International Student Loans in Canada: How to Apply and More.

Scholarships for International Science Students in Canada

Are you already a student or a potential student in Canada? Are you interested in getting information on international student loans in Canada?

If your answers to the above questions are positive, I invite you to read this. It’ll sure be informative reading for you.

Indeed, studying in Canada can be thrilling and rewarding. 

It’s thrilling and rewarding because, as an international student, you can mingle and learn from students from other cultures and backgrounds. 

Again, apart from having the opportunity to study in one of the most educationally advanced countries in the world, you can enjoy rich, aesthetic, and secure Canadian environments.

Regardless, studying in Canada may be fraught with some financial challenges. While scholarships and grants may be available for international students, many still need extra funds to meet living expenses and other fees.

Here’s where you need international student loans.

Read Also:13 Great Reasons You Should Study in Canada

But, then, accessing student loans as an international student in Canada is not a piece of cake. You will undergo a rigorous process to apply for and receive loans as an international student in Canada.

With the above background in mind, we’ll explore all you need to know to access your student loan responsibly.

Let’s dive straight in!

What Are International Student Loans?

If you’re already a student at any Canadian college or university, you may not necessarily need the meaning of international student loans. You may have been hearing about them but haven’t tried getting one.

But for someone still aspiring to make their educational journey in Canada a reality, this may be a valuable piece of information. 

However it comes to you, we still believe this is a necessary section.

What, then, are International loans?

In their simplest term, international student loans are the types of loans that international lending institutions specifically provide for international students studying in a foreign country.

When an international student gets such loans, they’ll use them to cover the cost of tuition, living expenses, and other education-related expenses. In other words, international students use student loans to augment other forms of financial aid, such as scholarships or grants, that may not fully cover the cost of attendance. 

When it comes to interest rates, loans for international students have higher interest rates compared to their domestic counterparts. 

The repayment terms are also usually stricter for international students. The lender may require the students to begin repaying the loan while they are still in school or shortly after they graduate.

The reason for this is that lending institutions are taking an added risk by providing loans to overseas students.

An Overview of International Student Loans in Canada.

As an international student in Canada, you can apply for government-approved student loans through the Canada Student Loans Program (CSLP). You should note, however, that this program is only available to eligible students who are Canadian citizens, permanent residents, or protected persons.

So, what happens when an international student does not meet the eligibility requirement? Don’t they have alternatives?

There are options for international students who are either not citizens, permanent residents, or protected persons in Canada. They can access the loan types known as international student loans from private lending organizations, albeit under higher interest rates and stricter repayment conditions. In addition, many private lenders may require that the student have a co-signer who is a citizen of or permanent resident in Canada.

Who is a Co-signer?

In the Canadian lending process, a co-signer signs a loan agreement with the prime borrower. The primary responsibility of a co-signer is that they should be able to repay the loan should the primary borrower default in repaying the loan. 

As an international student, you need a co-signer if you have a poor credit history or don’t have a sufficient income that qualifies you for a loan. When this is the case, the lending institution uses the co-signers creditworthiness and income to help you become eligible for the loan.

Also noteworthy is that the co-signer must be a family member, friend, or a reliable associate of the primary borrower, willing to take the risk of the loan by providing their personal information and credit score to the lending institution. 

To reiterate what I have said earlier.

 In Canada, a co-signer has the legal obligation to repay the loan if the primary borrower defaults. Therefore the lending institution may come after them in case of non-payment.

And the credit score of the co-signer may be affected where the case of non-repayment lingers. 

Read Also: Canada Scholarships For International Students

Therefore, before anyone agrees to co-sign your loan as an international student, you must let them understand the terms of the loan and the responsibility they have before they accept to act as co-signer.

Types of Loans Available for International Students in Canada.

When it comes to student loan programs in Canada, international students have a few options. The options include: 

  • Government-funded student loans: These loans are available through the government of the province or territory where the student is studying. They are based on financial needs and usually have lower interest rates than private loans.
  • Canada Student Loans for Full-Time Students: These loans are available to you if you’re a full-time student, Canadian citizen, permanent resident, or protected person. Most international students are not eligible for Canada Student Loans.
  • Private student loans: Some private lending institutions like banks, credit unions, and other financial organizations provide these loans to international students. They may have higher interest rates than government-funded loans, but they can be an option for international students who do not qualify for government-funded loans.
  • Line of Credit: Some banks and financial institutions may offer lines of credit for students. These are similar to private loans, but the borrowing students may need them for specific expenses such as tuition, books, and living expenses. They also require a credit check and may have a higher interest rate.

Who is Eligible to Get International Student Loans In Canada?

We know you’ve been itching to ask this question. Now that we got here before you, we’ll furnish you with the answers you seek shortly.

So, here we go!

If you’re an international student desirous of getting international student loans in Canada, you must meet definite eligibility requirements. These requirements may vary depending on the Canadian province or territory you’re studying.

However, some general requirements may include

  1. You must enroll in a full-time, degree-granting program at a designated post-secondary institution in Canada.
  2. You must demonstrate financial need as determined by the province or territory in which the student is studying.
  3.  You must meet fixed academic requirements, such as maintaining a certain grade point average.
  4. You must Possess a valid study permit and be able to prove that you have enough money to pay for their tuition, living expenses, and return transportation.
  5. Being a citizen of a country other than Canada and not having Canadian permanent resident status.
  6. Having a good credit history: International students may need to provide a credit report or credit history from their home country to the lender.
  7. Proof of income: Some lenders may require that the student or their co-signer provide proof of earning to be eligible for a student loan. The earning evidence may include pay stubs, tax returns, or bank statements.
  8. Meeting immigration requirements: To qualify for international student loans, you must meet the immigration requirements set by the Government of Canada to be eligible for a student loan.
  9. Compliance with the loan terms and conditions: To succeed with your loan application in Canada as an international student, you must agree to the terms and conditions of the loan and demonstrate your ability to repay the loan.

How to Apply for International Student Loans in Canada

To apply for international student loans in Canada, take the following steps.

  1. Research different loan options: The first step towards applying for international student loans in Canada is to research. Researching will help you know the various loan options for international students and compare their conditions, interest rates, and fees. You should be able to decide which option is best for you and go for it.
  2. Determine Your Eligibility: After your research, the next step to applying for an international student loan in Canada is to determine your eligibility. To be qualified for a loan, you must be a Canadian citizen or permanent resident, enrolled full-time at a designated post-secondary institution in Canada, and in an academic program for at least 12 weeks.
  3. Gather the required documents:  You must provide proof of income, such as a letter from your employer or bank statements. You will also need to provide a copy of your passport and any other identification documents required by the lending institution. Some lenders may also require proof of enrolment in a Canadian college or university.
  4. Complete the loan application: The loan application usually starts online, and you will be able to complete your loan application online. You should be able to provide personal information such as name, contact, and financial details. 
  5. Apply: Once you have completed the application and gathered the required documents, you submit them to the lender. All this can typically be done online or by mail.

What’s More?

6. Wait for a decision: The lender will review your application and decide whether to approve or deny your loan. This process usually takes several weeks.

7. Sign the loan agreement: If your loan is approved, you must sign a loan agreement and provide proof of enrolment in a Canadian educational institution. After this process, the lender will disburse the loan into your bank account.

 You should note: As an international student, you may require a co-signer or a guarantor- a person who will take legal responsibility for the loan should you default in repaying it. The co-signer must be a Canadian citizen or permanent resident and have a good credit history.

Lastly, you should start planning on how to repay the loan so that you can be worthy of accessing more loans if and when necessary.

Information on loan repayment and the options available for international students in Canada

As soon as you have received a student loan as an international student in Canada, you will need to begin repaying it according to the terms and conditions of the loan. However, there may be several options available to you when it comes to loan repayment, including:

a. Graduated Repayment: Some loan programs may offer graduated repayment, which means that your payments will start small and gradually increase over time. This repayment method can be helpful for students who are just beginning their careers and may not have a high income.

b. Deferred Repayment: Some loan programs may allow you to defer repayment while you are still in school or for a certain period after graduation. That’s you will not have to make any payments on the loan until the deferred period ends.

c. Loan Consolidation: This method allows you to consolidate multiple student loans into one loan, making repayment easier to manage.

d. Loan Forgiveness: Some loan programs may offer loan forgiveness for students who meet certain criteria, such as working in a specific field or serving in the military.

e. Income-Based Repayment: Some loan programs may offer income-based repayment, meaning that your payments depend on what you earn. This method can be helpful for students who are struggling to make their loan payments.

It’s pertinent to note that loan repayment options and terms can vary depending on the province and the type of loan. Ensure you check with your school’s financial aid office or the loan provider for specific information on loan repayment options.

We need not remind you to take the loan seriously and how important it is to repay on time. You may face penalties, such as late fees, which can affect your credit score if you don’t pay early.

Read Also:9 Legal and Easy Ways to Migrate to Canada.

Financial institutions that offer international Student Loans in Canada

Several financial institutions in Canada offer international student loans, including:

  1. Prodigy Finance
  2. MPOWER Financing
  3. Global Student Loan Corporation
  4. International Student Loan
  5. Education Finance Partners
  6. Discover Student Loans
  7. Wells Fargo
  8. Sallie Mae
  9. CIBC
  10. Royal Bank of Canada (RBC)
  11. TD Canada Trust
  12. Scotiabank
  13. BMO Bank of Montreal
  14. National Bank of Canada
  15. Laurentian Bank

Resources and Support Available to International Students in Canada.

As an international student in Canada, it’s crucial to be aware there are resources and support available to help you manage the financial aspects of your education. Some of the most common resources include:

  1. Financial aid offices: You can find these offices on campus. They provide information and guidance on student loan programs, scholarships, grants, and the rest. They can also help with the application process and provide advice on budgeting and money management.
  2. Student service centers: They provide information and support on several topics, including housing, health services, and career counseling. They may also offer workshops and events on financial literacy and money management.
  3. Financial counseling services: Some schools may offer financial counseling services specifically for international students. These services can provide one-on-one counseling and support to help students understand and manage their finances.
  4. Online resources: Many universities and organizations offer online resources such as webinars, online calculators, and brochures that help students understand the financial aspects of studying in Canada.
  5. International student associations: Many universities have associations for international students that provide support and resources for international students. They may offer peer support, networking, and other resources to help international students navigate the challenges of studying in Canada.

It’s important to note that resources and support for international students may vary by institution, so it’s essential to check with your school’s financial aid office or international student office for specific information and support available to you.


Financing your education in Canada can be a herculean task. But if you understand the student loan system, and the resources and support available, you can confidently traverse the process. In fact, according to, 75% of Canadian students have government-backed, while around 36% choose private bank loans.

As an international student in Canada, student loans can be a priceless tool for you, helping you to pay your tuition, fees, and living expenses. 

However, you must understand that student loans are a weighty financial engagement, and paying back the loan is a long-term commitment.

So, as an international student, you should be cautious of eligibility requirements and other essential details before opting for a student loan.

Furthermore, be mindful that student loans are not the only way to fund your education. Various other options, such as grants, scholarships, and bursaries, are available to international students in Canada. You can explore any of them and see student loans as a last resort.

Lastly, international students must take advantage of the resources and support available to help them manage their finances, budget accordingly, and plan for the long-term financial implications of taking out student loans. The support and resources may be financial aid, counseling services, or online resources.

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