When Repayment Begins
Your Alberta Student Loan repayment schedule is tied to your period of study end date. This is the official end date of your study period, not necessarily the date you graduate or leave school. The timeline differs depending on whether your loan is from Alberta or Canada.
For Alberta Student Loans, you benefit from a 12-month interest-free grace period that starts on the first day of the month after your study period ends. Repayment begins on the first day of the 13th month after that end date. During this grace period, you are not required to make payments, and interest does not accrue on the Alberta portion of your loan.
For Canada Student Loans, the non-repayment period is shorter: 6 months from the study end date. Repayment begins on the first day of the seventh month. Importantly, interest on the Canada portion is permanently eliminated, so no interest accrues during the 6-month period or after.
- Alberta Student Loan: 12-month grace period, then repayment starts at month 13.
- Canada Student Loan: 6-month non-repayment period, then repayment starts at month 7.
- You can make payments during the grace period to pay off your loans faster and reduce overall interest.
Sources: Alberta Student Aid
Understanding Your Loan Agreement
Most borrowers have two separate loan agreements: one for the Alberta Student Loan and one for the Canada Student Loan. These are managed and repaid separately, meaning you will have two different payments to make. It’s important to keep track of both.
Your loan agreement outlines the terms, including the interest rate type (fixed or floating), the amortization period (how long you have to repay), and your monthly payment amount. You can manage your loans online through MyLoan or by contacting the Alberta Student Aid Service Centre.
Because the two loans have different interest rates and repayment schedules, you must stay aware of each. For example, the Canada portion no longer accrues interest, while the Alberta portion does at the prime rate.
- You have two separate payments: one for Alberta, one for Canada.
- Review your loan agreement for your interest type, amortization period, and payment amount.
- Update your contact and payment information in MyLoan to avoid missed communications.
Sources: Alberta Student Aid
Interest Rates
Interest accrues daily on your Alberta Student Loan and is calculated monthly. The rate is the prime rate declared by the Canadian Imperial Bank of Commerce (CIBC). Since July 1, 2023, both fixed and floating rates on Alberta Student Loans are set at the prime rate, meaning there is no longer a premium added.
In contrast, interest on Canada Student Loans has been permanently eliminated as of April 1, 2023, including on loans already in repayment. This change means the Canada portion of your loan does not accrue any interest.
Understanding the difference is crucial: while your Canada loan does not grow, your Alberta loan does accrue interest at the prime rate. Since the prime rate can change, your payment amount may adjust accordingly if you have a floating rate. For fixed rates, the interest rate is locked at the prime rate at the time your loan was issued.
- Alberta Student Loan interest: daily accrual, monthly compounding, rate = CIBC prime.
- Canada Student Loan interest: permanently eliminated as of April 1, 2023.
- Interest is calculated on the outstanding principal balance; paying more than the minimum reduces interest over time.
Sources: Alberta Student Aid
Repayment Options
Standard repayment for Alberta Student Loans is set up automatically on a monthly schedule. You can adjust the payment amount or date through MyLoan or by calling the Alberta Student Aid Service Centre. However, your payment amount must be sufficient to amortize the loan within the maximum amortization period.
The standard amortization periods for Alberta Student Loans are based on the original loan amount: 36 months for loans up to $3,000, 72 months for loans between $3,001 and $6,000, and 114 months for loans over $6,001. This means the total time to repay depends on how much you borrowed.
If you have both Alberta and Canada loans, you will have two separate repayment plans. You can choose to make extra payments or pay off the entire loan early without penalty—this is allowed and can save you interest. Contact your loan provider to ensure extra payments are applied correctly.
- Automatic monthly payments are set up, but you can change the amount or date.
- Amortization periods: 36 months (up to $3,000), 72 months ($3,001–$6,000), 114 months (over $6,001).
- Pre-payment is allowed without penalty.
Sources: Alberta Student Aid
The Repayment Assistance Plan (RAP)
The Repayment Assistance Plan (RAP) is a program that helps borrowers who are having difficulty making their payments. It can reduce your monthly payment to an amount you can afford—based on your income and family size—and can even cover the interest that your payment does not cover. RAP is available for both Alberta and Canada Student Loans.
Eligibility for Alberta RAP requires you to: be in repayment status, have your loan in good standing, not be restricted due to previous failure to make affordable payments, not have the loan included in bankruptcy, provide all requested documents, and meet the financial eligibility criteria. RAP is not available on defaulted loans.
RAP has two stages. Stage 1 helps borrowers in temporary difficulty by paying the interest that your affordable payment does not cover. Stage 2 begins after Stage 1 (or after 10 years in repayment) and can cover both principal and interest beyond your affordable payment, ensuring your loan is fully repaid within 15 years of your study end date.
- Reduces payments to an affordable amount based on income and family size.
- Covers unpaid interest in Stage 1; can also cover principal in Stage 2.
- Guarantees full repayment within 15 years of study end date (or 10 years for students with disabilities).
Sources: Alberta Student Aid
How to Apply for RAP
If you have both Canada and Alberta student loans, you only need to submit one application to the National Student Loan Service Centre (NSLSC) to be considered for both programs. This simplifies the process.
If you have only Alberta student loans, you can apply by calling the Alberta Student Aid Service Centre at 1-855-606-2096 (Option 3).
You must reapply every 6 months to continue receiving RAP benefits. The plan provides assistance for a maximum of 6 months per application, so it is not a one-time approval. Ensure you provide all required documentation and file your application before your current approval ends.
- One application for both Canada and Alberta loans via NSLSC.
- Alberta-only borrowers call 1-855-606-2096 (Option 3).
- Reapply every 6 months to maintain assistance.
Sources: Alberta Student Aid
Deferment
Beyond RAP, you have some flexibility in managing your repayment. You can make payments during the grace period to reduce your debt faster. You can also change your monthly payment amount or date, as long as the loan is amortized within the maximum period.
If you face temporary financial difficulty, RAP is the primary program for reducing payments. There isn’t a separate general deferment option available in the evidence, but RAP effectively serves that purpose by allowing you to make payments based on what you can afford.
For students with a disability, there is a specialized Repayment Assistance Plan for Students with a Disability that offers a shorter repayment period: the loan balance can be reduced to zero after 10 years instead of 15. After 10 years, any remaining debt is forgiven, and no further restrictions apply.
- You can make voluntary payments during the grace period.
- RAP is the main option for financial hardship.
- Special disability RAP: loan forgiveness after 10 years.
Sources: Alberta Student Aid
Dealing with Financial Hardship
If you are struggling to make payments, the first step is to apply for RAP before missing payments. RAP can provide immediate relief, but you must meet eligibility criteria. If you are already in default, RAP is not available on the Alberta portion of your loan, so it’s critical to seek help early.
During RAP, your payment is based on your income. For a family of one, as of July 1, 2023, no payment is required if annual income is under $40,000. For incomes up to $50,000, an affordable payment may be required. Higher-income families may have to pay more, but the payment is capped at a level you can afford.
If you have both Canada and Alberta loans, being in Stage 2 RAP may restrict you from receiving further Canada Student Financial Assistance, but you may still be eligible for Alberta funding. Always contact your loan provider to discuss your situation before defaulting.
- Apply for RAP early to avoid default.
- Income threshold (family of one): no payment if income under $40,000; possible payment up to $50,000.
- Stage 2 RAP may affect future federal loan eligibility, but not Alberta eligibility.
Sources: Alberta Student Aid
Frequently asked questions
When do I have to start repaying my student loans?
For Alberta Student Loans, repayment begins on the first day of the 13th month after your study period ends, following a 12-month interest-free grace period. For Canada Student Loans, repayment begins on the first day of the seventh month after your study end date, after a 6-month non-repayment period. If you have both, you will have two separate repayment start dates.
Sources: Alberta Student AidWhat is the current interest rate for Alberta Student Loans?
The interest rate on Alberta Student Loans is the prime rate declared by the Canadian Imperial Bank of Commerce (CIBC). Since July 1, 2023, both fixed and floating rates are set at the prime rate, with no additional premium. The specific percentage changes when the prime rate changes. Canada Student Loans have had interest permanently eliminated as of April 1, 2023.
Sources: Alberta Student AidHow do I make my monthly payments?
Payments are set up automatically on a monthly schedule. You can manage your payment amount or date through MyLoan or by calling the Alberta Student Aid Service Centre. If you have both Alberta and Canada loans, you will have two separate automatic payments—one for each loan.
Sources: Alberta Student AidCan I pay off my loan early without penalty?
Yes, you can make extra payments or pay off your entire loan early without any penalty. This can save you interest on your Alberta loan. To ensure extra payments are applied correctly, contact your loan provider or use MyLoan.
Sources: Alberta Student AidSources
- Interest Rates | Alberta Student Aid — Alberta Student Aid
- Alberta Student Loan | Alberta Student Aid — Alberta Student Aid
- Canada Student Loan | Alberta Student Aid — Alberta Student Aid
- Repayment | Alberta Student Aid — Alberta Student Aid
- Financial Terms Explained | Alberta Student Aid — Alberta Student Aid
- Repayment Assistance | Alberta Student Aid — Alberta Student Aid
- Repayment Assistance Plan (RAP) | Alberta Student Aid — Alberta Student Aid
- 2 Loans = 2 Payments | Alberta Student Aid — Alberta Student Aid
- Repayment Assistance Plan - MyLoan | Alberta Student Aid — Alberta Student Aid