Student Loan Repayment Calculator
Canada Student Loans charge 0% interest since April 2023 — only the provincial portion still grows. This calculator models them separately, shows why paying the provincial part first wins, and factors in the loan-interest tax credit.
Balance over time
Federal (0%) vs provincial (interest-bearing) balances, paying the provincial portion first.
Provincial-first vs proportional split
Same payment, two strategies. Wasting dollars on the 0% federal loan early leaves the provincial balance compounding longer.
Repayment schedule
Annual summary — federal and provincial balances, and provincial interest paid each year.
| Year | Paid | Prov. interest | Federal bal. | Provincial bal. | Total bal. |
|---|
How this is calculated
0% federal interest since April 1, 2023
The Government of Canada permanently eliminated interest on the federal Canada Student Loan portion. That balance still has to be repaid, but it does not grow. This tool sets the federal monthly rate to 0 and only accrues interest on the provincial portion at provRate ÷ 12.
Why paying the provincial portion first wins
Because only the provincial loan charges interest, every extra dollar should go there first. Each month the tool covers the provincial interest, then applies the rest of your payment to the provincial principal until it is gone, and only then to the 0% federal balance. It also simulates a naïve proportional split (payment divided by balance) so you can see the cost: paying down 0% debt early leaves the provincial balance compounding for extra months. Interest saved = proportional interest − provincial-first interest.
Repayment Assistance Plan (RAP)
RAP caps your required payment on government loans by family income and size. For a single person, income up to roughly $40,000 means a $0 required payment, with the government covering interest (Stage 1) and later principal (Stage 2). Above the threshold, payments are limited to about 10% of income above it, and the loan is fully retired within 15 years of leaving school (10 with a disability). The estimate here is a simplified single-income approximation — apply through the NSLSC for the official assessment.
Student-loan interest tax credit
Interest paid on government student loans qualifies for a non-refundable federal credit at 14% plus a provincial credit, so roughly 19–25% of interest paid comes back as a credit (it reduces tax owing, it is not a refund). It applies only to interest — never principal — and only to government loans, not a bank student line of credit. The old tuition/education credits do not apply to loan interest. Since federal loans are now 0%, essentially all creditable interest comes from the provincial portion.
Zero and edge cases
With a 0% provincial rate the loan is a straight-line payoff (balance ÷ payment). If your payment cannot cover the provincial interest, the balance would never fall — the tool flags this as negative amortization instead of reporting a fake payoff date.
What this doesn't model
Grace periods (interest-free federally for 6 months after leaving school), a private student line of credit (prime-linked — see the credit-card payoff calculator for high-interest debt strategy), annual RAP reassessment as income grows, or provincial rate changes. Rates and rules confirmed as of July 2026.