Student loans in Canada: Everything you need to know

Canada Student Financial Assistance Program

Canada Government Loans and Bursaries

If you cannot afford your post-secondary tuition fees, consider applying for financial assistance from the Government of Canada. This financial assistance includes scholarships and student loans.

Even if your parents have saved for your post-secondary education using an RESP, taking out a loan through the Canada Student Loans Program should be your first option. This program partners with provinces and territories (the process varies depending on your province of residence) to offer financial aid in the form of scholarships and student loans.

Please note that you do not have to repay the scholarships you receive. As for student loans, you must repay your loans after your studies are completed. You may be eligible for several types of scholarships.

National Student Loans Service Centre (NSLSC)

The National Student Loans Service Centre (NSLSC) distributes loans from the Canada Student Loans Program. The amount of financial aid will depend on several factors, such as:

• Your province or territory of residence
• Your family income
• Your tuition fees
• Whether you have dependents or not
• Whether you have a disability or not
• Etc.

To estimate the amount of financial aid you could receive, you can use this Government of Canada tool. However, note that the tool does not account for provincial scholarships and student loans.

Conditions for obtaining a federal student loan

To be eligible for a scholarship or student loan from the NSLSC, you must meet the following conditions:

• Be a Canadian citizen, permanent resident, or a designated protected person.
• Reside in a province or territory that participates in the Canada Student Loans Program.
• Demonstrate financial need (for full-time students, your financial assets and investments will be considered).
• Maintain a satisfactory academic standing to continue receiving financial aid in the form of a scholarship or student loan.
• Not have reached the lifetime maximum for student financial aid

You must also be enrolled as a full-time or part-time student, defined as follows:

• Full-time student: you must take at least 60% of a full course load. However, there are exceptions for students with disabilities (at least 40%).
• Part-time student: you must take between 20% and 59% of a full course load.

List of federal scholarships

There are several scholarships available for which you can apply, including:

• Full-time students
• Full-time students with dependents
• Part-time students
• Part-time students with dependents
• Students with disabilities
• Equipment and services for students with disabilities

However, note that your eligibility for these scholarships will be assessed. In addition, there are lifetime maximums for student aid, determined in number of weeks.

Applying for student financial aid

To apply for student financial aid through federal and provincial programs, you only need to complete one application. Indeed, you must submit a scholarship and student loan application on the student financial aid website of your province or territory of residence.

For some provinces and territories, you may be eligible for both federal and provincial scholarships and student loans. For others, only federal scholarships and student loans are available. Finally, for provinces and territories that manage their own student loan programs, only provincial scholarships and student loans are available. For example, Quebec Student Financial Assistance.

In short, consult the list of provincial and territorial student aid offices on the Government of Canada website for more information.

Once you have submitted your application, your province or territory’s student aid service will contact you to explain the next steps.

Student loan repayment

Once your studies are completed, you must begin 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 school or take a break from school. Afterwards, you will receive a payment notice with the terms and repayment options.

Please note that you may delay repayment of your student loan if you are still studying full-time or if you need to take a break from your studies for health reasons. Other exceptions exist.

This rule also applies if you go on to graduate or professional school, such as medicine or law. As long as you remain a full-time student, your Canada Student Loans stay interest-free and payment-free, and repayment only starts 6 months after your last confirmed period of full-time study. If you are not receiving new government funding for the new program, send a Confirmation of Enrolment to the NSLSC at the start of each school year to keep this status. Otherwise, you may have to make payments while still in school.

If you are experiencing financial difficulties and are unable to repay your student loan, the Government of Canada can help you through these programs:

• Repayment Assistance Plan (RAP);
• Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD).

Depending on your income, you may be eligible for a reduction or cancellation of your payments. To learn more, consult the NSLSC’s Repayment Assistance Plan.

Finally, new relief measures for certain professionals in rural areas have been added starting in 2025. Specifically, student loan repayments may be waived for health and social services professionals if they work in rural or remote communities. To learn more about this program, consult this Government of Canada news release.

Interest paid on a student loan

Since April 1, 2023, Canada Student Loans are interest-free, but the provincial portion of your student loan may still accrue interest after your studies are completed, depending on your province. In addition, you are entitled to a grace period before you must begin repaying your student loan. The non-repayment period (grace period) is 6 months long and begins when:

• You have completed your last term of study (whether or not you have graduated)
• You change from full-time to part-time student status
• You leave or take a break from the educational institution.

Tax credit for interest paid

Good news: interest paid on your student loan is generally eligible for a non-refundable tax credit, both federally and provincially. Keep your interest statements: they will need to be declared when filing your tax return.

Planning tools for a student loan

The Government of Canada provides several online tools to help you with the financial planning of your studies. For example:

• Student Aid Estimator: a tool to estimate the amount you could receive from the Canada Student Financial Assistance Program.
• Loan Repayment Estimator: a tool to estimate the monthly payments required to repay your student loan.
  
• Loan repayment rates: a tool to find the repayment percentage of Canadian student loans for a given year and educational institution.
• Study Programs and Educational Institutions: a tool to explore study programs and educational institutions.

Provincial and territorial student loans in Canada

As mentioned previously, the Canada Student Loans Program works closely with provinces and territories to offer financial aid. This financial aid is provided in the form of scholarships and student loans and varies depending on your province of residence.

• For some provinces and territories, provincial financial aid is offered in addition to federal financial aid.
• For other provinces and territories, provincial financial aid is not offered, but you have access to federal financial aid.
• Finally, for provinces and territories that manage their own student loan programs, federal financial aid is not offered. However, you have access to provincial scholarship and student loan programs.

Thus, your scholarship and student loan application must be completed on the website of your provincial or territorial student aid office. The list of Provincial and Territorial Student Aid Offices is available here.

Once you have submitted your scholarship and student loan application, the student aid service of your province or territory of residence will contact you to explain the next steps.

Student loan in Quebec

For example, Canadian student loans and bursaries are not offered in Quebec, as the province of Quebec manages its own student aid program. Thus, students residing in Quebec must apply for aid from Aide financière aux études (AFE).

Several scholarships and student loans are offered, such as:

• Loans and bursaries for full-time studies
• Loans for part-time studies
• Allowance for special needs
• Bursaries for interns
• Excellence scholarships for future teachers
• Financial aid for international students
• Parcours scholarships for student mobility

Private student loans in Canada

If you are not eligible for federal and provincial government scholarship and student loan programs, other options are available to you. These include private student loans and student lines of credit. The conditions are different, and the repayment terms are also different, but it is an option to consider for pursuing your post-secondary studies.

If this is the path you choose, start by contacting your bank or credit union. They will be able to offer you products that meet your needs. That being said, do not hesitate to contact other financial institutions to compare loan and line of credit offers for students.

As a general rule, when you submit an application for a private student loan, the lender will ask for more information, such as:

• Your income
• Your credit score
• Your borrowing history

This information will determine if you are eligible for the loan. If possible, make sure you are in a good financial position before applying. If your credit score is low, the lender may ask you to find a co-signer before granting you the loan. To learn more, consult our personal finance tips for students.

Borrowing without a co-signer

Government student aid does not depend on your credit history. Canada Student Loans are granted based on your assessed financial need. In addition, since August 1, 2024, first-time applicants no longer go through a credit check, a step that previously applied to those aged 22 or older (Canada Gazette). For a student without a credit history, the application to your provincial student aid office, such as OSAP in Ontario, is therefore the first step.

A student line of credit from a bank works differently. The bank reviews your income and credit history, and may ask for a co-signer if your file is thin. The Government of Canada also points out that private lenders often charge interest during your studies and can require payments while you are still in school. As of September 2026, conditions vary from one institution to another: compare several offers before signing.

Conclusion

In conclusion, scholarships and student loans are essential tools for financing studies whose cost continues to rise in Canada. Even if it involves debt, this funding should be seen as an investment in your knowledge and skills.

The Canada Student Loans Program, in collaboration with the provinces and territories, offers different forms of support adapted to your situation. As criteria and terms vary from place to place, be sure to consult the official website of your student financial aid office to fully understand your options.

Frequently Asked Questions