How To Get Student Loans in Canada: The Complete Guide

A prospective student applies for a Canadian student loan on her laptop.

quick answer

To apply for a student loan in Canada, complete the application for your territory or province and submit it by the deadline. The government will approve or deny your request based on your financial and student status.

With the average cost of post-secondary education totaling around $2,500 to $11,400 per year, it’s no secret that continued education can be costly. However, these expenses shouldn’t deter you from changing your career and pursuing your most desired role. 

In Canada, there are a number of different student loan possibilities that can be pivotal in affording an education — with different options for both full- and part-time students.

But how do you know if you qualify, and then how do you apply? In this guide, we’ll lay out how to get a student loan in Canada and the criteria for eligibility, break down the application process, and address common questions about the loan process. 

What Is a Student Loan?

Student loans are loans students can take out to help pay for tuition, educational supplies, and living expenses, depending on your province. As the cost of post-secondary education has increased in Canada, so has the number of student loans — and student loan debt. Although college students in Canada are taking out loans at the same rate as 20 years ago, the percentage of students with large amounts of debt at graduation has doubled.

Some particularly telling statistics regarding the sheer volume of student loans in Canada from Statistics Canada and the most recent Canada Student Financial Assistance Program annual report include:

  • 46% of college students have student debt at graduation.
  • 60% of students who received a grant or loan were female.
  • 40% of students who received a grant or loan used it to earn a certificate or diploma.
  • 23% of college students owe $25,000 or more in loans.
  • Total student grants add up to nearly $3.3 billion.
  • Total student loan debt in Canada is over $2.9 billion.
  • Over 285,000 students in Canada receive repayment assistance.

Relevant student loan statistics from Statistics Canada and the most recent Canada Student Financial Assistance Program annual report.

Student loans are very common in Canada, and, as a result, there are a lot of available resources to help with the process. Stay with us as we break down the eligibility criteria and how to apply. 

How To Apply for a Student Loan in Canada 

Once you determine if you’re eligible for student loans in Canada, you can start the application process. Follow the steps below to get your application underway:

To apply for a Canadian student loan, determine the process for your location, complete an application by the deadline, and wait for your assessment.

1. Determine the Process for Your Location 

The student loan application process differs in each province and territory, so you should first ensure you’re following the steps in your specific area. See the following resources for student aid information specific to your territory or province:

*Both Ontario and Saskatchewan student aid only cover 60% of tuition, with the other 40% being covered by the learner.

2. Complete an Application

Once you determine how the application process works in your territory or province, you can fill out your application. 

For the quickest results, the Canadian government recommends that you fill out an application online.

The amount you receive will be determined during the application period, and you’ll learn how much funding you’ll receive once your application is assessed and returned to you. 

3. Check Your Deadlines 

Deadlines and process times may differ depending on where you’re applying, so make sure you’re aware of the submission deadline. 

In most cases, you will need to submit your application at least six weeks before the start of your program. For most territories and provinces, the cycle will open in May and run until September.

It’s recommended that you apply early in the cycle to ensure you’re allowing plenty of time for your application to be processed. 

4. Wait for Your Assessment 

Once your application has been processed, you’ll hear whether or not your loan was approved. The assessment will arrive either by mail or email, depending on your territory or province’s application process. You’ll learn your loan details once you receive this assessment, such as whether it was approved and how much you received. 

Student Loan Eligibility Checklist

To qualify for student loans in Canada, you must meet the following criteria:

  • Be a Canadian citizen or a permanent resident of Canada
  • Be enrolled in 60% of a full course load if you’re a full-time student 
  • Be enrolled in 20-59% of a full course load if you’re a part-time student 
  • Be enrolled in a program for at least 12 weeks
  • Pass a credit check if you’re age 22 or older
  • Be able to consistently maintain a satisfactory academic record — as determined by the school 
  • Have not exceeded the lifetime limit of financial assistance in Canada

If you’re wondering what it means to exceed the lifetime limit of loans in Canada, don’t worry. We’ll explain what loan limits are later in this guide. 

How Much Student Loan Can You Get in Canada?

The average student loan in Canada is $28,000. The amount of funding you can receive depends on many factors, most notably income, location, and program. 

Canada has a lifetime limit for student aid, measured by the number of weeks you received student aid. For most students, the lifetime limit is 340 weeks. However, students earning doctorates can receive aid for 400 weeks and students with disabilities can receive aid for 520 weeks.

Use this formula to calculate student loan amounts: 

The general formula for calculating student loans amount is to subtract the student’s available financial resources from their total allowable costs.

Allowable costs are what a student will need to complete their education, which can include: 

  • Tuition
  • Textbooks and other school supplies 
  • Living costs 
  • Transportation
  • Medical expenses 

Resources, or what the student doesn’t need additional aid for, are subtracted from allowable costs. The difference is the assessed dollar amount the student will need. 

To get a better estimate of how much you’re likely to receive in student loans, consult a student financial assistance calculator. 

Types of Private and Federal Student Loans 

There are three major types of student loans in Canada, each specific to the needs of Canadian students. Two of these loan types are government-funded, also known as public loans. Loans that aren’t government-funded are called private loans. 

Government Student Loan Programs

Government school loan programs are those that administer loans through the federal government. There are two types of government assistance available: 

  • Canada Student Loan Program: For both full- and part-time students, this overarching loan program allows you to receive up to 60% of your tuition. Once your loan is complete, the federal government expects you to pay it back. 
  • Canada Student Grants Program: This program combines all available grants into one single application. After you apply, the government will let you know which grants and how many you are eligible for. Students who have disabilities or young dependents will typically receive a grant. Since these are grants, not loans, you are not responsible for repaying them after graduation. 

Private Student Loans

If you’ve maxed out your government-backed loans, another option is to take advantage of private student loans through different Canadian banks. 

These loans allow you to take out a line of credit for your post-secondary program costs. Some banks in Canada that offer student lines of credit include: 

How Do Student Loans Work in Canada?

You’ve secured your loan, congratulations! But, what happens next? You’ll receive your loan at least one week before you begin your program, and you’ll be responsible for managing your loan throughout your time studying in Canada. We cover everything you need to know about what happens after you get a loan, from maintenance to repayment and other options.

Loan Maintenance

Loan maintenance is exactly what it sounds like: the act of maintaining your loan throughout your time in your program and your repayment period. This means keeping up with the specifics of your loan and loan repayment, like: 

  • Updating bank information when necessary 
  • Tracking the real-time status of loan funding 
  • Ensuring you stay on top of monthly payments 
  • Checking loan information online 

Typically, you don’t need to make payments until six months after graduation. It’s important to reconfirm student status annually with your loan provider so the loan doesn’t accrue interest or enter repayment while you’re still in school. 

The National Student Loan Service Centre (NSLSC) will serve as your point of reference after receiving your loan and can help you maintain and update your loan status. 

Loan Consolidation 

Once your loans become repayable, you can bring all your loans together in one payment plan, known as loan consolidation. 

When the time comes, you’ll receive your consolidation agreement from the NSLSC — detailing your outstanding balance, monthly payments, repayment timetable, and the interest rate on your loan. You should receive this agreement approximately 45 days before your repayment is scheduled to begin.

Student Loan Repayment

At the conclusion of your loan period, you’ll enter the cycle of repayment, but this doesn’t mean you’re expected to reimburse your loan immediately. After your loan ends, there are a couple of ways to repay, and you can choose the one that works best for you. 

  • Six-month non-repayment period: Immediately after a loan ends, you enter a six-month non-repayment period on your loan where the loan doesn’t accrue interest and no payments are due. If you wish, you can begin paying off the loan during this period to reduce the outstanding balance.
  • Delayed repayment: Two situations that allow for delayed repayment without accruing interest include: 
    • You’re on a Canadian Forces-designated operation.
    • You have to take a leave of absence from your program due to medical or parental reasons. 

Loan Limits 

For federal loans, loan limits are designated by year and lifetime. Loan limits are decided by a number of weeks rather than a dollar amount. This means that when you’ve reached your loan limit, you’ve used federal loans for a certain number of weeks. This is an important consideration if you take more time to finish college or another program.

For lifetime loans, the maximum number of weeks is 340, with the exception of students in doctorate programs (400 weeks) and students with disabilities (520 weeks). 

Your annual loan limit depends on your loan program. However, if you exceed your annual limit, you can use time from your lifetime limit. 

FAQ

Still wondering how the student process works in Canada? Here are some common questions and answers about student loans in Canada. If you don’t find the answer to your question below, feel free to contact our admissions team to learn more. 

Who Is Eligible for a Student Loan in Canada?

If you meet the requirements of the list below, then you’re eligible for a student loan in Canada:

  • Be a Canadian citizen or a permanent resident of Canada
  • Be enrolled in 60% of a full course load if you’re a full-time student 
  • Be enrolled in 20-59% of a full course load if you’re a part-time student 
  • Be enrolled in a program for at least 12 weeks
  • Pass a credit check if you’re age 22 or older
  • Be able to consistently maintain a satisfactory academic record — as determined by the school 
  • Have not exceeded the lifetime limit of financial assistance in Canada

How Much Is a Student Loan in Canada?

For government-funded student loans in Canada, the amount offered for your loan depends on factors such as where you live, whether you have dependents, your family income, living expenses, and more. The federal student aid estimator tool can give you a rough estimate of the loan amount you can expect.

What Is the $4,200 Canada Student Grant 2024?

In 2024, the federal government increased student grants from $3,000 to $4,200 per year for full-time students. Interest-free Canadian student loans were also increased from $210 to $300 per week.

How Can I Get a Study Loan in Canada?

Each province or territory in Canada has its own student loan application process. Select your area from the list below for how to apply for a loan:

How Long Does It Take To Repay Student Loans in Canada? 

It takes around 10 years for the average student to repay their loans.

Do You Have To Apply for Student Loans Every Year? 

Yes. You must re-apply for student loans every semester. 

When Should You Submit a Student Loan Application?

You should submit your student loan application as early as possible. For many territories and provinces, the application cycle starts in May and ends in September. 

To ensure your application is processed before your program begins, you should strive to submit your application earlier in the cycle. 

Can Someone Else Pay My Student Loans?

If someone else is paying your student loans, you can add their banking information through your online portal. Then, the payee can make an extra payment via your account. 

You can also give someone else power of attorney, which means they can handle your student loans on your behalf. 

To do so, you can fill out this form and mail it to:

National Student Loans Service Centre 

P.O. Box 4030

Mississauga ON L5A 4M4

Are Canadian Student Loans Interest-Free?

Student loans are only interest-free during the six-month non-repayment period or during delayed repayment if you qualify for specific circumstances. 

After the six-month non-repayment period, you’ll be expected to pay interest on your loans. 

How Robertson College Can Help With Student Loans in Canada

If you need assistance applying for student loans, the team at Robertson is here to guide you through the process. We can help find the proper applications to:

  • Set up a personal payment plan 
  • Open a student line of credit 
  • Manage your government student loans 
  • Enroll in student employment programs 
  • Apply for different scholarships or bursaries
  • Obtain band funding for qualified individuals, which is funding made available through Indigenous Bands

To learn more about funding options available to you at Robertson, explore Tuition Funding & Assistance today.

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