If you are a student who has paid interest on a student loan, you could be eligible to claim a non-refundable tax credit against taxes owing on your personal tax return.
To be eligible to claim the interest paid on your student loan, you must have received a student loan under the Canada Student Loans Act, Canada Student Financial Assistance Act, the Apprentice Loans Act, or the law of a province governing the granting of financial assistance to students at the post-secondary school level.
Note that the credit can be carried forward and applied on your return for any of the next five years. This means if you don't have any tax payable in the year you paid the eligible interest amount, you might want to use the amount on your return in any of the next five years to lower your taxes payable.
Lastly, if the student loan amount is renegotiated with the bank or consolidated with other loans, the interest paid is no longer eligible and cannot be claimed.
- Baldwyn, Young Tax Professional