The Loan Repayment Estimator can help you estimate the
monthly payments you'll need to make to repay your Canada Student Loan or other
government student loans. All you need to do is type in the settings for your
loan.
Enter the total amount of your loan(s), select interest rate and grace period options and decide on the number of monthly payments that you would like to make. The default number of payments is 114 if you take advantage of the 6-month grace period, or 120 if you don't. You may, however, request an extended amortization period of up to 174 months (with grace period) or 180 months (without grace period) by revising the terms of your loan agreement. Check out
Reducing Your Payment for more information. The Loan Repayment Estimator will display your results at the bottom of the column.
You can change and resubmit any of the numbers you enter. If you want to
compare different repayment options, enter each set of numbers in its own
column and your results will be displayed side by side.
Please enter numbers without spaces or commas (e.g. 15000 or 4.0)
Fixed Rate: Fixed rate is a stable rate of interest. If you negotiate a fixed rate with your loan providers, you will be charged the same interest rate throughout your repayment period.
The Loan Repayment Estimator uses a fixed rate of prime + 5%. For example, if the prime rate is 4.5%, fixed rate on the Loan Repayment Estimator will be 9.5% (4.5% + 5% = 9.5%). See also prime rate and floating rate.
Floating rate: Floating rate is a rate of
interest that varies over time with the prime rate. If you negotiate a floating
rate with your loan providers, the interest you are charged during repayment of
your loan will increase and decrease along with the prime rate.
The Loan Repayment
Estimator uses a floating rate of prime + 2.5%. For example, if the prime rate
is 4.5%, floating rate on the Loan Repayment Estimator will be 7% (4.5% + 2.5%
= 7%).
See also prime rate and fixed rate.
Prime rate: The interest rate the Minister
of Human Resources and Skills Development Canada uses as a base to calculate
the interest rates of your student loan.
The variable reference rate of interest calculated by the Minister of Human
Resources and Skills Development Canada is based upon the variable reference
rates of interest declared by the 5 largest Canadian financial institutions as
their prime rate. (These institutions are the Bank of Montreal, the Canadian
Imperial Bank of Commerce, the Bank of Nova Scotia, the Royal Bank of Canada
and the TD Canada Trust, formerly Toronto-Dominion Bank.) The prime rate will
be calculated by ignoring both the highest and the lowest of those 5 rates and
taking the average of the remaining 3 rates. Changes to the prime rate will
take effect the following business day..
Number of monthly payments: If you take advantage of the 6-month grace period, 114 monthly payments represent a total repayment period of 9.5 years (10 years x 12 monthly payments less your 6-month grace period).
If you do not take advantage of the 6-month grace period, 120 monthly payments represent a total repayment period of 10 years (10 years x 12 monthly payments).
You can select a shorter repayment period by entering a lower number of monthly payments.
Note: The information you enter will not be
shared, saved, stored in a database, or used for any other reason. For more
information please see our Privacy Policy.
*If you choose a floating interest rate at consolidation,
your total interest payable may fluctuate with changes in the prime rate.
