Student Loan Repayment Calculator
Interest Rates by Loan Type
| Loan Type | Interest Rate (2026) |
|---|---|
| Canada Student Loans (federal) | 0% |
| BC Provincial | 0% |
| Nova Scotia Provincial | 0% |
| Ontario (OSAP provincial) | Prime (varies) |
| Quebec (AFE) | Prime |
| Alberta Provincial | Prime |
| Other Provinces | Varies |
The federal portion of most student loans is interest-free as of April 2023.
Average Student Debt in Canada
| Education Level | Average Debt |
|---|---|
| College diploma | $15,000 |
| Bachelor’s degree | $28,000 |
| Master’s degree | $35,000 |
| Professional degree | $60,000+ |
| PhD | $40,000 |
Repayment Timeline Examples
$30,000 at 0% Interest
| Monthly Payment | Payoff Time | Total Paid |
|---|---|---|
| $250 | 10 years | $30,000 |
| $350 | 7.1 years | $30,000 |
| $500 | 5 years | $30,000 |
| $750 | 3.3 years | $30,000 |
$30,000 at 5% Interest (Provincial Portion)
| Monthly Payment | Payoff Time | Total Paid | Interest Paid |
|---|---|---|---|
| $250 | 12.8 years | $38,500 | $8,500 |
| $350 | 8.5 years | $35,700 | $5,700 |
| $500 | 5.7 years | $34,200 | $4,200 |
| $750 | 3.6 years | $32,400 | $2,400 |
Repayment Assistance Plan (RAP)
If you’re struggling to make payments, RAP can help:
Stage 1: Reduced Payments
| Gross Monthly Income | Payment (single, no dependents) |
|---|---|
| $0 - $2,183 | $0 |
| $2,183 - $3,000 | Affordable amount |
| $3,000+ | Regular payment |
Thresholds increase with family size.
Stage 2: Government Pays Remainder
After 60 months on Stage 1:
- Government pays interest portion
- Government pays principal reduction
RAP Eligibility
| Requirement | Details |
|---|---|
| Canadian resident | Or abroad for eligible reasons |
| Completed studies | Or left school |
| Out of grace period | 6 months after leaving school |
| Income-based need | Proven through application |
Grace Period
| Loan Type | Interest in Grace Period | Payments Required |
|---|---|---|
| Canada Student Loans | 0% | No |
| Ontario (OSAP) | 0% | No |
| BC Student Loans | 0% | No |
| Quebec (AFE) | Yes (accrues) | No |
| Private loans | Usually yes | Check lender |
The 6-month grace period starts after you graduate, leave school, or drop below part-time.
Strategies to Pay Off Student Loans Faster
1. Pay More Than Minimum
| Extra Payment | Effect on $30,000 loan |
|---|---|
| $50/month | Save 10 months |
| $100/month | Save 18 months |
| $200/month | Save 30 months |
2. Use the “Snowball” or “Avalanche” Method
| Method | Approach | Best For |
|---|---|---|
| Avalanche | Pay highest interest first | Saving money |
| Snowball | Pay smallest balance first | Motivation |
3. Lump Sum Payments
Use windfalls (tax refunds, bonuses) to pay down principal:
- Tax refund: $1,500 average
- Work bonus: Variable
- Gifts: Birthday, graduation
4. Biweekly Payments
Pay half your monthly payment every 2 weeks = 13 full payments/year instead of 12.
Student Loan Tax Credit
The interest on student loans is eligible for federal and provincial tax credits:
| Interest Paid | Federal Credit (15%) | Provincial (~5%) | Total Savings |
|---|---|---|---|
| $500 | $75 | $25 | $100 |
| $1,000 | $150 | $50 | $200 |
| $2,000 | $300 | $100 | $400 |
Credits can be carried forward up to 5 years.
Note: With federal loans at 0% interest, this mainly applies to provincial portions.
Should You Pay Off Student Loans or Invest?
| Loan Interest Rate | Recommendation |
|---|---|
| 0% | Invest (any return beats 0%) |
| 1-3% | Invest (expect higher market returns) |
| 4-6% | Pay off OR invest (close call) |
| 7%+ | Pay off first |
With federal loans at 0%, mathematically it’s better to invest. But some prefer the peace of mind of being debt-free.
Private vs Government Student Loans
| Feature | Government Loans | Private Loans |
|---|---|---|
| Interest rate | 0% (federal) | 7-15%+ |
| Repayment assistance | Yes (RAP) | No |
| Grace period | 6 months | Varies |
| Tax credit on interest | Yes | No |
| Flexibility | High | Low |
Avoid private student loans if possible. Government loans have much better terms.