Post-secondary education isn’t cheap — according to the federal government, on average you can expect tuition fees of between $2,500 and $11,400 a year. But if you need higher education to get the career you want, student loans can help cover the cost of school.
In this guide, we’ll walk you through your student loan options, including government and private student loans in Canada. We’ll also show you how to find the best student loan for your needs.
There are four places you can get student loans in Canada.
The Government of Canada offers student financial assistance under the Canada Student Loans Program. Loans are available for full- and part-time students, with eligibility determined based on financial need. You can access funding to cover up to 60% of your tuition costs.
As of April 1, 2023, federal government student loans no longer accrue interest, but you’ll need to start repaying what you borrow six months after you graduate or finish studying.
Provincial and territorial governments across Canada also offer their own student financial assistance programs. Loan amounts and terms vary depending on where you live, but you’ll need to be studying at least 60% of a full-time course load to be considered a full-time student.
Once you’ve exhausted your options for government student aid, you can also consider taking out a private student loan. Banks and other major financial institutions across Canada commonly offer student lines of credit to help you cover the cost of tuition, books, housing and more. These provide access to a preapproved credit limit whenever you need funds, but you only pay interest on the money you use.
Alternatively, you could consider taking out a personal loan to cover the cost of education. Interest is typically higher (but not always) than with a government loan and starts accumulating as soon as you take money out. You’ll often have to start making payments on your loan from the moment it gets issued or after a grace period after your studies, depending on the lender.
Private lenders also offer student loans and lines of credit. These online lenders often have more lenient eligibility requirements than banks and credit unions, so it may be easier to qualify for funding. But high rates and fees often apply, so it’s important to be aware of the cost of borrowing before you apply.
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| Province | Maximum amount | Eligibility requirements |
|---|---|---|
| Alberta | Lifetime loan limit for full-time students
Part-time students: $10,000 |
|
| British Columbia | $50,000 |
|
| Manitoba | Full-time students: $500 x the number of weeks in 1 program year Part-time students: $10,000 |
|
| New Brunswick |
|
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| Newfoundland and Labrador | $100 per week of study (Up to $135 per week for Memorial University medical students) |
|
| Nova Scotia | $200 a week |
|
| Ontario | Full-time students
Part-time students
|
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| Prince Edward Island | $209 per week of study |
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| Quebec | Full-time students: $30,000 – $70,000 for university study Part-time students: $8,000 |
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| Saskatchewan |
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Banks also offer financing solutions you can tap into as a student. While federal and provincial government loans typically offer a greater range of funding options designed especially for students, private student loans in Canada usually offer faster access to funds and are more flexible. However, it’s often harder to qualify for a bank loan as a student.
Many students haven’t yet built a strong credit history. Because lenders usually require you to be in steady employment, receive a minimum income and meet credit score requirements, you might want to bring on a parent as a cosigner. Alternatively, your parents might prefer taking out a personal loan in their own name.
You’ll need to meet common eligibility requirements that include:
Yes. If you don’t qualify for a government student loan or you still need extra funds, you can apply for funding from a bank, credit union or private lender.
If you already have a relationship with a bank or credit union, they’ll likely be your first port of call. If you can point to a long history of banking with the same institution, it may help you qualify for a loan.
Alternatively, you might like to apply for a loan from a private lender. These alternative lenders tend to have more lenient eligibility requirements, so it may be easier to qualify even with limited credit history. But you’ll need to watch out for high rates and fees, plus do your due diligence to make sure you’re dealing with a reputable lender.
There are two types of private student loans you might like to consider: student lines of credit and personal loans.
Many Canadian banks, including the Big Five, offer lines of credit specifically designed for students. Student lines of credit are commonly used as an alternative when you don’t qualify for government loans or you need more money to pay for school.
A line of credit is an amount you’re approved to borrow, and you can access funds up to a set limit whenever you need. For full-time students, amounts generally fall between $10,000-$20,000 per year. Higher credit limits are often available for medical and dental students or those engaged in professional graduate programs.
Line of credit interest rates are variable and are usually a small increment above the bank’s prime rate. You only pay interest on the money you actually use, but unlike with a government student loan, you’ll need to start making interest payments straight away. You’ll often also have the option to make interest-only payments while you’re still in school, then start paying off the principal after you graduate.
However, be aware that having a student line of credit could affect how much you’re eligible to receive from other sources like scholarships, bursaries and government loans.
You could also apply for a personal loan from a bank, credit union or private lender to cover education costs. Your options for personal loans may be limited if you’re still hitting the books and not bringing in much income. But many banks and lenders accept cosigners, which can help you qualify for a lower rate and better terms than you’d find on your own.
Personal loans typically range from $500 to $50,000. Interest rates vary based on your income, credit score, existing debt load and other factors. Terms generally last 3 to 60 months.
The main benefit of a personal loan is that there are no restrictions on what you can use the money for. But there are a few downsides to be aware of:
There are a few reasons why you might struggle to qualify for a personal loan as a student:
How to get a private student loan
It’s easy to apply for a private student loan online. You’ll need to provide details such as:
If you’re applying for a student line of credit rather than a personal loan, you’ll also need to provide:
The maximum amount you can borrow varies depending on the type of loan you get.
Student loans from the Government of Canada provide a maximum of $300 per week of study. Full-time students can receive financial assistance for up to 340 weeks, but this limit increases to 400 weeks for students enrolled in doctoral studies and 520 weeks for students with a disability.
Maximum loan amounts vary between provinces and depending on the type of course you are studying. Check the table higher up this page for details of the maximum loan amount in your province.
Credit limits vary depending on the lender and the type of degree you’re studying. For example, a BMO Student Line of Credit offers access to up to $20,000 per year and a maximum of $80,000 over 4 years. Meanwhile, a BMO Professional Student Line of Credit offers from $1,000 up to $175,000 based on your degree, while a BMO Medical or Dental Student Line of Credit provides access to up to $350,000.
Loan limits vary depending on the lender and your financial situation. Amounts of up to $50,000 are available, but you may not qualify for this amount as a student. Applying with a cosigner or providing an asset as collateral could help you get a larger loan amount.
There are plenty of options for financial aid if you need help paying for school. Federal and provincial government student loans are the best place to start, but private student loans in Canada can also help you cover education expenses. Research your financial assistance options before deciding whether to apply for funding.
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