Alberta Student Loans vs Canada Student Loans: What's the Difference?

Provincial vs. Federal: The Basics

When you apply for student aid in Alberta, you are automatically considered for both Alberta Student Loans (provincial) and Canada Student Loans (federal). This means one application gets you assessed for two separate loans from two different levels of government.

The Alberta Student Aid program administers provincial loans, while the Canada Student Financial Assistance Program manages federal loans. Each loan has its own rules, interest rates, and repayment terms, and you will have separate accounts and payment schedules for each.

Sources: Alberta Student Aid

Eligibility Differences

Eligibility for Alberta and Canada student loans is assessed separately. Alberta Student Aid and the Canada Student Financial Assistance Program use different calculations of your costs and resources, so you may be approved for one loan but not the other, or you may receive different amounts.

Most full-time students qualify for both loans, but part-time students are only eligible for Canada Student Loans.

• Full-time students: assessed for both Alberta and Canada loans.
• Part-time students: only Canada Student Loans, with a cumulative borrowing limit of $10,000.

Sources: Alberta Student Aid

Funding Amounts

The combined annual loan limit for Alberta and Canada student loans is up to $8,500 per semester (1-4 months), $17,000 for two semesters (5-9 months), and $25,500 for three semesters (10-12 months). Most full-time students receive up to the per-semester limit.

The exact split between the Alberta and Canada portions depends on your financial need, which is calculated separately by each program.

Sources: Alberta Student Aid

Interest Rates

Interest rates differ significantly. Both loans are interest-free while you are in school, but once repayment begins, the rules change.

Alberta student loans accrue interest during repayment at the CIBC prime rate, either as a floating or fixed rate. As of July 1, 2023, the premium was eliminated, so both rates are at the prime rate.

Canada student loans are permanently interest-free as of April 1, 2023. However, any interest that accrued before that date is still your responsibility.

Canada Student Loans are permanently interest-free as of April 1, 2023, so they have no interest during repayment. Alberta Student Loans accrue interest at the CIBC prime rate, so the Canada loan is currently the better deal in terms of interest.

• Alberta: interest-free in school, then CIBC prime rate during repayment.
• Canada: permanently interest-free since April 1, 2023, but pre-2023 interest is payable.

Sources: Alberta Student Aid

Repayment Terms

The grace period and when repayment begins are different for each loan. Alberta loans have a 12-month grace period after you leave school, and repayment begins after that. Canada loans have a six-month non-repayment period, and repayment starts six months after you leave school.

For Alberta student loans, the standard repayment term depends on the initial amount you owe: up to $3,000 is amortized over 36 months, $3,001 to $6,000 over 72 months, and $6,001 and over over 114 months. Canada loan repayment terms are not detailed in the official sources.

• Alberta: grace period 12 months, repayment begins after 12 months, amortization 3-9.5 years based on amount.
• Canada: non-repayment period 6 months, repayment begins after 6 months.

Sources: Alberta Student Aid

Repayment Assistance

If you have trouble repaying, you can apply for the Repayment Assistance Plan (RAP). Applications are submitted through the National Student Loans Service Centre (NSLSC) portal. For Alberta borrowers, applying for RAP through NSLSC covers both Canada and Alberta student loans, so you only need to apply once.

This means your combined debt is managed under one repayment assistance process, making it easier to get help when you need it.

Sources: Alberta Student Aid

How They Work Together (Single Application)

You do not need to apply separately for Alberta and Canada student loans. A single application through Alberta Student Aid is used for both programs. Your information is shared with the federal government, and each program calculates your financial need independently.

This integration is designed to simplify the process, but it also means you receive two separate debts and must manage two repayment accounts.

Sources: Alberta Student Aid

Which One Do You Get?

Most full-time students receive both an Alberta and a Canada student loan. Your eligibility for each is based on your financial need, and the combined amount you receive is capped by the annual loan limits.

Part-time students, on the other hand, only receive Canada Student Loans, as Alberta does not offer provincial loans to part-time students.

Sources: Alberta Student Aid

Side-by-side Comparison

Sources: Alberta Student Aid