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Post-secondary education is a significant investment, but also a financial challenge. Between tuition fees, housing, and daily expenses, many students turn to student loans to cover their needs. This type of funding offers essential support, but it will need to be repaid after your studies. Since conditions vary by province, it is essential to understand how a student loan works in Canada to make informed decisions.
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 them after your studies are completed. You may be eligible for several types of scholarships.
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:
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.
To be eligible for a scholarship or student loan from the NSLSC, you must meet the following conditions:
You must also be enrolled as a full-time or part-time student, defined as follows:
There are several scholarships available for which you can apply, including:
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.
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.
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 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.
If you are experiencing financial difficulties and are unable to repay your student loan, the Government of Canada can help you through these programs:
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.
As mentioned previously, your student loan begins to accrue interest after your studies are completed. 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:
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.
The Government of Canada provides several online tools to help you with the financial planning of your studies. For example:
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.
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.
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:
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:
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.
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.
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