Finished Studies-Now What?
Once you have finished your post–secondary studies, you need to repay your student loans. Learn more about:
Did you know interest is accumulating on your loan?
Interest Rates
The interest rate on your student loan is a floating rate equal to the prime rate.
If you want to have a fixed rate, you may request it on a one-time basis only. The fixed rate is higher at prime rate plus 2%.
Grace Period – What Is It?
Grace period is the six-month period between the time you complete your studies and the time you have to start repaying your student loans. You are not required to make any payments during the grace period; however, interest does accumulate on your loan during this time.
Two Options to Deal with Grace Period interest
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Pay the interest before your loan enters repayment. You can make this payment as a one-time lump sum payment before your loan enters repayment or as numerous payments throughout the grace period as the interest accumulates. Paying the interest may also slightly reduce your monthly payment amount. |
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Capitalize the interest. This means adding the interest to the principal balance of your loan when your loan enters repayment. This is done automatically if the interest is not paid before your loan enters repayment. |
Tax Credit Information
You will receive your income tax receipts for any interest repaid with your annual statements from EDULINX and the National Student Loans Service Centre. While you are repaying your Alberta and Canada student loans, you are allowed to claim a 17% tax credit on the interest portion of the amount you paid on your student loan each year.
However, you will not receive a tax credit for interest accumulated in situations where that interest is capitalized to the principal balance of your loan. For example, you will not receive a tax credit if:
- you capitalize the interest that accumulated during your grace period (option 2 above), or
- you capitalize the interest outstanding in order to access repayment assistance, or
- you capitalize the interest when you return to school to put your loans into interest-free status
For important tax information regarding student loans, visit the Canada Revenue Agency website.
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