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Personal loan or student line of credit?

Make an informed decision

What's the best financing solution for you?

Not eligible for government student aid? Need additional funds? You can cover your tuition fees and other expenses by taking out a personal loan or a student line of credit. Find out which solution is best for you.

Understanding your options

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Loan or line of credit—what's the difference?

When you take out a personal loan, the amount you borrow will need to be repaid on a fixed schedule. To borrow more, you have to apply for another loan. Several repayment periods are available, and you can pay your loan off faster without penalty.

student line of credit works more like a credit card. You get a specific credit limit, and can access your credit whenever you need to. As long as you stay in school full time, you only need to pay the interest on the balance used. You can reuse repaid credit as needed. You'll start repaying the line of credit when you take on a full-time job or 12 months after the end of your full-time studies.1

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What are the advantages of each solution?

personal loan allows you to make regular payments during your studies, making it easier to plan your budget. You can choose a fixed or variable rate. With a fixed rate, you'll know the total amount of your loan from the start. With a variable rate, you could save money by taking advantage of lower interest rates.

student line of credit gives you more freedom to manage your credit. You can opt to only pay the interest on your outstanding balance during your studies and delay loan payments until after you graduate. Unlike a loan, a line of credit also allows you to reuse your repaid credit.

Female student sitting at her desk reading a document
Female student sitting at her desk reading a document
Female student sitting at her desk reading a document
Student sitting with headphones around his neck looking at his computer screen

What are the drawbacks?

These two kinds of credit are intended to finance your school-related expenses (books, computer equipment, tuition fees, etc.). Try not to take on debt that you'll have trouble paying off in the future.

You'll start repaying your personal loan while you're still in school. Although a variable-rate loan could save you money, interest rates could also go up—extending your repayment period.

Unless you budget carefully, a student line of credit could leave you with an intimidating amount of debt. Because you'll have easy access to funds, you'll need to be prudent. Remember that this money is a loan that will have to be paid back.

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Are you a student in engineering, law, business or healthcare? Save on your banking services with our offers for students.

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Little details that matter

Legal Disclaimer

1. For students in medicine, dentistry, pharmacy, optometry, veterinary medicine, chiropractic and engineering: No principal and interest payments required until 12 months after the end of studies or loss of full-time student status (subject to not exceeding the authorized credit limit). However, interest accrues during this period and is capitalized monthly.

Understanding student financing

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Study without financial worries

Meet with an advisor to find the student financing solution that's best for you.

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