Student loan calculator online in 2025: assessment of the best student loan in Canada
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A student loan is money you borrow from the federal or provincial/ territorial government, bank or private company to help you with education expenses. If you borrow from a federal or provincial institution, in most circumstances, the interest rate is lower than that of a private loan, and the loan is interest-free while you are full-time in school. After you graduate, there is a 6-month grace period, and the principal and interest must be paid back later, within an average of 10 years. You do not always count on a grace period if you borrow from a private organization. Unlike federal student loans, private loans are usually quicker but harder to qualify for. However, repayment periods are less extended than these of federal loans.
There are two main types of education financial aid in Canada: governmental grants or loans and private student loans or lines of credit.
The governmental programs could be federal and provincial, or territorial.
CSLP is designed for full and part-time students. The applicant should meet the requirements for financial needs, and then they could be eligible to get up to 60% of the cost of the tuition in federal loans. You can also receive a maximum amount, which is subject to change.
A government loan has a fixed or variable interest rate, and the interest begins to accrue. When you graduate, you will have to repay the loan amount plus interest to the government.
CSGP provides students with the federal financial support they don't have to pay back. They apply for a grant and demonstrate difficulties with funding. If you comply with all criteria, you could also apply for grants for students who are disabled or have dependents.
Provincial and Territorial Student Financial Assistance is a solution for borrowers who exceed their federal benefits or are denied access to CSLP and CSGP. It may be combined with federal student aid or provided along with it. Some also have financial aid programs with no interest payments — you don't have to pay interest.
Borrowers apply with their province or territory of residence. The available amount is calculated when you apply.
The Government of Canada and the provincial governments work together to provide combined federal and provincial grants and loans.
You may participate in CSGP/CSLP available alongside provincial or territorial finance aid.
In Alberta, part-time funding is available only if you are a federal student.
You should choose one program to participate in CSGP, CSLP, or Yukon grant. But you may receive the Yukon Grant combined with other financial aid.
CSLP and CSGP are not available. Visit student assistance and funding offices to apply to their aid programs.
The payments also should often be made when your loan is issued or after a grace period, depending on the lender.
The conditions and terms from private lenders may be more flexible than provincial and federal loans. Unlike federal student loans, private loans are usually quicker but harder to qualify.
However, Canadian student loans usually offer the lowest interest rates, and they rarely go with additional fees. Also, the repayment periods are much more extended than private loans typically provide.
In some situations, you may have to make a combination of the two or several loans. Not only CSLP/ CSGP and Provincial or Territorial educational finance assistance (if your province of residence allows it) but also a private student loan if your governmental loans don’t cover all expenses.
US students must apply for loans through the American government. However, dual citizens — citizens of either the USA or Canada — may be able to get educational loans through both governments.
The types of funding available through the Direct Loans Program are Direct Subsidized Loans, Direct Unsubsidized Loans (previously Stafford Loans), and Direct PLUS Loans for parents of dependent undergraduate students (previously Parent PLUS Loans).
Student loans are meant to assist you in education funding and may not pay for your entire post-secondary education. Therefore, consider supplementing your educational loans with other options.
The Student Aid Estimator is an online tool on the official website of the Government of Canada which helps you to evaluate the amount of annual federal assistance you may receive from the Canada Financial Assistance Program.
It includes all details that should be considered during the application process. So you can review how much you can borrow or get before applying through your provincial financial assistance office.
Note: The estimator does not consider the provincial and territorial finance aid.
Another type of calculator are provincial or territorial education loans calculators aimed at computing the Provincial/Territorial Student loan monthly payments. For example, the Repayment calculator for Full-time Ontario Student Assistance Program loans.
You could use the Student Aid Estimator on the Government of Canada website to estimate the loan amount you could be eligible for.
Answer if you graduated high school more than ten years ago, have a permanent disability, are an Indigenous person, or are a current or former Crown ward.
Tick if your spouse is a post-secondary student, receives Employment Insurance or social assistance benefits, or has a permanent disability.
These factors affect the amount of loans or grants, benefits and eligibility for the CSLP and CSGP.
Sometimes you can't be eligible for a grant at all. Conditions and terms may vary and are determined according to your province of residence, financial needs, education program, and maximum lifetime student aid limit.
The sum of a loan is computed based on assessed finance needs.
The assessed need is the difference between allowable educational costs and the amount you are expected to contribute based on the financial resources you possess, including the financial aid received.
Assessed Need = Allowable Costs – Resources
To calculate your estimated monthly payment and total loan amount, use the Loan Repayment Estimator.
Fill out the total amount of your loan at the end of your studies.
Select a type of interest rate (fixed rate or variable interest rate).
Input the prime rate.
Choose the non-repayment period (with or without six months of no interest payments).
Enter the repayment loan term in months. You could compare loans by filling out the same information about another repayment option.
Click the «Calculate» button and review the results.
You will see the amount of a monthly payment, total interest, and total loan amounts to be paid.
For example, if you borrow $5,000 for ten years (intermediate-term) for 2,95% (average interest rate), you must pay in total $5,779.81; the total interest within the life of a loan will be $779.81, and the monthly payment is $48.17 (if payable through 120 monthly payments).
You could use any other Student Repayment calculator, but they may not be so detailed—provincial calculators specified for their programs.
All tools are for informational purposes only. Your actual loan borrowing amount, repayment amount, total amount, and interest may vary.
Student loan borrowers are repaying much more because of the interest. The longer your loan term, the more considerable sum of total interest is accumulated.
It's a great idea to have a grace period when you have just graduated, but the interest may be accumulating, so you have to start paying as soon as possible. You can compare options of paying immediately and after six months.
You could change the number of monthly payments and a loan term to compare the amounts of total interest accrued. With a grace period, the value of the interest you have to repay increases.
Pay attention that private student loan interest rates aren't as affordable as governmental program rates. It usually depends on your financial situation, credit history, or/and cosigner. A credit check is also required at the private sector lenders providing private student loans.
The current interest rate on the CSLP is a prime rate. The five Canadian largest banks set it in conjunction with the Bank of Canada rates. For a fixed-interest repayment plan, fixed interest rates are negotiated when the loan is taken for the whole repayment period: prime rate + 2%. Variable-rate is fluctuating with the prime rate.
The value will increase if you choose a fixed rate to calculate your interest. But using variable rates is unpredictable: whatever may happen within 5 or 10 years of your loan life.
Provincial and Territorial programs have their conditions and various interest rates. For example, residents of Manitoba, Newfoundland & Labrador, Prince Edward Island, and Nova Scotia, have access to the 0% interest repayment plan.
You could choose your type and value of the interest rate to input into the calculator. The variable rate is usually prearranged for a federal loan.
Start from federal financial support programs. Student Aid Estimator will help you determine if you are eligible for grants and federal student loans, understand what loan amount you could get and what amount you should try to take from provincial Canada Student loan programs and private student loans.
Using the Loan Repayment estimator, you could compare estimated monthly payments based on different repayment options. However, even if compared loans have the same interest rate — often a prime rate + 2% and identical loan amounts- conditions, benefits, and loan terms may differ.
A student loan calculator will assist you in understanding the actual cost of a loan. For example, change the number of payments, non-repayment period, loan term, and variable rate for fixed rate, and you will see that the amount of your monthly student loan repayment, interest, and cost within the life of a loan has changed too.
A student loan calculator will have an amortization table or/and table of comparison for easy understanding and data visualization.
If you don't qualify for federal student loans, choose several offers from private lenders, compare using the calculator, and look at which — variable or fixed — rate and repayment term works best for your financial needs and situation. Consider additional fees like origination that the loan calculator may also compute.
Some calculators allow you to add extra payments to evaluate the loan balance changes. It's beneficial when you want to compare your loan options for the upcoming school year.
There could be a situation when the lender's non-repayment period is preferable to low-interest rates. You can compare loans with or without a grace period.
Use all the available options: grants, loans, scholarships, and repayment benefits to get affordable education funding and save money.
Yes, it does. All student loan debts in Canada are subject to report to the major credit bureaus — Equifax and Trans Union. As a result, defaulting may ruin your credit score.
If you are a governmental educational loan borrower and default on your loan by missing student loan payments for 270 days or more, your loan will be sent for collection.
Some repayment options are available to manage your monthly payment and avoid default. For example, suppose you cannot repay your loan. If you are a scholar with permanent disabilities or have Medical and Parental Leave, you can apply to the Repayment Assistance Plan (RAP). With it, you may qualify for zero or lower monthly payments for six months.
The National Student Loan Service Center is ready to assist; contact them if you have trouble making your loan payments.
There are no such benefits if you choose a private student loan.
Yes, as well as education loans affect your credit score, they may impact your ability to get a mortgage. However, if you repay the loan on time, you build your credit and increase your chances of qualifying for a good mortgage offer.
The loan amount you can get from the governmental student aid programs depends on:
province or territory of residence;
annual income;
living situation;
tuition fees and educational costs;
assets and investments (full-time students only).
Use the Student Financial Aid Estimator to assess your potential annual loan and grant amount.
The sum of a loan is computed based on assessed finance needs.
With a governmental CSLP for full-time students, you may be eligible to receive up to 60% of the assessed costs. The other 40% may be provided through private or provincial assistance.
Part-time loans amount can't exceed $10,000 in CSLP throughout part-time studies.
The Repayment Assistance Plan (RAP) is designed to assist manage education loans. If you apply, the loan payments may be reduced or eliminated. In addition, the government will pay any interest on outstanding student loans for 60 months or until the borrower is ten years out of school (whichever comes first).
After this, the government will also cover the principal to pay off the entire loan within 15 years after school graduation.
You are in default if you don't qualify for RAP and don't make repayments for nine months on your federal assistance or related provincial education loans. Your federal loans will be sent to the Canada Revenue Agency and other loans — to private collection agencies, and they could freeze your bank accounts and garnish wages.
In Canada, if you file for bankruptcy after seven years of the last day of study, your student loan is eligible for discharge. In some rare cases, it could be allowed by the court to release the debt after five years.
