Background on the Promise

During the 2025 federal election campaign, Mark Carney, as leader of the Liberal Party, promised to continue upholding the removal of interest on Canada Student Loans and Canada Apprentice Loans. This commitment was part of the party's broader platform focused on affordability and support for students, building on existing policies established by the previous Liberal government under Justin Trudeau. The promise specifically aimed to maintain the interest-free status for these federal loans, ensuring that borrowers do not accrue interest on their debts, thereby reducing financial burdens for students and apprentices.

Pre-Existing Policy and Historical Context

The removal of interest on Canada Student Loans and Canada Apprentice Loans was initially implemented as a temporary measure during the COVID-19 pandemic. It was later made permanent starting April 1, 2023, through amendments to the Canada Student Financial Assistance Regulations and related legislation. This policy change eliminated the accrual of interest on all current and future federal student and apprentice loans in repayment, without affecting previously accrued interest. The decision was announced in the 2022 Fall Economic Statement and formalized through regulatory updates published in the Canada Gazette.

Actions Taken by Mark Carney's Government

Since taking office as Prime Minister in late April 2025 following the federal election, Mark Carney's minority Liberal government has not introduced any changes to reverse or modify the interest-free status of Canada Student Loans and Canada Apprentice Loans. Official government sources, including updates from Employment and Social Development Canada, confirm that the policy remains in effect as of August 2025. No new legislation or regulatory proposals have been tabled to reintroduce interest, and the government's fiscal updates and budget motions in May 2025 focused on other affordability measures without touching this area. This maintenance of the status quo aligns with the promise to "continue to uphold" the removal, ensuring ongoing benefits for borrowers.

Legislation and Regulatory Developments

No new legislation specifically related to this promise has been proposed or passed under Carney's administration, as the policy was already enshrined in law prior to his tenure. The foundational changes were made through the Regulations Amending the Canada Student Financial Assistance Regulations, published in the Canada Gazette in 2023, which permanently eliminated interest accrual. Subsequent reviews and parliamentary budget office analyses have projected the ongoing costs and benefits of this policy, but Carney's government has not initiated any amendments. In the 2025 Liberal platform, references to student aid emphasized sustaining existing supports, and post-election actions have not deviated from this.

Analysis of Key Promise Elements

The promise explicitly points to two main outcomes: upholding the interest removal for Canada Student Loans and for Canada Apprentice Loans. For Canada Student Loans, the interest-free status continues to apply to both full-time and part-time students, with no interest accruing during repayment periods. Similarly, for Canada Apprentice Loans, the policy ensures that apprentices in designated Red Seal trades benefit from the same interest elimination, supporting workforce development. As of the current date in late August 2025, both elements remain intact, with no government actions indicating a risk of reversal. If any future budget or regulatory change were to reintroduce interest, it would constitute a break from this commitment.

Overall Status

This promise is kept.