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.

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