BC Student Loans: Interest-Free Loans, Grants, Repayment and Forgiveness

Yes, BC student loans are interest-free. British Columbia eliminated interest on B.C. government-issued student loans on February 19, 2019, for current and future borrowers, and the federal Canada Student Loan portion has charged 0% interest since April 1, 2023. A Canada-B.C. integrated loan therefore charges no interest on either part.

This page covers how StudentAid BC funding is put together, the grants BC adds, how repayment works and BC’s own forgiveness program. How every province compares is on the student loans hub.

How StudentAid BC works

StudentAid BC runs one application for both governments’ aid. You apply once, and the assessment decides how much of your need is covered by federal grants, B.C. grants, a Canada Student Loan and a B.C. student loan. The two loans are issued together as a Canada-B.C. integrated student loan, so after school you see one balance and make one payment.

(Sources: StudentAid BC, eliminating interest on B.C. student loans; StudentAid BC, understand loan repayment.)

Grants BC students can get

The federal grants are assessed automatically when you apply; their types and amounts are in the Canada Student Grants guide. BC’s main addition is the B.C. Access Grant, upfront, non-repayable aid for low- and middle-income students in full-time undergraduate degree, diploma or certificate programs at B.C. public post-secondary schools:

The grant shrinks as family income rises and stops at a cut-off that depends on family size. Master’s and PhD students aren’t eligible. There are separate Access Grant streams for part-time students, students with disabilities and Deaf students. (Source: StudentAid BC, B.C. Access Grant (full-time).)

BC also runs the Provincial Tuition Waiver Program, which waives domestic tuition and eligible fees for current and former children or youth in care studying below the graduate level at a B.C. public post-secondary school, the Native Education College or an approved union-based trades training provider (StudentAid BC). Grants from the other provinces are compared in the provincial student grants guide.

Repaying a BC student loan

You have six months after leaving school before payments start. Repayment goes to the National Student Loans Service Centre, not to StudentAid BC: about 45 days before your first payment, the NSLSC asks you to sign in to your account, where you can see what you owe, your payment amount and the payment date. The NSLSC account guide covers signing in and setting up payments.

Because neither part of the loan charges interest, every dollar you pay reduces the balance, and paying ahead of schedule only ends the loan sooner. The student loan repayment calculator shows how long a balance takes at a given payment.

If the payment is more than you can afford, StudentAid BC lists the Repayment Assistance Plan (which can lower the payment, to $0 below an income threshold) and its version for borrowers with disabilities among its repayment help programs. Missed payments, default and bankruptcy are covered in what happens if you can’t pay your student loan.

The B.C. Loan Forgiveness Program

Recent graduates in some in-demand occupations can have the B.C. portion of their loan forgiven by working at publicly funded facilities in underserved B.C. communities, or by working with children in occupations where BC has a shortage. BC forgives the outstanding B.C. portion at up to 20% a year for up to five years, so five years of eligible work can clear all of it or a percentage of it.

You must be repaying a B.C. student loan that is in good standing, have graduated, work a minimum number of in-person hours in the eligible occupation, and not be studying full-time. StudentAid BC lists the eligible communities. (Source: StudentAid BC, B.C. Loan Forgiveness Program.)

The program forgives only the B.C. portion. The federal portion has its own forgiveness for family doctors, nurses, teachers and other listed occupations in rural communities; both are compared with other provinces’ programs in student loan forgiveness in Canada.