Interest-free status

Most full-time UBC students are not required to make payments on the interest or principle on previously negotiated (cashed) federal or provincial student loans or grants. While students are enrolled in full-time studies, the government pays the interest on these loans; students do not pay the principal until they cease to attend full-time studies for six months or more. Students in this position are referred to as being in interest-free status. Interest-free status keeps a student who is studying full-time from beginning repayment.

To be eligible for interest-free status, students must:

  • Be registered in a UBC program that is eligible for Canada Student Loan Funding.
  • Be registered in at least 60% of a full-time course load.

How do I receive interest-free status?

Canadian students

  1. Apply for a new student loan; or
  2. Submit interest-free documents to your lender (mostly online).

Visit your home province’s student aid office for loan application or the links below for interest free applications:

StudentAid Alberta

StudentAidBC

Saskatchewan Student Service Centre

Manitoba Student Aid

Ontario Student Assistance Program

Québec Aide financière aux études

New Brunswick Student Financial Services

Nova Scotia Student Assistance

PEI Student Financial Services

Newfoundland and Labrador Student Aid

Northwest Territories Student Financial Assistance

Nunavut Student Funding

Yukon Student Financial Assistance

How much interest will I pay?

You will not be charged interest:

  • While you are studying full-time in a loan-eligible program at an approved post-secondary institution.
  • During the summer break (May to August) if you return to full-time study each September and update your status with your lenders, either by receiving a new loan or submitting a confirmation of enrolment.

Interest will start to accrue and you will be required to begin repaying your loan six months after you leave full-time studies.