Everything you need to know about borrowing for school, repaying your debt, and getting back on track financially.
Over 60% of Canadian post-secondary students graduate with some form of student debt. The average borrower owes around $28,000 in federal and provincial student loans. Understanding how the Canadian student loan system works — before you borrow — can save you thousands in interest and years of repayment stress.
Student loans in Canada come from two levels of government: federal and provincial/territorial. Most provinces integrate with the National Student Loans Service Centre (NSLSC), which administers federal Canada Student Loans. Ontario has OSAP, BC has StudentAid BC, Alberta has Alberta Student Aid, and so on.
Loans are generally split into two components: a grant portion (does not need to be repaid) and a loan portion (must be repaid with interest). The grant/loan split depends on your family income, number of dependants, and other factors.
The federal Canada Student Grant provides up to $4,200 per year for full-time students from low-income families. This is free money — it does not need to be repaid. The amount decreases as family income increases.
The federal Canada Student Loan provides up to $210/week of study. Interest does not accrue while you are enrolled in school at least half-time. Repayment begins 6 months after you leave school.
Each province has its own student loan program that typically complements the federal loan. OSAP (Ontario), StudentAid BC, Alberta Student Aid, and others. Provincial grant and loan amounts vary significantly — Ontario and BC tend to be among the most generous.
As of 2023, the federal government eliminated interest on Canada Student Loans entirely — making them the most affordable form of student borrowing available. Provincial loan interest rates vary:
Apply as early as possible — some provinces have limited grant funding and earlier applicants may receive more generous packages.
When you finish school, you have a 6-month grace period before loan repayment begins on your federal loans. During this time, no interest accrues on federal loans. Use this period to find employment and set up a repayment budget.
If you cannot afford your standard monthly payments after graduation, the federal Repayment Assistance Plan (RAP) caps your monthly payment at a percentage of your income — sometimes as low as $0 if your income is very low. After 10–15 years on RAP, any remaining balance may be forgiven.
The students who graduate with the least debt are those who treat their student loan as a last resort — not a salary. Track every dollar carefully. Apps like KOHO help you see exactly where your money goes and set automatic savings goals, so you can stretch your student loan further and borrow less overall.
No fees, automatic savings, and cash back on every purchase. Perfect for students living on a budget.
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