Student Loan Payoff Calculator

Calculate how extra payments can help you pay off student debt faster and save on interest.

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Paying Off Student Loans in Canada

Student loan debt is a reality for most Canadian graduates. The good news? With a solid repayment strategy, you can become debt-free faster than you think.

Student Loan Types in Canada

  • Federal Loans: Canada Student Loans (CSL) with prime rate
  • Provincial Loans: OSAP (Ontario), StudentAid BC, etc.
  • Private Loans: Bank loans with higher rates
  • LOC: Student lines of credit (variable rates)

Repayment Strategies

Avalanche Method: Pay minimum on all loans, extra toward highest interest rate first

Snowball Method: Pay minimum on all loans, extra toward smallest balance first for psychological wins

Income-Driven: Adjust payments based on income (Repayment Assistance Plan available)

Tax Benefits

Interest paid on government student loans is tax deductible. Keep your loan statements and claim the interest on your tax return. You can claim interest for the current year and carry forward unused amounts for up to 5 years.

Repayment Assistance

If struggling with payments, apply for the Repayment Assistance Plan (RAP). It can reduce or pause payments based on income. Available for federal and some provincial loans.

Disclaimer

This calculator provides estimates based on fixed interest rates and consistent payments. Actual payoff times may vary. Consult with your loan servicer for specific repayment options and terms.

FAQ

How can I pay off student loans faster?

Make extra payments toward principal, increase payment frequency to bi-weekly, pay more than minimum, use windfalls (tax refunds, bonuses) for lump sum payments, and refinance to lower rates if possible.

Should I pay off student loans or invest?

It depends on loan interest rates versus investment returns. If student loan rate is high (6%+), prioritize payoff. If rate is low, consider investing while making minimum payments.

Are student loan payments tax deductible in Canada?

Interest paid on government student loans (federal and provincial) is tax deductible in Canada. You can claim interest paid during the year and carry forward unused amounts for 5 years.

What is the average student loan debt in Canada?

Average Canadian student graduates with $28,000 in debt. Medical and professional programs can exceed $100,000. Debt levels vary significantly by province and program.

How long does it take to pay off student loans?

Standard repayment is 10 years for federal loans. Many Canadians take 10-15 years. With aggressive payments and budgeting, some pay off in 2-5 years.