Canada Apprentice Loan Interest Suspension Update
Effective April 2021, the Government of Canada has suspended the accumulation of interest on Canada Apprentice Loans until March 31, 2023.
COVID-19
Suspension of payments and interest ended on September 30, 2020.
The following measures have been put in place to support apprentice loan borrowers during COVID-19:
- Apprentice loan payments were suspended from March 30, 2020 to September 30, 2020:
- If you are registered for pre-authorized debit, they will automatically resume in October 2020. We recommend logging in to your secure CALSC.ca account to make sure that your banking information is up to date.
- If you were making payments by cheque or other means, you are now required to make payments.
- If you use automatic loan payments through your bank, you need to resume these payments.
- Interest was not charged on apprentice loans from March 30, 2020 to September 30, 2020 but resumes as of October 1, 2020.
How does the end of the suspension of payments and interest affect you if:
You are still a registered apprentice
The suspension does not impact your loan since you have no payment to make and interest does not accumulate while you are registered as an apprentice in a Red Seal trade.
You are in your six-month non-repayment period
The non-repayment period is already interest- and payment free for Canada Apprentice Loan borrowers. If your non-repayment period was set to end during the suspension period, payments and interest will automatically resume and you will start repaying your loan in October 2020.
You have already started to repay your loan
If your loan is in good standing, i.e. your regular payments are up-to-date:
- Your payments have been suspended, interest-free, from March 30, 2020 to September 30, 2020.
- You will resume repaying your loan in October 2020.
- Interest that has accrued on your loan between March 1 and 29 has automatically been capitalized, i.e. it has been added to your loan principal, unless you contacted us and paid the accrued interest.
If your loan is in arrears, i.e. you have missed one or more payments:
- Your payments have been suspended, interest-free, from March 30, 2020 to September 30, 2020.
- You will resume repaying your loan in October 2020.
- Interest that have accrued on your loan between March 1 and 29 has automatically been capitalized, i.e. it has been added to your loan principal, unless you contacted us and paid the accrued interest.
- You are in the same arrears situation as of September 30, 2020 as you were as of March 30, 2020.
- For example, if you were two months behind in your payments in March, you will still be considered two months behind in October.
- You are responsible for outstanding interest accrued up until February 29, 2020.
- We may contact you to offer assistance measures to help you bring your loan into good standing. You can also contact us to learn more.
If your loan is on the Repayment Assistance Plan (RAP), the CALSC sent you an email to let you know how your RAP period was affected. If you have not received this message, you can contact us.
Maintaining your Canada Apprentice Loan
While you are a registered Red Seal apprentice, you do not have to make payments on your Canada Apprentice Loan and no interest will accrue.
- To remain payment-free and maintain your interest-free status while you are still in training, your registration in a Red Seal Trade apprenticeship program must be confirmed by your province/territory or technical training provider.
- If you are no longer a registered Red Seal apprentice, interest will begin to accrue on your loan 12 months after the end of your technical training or 12 months after your province or territory last confirmed your status as a Red Seal apprentice. This date is your Apprenticeship End Date. In addition, you will have to start making payments on your loan 6 months after your Apprenticeship End Date.
The Government of Canada will communicate with your province/territory or technical training provider to confirm your apprenticeship status and will contact you if/when your status changes. It is important that you keep your contact information up to date. If you need to update your information, please contact us.
How to maintain interest-free status
If you are returning to technical training:
If you apply and qualify for Canada Apprentice Loan funding before your Apprenticeship End Date, we will confirm that you are enrolled in technical training and will make sure you are not paying interest on your loan.
If you are not applying for a new loan, you may continue to qualify for interest-free and payment-free status on your previous loan(s) as long as we can confirm that you are still registered as a Red Seal apprentice. We will communicate with your province/territory of registration to confirm your registration and notify you of the result using your preferred method of communication (online/paper). It is important that you keep your contact information up to date. If you need to update your information, please contact us.
If you are not returning to technical training:
If you are not returning to technical training, we will communicate with your province/territory of registration to confirm that you are still a registered Red Seal apprentice. We will notify you of the result using your preferred method of communication (online/paper). It is important that you keep your contact information up to date. If you need to update your information, please contact us.
You are not eligible for interest-free status, and your loan will enter repayment, if you:
- have completed your Red Seal Trade apprenticeship program;
- are no longer registered in a Red Seal Trade apprenticeship program;
- have reached your lifetime maximum of 6 years of interest-free status (from your first funded technical training start date); or
- have a restriction on your account that prevents you from receiving an interest-free period.
If you have additional questions or you need help maintaining your interest-free status, contact us.