Canada Student Loans Regulations

16.2 (1) For the purposes of this section and sections 16.3 to 16.5, the prime rate of interest means the rate of interest expressed as a rate per annum announced by the lender from time to time as the lender's reference rate of interest and used by the lender to determine interest rates charged for Canadian dollar demand commercial loans made by the lender in Canada.

(2) For the purposes of sections 16.3 and 16.4, the maximum floating rate of interest shall be the prime rate of interest plus 250 basis points.

(3) For the purposes of section 16.4, the maximum fixed rate of interest is the annual rate of interest set and earmarked by the lender in the ordinary course of business from time to time as the lender's prevailing unsecured consumer loan rate for the same repayment term as that agreed to by the borrower and the lender, not exceeding the prime rate of interest plus 500 basis points.