Student loans are intended to help eligible post-secondary students to meet their educational costs and their cost of living. Students can apply for financing through the government or through a financial institution.
Government student loans may include a combination of federal and provincial/territorial loans. Eligibility and offerings vary across the country. For region-specific information, go to: Provincial and territorial information for Canada Student Loans and Grants.
For federal student loans, while you’re in school, no interest is charged. Once you finish school, interest starts to accumulate. Students then have a six-month grace period before payments start. The interest paid on government student loans can be claimed as a federal tax credit. There are numerous grants available with government student loans, so make sure you enquire.
You can also apply for a student loan or line of credit through a financial institution. Students may require a co-signer. Interest accumulates while you’re a student, unlike on most government student loans, and you can’t claim the interest for tax purposes. When applying for financing, be sure to shop around to get a competitive rate and take the time to understand all the terms and conditions.
Government programs may enable eligible graduates to reduce or restructure their student loans. Visit the Student Loans section of the Canada.ca website for details on:
There is also detailed information for those who have missed payments or are considering bankruptcy.
If your student loan debt is weighing you down, check out the Down with Debt section of ProsperiGuide for resources and tools to help you get your debt under control.