Post-secondary education isn\u2019t cheap \u2014 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.<\/p>
In this guide, we\u2019ll walk you through your student loan options, including government and private student loans in Canada. We\u2019ll also show you how to find the best student loan for your needs.<\/p>
There are four places you can get student loans in Canada.<\/p>
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.<\/p>
As of April 1, 2023, federal government student loans no longer accrue interest, but you\u2019ll need to start repaying what you borrow six months after you graduate or finish studying.<\/p>
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\u2019ll need to be studying at least 60% of a full-time course load to be considered a full-time student.<\/p>
Once you\u2019ve 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.<\/p>
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\u2019ll 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.<\/p>
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\u2019s important to be aware of the cost of borrowing before you apply.\n \n\n