Student Loan Payoff Calculator Canada 2026

OSAP, NSLSC, and provincial loans — understand your options and calculate your payoff

Student Loan Payoff Calculator (calcOsapPayoff)

Enter your loan details to see payoff timeline and total cost.

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Canadian Student Loans Explained

Most Canadian students graduate with a mix of federal (NSLSC) and provincial student loan debt. Understanding which is which matters because they have different rules, interest rates, and forgiveness programs.

Federal Student Loans (NSLSC)

The National Student Loans Service Centre (NSLSC) manages federal student loans. As of April 1, 2023, the federal government eliminated interest on federal student loans permanently. This is a massive benefit — a $20,000 federal loan at 0% interest means every payment goes directly to principal.

Repayment begins 6 months after you stop being a full-time student. The default repayment period is 10 years (120 months).

Provincial Student Loans (OSAP in Ontario)

Provincial loan portions vary by province:

ProvinceProgramInterest Rate (2026)
OntarioOSAP provincial portionPrime rate (currently ~5.2%)
BCStudentAidBC0% (eliminated Jan 2023)
ManitobaMSFA0%
Nova ScotiaNSSLP0%
New BrunswickNBSLP0%
AlbertaASFA0%
QuebecAFE (bursaries, not loans)Varies
Ontario note: OSAP's provincial portion still charges interest at prime. Always prioritize paying this down before the federal (0%) portion.

Repayment Assistance Plan (RAP)

If your income is low, you may qualify for the federal Repayment Assistance Plan (RAP), which caps loan payments at a percentage of your income (0–20% depending on income). After 10 years of RAP, remaining loan balances may be forgiven. After 15 years (regardless of RAP), all remaining balances are forgiven.

Apply at the NSLSC website. RAP is income-tested — you must reapply every 6 months.

Permanent Disability Benefit

If you have a permanent disability preventing you from working, you may qualify for complete federal student loan forgiveness through the Severe Permanent Disability Benefit.

Fastest Strategy to Pay Off Student Loans

  1. Identify interest-bearing loans first. If your federal loan is 0%, but OSAP provincial is prime (5%+), pay the provincial portion aggressively.
  2. Don't skip the 6-month grace period. While you don't have to pay, interest may still accrue on provincial loans. Making payments during the grace period can save hundreds.
  3. RRSP or student loan? With federal loans at 0%, invest in your RRSP first if you're in a high tax bracket — you'll earn more on the investment than you'd save in interest.
  4. Claim the interest deduction. Federal student loan interest (if any) is non-refundable tax credit at 15% federal + provincial rates. Keep your tax receipts from NSLSC.
  5. Avoid income-driven repayment plans if possible. While RAP provides relief, stretching repayment to 15 years significantly increases total cost on interest-bearing portions.

Student Loans and Credit Scores

Student loans appear on your Equifax and TransUnion credit reports. Consistently making on-time payments builds your credit history significantly. Missing payments — even by one day — creates negative marks that stay for 6–7 years.

If you graduate with good repayment history on your student loans, you'll be in a strong position to qualify for a car loan, credit card, or eventually a mortgage. This is often how young Canadians establish their credit file.