Disbursement, Loan Maintenance and Repayment
Disbursement of Funds
After receiving confirmation of enrolment, funds will be disbursed directly to the eligible apprentices as early as the first day of their technical training.
Eligible apprentices can receive only one disbursement per technical training period:
- Minimum of $500 and a maximum of $4,000
- Amount is determined by applicant as per his/her financial need at the time of application
Registered apprentices are not required to make payments on their loan(s) and no interest will accrue if they:
- are returning to technical training and are receiving CAL funding;
- have their ongoing registration confirmed by their provincial/territorial apprenticeship office (whether returning to technical training or not).
If an apprentice does not confirm that he/she is still a registered apprentice in a Red Seal trade apprenticeship program by the apprenticeship end date, interest will begin to accrue on the loan and repayment will begin six months after this date.
The apprenticeship end date is 12 months following an apprentice's last funded technical training end date or the date his/her confirmation of ongoing registration was last confirmed.
- Repayment of a Canada Apprentice Loan will start when the apprentice:
- has completed his/her Red Seal trade apprenticeship program
- is no longer registered in a Red Seal trade apprenticeship program
- did not confirm registration by the apprenticeship end date
- has reached the lifetime maximum of six years of interest-free status
- Interest will begin to accrue on the loan the day after the apprenticeship end date .
- No payments are required for the first six months after the apprenticeship end date, although interest will accrue on the outstanding loan balance.
- At the end of the six month non-repayment period, the borrower will be required to start making regular loan payments.
- The apprentice will be notified before the loan enters repayment.
- Interest Rates: Borrowers may choose between a variable (prime + 2.5%) or fixed (prime + 5%) interest rate.
Repayment Assistance: The Government of Canada offers repayment assistance options that may assist borrowers who are experiencing financial difficulty in repayment through the Repayment Assistance Plan