The Loan Repayment Estimator can help you estimate the
monthly payments you will 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
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 do not. 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 rate used as a base to calculate the interest applied to a Canada Student Loan. This prime rate is calculated using the interest rates declared by the five largest Canadian financial institutions as their prime rate. The Canada Student Loans Program calculates its prime rate by eliminating both the highest and the lowest of those five rates and taking the average of the remaining three.
The five institutions include the Bank of Montreal, the Canadian Imperial Bank of Commerce, the Bank of Nova Scotia, the Royal Bank of Canada and TD Canada Trust.
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.