Can I claim interest on a bank loan used for school?
Student-Loan Interest: What Qualifies?. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
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The direct answer
The student-loan interest credit generally applies to qualifying government student loans, not an ordinary bank line of credit or a refinanced private loan. The borrower claims the eligible interest, even if a parent helped pay it. Qualifying interest from the current year or the preceding five years may be available if it has not already been claimed. Principal repayments do not qualify.
Identify the legal loan, not its nickname
Many families call any borrowing used for university a student loan. For tax purposes, the lending program matters. Separate government loan statements from a bank line of credit, credit card or family loan. If debt was refinanced, keep the original agreement and replacement documents so the preparer can trace what changed instead of treating all interest alike.
Check what was already claimed
A repayment statement can combine principal and interest. Identify the eligible interest component and compare it with prior returns before using an older amount. If someone else helped make payments, explain that arrangement without assuming the helper becomes the claimant. Keep a year-by-year schedule so amounts are not forgotten or claimed again.
What to gather before the review
- Annual interest statements and lender details
- Original loan and refinancing agreements
- A record of interest claimed in earlier years
Is the full monthly loan payment a tax credit?
No. Principal repayments do not qualify as student-loan interest. The review starts with qualifying interest under an eligible program, not the total cash paid toward the debt.
Your next step
Identify the lender and legal loan program and obtain a statement separating interest from principal.
Related reading
Official sources
Line 31900 – Interest paid on your student loans
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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