How Do You Qualify for Student Loans?

To qualify for government student loans in Canada, you generally need to be a Canadian citizen, permanent resident or protected person, demonstrate financial need and attend an eligible post secondary program.

You apply through the student aid program in your province or territory, which assesses you for available loans and grants.

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Who Qualifies for Student Loans in Canada?

Eligibility depends on your province or territory, but government student aid generally considers several factors.

You may need to:

• Be a Canadian citizen, permanent resident or protected person
• Meet your province or territory's residency requirements
• Be enrolled in an eligible program
• Attend a designated educational institution
• Demonstrate financial need
• Remain within student aid lifetime limits
• Maintain satisfactory academic progress

Additional requirements can apply depending on whether you're studying full-time or part-time.

Do You Need a Certain Income to Qualify?

There isn't one income limit that applies to every student loan applicant.

Your financial need is calculated using information such as:

• Tuition and school fees
• Living expenses
• Your income
• Family income when applicable
• Savings and certain assets
• Whether you have dependants
• Where you live while attending school

Someone with a higher household income may receive less assistance than someone with the same education costs and a lower household income.

Your application determines how much assistance you're eligible to receive.

Do Your Parents' Incomes Affect Student Loans?

They can.

If you're considered a dependent student, your parents' income may be included when your financial need is calculated.

If you're considered an independent student, parental income may not be included in the same way.

The definition of an independent student varies between federal and provincial student aid calculations and can consider factors such as:

• How long you've been out of high school
• Whether you're married or in a common-law relationship
• Whether you have children
• Your previous full-time employment

Your application will determine which category applies to you.

Do You Need Good Credit for a Student Loan?

Government student loans are not approved in the same way as conventional bank loans.

Your credit score is generally not the primary factor used to determine how much government student aid you receive.

Instead, eligibility focuses more heavily on your financial need, residency and enrolment.

However, problems with previous student aid can affect future eligibility. For example, restrictions may apply if you have defaulted on previous government student loans or have unresolved issues with an earlier student aid application.

Private student loans and student lines of credit work differently and may require a credit check.

What Schools Qualify for Student Loans?

Your school and program generally need to be eligible for government student aid.

This can include many:

• Universities
• Colleges
• Trade schools
• Career programs
• Approved schools outside Canada

Not every school or program qualifies.

Funding rules for some private and international institutions have also changed, so check whether your specific school is designated before relying on student loans to pay your tuition.

Can Part-Time Students Get Student Loans?

Yes.

Both full-time and part-time students may qualify for government student financial assistance.

However, eligibility rules, funding amounts and application requirements can differ.

Your course load is used to determine whether you're considered a full-time or part-time student for student aid purposes.

How Do You Apply for Student Loans in Canada?

You generally apply through the province or territory where you're considered a resident.

For example, Ontario students apply through the Ontario Student Assistance Program, commonly known as OSAP.

The process generally looks like this:

1. Create an account with your provincial or territorial student aid program.
2. Enter information about yourself and your program.
3. Report your income and other required financial information.
4. Provide supporting documents if requested.
5. Submit your application.
6. Complete your student loan agreement if you're approved.
7. Have your school confirm your enrolment.
8. Receive your funding.

Your application may automatically assess you for both loans and grants.

What Documents Do You Need?

Requirements vary, but you may need information or documents such as:

• Social Insurance Number
• School and program details
• Income information
• Tax information
• Parent or spouse income information when applicable
• Banking information
• Immigration or residency documents
• Supporting documents for special circumstances

Having your documents ready can prevent delays.

How Much Can You Get in Student Loans?

There is no single amount available to every student.

Your funding can depend on:

• Tuition
• Books and school supplies
• Living expenses
• Family income
• Your own income
• Dependants
• Disability-related expenses
• Province or territory of residence

Your assessment may include both repayable student loans and grants that do not normally need to be repaid.

You do not have to accept the full loan amount simply because you're approved for it.

What's the Difference Between Student Loans and Grants?

A student loan is borrowed money that must eventually be repaid.

A student grant generally does not need to be repaid as long as you continue to meet the applicable requirements.

When you apply for government student aid, you may automatically be assessed for grants as well as loans.

This is one reason it can be worthwhile to apply even if you're unsure whether you'll need to borrow the full amount.

Can International Students Get Government Student Loans?

International students studying in Canada on a study permit generally do not qualify for Canada Student Loans.

Federal student aid generally requires you to be a:

• Canadian citizen
• Permanent resident
• Protected person

International students may need to consider scholarships, school-based financial aid, private financing or support available from their home country instead.

Can You Get Student Loans if You're Unemployed?

Yes.

You do not need a full-time job to qualify for government student loans.

In fact, student aid is designed partly around financial need.

Your income will be included in the assessment, but having little or no employment income does not automatically disqualify you.

When Should You Apply for Student Loans?

Apply as early as possible once applications open for your school year.

You do not necessarily have to wait until classes begin.

Applying early gives you more time to:

• Submit required documents
• Fix errors
• Complete your loan agreement
• Have your enrolment confirmed
• Receive funding before tuition is due

A good target is to apply at least a couple of months before your program begins.

What if You Don't Qualify for Enough Student Aid?

Government student loans may not cover your full education costs.

If there's a gap, consider:

• Scholarships and bursaries
• School grants
• Part-time employment
• RESP funds
• Personal savings
• Employer education assistance
• A student line of credit if appropriate

Start with grants, scholarships and other funding that does not need to be repaid before taking on additional private debt.