Common sense would suggest that the lower the interest rate on your Canada student loan, the less student debt you will have. Interest starts to be charged on your Canada student loan principal beginning the first day of the month following the end of your full-time study period.
The actual interest rates and conditions for repayment are set at the time you enter the repayment phase of you loan and your interest rate will vary depending on the prime interest rate in Canada, and as well, different Canadian provinces may charge different interest rates on their provinical student loans in Canada.
On Canada Student Loans, the current fixed rate of interest is prime + 5% and the current variable (floating) rate is prime + 2.5%. Some provinces such as Ontario, an Ontario Student Loan have an interest rate of prime + 1%.
You can check out the prime rate which is posted by most banks on a daily basis. For example the prime rate posted was around 4.75 percent in May of 2008 in Canada.
In general, the interest rate charged for either your federal canada student loan or your provincial canada student loan will be less than if you were to consolidate your canada student loan to reduce your student debt load.
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