Interest-Free Status & Repaying Your Loans
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Repayment
When you graduate or stop being a full-time student, your Canada Student Loans will enter a six month grace period. During the grace period you will not need to make any payments towards your Canada Student Loans. You can make payments if you would like or are able, but it is not required during the six month grace period. Your Canada Student Loans will always be interest free (even after the end of the grace period).
The repayment period for your Canada Student Loans will begin on the first day of the seventh month after you stop being a full-time student (i.e. if you graduate in April, your student loans will enter repayment in May of the following year).
When you graduate or stop being a full-time student your Alberta Student Loans will enter a 12 month grace period. During the grace period you will not need to make any payments towards your Alberta Student Loans. You can make early payments if you would like or are able, but it is not required during the 12 month grace period.
The repayment period for your Alberta student loans will begin on the first day of the thirteenth month after you stop being a full-time student (i.e. if you graduate in April, your student loans will enter repayment in May of the following year). Unlike your Canada student Loans your Alberta student loans will begin to accrue interest once you enter the repayment period.
For details about other provinces/territories, contact your province/territory of residency.
If you have both Canada and Alberta student loans, you will need to make two payments: one to Alberta Student Aid and one to the National Student Loan Service Centre (NSLSC). Keep an eye on your student loan portals for important information in the months leading up to your repayment date.
If you are a full-time student, your loan will not enter repayment provided you inform Alberta/Canada Student Loans that you are a full-time student. You can let them know you are a full-time student by either receiving a new full-time loan or completing the online interest-free status application (you only need to complete one of these options, not both).
Interest-Free/Payment-Free Status
If you are continuing as a full-time student but do not need a full-time student loan for the upcoming academic year, you can keep your existing student loan(s) interest-free/payment free by confirming your enrolment at the beginning of every year of study. This will ensure you do not have to start repaying your loan(s) until you have finished your studies.
- Log in to your NSLSC account.
- Under the My Account tab, select “My School.”
- Under “If You Have Previous Loans Issued by a Jurisdiction Outside of Ontario,” click on “Confirm Your Enrolment”.
- Follow the steps to confirm your enrolment.
You must complete a Confirmation of Registration (Form B) to apply for interest-free status. You can download this form on the Alberta Student Aid Applications and Forms webpage.
Once you have filled out all of the student sections, you will need to get it signed by the Student Service Centre (if you’re an undergraduate student, including Open Studies and PGME) or the Faculty of Graduate Studies and Research (if you’re a graduate student). The Student Service Centre or Faculty of Graduate Studies and Research will inform you when they have completed the Form B and provide further instructions.
It is very important that you visit your Alberta MyLoan portal approximately one week after you submit it to ensure it has been received and processed properly. If there are any mistakes or issues with the submission of the online form, it may mean your student loans will enter repayment even if you are a full-time student.
You will need to contact your provincial lending authority to determine if you are eligible for interest-free status and how to apply for it.
Repayment Assistance Plan (RAP)
If you are having trouble paying back your loan, you can apply to enter the RAP. If you are deemed eligible, you may qualify for a reduced or $0 monthly payment.
For Alberta student loan borrowers, applying for the RAP through the NSLSC portal will apply to both your Canada and Alberta student loans, so you do not need to complete separate RAP applications.