Introduction
If you are a student in Canada looking for financing options to pay for your post-secondary education, you may be interested in the top banks that offer student loans. While the Canadian government provides financial assistance to students through the Canada Student Loans program, some students may prefer to seek loans from private banks for additional funding or to supplement their government loans.
In this article, we have compiled a list of the top 9 banks for student loans in Canada based on their interest rates, repayment terms, and other benefits offered to students. This list can help you compare and choose the best bank for your student loan needs.
Overview of Student Loans in Canada
In Canada, both the federal and provincial governments provide student loans to aid students in covering the costs of tuition, books, and living expenses. However, the amount you receive may not cover 100% of your costs as it is based on your assessed need.
To qualify for student loans in Canada, you must be a Canadian citizen or permanent resident, enrolled in a program for at least 12 weeks, and enrolled in 60% of a full course load if you’re a full-time student or 20-59% of a full course load if you’re a part-time student. In addition to loans, Canada also offers grants to eligible full-time and part-time students.
Top 10 Banks for Student Loans in Canada
1. Royal Bank of Canada
The Royal Bank of Canada (RBC) offers several options for student loans including a Royal Credit Line for Students with low and competitive interest rates, no annual fee, no set-up costs, and the ability to pay interest only while in school and for up to 2 years after completing studies at an accredited institution. RBC also offers a Student Line of Credit with flexible repayment timelines and credit limits to match program costs.
Additionally, there are other types of student loans available in Canada, such as the Loans and Bursaries Program offered by the National Bank for post-secondary students and individuals pursuing a diploma of vocational studies, and eligibility requirements may vary.
Website: www.rbcroyalbank.com
2. Scotiabank
Scotiabank offers a student line of credit called ScotiaLine Personal Line of Credit, which is available to Canadian citizens or permanent residents enrolled in a certificate, apprenticeship, degree, or diploma program at a Canadian post-secondary school. International students enrolled in a Canadian Graduate program can apply with a co-borrower who is a Canadian citizen or permanent resident. After graduating, borrowers have a 12-month grace period to begin repaying the principal amount borrowed and will have to start paying minimum interest payments as soon as they borrow the money.
A free chequing account with no monthly fees, limitless no-fee international money transfers, and an unsecured credit card with a $5,000 credit limit are all included in Scotiabank’s StartRight Program for international students.
Website: www.scotiabank.com
3. CIBC
CIBC offers a variety of student loan options for students. According to, a student loan can be used towards larger expenses, such as tuition, residency, and textbooks. CIBC offers a Student Line of Credit through their Professional Edge Student Program, which allows students to borrow up to $350,000 depending on their field of study to help cover the cost of books, tuition, housing, and more.
Additionally, CIBC offers a CIBC Student Loan through their Professional Edge Student Program, which is verified by specialists and requires an online application with a free credit rating check. Overall, CIBC provides student loan options to help students finance their education.
Website: www.cibc.com
4. National Bank of Canada
The National Bank of Canada offers student financing solutions, including the Loans and Bursaries Program for post-secondary students and individuals pursuing a diploma of vocational studies (DVS). To be eligible for this program, you must be registered in a full-time program. Additionally, the National Bank of Canada also offers an option to use your RRSP to finance your studies. You can transfer funds from your RRSP to a Lifelong Learning Plan (LLP) to fund your education without taking a tax hit. You can borrow up to $20,000 from your RRSP over four years (maximum of $10,000 per year), and the amount borrowed can be repaid over 10 years.
Website: www.nbc.ca
5. Bank of Montreal
BMO Bank of Montreal offers student loans for full-time students and apprentices. Bank of Montreal (BMO) offers student loans in the form of a student line of credit, which is a flexible and affordable way to pay for school. The line of credit allows students to easily access cash to help cover tuition, rent, books, and other expenses with a competitive interest rate and no annual or monthly fees.
Also, students can make interest-only payments while in school, and for two years after graduation. BMO also offers student bank accounts with no monthly plan fees and limited-time offers, including a $100 cash bonus for opening a new BMO Student Chequing Account.
Students can explore their line of credit options and find the smart way to borrow money by answering a few short questions on BMO’s website. The bank’s repayment options include a fixed monthly payment plan, which allows you to pay off your loan over three years, five years, or seven years; interest-only payments during your studies; and an option that allows you to pay off the balance at any time without penalty.
Website: www.bmo.com
6. TD Canada Trust
TD Canada Trust offers two types of financial assistance to students: the Canada Student Loans Program and Student Lines of Credit. The Canada Student Loans Program is offered by the government to both full-time and part-time students who can demonstrate financial need. The program provides loans, the amount of which depends on the student’s level of need, and which cannot be customized.
TD Canada Trust Student Lines of Credit are available to full-time and part-time students at accredited Canadian universities or colleges. The credit limit for full-time students can be up to $15,000 per year to a maximum of $60,000 over four years of study, while the credit.
Website: www.td.com
7. ATB Financial
ATB Financial offers different borrowing solutions tailored to the needs of students. Among their offerings is the Students First Line of Credit, which allows students to borrow up to $60,000 up-front if they sign with a qualified co-borrower or up to $15,000 each year for up to four years with sole responsibility. The line of credit allows borrowers to pay only interest each month while they are in school and for 12 months after graduation. ATB Financial also offers student loans under the Canada Student Loans program, which are payment-free until six months after graduation or leaving school. These loans allow for lump-sum pre-payments and increased monthly payments to reduce the loan’s principal amount. It’s important to note that there are different types of loans offered by ATB Financial, depending on the borrower’s assets, income, credit score, and comfort level, and that an ATB Financial advisor can help find the best loan or line of credit for each student.
Website: www.atb.com
8. Alterna Savings and Credit Union
Alterna Savings and Credit Union is a member of the Canada Deposit Insurance Corporation (CDIC), which provides deposit protection of up to $100,000 per eligible account holder at Alterna Savings and Credit Union. Alterna Savings and Credit Union is also a member of the Canadian Association of Member Banks (CAMB), whose members are required to follow prudent lending practices as set out by CAMB’s Code of Conduct.
Website: www.alterna.ca
9. Desjardins Financial Services
Desjardins is one of the most well-known banks in Canada, and its student loan program offers several advantages. You can get up to $10,000 per year to help pay down your student loans, or even use it as an RRSP contribution. The money will be deposited directly into your bank account every month until you’ve paid off all your debts. This program also comes with no fees or penalties for early withdrawal; if you decide to withdraw funds before graduating from school, they’ll simply stop making payments at that time.
Website: www.desjardins.com
Conclusion
In conclusion, choosing the right bank for your student loan needs is an important decision that can have a significant impact on your financial future. The top 9 banks for student loans in Canada offer a range of benefits and features, such as competitive interest rates, flexible repayment terms, and other student-friendly options. It is essential to do your research and compare the various loan options available to find the best fit for your financial situation. With the right student loan, you can focus on your education and achieve your academic goals without worrying about the financial burden of tuition and other expenses.
