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Are Student Loans in Canada Interest-Free?

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You don’t have to make any payments, and the loan is interest-free while you are studying full-time. After completing her studies, the loan has a six-month grace period during which she does not have to make any payments and accrue no interest. At the end of the 6-month grace period, the loan will be in repayment status.

Interest-free status is available for full-time and part-time students.

In certain circumstances, you must tell Student Aid that you are still a student in order to maintain your interest-free status. 

Important note

Canadian student loan interest will be waived until March 31, 2023. Neither full-time nor part-time Canadian student loans will accrue interest during this period.

The table below provides information on how to keep your loan interest-free.

How to keep your loan interest-free as a full-time student

New to receiving credit? 

Your loan is automatically interest-free

Did you apply for a loan last year and apply for full-time student assistance this year? Your loan is automatically interest-free

Have a loan from last year but haven’t applied for study aid this year? 

If you have loans in Alberta and Canada, or only in Canada:

  • Register for NSLSC online services and confirm your registration online.
  • If you only have an Alberta loan, Submit Alberta Registration Confirmation – Form B

Special circumstances

The following situations qualify for interest-free status:


Interest-free Alberta loans are available to medical residents.

Maternity leave:

If you interrupt your full-time or part-time studies due to maternity leave, you may receive interest-free Alberta loan status.

Canadian Army Reservists:

If you are a full-time student, complete full-time studies, and serve at certain facilities, you may be eligible for interest-free loans in Canada and Alberta.

Low-Interest Student Loans & No-Interest Student Loans

Student loans are a reasonable and popular way to cover tuition, books, materials, room, food, and other education-related expenses. A recent survey found that more than half of families take out loans to pay for college costs (covering a small portion of college costs compared to other funding sources such as scholarships) ). College borrowing may be expected as part of the funding of the college process. About six in ten families who have rented said it was always part of the plan.

Families and individuals often borrow to pay for college, but what kind of loans? And at what interest rates? Also, do you have interest-free loans?

The answer is yes. Some non-profit organizations provide interest-free loans to full-time post-secondary students for educational purposes. The nonprofit will cover all costs, fees, and interest typically associated with the loan through another funding channel. 

One such organization is the Jewish Free Loan Association of Los Angeles, which provides loans for primary and community education and, interestingly, vocational schools. By the way, this organization is open to all LA residents, regardless of name.

Types of interest-free student loans

Before you dive in with both feet, you should realize that interest-free student loans require a loan guarantor, possibly two. If you can find a guarantor to protect you, you’ve come to the right place. also need to know. These hurdles still make interest-free loans your best financial bet, and interest-free loans can be combined with other products. Low-interest student loans are available based on your eligibility and/or creditworthiness. Federal student loans for the 2019-2020 academic year were 5.045% for student loans and 4.529% for unsubsidized graduate loans.

If you obtained a subsidized loan through your Free Application for Federal Student Aid (FAFSA) application, do not pay interest on the loan while you are in school. The government subsidizes or takes care of this money while you study. 

Yes, there is interest on the loan, but we are not responsible for that interest until the loan is finished. There are also personal loans for students, but the interest rate depends on your creditworthiness. There are various banks and lenders that offer variable and fixed-rate student loans. Again, do your homework and research carefully.

Interest-free student loans for students

Interest-free loans for graduate students can be difficult. Still, there is another case where the Jewish Free Loan Association can help with law, medical, or other graduate programs. or visit your university’s scholarship department. Don’t forget to look for in-program graduate scholarships, fellowships, teaching assistantships, and other financial aid.

Best Advice

Education, like life after college, is important and can be affected by some of the big decisions you make now. Don’t take financial responsibility lightly. Find out about all available student loans and decide which product is best for you and your family.

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