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JPCast

Canada Student Loan

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I just received an email that Canada student loan is now offering 6 month grace period and prime interest for all students.

 

Alberta student loan for law student has a lifetime maximum of 125k and at prime.

 

All floating rates.

 

Just thought I'd share

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13 hours ago, JPCast said:

I just received an email that Canada student loan is now offering 6 month grace period and prime interest for all students.

 

Alberta student loan for law student has a lifetime maximum of 125k and at prime.

 

All floating rates.

 

Just thought I'd share

That would be amazing if true, but the federal website still says it's Prime + 2.5% and the 6 month grace period exists, but that just means no payments are required for 6 months after you graduate. Interest begins to accrue as soon as you finish school.

Quote

Start repaying 6 months after leaving school

There is a 6-month non-repayment period until you must begin making payments on your Government of Canada student loans. Interest will start to accumulate at the beginning of this 6-month period, so you can make payments if you wish.

The 6-month non-repayment period starts after you:

finish your final school term

reduce from full-time to part-time studies

leave school or take time off school

 

Choose an interest rate option

You have 2 interest rate options to choose from:

floating interest rate: 6.45% (prime rate + 2.5%)

fixed interest rate: 8.95% (prime rate + 5%)

 

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14 minutes ago, WannaBeBanker said:

That would be amazing if true, but the federal website still says it's Prime + 2.5% and the 6 month grace period exists, but that just means no payments are required for 6 months after you graduate. Interest begins to accrue as soon as you finish school.

 

Interest rates

  • On November 1, 2019, the variable and fixed interest rates on Canada Student Loans and Canada Apprentice Loans will be reduced. The variable rate will be reduced to prime (from prime plus 2.5 percent) and the fixed rate will be reduced to prime plus 2 percent (from prime plus 5 percent).
  • On November 1, 2019, interest will no longer accrue on Canada Student Loans and on Canada Apprentice Loans during the six-month non-repayment period immediately following studies or the end of an apprenticeship.

You didn't click on the important announcements for student aid at the top of the page you linked. 👍

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1 hour ago, clevermoose said:

Interest rates

  • On November 1, 2019, the variable and fixed interest rates on Canada Student Loans and Canada Apprentice Loans will be reduced. The variable rate will be reduced to prime (from prime plus 2.5 percent) and the fixed rate will be reduced to prime plus 2 percent (from prime plus 5 percent).
  • On November 1, 2019, interest will no longer accrue on Canada Student Loans and on Canada Apprentice Loans during the six-month non-repayment period immediately following studies or the end of an apprenticeship.

You didn't click on the important announcements for student aid at the top of the page you linked. 👍

That's some great news!

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Now that Federal interest rate is at Prime, and given that student loan interest is tax deductible, does it still make financial sense to consolidate into a PSLOC at Prime upon graduation? I'm in Ontario, so the Ontario portion is Prime + 1% (I think).

 

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