Line of Credit

Most financial institutions offer student lines of credit, which are different from a loan because you don't have to borrow the full amount at once. You can withdraw money from your line of credit as you need it, much like using a credit card.


You must be a full- or part-time student studying at an accredited post-secondary institution.

If you have a poor or limited credit history, you will need a co-signer – a person who can act as your guarantor if you are unable to pay off your line of credit.

Line of credit amount

This amount varies and is dependent upon your financial institution.

Interest payments

You must make interest payments, normally monthly, on the amount of money you use, even while you are at school.

Loan payments

Most student lines of credit have a grace/deferral period after you finish your studies during which you do not have to make payments on the principle. This period varies from institution to institution. You must, however, make interest payments during this period.

Student Lines of Credit vs Government Student Loans


Line of Credit

Goverment Student Loans

Yearly Maximum

Varies: $5,000 to $10,000$15,000 for two semesters of study

Interest Rate

Prime + 1 per centPrime

Co-signer Required


Repayment Assistance



NoAutomatically assessed for government grants and bursaries



You must apply for a student line of credit through a financial institution. Start with your own bank and then compare their program to other financial institutions.

Confirmation of enrolment

Most financial institutions will require you to provide a Confirmation or Verification of Enrolment. Confirmation of enrolment can be filled in by the Office of the Registrar or by a Student Advisor in the Office of the University Registrar.