Canada Student Loans vs Provincial Loans

Federal Canada Student Loans offer lower interest rates (prime rate + 0%) than most provincial loans. Total student debt for a 4-year university degree averages $28,000 in Canada. OSAP (Ontario Student Assistance Program) provides non-repayable grants to lower-income students — up to $6,000/year.

Repayment Assistance Programs

If your student loan payments exceed 15% of gross household income, you may qualify for Repayment Assistance Plans (RAP). Canada Student Loans can offer reduced payments, interest relief, or complete forgiveness based on financial hardship.

Interest Tax Credits

You can claim 15% of paid student loan interest (federal) and provincial credits. Unused credits can carry forward. A $300 annual interest payment = $45 federal tax credit + provincial credit (varies by province).