Friday, July 27, 2007

Loan Administration and Repayment

The Canada Student Loan (sometimes referred to as the National Student Loan) is administered by National Student Loan Service Centre [2] under contract to Human Resources and Social Development Canada (HRSDC). Students have the choice of opting for a fixed interest rate of prime interest rate + 5%, or a floating interest rate of prime interest rate + 2.5%.

Based on the HRSDC student loan calculator [3], and assuming a prime interest rate of 4.5%, a standard 10-year (114 month) repayment period, and a loan of $30,000:

- if the Floating Interest option is selected, monthly payments will be $361.02 (principle and interest), resulting in total payments of $41,156.77 ($30,000 principle + $11,156.77 interest) over the life of the repayment.

No comments: