Repay a student loan - How to start

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Start repaying 6 months after leaving school

There is a 6-month non-repayment period, between the time you finish school, and before you must begin making payments on your Canada Student Loans. Interest will not accrue during the 6-month non-repayment period.

Interest may be charged during the non-repayment period on some provincial or territorial loans. Please contact your province or territory for more information.

The 6-month non-repayment period starts after you:

  • finish your final school term
  • reduce from full-time to part-time studies
  • leave school or take time off school

If you need to take leave from your studies, you might be eligible to apply for Medical and Parental Leave.

Paying before the 6-month period ends

You can make payments at any time after receiving your loan, even while studying, by making one-time payments. You don't have to wait until after the 6-month period ends. If you pay off your loan in full before you finish school, you will not pay any interest.

Choosing your repayment options

Before the 6-month non-repayment period ends, you will receive a notification to log in to your National Student Loan Service Centre (NSLSC) account to find details on your repayment.

From your NSLSC account, you will be able to:

  • choose an interest rate option
  • change the day of the month the payments are withdrawn
  • change the payment frequency
  • change the bank account from which payments should be withdrawn

If you set up pre-authorized payments, payments will begin to be withdrawn automatically from your bank account on file. To update your financial information or set up pre-authorized payments, log in to your NSLSC account. If you do not use this option, you will need to make other arrangements to ensure payments are made on time.

Choose an interest rate option

You have 2 interest rate options to choose from for your Canada Student Loan:

  • a floating interest rate equal to the prime rate; or
  • a fixed interest rate of the prime rate + 2%.

The prime rate is calculated using the rates of the 5 largest Canadian banks; eliminating the highest and the lowest rates, taking the average of the remaining 3.

Interest rates are subject to change as the prime rate varies. Please log in to your NSLSC account for more information about the current interest rates.

By default, your student loan has a floating interest rate. You can change to a fixed interest rate at any time after you enter repayment. If you switch to a fixed rate, you will not be able to change back to a floating rate. To choose a fixed interest rate anytime during your repayment period, contact us.

Use the repayment estimator to see the effect of interest rates on your monthly payments.

Repayment estimator

If you have a provincial or territorial part to your loan, it might be under a different interest rate. Please contact your province or territory for your current rates.

For the interest rate on Canada Student Loans issued before August 1, 1995, contact the financial institution that issued your loan.

One-time payments after the 6-month non-repayment period

After the 6-month non-repayment period, you can make one-time payments at any time. One-time payments during your repayment period will be applied to the interest first, then to the principal of your loan. You will still have to make your regular monthly payments.

Still studying or in the Canadian Forces

As long as you are in school or a reservist in the Canadian Forces in a designated operation, you do not have to make payments on Canada Student Loans or provincial or territorial student loans.

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