Federal vs Provincial Loan Comparison
See exactly how much you save thanks to the 0% Federal interest rate compared to Provincial rates.
0% Federal Savings
See how much the April 2023 Federal interest elimination saves you.
$40,000
Federal (0%)
60%
Provincial
40%
Ontario (OSAP) charges Prime + 1%. BC and Manitoba charge 0%.
114 Months
Total Savings
$9,629
Saved in interest over 9.5 years
If Fed still charged %
$16,048
Total Interest
Current Reality
$6,419
Total Interest
Prior to April 2023, the federal government charged interest on student loans. The permanent elimination of this interest saves the average Canadian graduate thousands of dollars over their repayment period.
Frequently Asked Questions
When you apply for student aid (like OSAP or StudentAid BC), you generally receive a single loan. However, this loan is actually funded by two sources: the Government of Canada (Federal) and your provincial government. Generally, the split is around 60% Federal and 40% Provincial.
No. As of April 2023, the Government of Canada permanently eliminated interest on the *Federal* portion of Canada Student Loans and Canada Apprentice Loans. However, your *Provincial* loan portion may still accumulate interest, depending on your province.
As of 2026, provinces like Ontario, Alberta, and Saskatchewan still charge interest on their provincial portion of student loans (typically Prime + 1%). Provinces like British Columbia, Manitoba, Nova Scotia, PEI, and New Brunswick have eliminated interest on their provincial loans.
Generally, no. When you make a payment to the National Student Loans Service Centre (NSLSC), your payment is distributed proportionally between your Federal and Provincial balances. You cannot direct your payment solely to the interest-bearing provincial portion.