Post-secondary education is one of the most expensive times of your life. But it’s also an “investment” in yourself, providing you with knowledge and skills that will serve you well throughout your life. Since tuition and education costs are high, consider applying for a student grants and loan. However, you’ll have to repay this student loan at the end of your studies, in addition to paying interest. So going into debt isn’t always the best approach. Depending on your province of residence, the conditions and application process may differ. This guide provides an overview of how student loans work in Canada, so you can make the right financial decisions.
If you can’t afford the tuition fees for your post-secondary education, consider applying for financial assistance from the Government of Canada. This financial assistance includes student loans and grants.
Even if your parents have saved for your post-secondary education through an RESP, taking out a loan through the Canada Student Loans Program should be your first option. This program works in partnership with the provinces and territories (the process varies depending on your province of residence) to provide financial assistance in the form of scholarships and student loans.
You don’t have to pay back any grants you receive. In the case of student loans, you must repay them after your studies are completed. You may be eligible for several types of student grants and loans.
Canada Student Grants and Loans are not available in Quebec, Nunavut and the Northwest Territories, which have their own student assistance programs.
The National Student Loans Service Centre (NSLSC) distributes loans under the Canada Student Loans Program. The amount of financial assistance will depend on several factors, such as :
To estimate the amount of financial assistance you could receive, you can use this tool from the Government of Canada. Please note, however, that the tool does not take into account provincial student grants and loans.
To qualify for CSNPE student grants and loans, you must meet the following conditions:
You must also be registered as a full-time or part-time student, defined as follows:
Quebec, Nunavut and the Northwest Territories operate their own student loan programs. You should therefore contact their respective provincial or territorial offices to find out more about their terms and conditions.
There are several student grants available for which you can apply, including :
Please note, however, that your eligibility for these grants will be assessed. In addition, there are lifetime maximums for student financial assistance, determined in number of weeks.
To apply for federal and provincial student financial assistance programs, you only need to complete one application. All you need to do is submit a student grants and loans application on the student financial assistance website for your province or territory of residence.
For some provinces and territories, you may be eligible for both federal and provincial grants and student loans. For others, it’s only federal grants and loans. Finally, in the case of provinces and territories that manage their own student loan programs, it’s only provincial grants and student loans. In short, consult the list of provincial and territorial student aid offices on the Government of Canada website for more information.
Once you’ve submitted your application, your provincial or territorial student assistance service will contact you to explain the next steps.
Once you’ve completed your studies, you must start repaying your student loan. However, you are entitled to a 6-month non-repayment period, which generally begins after your last term of study or when you leave or are absent from school. Thereafter, you will receive a payment statement with repayment conditions and options.
Be aware that you may be able to delay repayment of your student loan if you are still a full-time student, or if you need to take a break from your studies for health reasons. There are other exceptions.
If you are unable to repay your student loan, consult the CSNPE Repayment Assistance Program.
As mentioned earlier, your student loan starts accruing interest after you graduate. What’s more, you’re entitled to a grace period before you have to start repaying your student loan. The grace period lasts 6 months and begins when :
The Government of Canada offers a number of online tools to help you plan your finances while you study. For example:
As previously mentioned, the Canada Student Loans Program works closely with the provinces and territories to provide financial assistance. This financial assistance comes in the form of scholarships and student loans, and varies according to your province of residence.
Therefore, your application for a student grants and loans must be completed on the website of your provincial or territorial student assistance office. The list of provincial and territorial student assistance offices is available here.
Once you’ve submitted your application for student grants and loans, the student assistance service in your province or territory of residence will contact you to explain the next steps.
For example, Canada Student Grants and Loans are not available in Quebec, as the province of Quebec manages its own student aid program. Students residing in Quebec must apply for assistance through Quebec Student Financial Assistance.
Several scholarships and student loans are available, such as :
If you don’t qualify for federal or provincial student loans or grants, there are other options available to you. These include private student loans and student lines of credit. The conditions are different, and so are the repayment terms, but it’s an option you should consider for your post-secondary education.
If this is the route you choose, start by contacting your bank or credit union. They’ll be able to suggest the products they offer to suit your needs. That said, don’t hesitate to contact other financial institutions to compare student loans and lines of credit.
Typically, when you submit an application for a private student loan, the lender will ask you for more information, such as:
This information will determine if you qualify for the loan. If possible, make sure you’re in good financial health before you apply. If you have a low credit score, the lender may ask you to find a co-signer before granting the loan. If you need help, don’t hesitate to follow our personal finance tips for students.
In short, student loan and grants programs can help you cover some of Canada’s increasingly expensive tuition costs. Although this is a form of indebtedness, don’t forget that studying is an “investment” in yourself to acquire knowledge and skills.
As we’ve seen in this guide, the Canada Student Loans Program works closely with the provinces and territories to provide student financial assistance. This financial assistance varies according to your province of residence, so be sure to visit the website of your provincial or territorial student aid office.
Read on for our articles for students:
As a full-time or part-time student, you can apply for student financial assistance. If you qualify, this financial assistance is given in the form of a grants or student loan. You must submit your application on the student financial assistance website for your province or territory of residence.
You must begin repayment of your student loan when your studies are completed. However, you are entitled to a 6-month non-repayment period, which generally begins after your last term of study or when you leave or are absent from school. In certain situations, you can delay repayment of your loan.
The interest rate on your student loan varies according to the type of loan: federal loan, provincial loan, private loan, student line of credit and so on. Often, the interest rate is based on the Bank of Canada’s prime rate plus a premium.
There are several conditions for obtaining a student grants or loan, such as being a Canadian citizen, permanent resident or designated protected person, demonstrating financial need and maintaining satisfactory academic standing. The complete list of conditions is available in this guide.
Savings are here:
