Claim the 15% federal credit on your OSAP or NSLSC interest — plus carryforward rules
Less interest paid = smaller tax credit, but more money in your pocket. Use KOHO's budgeting tools to find extra money for loan payoff. Code 45ET55JSYA for a bonus.
Open KOHO — Code: 45ET55JSYAAs of April 1, 2023, the federal government eliminated interest on Canada Student Loans (the federal portion). This means NSLSC loans no longer accrue federal interest, significantly reducing repayment costs but also eliminating the federal interest credit for most borrowers.
Some provincial portions of student loans may still charge interest. Check your NSLSC account to understand exactly what interest, if any, you are paying. Provincial-only loans may still generate claimable interest credits.
The 5-year carryforward is valuable if you're in a lower tax bracket now (recent graduate) and expect higher income later. Consider waiting to claim accumulated interest in a year when your marginal tax rate is higher — the credit saves more when you're in a higher bracket.
Track unused interest amounts carefully in MyAccount on CRA's website. The credit expires if not claimed within 5 years of the year interest was paid.