Federal Student Loan Interest Rates Set

Summary#

The Minister of Employment, Workforce Development and Disability Inclusion set interest rates for federal student loans for two loan years under the Canada Student Loans Regulations. For the loan year August 1, 2019 to July 31, 2020 the rates were fixed at Class "A" 2.125% and Class "B" 2.625% (signed August 1, 2019). For the loan year August 1, 2020 to July 31, 2021 they were fixed at Class "A" 1.625% and Class "B" 2% (signed August 1, 2020).

What it does#

• Fixes the interest rates that applied to Canada Student Loans for the specified loan years.
• For August 1, 2019 to July 31, 2020:
  • Class "A" rate: 2.125%
  • Class "B" rate: 2.625%
• For August 1, 2020 to July 31, 2021:
  • Class "A" rate: 1.625%
  • Class "B" rate: 2%
• The notices were signed by Carla Qualtrough, M.P., the Minister responsible for the program.

Who's affected#

• People with federal Canada Student Loans that fall in those loan years.
• Schools, loan servicers, and anyone tracking student loan interest policy may also notice the change.
• It is not clear from the notice how repayment scheduling or provincial student-loan programs are affected.

Why it matters#

• These rates determine how much interest borrowers were charged on federal student loans for those years.
• The 2020–2021 rates are lower than 2019–2020 rates, so borrowers tied to that loan year paid less interest.
• If you had a Canada Student Loan during either period, these numbers affect the cost of your loan and the interest you were billed.