliminated interest on Canada Student Loans — one of the most significant student aid improvements in decades.
Overview: Canada's Student Loan System
Student financial aid in Canada is a shared federal-provincial responsibility. Most students receive both a federal loan (from the Canada Student Loan Program, administered by NSLSC) and a provincial/territorial loan. Together, these form the bulk of government-backed student financing available to Canadian post-secondary students.
Federal Student Loans — Canada Student Loan Program (CSLP)
How Much Can You Borrow?
The federal government provides up to $300 per week of study through the Canada Student Loan Program. For a standard 30-week academic year, this equals up to $9,000 per year in federal loans. The actual amount depends on your assessed financial need, which considers family income, tuition, cost of living, and other resources.
Canada Student Grants
Before taking on loan debt, Canada Student Grants don't need to be repaid:
- Canada Student Grant for Full-Time Students: Up to $3,000/year for low-income students; up to $1,800/year for middle-income students
- Canada Student Grant for Part-Time Students: Up to $1,800/year
- Canada Student Grant for Students with Disabilities: Up to $2,000/year
- Canada Student Grant for Students with Dependants: Up to $200/month per child
NSLSC — National Student Loans Service Centre
The NSLSC (nslsc.canada.ca) is the federal government's student loan servicer. After graduation, all your Canada Student Loan repayment, correspondence, and assistance programs go through NSLSC. Set up your NSLSC account as soon as you start school to track your loan balance and understand your repayment options.
Provincial Student Loan Programs
| Province | Program | Max Annual Amount | Key Feature |
|---|---|---|---|
| Ontario | OSAP | $14,600 (loans + grants) | No repayment for incomes under $50K |
| British Columbia | StudentAidBC | $11,400 | Combined federal+provincial application |
| Alberta | ALIS Student Aid | $14,400 | Bursaries and scholarships available |
| Quebec | AFE (Aide financière aux études) | Varies | Quebec opted out of federal plan |
| Saskatchewan | Saskatchewan Student Aid | ~$14,400 | Integrated with federal application |
| Manitoba | Manitoba Student Aid | ~$11,000 | Need-based grants available |
| Nova Scotia | Student Assistance NS | ~$13,000 | Bursary for graduates who stay in NS |
| New Brunswick | NB Student Financial Aid | ~$12,000 | NB Bursary Program available |
OSAP — Ontario's Student Loan Program
OSAP (Ontario Student Assistance Program) is Canada's largest provincial student aid program, serving over 400,000 students annually. OSAP combines federal Canada Student Loans and Grants with Ontario Student Loans and Ontario Student Grants into a single application. See our full OSAP 2025 Guide for complete details.
Quebec Student Aid (AFE)
Quebec opted out of the Canada Student Loan Program and operates its own fully separate system through the Aide financière aux études (AFE). Quebec residents apply through the provincial government and receive provincial loans and bursaries only. Quebec's student aid program is notably more generous for residents — particularly in bursary amounts — partly offset by lower tuition fees historically.
How Student Loan Amounts Are Calculated
Financial need is calculated as: Assessed Costs minus Expected Resources. Assessed costs include tuition, books, living expenses (based on whether you live at home, on campus, or off-campus), and transportation. Expected resources include parental contributions (for dependent students), personal savings, and any employment income.
Independent vs Dependent Student Status
Students are classified as either dependent (under 22, living with or financially supported by parents) or independent. Independent status typically results in higher loan amounts because parental income isn't counted. You may qualify as independent if you've been out of high school for 4+ years, have been married/common-law, or have lived on your own and supported yourself for 2+ years.
Part-Time Student Loans
Part-time students (taking 20–59% of a full course load) can access Canada Student Loans for Part-Time Students. The maximum is $100 lifetime for part-time loans. Part-time students must not be in default on any previous student loans. Interest doesn't accrue while you're studying at least 20% of a full course load.
What Happens During School?
- Loans are interest-free (since April 2023 for federal; provinces vary)
- No repayment required while you're enrolled at least part-time (20%+ course load)
- Your loan balance is confirmed with NSLSC after graduation or leaving school
- A 6-month non-repayment period begins after graduation (interest-free for federal loans)
After Graduation — What You Owe
Six months after graduation (or leaving school), repayment begins. Your loan is consolidated and you receive a repayment schedule from NSLSC. The standard repayment term is 10 years (120 months). Monthly payments are set based on your loan balance, but you can request changes based on income. See our full Student Loan Repayment Guide.
Repayment Assistance Plan (RAP)
If you can't afford standard payments after graduation, the Repayment Assistance Plan (RAP) caps your payment at a percentage of your income (0–20% depending on income level). If your income is below $25,000/year, your payments could be $0. After 10 years on RAP, any remaining federal loan balance is forgiven. See the full details in our repayment guide.
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Can international students get Canadian student loans?
No. Canada Student Loans are only available to Canadian citizens, permanent residents, and protected persons. International students must rely on private loans, institutional bursaries, or financing from their home country.
Do I have to repay grants?
Grants do not need to be repaid as long as you complete the academic year and aren't overpaid due to a change in circumstances (e.g., withdrawing before the end of the term).
What happens if I drop out?
If you withdraw from studies, repayment begins 6 months later. You may qualify for RAP if your income is low. If you received more aid than your costs, you may need to repay the overpayment immediately.
Can I get a student loan with bad credit?
Government student loans don't consider your credit score for eligibility — they're need-based. However, credit history may affect private student loans from banks. Federal and provincial programs are accessible to students regardless of credit history.
Related: OSAP 2025 Complete Guide | Student Loan Repayment Options | Personal Loans Canada