Federal Student Loan Interest Rates 2023–24

Summary#

The government has set interest rates under the Canada Student Loans Regulations for the federal student loan year running August 1, 2023 to July 31, 2024. The Class A rate is 2.125% and the Class B rate is 3.125%. The notice also notes that, under the Fall Economic Statement Implementation Act, 2022, borrowers do not have to pay interest on a guaranteed student loan.

What it does#

• Announces the fixed interest rates for the federal student loan year August 1, 2023 to July 31, 2024:
  • Class A rate: 2.125%
  • Class B rate: 3.125%
• States that, because of the Fall Economic Statement Implementation Act, 2022, a borrower of a guaranteed student loan does not have to pay interest.

Who's affected#

• People with federal student loans in Canada for the loan year August 1, 2023–July 31, 2024.
• Loan administrators, guarantors and lenders who use Class A and Class B rates for accounting or administrative purposes.
• If you have a guaranteed student loan, the notice says you will not be charged interest under the recent federal law.

Why it matters#

• Interest rates determine how much interest is calculated on student loans. That affects how loans are managed, reported, and how much interest might be charged or forgiven.
• For most borrowers with guaranteed federal loans, the practical effect is limited because the law says they won’t pay interest. But the rates still matter for the loan system and for parties who track or administer loans.