Most banks and credit unions offer personal loans and student lines of credit that you and/or your child can apply for. If your child qualifies for a private loan/line of credit, they will usually be responsible for all the interest that accrues as soon as the loan has been negotiated and may need to make a monthly payment.

Students that apply for government-issued student financial assistance, such as StudentAid BC funding for B.C. residents, are automatically considered for all grants and federal and provincial loans that they may be eligible for. Students apply for assistance through their home province, where they would normally reside when not studying. Canada Student loans do not accrue interest, and many provincial student loans, including those issued in B.C. are also interest-free.  

Government-issued student financial assistance does not require payments while students are studying full-time, and students have a six-month grace period before repayment begins.  Students that experience financial hardship when they go in to repayment may qualify for Repayment Assistance Programs. For holistic program information, we recommend that parents start by reviewing information on the Government of Canada website.

Due to the advantages offered by the government-issued student financial assistance programs (interest-free status and no payments while in full-time studies, grant eligibility, and repayment assistance programs), we recommend that your family explore this an option first before looking at private loans. If you choose to pursue private funding sources, be sure to shop around and be aware that you may have to co-sign the loan or the line of credit.