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.
Eligibility
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.
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 cent | Prime |
Co-signer Required | Yes | No |
Repayment Assistance | No | Yes |
Grants/Bursaries | No | Automatically assessed for government grants and bursaries |
Application
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.
