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Interest you pay on a government student loan, such as a Canada Student Loan, earns a federal non-refundable credit that you claim on line 31900 of your return. For 2026 the credit is worth 14% of the interest. Only the borrower can claim it, bank loans do not count, and unused interest can be carried forward for up to five years.
Which student loans qualify for the interest credit?
The loan has to be a government student loan for post-secondary education. The Canada Revenue Agency lists loans made under the Canada Student Loans Act, the Canada Student Financial Assistance Act and the Apprentice Loans Act, plus loans under provincial or territorial laws that are similar to those acts. Money from a bank or credit union does not qualify, even if you used it for tuition.
| Type of loan or interest | Qualifies? |
|---|---|
| Canada Student Loan (federal portion) | Yes |
| Loan under the Apprentice Loans Act | Yes |
| Provincial or territorial government student loan | Yes, if it is under a law similar to the federal acts |
| Student line of credit or personal loan from a bank | No |
| Loan that was combined, renegotiated or reconsolidated with another loan | No |
| Interest you paid because a court ordered you to after a default | No |
The consolidation rule catches people. If you rolled a government loan into a bank loan, the interest on the new loan is out, even though it started as student debt. Check your lender statements for the word “government” or the program name before you claim anything.
Who is allowed to claim the interest?
Only the student who is legally responsible for the loan. A spouse, common-law partner or parent cannot claim it, and the amount cannot be transferred, unlike part of the tuition amount (see tuition credit carry-forward and transfer). Someone else can pay the interest for you, and you still claim it, as long as the loan is in your name.
That matters in families where a parent covers the monthly payment. The parent gets no credit. You do, and you need the lender’s interest statement, which is usually posted online each year.
How much is the student loan interest credit worth?
Federally there is no fixed maximum. You add up the qualifying interest and multiply it by the lowest federal rate. The CRA’s 2026 rates table starts at 14% on taxable income up to $58,523, so each $100 of interest is worth $14 on a 2026 return. For 2025 the CRA’s payroll page says the lowest rate was a blended 14.5%, which is why older articles quote a different figure.
Your province or territory adds its own credit. You enter the same interest on line 58520 of the provincial form 428 for your province (for example ON428 or BC428), and the rate is that province’s lowest rate. Quebec residents claim the provincial part through Revenu Québec instead.
The credit is non-refundable. It lowers tax you owe and never creates a refund on its own. A student with a small income may have no federal tax to reduce, because the 2026 basic personal amount is up to $16,452 (see non-refundable tax credits).
How does the five-year carry-forward work?
If you had no tax payable in the year you paid the interest, you can carry the unused amount forward and claim it in any of the next five years. You must use the oldest amounts first. The CRA does not keep a running total for you, so you track the balance yourself and make sure you never claim the same interest twice. A spreadsheet with one row per year does the job.
| Year | Income | Interest paid | What happens |
|---|---|---|---|
| 2025 | $12,000 | $500 | No federal tax payable, so the $500 is carried forward |
| 2026 | $62,000 | $1,300 | Claim $1,300 plus the $500 from 2025, total $1,800 |
What does a worked example look like on a 2026 return?
Mei finished a college program in 2025 and has a Canada Student Loan. In 2025 she earned $12,000 and paid $500 in interest, which was below the basic personal amount, so she had no federal tax to reduce and wrote the $500 down as a carry-forward. In 2026 she works full time at $62,000 and pays $1,300 in interest. On her 2026 return she claims $1,800 on line 31900 using 2026 rules.
Her federal credit is $1,800 x 14% = $252. Without the carry-forward it would have been $1,300 x 14% = $182, so tracking the 2025 interest was worth $70. Her provincial credit comes on top and depends on where she lived on 31 December 2026. These figures are our own arithmetic from the CRA rate, not a CRA calculation. To see how credits change a return, try the tax credits calculator.
Where do you enter student loan interest on the return?
Federal: line 31900 on your federal return. Provincial or territorial: line 58520 on your Form 428. If you file electronically you do not send the lender statements, but keep them in case the CRA asks. If you file on paper, attach the supporting documents for the amounts you claim. Tax software asks for the interest in the student section and does the multiplication for you. If this is your first return as a student, our student tax return guide covers the other slips you will see.
What could change?
The federal brackets, indexation factor and credit amounts for 2027 have not been published yet (checked 31 October 2026), so the 2027 value of the credit is unknown. The rate of 14% belongs to 2026. Check the 2027 figures once they appear on our 2026 vs 2027 tax numbers page, and see 2027 tax questions for what is still pending. The CRA line 31900 page is the place to confirm the current wording: Canada Revenue Agency: Line 31900 interest paid on your student loans. The rate table sits on Canada Revenue Agency: Tax rates and income brackets for 2026.
Where does this information come from?
Rules come from the Canada Revenue Agency page for line 31900 (interest paid on your student loans), the 2026 federal tax rates page and the CRA payroll deductions tables general information page. Checked on 31 October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, we collect information from open sources, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the full disclaimer.
Frequently asked questions
Can my parents claim the interest they paid on my student loan?
No. Only the student who is legally responsible for the loan can claim the credit. A parent can make the payments, and you can still claim the interest, as long as the loan is in your name. The credit cannot be transferred to a parent or a spouse.
Does interest on a student line of credit from a bank qualify?
No. Only government student loans qualify, such as a Canada Student Loan or a similar provincial or territorial loan. Interest on a bank loan or line of credit does not count, and neither does interest on a government loan that was combined or renegotiated with another loan.
What if I have no tax to pay this year?
The credit is non-refundable, so it cannot create a refund. If you have no tax payable in the year you paid the interest, carry the unused amount forward and claim it in any of the next five years, using the oldest amounts first.
Which line do I use for student loan interest?
Enter the interest on line 31900 of your federal return. For the provincial or territorial credit, use line 58520 on your Form 428. Quebec residents claim the provincial part through Revenu Québec. Keep the lender statements in case the CRA asks to see them.
How much is the student loan interest credit worth in 2026?
The federal credit is the interest multiplied by the lowest federal rate, which is 14% on a 2026 return. Interest of $1,000 gives a federal credit of $140. Your province or territory adds its own credit on top.
- Canadian tax credits and government benefits explained
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