Helen Burnett-Nichols
Janine DeVault
Beth Buczynski
A student loan, offered via federal and provincial governments, is one way to finance the cost of post-secondary education in Canada.
Through the Canada Student Financial Assistance Program, students can apply for federal loans and grants using a single application.
Canadian provinces and territories also offer their own grants and loans, sometimes integrated with federal funding and other times as a separate program.
These forms of financial aid can help cover the cost of tuition, textbooks and living expenses.
What is a student loan?
Student loans are a form of credit the government extends to those who demonstrate financial need. Unlike credit cards or lines of credit, student loans don’t require borrowers to make interest payments while enrolled in classes.
Why apply for a student loan?
A student loan gives full- and part-time students access to funds to cover educational expenses. Student loans offer flexible repayment terms and, in some cases, interest-free borrowing.
Student loan eligibility is typically based on factors like financial need, the length of your program and whether you have any dependents, rather than credit score and income, like other loans.
How to apply for federal student loans in Canada
To secure a federal Canada Student Loan, you must apply through the student aid office for your province or territory of residence.
Depending on where you live, provincial or territorial aid may be integrated with federal student loans or offered as a standalone funding source.
Nerdy Tip: Federal loans and grants are unavailable in Nunavut, the Northwest Territories, and Quebec; these areas have their own student aid programs.
To be eligible for federal student loans in Canada, you must:
- Be a Canadian citizen, permanent resident or have protected person status
- Be a permanent resident of a province or territory that issues Canada Student Loans
- Demonstrate financial need by meeting certain individual or family income requirements. The government will also consider the cost of tuition and living expenses, as well as existing or expected resources, such as parental contributions, to determine financial need.
Indigenous students, students with a disability or current and former Crown wards also may be eligible to receive additional funding. If you’re over age 22 and applying for your first Canada Student Loan, you may be required to pass a credit check.
You’ll also need to meet specific enrolment requirements, such as:
- Taking a course load of at least 60% (or at least 40% for students with a disability) if you’re a full-time student.
- Enrolling in a course load of 20% to 59% if you’re a part-time student.
- Ensuring your degree, diploma or certificate program runs for at least 12 weeks within 15 consecutive weeks and is offered by a designated post-secondary institution.
If you meet these requirements, you can apply for a Canada Student Loan online through your province or territory’s student financial assistance site. If you’re planning to attend a school in another province, you should still apply for student loans through the financial assistance site of your province or territory of permanent residence.
Your eligibility for grants and loans is assessed together, and you may qualify for a combination of the two types of funding.
The government will send you a notice of assessment that outlines whether and what kind of funding is available to you. If you qualify, you will be required to complete a legally binding contract called the Master Student Financial Assistance Agreement that outlines the terms and conditions of the loan. You must also provide your financial institution and account information, so the government can directly deposit funds twice a year — once during each of the first and second terms.
You must reapply every year for your Canada Student Loans.
Provincial and territorial student loans
Provinces and territories also offer loans for students pursuing post-secondary education. In some cases, these student loans are administered in conjunction with federal loans, while in others, they are considered two separate loans.
Here’s a look at how student financial aid works in the provinces and territories:
How to apply for student loans in British Columbia, Manitoba, Saskatchewan, Ontario, New Brunswick, and Newfoundland and Labrador
These provinces offer integrated federal-provincial student loans and grants, meaning students can apply for both federal and provincial funding with a single application through their province’s student aid office.
The loans are then managed through the National Student Loan Service Center (NSLSC) and repaid through a single monthly payment.
How to apply for student loans in Alberta, Nova Scotia and Prince Edward Island
In Alberta, Nova Scotia and Prince Edward Island (PEI), provincial student loans are provided separately from federal student aid.
Students can apply for both types of funding with a single application through the provincial student assistance office. Once disbursed, the loans are two separate debts managed through different portals.
Federal loans will be managed through the NSLSC and provincial loans through the student’s provincial student aid office. When it comes time to repay, students must manage two repayment schedules.
How to apply for student loans in Yukon, Northwest Territories, Nunavut and Quebec
In the Yukon, students can apply for Canada Student Loans through Yukon Student Aid. However, the territory does not currently offer additional territorial student loans. The Yukon does offer territorial grants, and your eligibility will be assessed when you file a loan application.
The Northwest Territories, Nunavut and Quebec operate student financial assistance programs independent of the federal student loans program.
- Northwest Territories: Students may qualify for grants or loans based on financial need, family size and other factors. Indigenous students and students with disabilities may qualify for additional funding. Students must reapply each year through the Student Financial Assistance website.
- Nunavut: Financial Assistance for Nunavut Students offers grants and loans to full-time students who meet specific eligibility criteria, such as the number of years of prior schooling in the territory. Applications are submitted through the Department of Education.
- Quebec: Provincial grants and loans are available to full- and part-time students who meet eligibility criteria. Students can apply through the government’s financial aid website.
Pros and cons of applying for student loans
Pros
- Interest-free funding for your post-secondary education.
- More flexible terms than other forms of credit, such as credit cards or lines of credit.
- By applying for student loans, you also may be considered for other programs, such as awards or bursaries offered by a specific school or other initiatives, like Ontario’s Student Access Guarantee.
Cons
- Applying for student loans means graduating with debt.
- Unlike grants, student loans eventually have to be paid back.
- While Canada Student Loans no longer accrue interest, some provincial student loans do, such as those from Ontario and Saskatchewan.
Frequently asked questions about student loans
Yes. On April 1, 2023, the government permanently eliminated the accumulation of interest on all Canada Student Loans. However, you’ll still have to repay any interest that accrued before that date. Some provincial student loans still carry interest — for example, students with OSAP loans (Canada-Ontario Integrated Student Loans) don’t pay interest on their Canada Student Loan, but must pay the prime rate plus 1% on the Ontario portion of the loan.
The earliest you can apply for Canada Student Loans is when the program opens for the upcoming year of funding. This usually happens around the beginning of June. You can apply for funding before you are accepted into a post-secondary program, but you won’t receive any money until the school you’re attending confirms your enrolment.
As of November 2023, eligible family doctors, nurse practitioners, and nurses can have up to 50% of their Canada Student Loans forgiven if they work in eligible under-served rural or remote communities.
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