When Your Student Loan Payments Actually Start

Six Months of Grace, First Payment in Month Seven

When your studies end, whether you graduate, drop below full-time status, or leave school, your Canada Student Loan enters a six month non-repayment period, commonly called the grace period. During those six months you are not required to make any payments. Repayment then begins on the first day of the seventh month after your studies end.

The phrase "six months" is where people get tripped up. Many graduates assume their first payment is due six months after their last day of classes, somewhere around the end of month six. In fact, the six months are six full calendar months of non-repayment, and the first payment lands at the start of month seven, not the end of month six. It is a small distinction that changes your first payment date by a full month, which matters when you are budgeting a first job's paycheques.

Remember also that outside Quebec, the territories excepted, your "student loan" is really two loans serviced together, a federal portion and a provincial portion, as we cover in detail in our pillar post on why your Canada student loan is really two loans. The grace period applies to both portions, but what happens to interest during those six months differs sharply between the two.

A Worked Example: The Spring 2026 Graduate

Take a student whose studies end in April 2026, the classic spring graduation. Their six month non-repayment period runs May, June, July, August, September, and October 2026. Repayment begins on the first day of the seventh month: the first payment is due November 1, 2026.

Now shift the timeline by one month. A student who finishes at the end of May 2026, perhaps after a final co-op term or a spring session, has a non-repayment period covering June through November, and a first payment due December 1, 2026.

The rule of thumb: find the month your studies end, count six full calendar months forward starting with the next month, and your first payment is due on the first day of the month after that. The National Student Loans Service Centre will confirm your exact date, but this arithmetic will match it.

What Accrues Interest During the Grace Period

Here is the part that varies by province. On the federal portion of your loan, nothing accrues, at any time. The federal government permanently eliminated interest on Canada Student Loans effective April 1, 2023, and that 0% rate applies during study, during the grace period, and throughout repayment. Whatever your province does, the federal share of your balance will be exactly the same size on day one of repayment as it was on your last day of school.

The provincial portion is a different story. Four jurisdictions charge interest that keeps accruing during the six month grace period: Ontario, Alberta, Saskatchewan, and Quebec. Ontario's portion accrues at prime + 1%, which is 5.45% at today's 4.45% prime. Alberta's accrues at prime, 4.45%. Saskatchewan borrowers choose between a floating rate at prime, 4.45%, and a fixed rate at prime + 2.5%, 6.95%. Quebec's system is structured differently and gets its own section below.

Everywhere else that participates in the integrated program, the provincial portion charges 0%, so nothing accrues during grace there either: British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island graduates owe exactly what they borrowed when repayment begins.

If you studied in one of the accruing provinces, your provincial student aid office is the authority on your rate: see the OSAP: Ontario Student Assistance Program, Alberta Student Aid, and Saskatchewan Student Aid pages.

Voluntary Payments During Grace Go Straight to Principal

You are never required to pay during the six months, but you are always allowed to, and the mechanics are unusually favourable. On the federal portion there is no interest for a payment to be eaten by, so every dollar you send reduces principal directly. On an accruing provincial portion, paying early shrinks the base that provincial interest is calculated on for the rest of the grace period and beyond. A graduate with income from a new job who can spare even modest amounts between May and October comes out of the grace period with a smaller balance and a slightly smaller lifetime interest bill, with no penalty and no paperwork beyond making the payment.

Quebec: The Partial Exemption Period Works Differently

Quebec opted out of the federal program, so Quebec residents have no federal portion at all. Instead they carry a single loan from Aide financière aux études (Student Financial Assistance), at prime + 0.5%, which is 4.95% at today's prime. After studies end, AFE borrowers enter what Quebec calls the période d'exemption partielle, the partial exemption period, and the word "partielle" is doing real work: unlike the federal 0% portion, interest accrues on the AFE loan during this period. The government covers the structure differently than the federal grace period, but the practical takeaway for a Quebec graduate is that the balance is growing during those months, which strengthens the case for voluntary payments.

Quebec also runs its own equivalent of federal repayment assistance: the Deferred payment plan (Quebec), which can defer payments for up to 60 months over the life of the loan for borrowers whose income is too low to repay.

What to Do During Your Six Months

The grace period is not just a waiting room. Three things are worth doing before that first payment date arrives.

First, log in to your National Student Loans Service Centre (NSLSC) account. Confirm your contact and banking details are current, and check the repayment schedule the NSLSC has set up for you, including your exact first payment date and amount.

Second, review your amortization. The standard NSLSC repayment schedule is 114 months, nine and a half years, but it can be extended to a maximum of 174 months, fourteen and a half years, which lowers the monthly payment at the cost of more provincial interest over time. The grace period is the right moment to decide which trade-off fits your budget rather than accepting a default.

Third, if your income is low or you have not found work yet, look at the Repayment Assistance Plan. Depending on your family income and family size, RAP can reduce your required payment, potentially to zero, and you can apply as your first payment approaches. We walk through the thresholds and how the affordable payment is calculated in our post on how the Repayment Assistance Plan works.

FAQ

Do I have to make payments during the 6 month grace period?

No. The six month non-repayment period requires no payments. Repayment begins on the first day of the seventh month after your studies end. Voluntary payments are allowed at any time and go directly to reducing your balance.

Does interest accrue on my student loan during the grace period?

On the federal portion, no. It has been 0% permanently since April 1, 2023. On the provincial portion, it depends: Ontario, Alberta, Saskatchewan, and Quebec portions accrue interest during grace, while BC, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, and PEI portions charge 0%.

My studies ended in April 2026. When is my first payment due?

Your non-repayment period runs May through October 2026, and your first payment is due November 1, 2026. If your studies ended at the end of May 2026 instead, your first payment is due December 1, 2026.

Can I shorten or extend my repayment schedule during grace?

Yes. The standard amortization is 114 months and it can be extended to a maximum of 174 months. You can adjust the schedule through your NSLSC account, and the grace period is a good time to set it before the first payment is drawn.

What if I go back to school before the six months are up?

If you return to full-time studies and confirm your enrolment before repayment starts, your loan generally returns to in-study status and the repayment clock resets to your new end-of-studies date. Update your enrolment through your NSLSC account so payments are not drawn in error.

Plan Your First Payment Before It Arrives

Want to see your monthly payment, how the federal and provincial portions split, and what extra payments during grace would save you? Our calculator models it with current rates.