How student loans and grants work in Canada

How student aid works in Canada, in plain terms

Government student aid in Canada is a partnership. The federal government funds Canada Student Grants and Canada Student Loans, and most provinces and territories add their own grants and loans on top. You do not apply to Ottawa directly. You apply to your home province or territory, which works out your need and the amount you can receive.

The amount depends on your costs and your resources: tuition, books and living costs on one side, and family income, your own earnings and savings on the other. Your province, family size, dependants and any disability also matter. The federal student aid estimator can give a rough idea of federal amounts, but it does not include provincial aid.

Where do you apply? It depends on your province

According to canada.ca, the provinces and territories fall into four groups.

If you live in Quebec, the provincial Aide financière aux études program offers loans and bursaries for vocational, college and university study; start at Quebec's student financial assistance page. Students from the Northwest Territories and Nunavut apply to their territorial programs.

Your school and program must also be designated for student aid. Provinces decide which ones qualify. As of August 1, 2026, most full-time students at private, for-profit schools in Canada can no longer receive the Canada Student Grant for Full-Time Students, although some programs are exempt, so check before you enrol.

Grants: money you do not repay

Grants are applied to your need before loans, and they are the best deal: you never pay them back. The federal grants include ones for full-time students, part-time students, students with dependants and students with disabilities, plus a grant for disability-related services and equipment.

The full-time grant is the one most students meet. Canada.ca says that until the end of the 2026 to 2027 school year, you could receive up to $4,200 per year, or $525 per month of study. The school year runs from August 1 to July 31.

Larger families have higher thresholds, and the canada.ca grant page lists them by family size. Provinces also have their own grants, and schools offer bursaries and scholarships, so the government grant is rarely the only source.

Loans: how much, and is there interest?

After grants, the rest of your assessed need can be covered by loans. A Government of Canada briefing note on post-secondary affordability says the weekly federal loan limit was raised from $210 to $300, extended through 2026 to 2027. That means a full-time student can borrow up to $10,200 from the federal program for a typical 34-week year ($300 x 34). Provincial loans can add to this.

The federal government permanently eliminated interest on Canada Student Loans and Canada Apprentice Loans starting April 1, 2023. Interest that built up before that date is still owed. The federal part of your loan therefore does not grow while you study or repay, but the provincial part follows the rules of your province, so read your loan agreement for the provincial terms.

If you do pay interest on a government student loan, the federal page on repayment notes a 15 percent tax credit on that interest, for both federal and provincial or territorial student loans.

When do you start repaying student loans?

There is a six-month non-repayment period after you finish school, drop to part-time studies, or leave or take time off. Within those six months you receive a package explaining your payment terms. Payments then begin.

• In the integrated provinces (and for Yukon borrowers), you repay federal and provincial loans together through the National Student Loans Service Centre (NSLSC).
• If you borrowed in Alberta, Nova Scotia or Prince Edward Island, federal and provincial loans are repaid separately.
• In Quebec, Nunavut and the Northwest Territories, you repay the province or territory directly.

Budgeting for this before you graduate helps. Our free Spreadsheets course shows how to build a simple monthly budget, which makes it much easier to see what a payment will feel like.

What if you cannot afford the payments? The Repayment Assistance Plan

The Repayment Assistance Plan (RAP) is for borrowers whose income is too low for their regular payments. Canada.ca says that for a family size of one, the threshold is $3,866 in monthly gross family income (about $46,392 a year). Below it, you may not need to make payments for six months; above it, you may still qualify for reduced payments. You must reapply every six months, and you need to be up to date on your loan to qualify.

In most cases, the plan has a maximum repayment period of 15 years after you leave school, and 10 years for borrowers with a disability, who can also use a version called RAP-D. If you are struggling, contact the NSLSC early. Missed payments make things harder to fix later.

A simple timeline for students and parents

1. Grade 11 or 12: look at your provincial student aid site and the canada.ca grant pages so the terms are familiar.
2. Spring before school starts: apply through your province once applications open; aid can take weeks to process.
3. Each year of study: reapply, update your income and confirm your enrolment.
4. Final term: log into your NSLSC or provincial account and confirm your contact details.
5. Six months after you finish: payments begin. Apply for RAP first if you need it.

For more on the money and life side of starting university, the university life in Canada deck covers terms like bursary, residence and add/drop dates, and the high school to university bridge helps with the academic side. If you are still weighing options, our comparison of university and college in Canada shows how program length changes total cost.