Student Loan Interest Tax Credit
Which student loan interest qualifies for the credit, and how to carry it forward.
The short version
- Interest you paid on a government student loan gives a federal non-refundable credit of 14% for 2026, on line 31900.
- Only loans under the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Apprentice Loans Act, or similar provincial or territorial laws qualify.
- Bank loans, lines of credit, and government loans that were combined or refinanced with a bank don't qualify.
- The federal part of Canada Student Loans has been interest-free since April 1, 2023, so many graduates now only pay interest on a provincial portion, if any.
- Unused interest can be carried forward five years. You have to track it yourself.
Student Loan Interest Tax Credit
This credit used to be a reliable few hundred dollars a year for new graduates. Since the federal government stopped charging interest on Canada Student Loans in 2023, it's shrunk for many people to whatever interest the province still charges. Small, but free money, and easy to miss.
Which Loans Qualify
| Qualifies | Doesn't qualify |
|---|---|
| Canada Student Loans (any interest you paid before April 2023, or on overdue amounts if applicable) | Student lines of credit from a bank |
| Canada Apprentice Loans | Personal loans or credit cards used for school |
| Provincial or territorial government student loans | Government loans consolidated or refinanced with a bank |
| Interest from a court judgment for not repaying |
The annual statement from the National Student Loans Service Centre or your provincial lender shows the interest paid. Keep it.
Claim Now or Carry Forward?
The credit is non-refundable, so if your tax is already zero, using it is a waste. You can carry unused interest forward up to five years and claim it when you have tax to reduce. Rules:
- Report the interest on line 31900 when you're ready to use it.
- Use the oldest amounts first.
- Track it yourself; CRA doesn't show the carry-forward on your notice.
Only the student can claim it. Parents who paid the interest can't, and it can't be transferred.
Is your loan interest claimable?
Tell the assistant which loans you have and what you paid. It tells you which interest qualifies, and whether to claim it now or carry it forward.
Is It Worth Paying the Loan Off Fast?
With the federal portion interest-free, there's little reason to rush it. Many graduates are better off putting extra money into a TFSA or FHSA, or an RRSP once income rises, and paying the student loan on schedule. A provincial portion with interest, or a bank line of credit (whose interest gets no credit at all), is the one to pay first.
Other Credits for Students and Grads
- Tuition tax credit: unused amounts carry forward indefinitely.
- Moving expenses for your first job, if you move 40 km closer.
- The Canada Groceries and Essentials Benefit from age 19, if you file.
All the credits are listed on Canadian tax credits. Return Check looks for unclaimed tuition and student loan interest before you file.
Student Loan Interest Questions
Can I claim student loan interest on my taxes?
Yes, interest paid on government student loans under federal, provincial or territorial student loan laws gives a non-refundable credit on line 31900, worth 14% federally in 2026.
Is interest on a student line of credit deductible?
No. Interest on bank loans or lines of credit, even if used for school, does not qualify.
Do Canada Student Loans still charge interest?
The federal portion of Canada Student Loans has been interest-free since April 1, 2023. Provincial portions may still charge interest, depending on the province.
Can I carry forward student loan interest?
Yes, for up to five years. You must track the amounts yourself and use the oldest first.
Can my parents claim the interest they paid on my student loan?
No. Only the student can claim the credit.
Sources: CRA, Line 31900 Interest paid on your student loans; P105 Students and income tax. Checked October 2026. The April 2023 removal of interest on federal Canada Student Loans is from Employment and Social Development Canada; provincial interest rules vary.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.