A student line of credit provides flexible access to funds to help you cover the cost of school. You can access money any time up to a predetermined limit, and you only pay interest on the money you actually use. Then once you graduate, there’s typically a grace period of 12 or 24 months before you have to start repaying the principal amount.
So if you’re looking for the best student line of credit in Canada, compare interest rates and credit limits from the lenders below.
This CIBC student line of credit provides $80,000 in total to help you cover your post-secondary education expenses as a full-time undergraduate student up to $20,000 per year. The maximum limit is also $80,000 for graduate students but with no yearly limit. You also have a 24-month grace period after graduation before you must start repaying the principal.
Eligibility
Canadian resident
Age of majority
Haven't been declined for credit by CIBC in the last 6 months
This CIBC student line of credit provides access to funds online and via CIBC mobile banking. Credit limits range from $60,000 for nursing and engineering students to $350,000 for medicine and dentistry students. The interest rate you get varies depending on the program you're enrolled in, with medicine and dentistry students qualifying for CIBC's prime rate minus 0.25%.
Eligibility
Canadian citizen or permanent resident
Enrolled at a Canadian accredited university or college
You'll need to apply with a guarantor if you have a limited credit history
Interest-only payments up to 24 months after you graduate
Competitive rates
Easy access to funds
You can apply online
Credit limits vary depending on your field of study
The National Bank Student Line of Credit provides a revolving line of credit, with the maximum amount available depending on your personal circumstances. Interest is charged at National Bank's prime rate plus 1%, and you only pay interest on the amount you use each month. You can then start repaying the principal amount when you get a full-time job or 12 months after graduation.
Eligibility
Full-time or part time post-secondary student
Canadian citizen or a permanent resident
Flexible ways to access credit
Credit limit can be reviewed each year
Interest-only payments while you're a student
Maximum credit limit not listed online
You'll need to book an appointment to apply
You must visit a branch once a year to update your file
For full-time undergraduate students, the TD Student Line of Credit provides up to $20,000 per year to a maximum of $80,000 over four years of study. Limits ranging from $80,000 to $175,000 are available for graduate students, while veterinary students can access up to $250,000. Medical and dental students can access up to $400,000. You can access funds using your TD Access Card, online and mobile banking, ATMs and cheques.
Eligibility
Enrolled in an eligible program
Undergraduates will most likely need a co-signer
No principal payments required until 24 months after you graduate
Flexible access to funds
Big Five bank
You'll need to book an appointment to apply
Credit limits vary based on your program of study
Loan amount
Up to $400,000
APR
6.7% – 8.2%
Term
N/A
Scotiabank ScotiaLine Personal Line of Credit for Students
The ScotiaLine Personal Line of Credit for Students provides a credit limit of up to $40,000 for undergraduate and diploma students and up to $100,000 for graduate program students. You make interest-only payments while you're in school, and you can wait 12 months after graduation before you start making principal repayments.
Eligibility
Canadian citizen or permanent resident
Enrolled in a certificate, apprenticeship, degree or diploma program at a Canadian or American post-secondary school
If you're an international student enrolled in a Canadian Graduate program, you'll need to apply with a co-borrower who is a Canadian citizen or permanent resident
Principal repayment grace period of 12 months after you graduate
Pay interest only on the funds you use
Big Five bank
Credit limits vary based on your program of study
You'll need to book an appointment to apply for a Scotiabank student line of credit
This Scotiabank professional student line of credit provides a flexible credit limit of up to $400,000. You can access your line of credit through ScotiaOnline or mobile banking, and you'll only pay interest on the funds you use. Depending on your program, you'll have up to 12 or 24 months after graduating before you have to start making principal repayments.
Eligibility
Must meet minimum credit score requirements or have a cosigner
Canadian citizen or permanent resident
Enrolled in an eligible program
High credit limit of up to $400,000
Up to two years of interest-only payments after you graduate
This flexible financing option from BMO provides access to a credit limit of $20,000 per year up to a maximum of $80,000 over four years. There are no monthly or annual fees to worry about, and you can make interest-only repayments while you study and for up to two years after graduation.
Eligibility
Enrolled as a full-time or part-time student in an eligible post-secondary school
This BMO student line of credit provides medical and dental students with a credit limit of up to $350,000 and the ability to access as much as $95,000 in your first year. You get a competitive variable rate that is less than BMO's prime rate and can continue to access funds while completing a residency or specialty studies.
Eligibility
Enrolled in an accredited medical or dental program
Canadian citizen or permanent resident
Credit limit of up to $350,000
Interest rate of prime minus 0.25%
Interest-only payments for up to 2 years after you graduate
This BMO student line of credit provides amounts ranging from $1,000 to $175,000. You need to be enrolled in a professional education program such as accounting, engineering, law or an MBA, and the interest rate is BMO's prime rate plus 1%. You also get the flexibility of interest-only payments while you're at school and for two years after graduation.
Eligibility
Enrolled in an accredited professional education program
Canadian citizen or permanent resident
No annual or monthly fees
Interest-only payments for two years after you graduate
This RBC student line of credit offers access to a flexible credit amount starting from $5,000. The variable interest rate is based on RBC's prime rate, and you only pay interest on the funds you use. You'll need to provide proof of enrollment, an estimate of your education expenses and a list of your financial resources to apply.
Eligibility
Enrolled at an eligible Canadian post-secondary educational institution or Canadian Medical or Dental educational institution.
If you have limited credit history or are studying outside of Canada, a cosigner may be required.
Competitive rates
Flexible repayment schedules
Big Five bank
You can't apply online
Maximum credit limit not listed online
Loan amount
Starting at $5,000
APR
Starting at 6.7%
Term
N/A
RBC Royal Credit Line for Students in Professional Studies
Designed for students in health sciences and professional graduate programs, this RBC student line of credit provides access to a credit amount that varies based on what you're studying. You can apply without a cosigner, and you pay interest only on what you borrow. Optional loan insurance is also available.
Eligibility
Enrolled at an eligible Canadian post-secondary educational institution or Canadian Medical or Dental educational institution.
If you have limited credit history or are studying outside of Canada, a cosigner may be required.
Flexible repayment terms
Competitive variable rate
Other student banking offers available
Not available for all students
Credit limit varies based on your program of study
You can't apply online
Loan amount
Up to $200,000
APR
Starting at 6.7%
Term
N/A
RBC Royal Credit Line for Medical and Dental Students
This RBC student line of credit provides revolving credit of up to $350,000 for medical and dental students. You can get a preferred interest rate of the RBC prime rate minus 0.25% as part of the RBC Healthcare Advantage package. You can also retain access to your line of credit after you graduate without needing to reapply.
Eligibility
Enrolled at an eligible Canadian Medical or Dental educational institution
Preferred interest rate
No setup or annual fees
Other banking perks available with RBC Healthcare Advantage
The ATB Financial Students First Line of Credit provides access to funding of up to $15,000 each year for up to four years or $60,000 all at once when you apply with a co-borrower. Interest-only payments apply while you're studying and for 12 months after you graduate, while you have up to 20 years to repay the money you borrow. The line of credit interest rate is ATB's prime rate + 1%.
Eligibility
Enrolled in a full-time program at a Canadian or American not-for-profit university, college, or technical school
Get your money through online or mobile banking or an ATB ABM
Access a large lump sum if you apply with a co-borrower
Up to 20 years to repay what you borrow
Lower maximum limit than some other student lines of credit
ATB Financial's Apprenticeship Line of Credit offers revolving access to a credit limit ranging from $5,000 to $50,000. Make the minimum interest payment each month or pay more if you wish. Once you graduate, the interest rate on your line of credit will stay the same.
Eligibility
Minimum FICO score of 620
Enrolled as an apprentice in a regulated trade or optional certification trade.
Any technical school or college located in Alberta that is listed on the Government of Canada's List of Designated Institutions.
Access funds through online or mobile banking or an ATB ABM
Flexible repayment schedule
Repay the entire balance at any time
Lower maximum limit than some other student lines of credit
You'll need to phone ATB Financial or book an appointment to apply
Lowest interest rate without loan protection is ATB prime plus 2.5%
Loan amount
$5,000 – $50,000
APR
N/A
Term
N/A
ATB Financial Professional Students Line of Credit
The ATB Financial Professional Students Line of Credit provides up to $350,000 ($87,500 each year over four years) for medical and dental students and up to $125,000 ($31,250 each year over four years) for students studying degrees like law, accounting and masters of business administration. It offers a preferred interest rate based on ATB's prime rate, and you can pay back what you borrow in full at any time without penalty.
Eligibility
Enrolled in a full-time program at a not-for-profit Canadian or US university
Good credit history
Borrow up to $350,000
Interest-only payments for up to 24 months after you graduate
Preferred interest rate
Repay over up to 25 years
Lower limit of $125,000 if you're not studying medicine or dentistry
This student line of credit provides access to a preapproved credit limit whenever you need it. You'll make monthly interest payments on the money you use, and you can repay the balance at any time.
Eligibility
Ontario resident
Full-time or part-time student at an eligible institution
The Student Advantage Line of Credit provides access to a customized credit amount that varies based on your field of study. While you're a full-time student, you'll pay interest only on the money you use. You also have up to 10 years after graduation to repay what you borrow.
Eligibility
Canadian citizen or permanent resident of Quebec or Ontario
Full-time or part-time student at CEGEP, university or vocational school
Easy access to funds through your Everyday Transaction Account
Option to defer the first repayment for up to 24 months after you finish studying
Pay back what you owe at any time without penalty while studying
Interest rate changes after you graduate
Maximum credit limit not specified online
You'll need to phone Desjardins or book an appointment to apply
The Desjardins Student Strategic Line of Credit is designed for students in specific fields of study, including accounting, dentistry, law, medicine and veterinary medicine. It offers an interest rate ranging from 6.45% to 7.70% while you're a student. Your credit limit varies depending on your field of study.
Eligibility
Canadian citizen or permanent resident of Quebec or Ontario
Enrolled at an academic institution in Quebec or Ontario in an eligible field of study
Lower interest rate than Desjardin's standard student line of credit
Interest-only payments while you study
Option to defer the first repayment for up to 24 months after you finish studying
Only available for specific courses
Maximum credit limit not listed online
You'll need to phone Desjardins or book an appointment to apply
The SCU StudentFLEX Line of Credit provides access to a revolving line of credit of $5,000 or more. Access the funds online or via mobile banking, at an ATM, using cheques or at a branch. You'll make monthly interest-only payments on the funds you use while at school and for 12 months after you finish studying.
Eligibility
Canadian citizen or permanent resident
Full-time or part-time student at an eligible institution
Use the money as you need, when you need
Flexible ways to access funds
Interest-only payments for up to 12 months after you finish studying
The Coast Capital Student Line of Credit provides access to a flexible credit limit of up to $40,000 with a $10,000 limit per year of study. The variable interest rate is Coast Capital's prime rate plus 2%, and you get an interest-only grace period of 12 months after graduating before you have to start repaying the principal amount.
Eligibility
Age of majority
Canadian citizen or permanent resident
Enrolled in an eligible post-secondary program
Grace period of 12 months after you graduate
You can apply online
Only pay interest on the money you use
Other lenders offer higher credit limits
You might get a better rate elsewhere
Loan amount
Up to $40,000
APR
Starting at 9.2%
Term
N/A
What is a student line of credit?
A student line of credit lets you borrow money to cover the cost of post-secondary education. But unlike a regular student loan, it’s a revolving line of credit. This means you can withdraw funds up to a predetermined limit whenever you need, pay them back and then borrow more money again if needed.
Depending on the lender, you may be able to access the funds in your student line of credit via online banking, mobile phone, ATM, bank branch or by writing a cheque.
You only pay interest on the money you borrow. You also have the option to put off repaying the principal loan amount until after graduation, with interest-only payments required while you’re still in school.
What expenses can I cover with a student line of credit?
You can cover a wide range of education-related costs and general living expenses with a student line of credit. These include:
Tuition fees
Textbooks and supplies
Living expenses (such as food, rent and transportation)
How do student line of credit repayments work?
With a student loan of credit, you only pay interest on the money you actually use, not the full credit limit. So if you have a credit limit of $20,000 but you only withdraw $5,000 to cover education costs, you’ll only pay interest on $5,000.
You will typically be required to make interest-only payments while you’re studying. Once you graduate, most lenders will give you a grace period of 12 or 24 months when you can keep making interest-only payments. Once the grace period ends, you’ll have to start repaying the principal as well.
However, some lenders will require you to start making principal and interest payments straight away or once you get a full-time job.
Student line of credit interest rates
Student line of credit rates are variable and are determined based on the lender’s prime rate. You’ll often see interest rates listed as the lender’s prime rate plus or minus a specific percentage.
For example, the CIBC Education Line of Credit interest rate is listed as “CIBC Prime + 1%.” So if CIBC’s prime rate is 6.95%, you’ll get a 7.95% line of credit rate.
The rate you get also varies depending on the program you’re studying. Medical and dental students get the best rates, with line of credit rates that are often lower than the prime rate, while graduate and professional students can also expect lower rates than those offered to undergraduates.
Am I eligible for a student line of credit?
While eligibility requirements vary between lenders, you will generally need to:
Be a Canadian citizen or permanent resident
Be enrolled in a post-secondary education program in Canada
If you’re an undergraduate with limited credit history, you may need to apply with a co-signer.
During the application process you’ll need to provide:
Proof of ID, such as a driver’s licence or passport
Proof of enrollment, such as a proof of enrollment letter or an invoice for tuition fees
Details of your estimated education costs
Information about your financial resources, such as government student loans, part-time employment income, RESPs and scholarships or bursaries
Can I get a student line of credit if I have a government student loan?
Yes, you can apply for a student line of credit if you already receive government financial aid. This may be necessary if you need additional financial assistance beyond what is offered by federal and provincial government student loans. However, government student loans typically have lower interest rates than loans from private lenders and should be your first option before considering a student line of credit.
OSAP vs. student line of credit—What’s the difference?
The Ontario Student Assistance Program (OSAP) is provided by the Ontario provincial government and provides financial assistance to help you cover college or university costs. It offers grants (which don’t need to be repaid) and student loans (which do need to be repaid) to help students pay for things like tuition, books and living expenses.
Unlike this government student loan program, student lines of credit are offered by banks and credit unions. Rather than providing a lump sum that needs to be repaid in full, they provide access to a preapproved credit limit. You can withdraw money up to your limit whenever you need funds, and you only pay interest on the funds you use. Once you graduate, you’ll have to repay the money you borrowed.
If you’ve already qualified for OSAP financial assistance, you can also take out a student line of credit for additional financial support.
Bottom line
If you want a student line of credit to help pay for your studies, you’re spoiled for choice. The Big Five and several other financial institutions offer multiple options, so compare line of credit interest rates to find the best borrowing solution for your needs. Before you apply for a student line of credit, make sure you check out all the funding options available to you with government student loans.
Frequently asked questions
There's no single best Canadian student line of credit that's the ideal choice for everyone. The interest rate you get will vary depending on the lender you choose, the program you're studying and your financial situation, so shop around to find the best rate. You'll also need to consider factors like how you can access your line of credit funds and how long the interest-only grace period lasts before you have to start repaying the principal amount you borrowed.
No. Tangerine offers a personal line of credit, but it does not offer a line of credit specifically for students.
While Vancity doesn't offer a line of credit specifically designed for students, it does offer two personal lines of credit. A Vancity Creditline offers a credit limit of $5,000 or more along with a minimum interest-only monthly payment. A Vancity Personaline offers a credit limit ranging from $500 to $5,000, but you'll need to make a minimum monthly payment of 5% of the outstanding amount.
No, student line of credit interest is not tax deductible. The 15% tax credit for student loan interest only applies to government student loans.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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