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FAQ

Who is eligible to apply?

Generally speaking, you are eligible to apply for a ScotiaLine® Personal Line of Credit for Students if you are a Canadian citizen or a permanent resident, and you have enrolled in a degree or diploma program at a Canadian post-secondary institution. For more eligibility requirements, visit Step 1: Do you qualify?
Do I need a co-signer?

If you are an undergraduate student, you will need to have a "primary borrower", typically a parent, guardian or spouse. You may also need a "supporting borrower", perhaps another parent, to strengthen your application.
What is the interest rate?

The ScotiaLine® Personal Line of Credit for Students offers some of the best rates available for unsecured credit! Available as low as Scotiabank Prime + 0.50%, subject to change without notice. Find out the current interest rates by visiting Scotiabank’s website, calling 1-800-9-Scotia (1-800-972-6842) or 416-288-4655 in Metro Toronto or by visiting any Scotiabank branch.
Why do I need a good credit rating?

Building a good credit rating now will go a long way to help meeting your future financial goals. If you have proven that you can borrow – and pay back – money responsibly, banks and other lenders will be more likely to approve you in the future for things like car loans or mortgages.
How do I get a good credit rating?

In order to ensure a good credit rating, it is essential that you make your minimum monthly student line of credit payments on time. By making your payments on time, you demonstrate good money management and financial responsibility - essential for future borrowing. If you expect to have difficulty in meeting payments on time, talk to Scotiabank first!
How is a line of credit different from a loan?

With a line of credit, you only borrow what you need, when you need it - and you pay interest each month only on what you use, not the entire amount available in the line of credit. Plus, once you pay it back, the money you borrow against the line of credit becomes available to you again while you’re in school for the term of the agreement, without having to re-apply.

With a loan, you borrow a pre-established amount and pay interest on the full amount. Also, with a loan, if you find you need more money, you will need to re-apply for another loan.
How much can I borrow?

The amount of money you are able to borrow depends on a number of factors, including your degree program and length of study. The following is a general guideline:
  • Full-time undergraduate/diploma students: Up to $15,000 per academic year, to a maximum of $40,000.
  • Part-time undergraduate/diploma students: Up to $7,500 per academic year, to a maximum of $20,000.
  • Full-time certificate and apprenticeship students: maximum limit per academic year is based on the number of years of the program, to a maximum of $20,000 ($10,000 for part-time students)
  • Graduate Student: maximum limit per academic year is based on the number of years of the program to a maximum of $100,000.
Special guidelines apply to students enrolled in MBA programs. Please see www.scotiabank.com/aboutstudentline for more details.

Please note: The total maximum unsecured credit limit for a personal line of credit for students is $100,000. If you have borrowed the maximum (i.e. $40,000) under an Undergraduate program, the maximum credit you would be allowed to borrow for a Graduate program or MBA program, is an additional $60,000.
What is the payment schedule?

While you are in school, you will be required to make monthly, interest-only payments.

Recognizing that it may take a few months to find a job, there is a twelve-month grace period where interest-only payments will continue after you graduate. Once the twelve month period is over, you will be required to start paying back the line of credit in full (i.e. interest and principal payments combined).
How do I know if I’ve been approved?

Once you have been approved, confirmation details will be mailed to your primary borrower (usually your parent, guardian or spouse). Your branch will then call you to arrange an appointment to have your line of credit set up and activated. You and all the co-borrowers will need to attend that meeting. In addition, you’ll need to provide a suitable Proof of Enrolment. For more information, refer to our Applying for Credit Checklist.
What if I need a credit limit increase?

If you need more money, you can apply to increase your overall maximum credit limit up to the program limit. Your primary borrower on your application (a parent, guardian or spouse) will have to apply for the credit limit increase.
What is a credit rating?

Your credit rating is a record of what you have borrowed and whether you have – or have not – paid it back. It’s your personal credit history and it even includes information about how you have paid for phone or electricity bills. In Canada, two primary national credit agencies -- TransUnion and Equifax -- collect and compile your credit information and distribute it to all potential lenders, like Banks. Their reports help lenders determine whether or not you are a credit risk.
What if I’m enrolled in a professional program?

If you are enrolled in a professional program, such as medicine, dentistry, veterinary, optometry or chiropractics, you should consider applying for a Scotia Professional® Student Plan (SPSP). This all-inclusive banking package includes a flexible line of credit, with borrowing limits customized for your program.
What if I’m enrolled in an MBA program?

Scotiabank has developed a special program to address the particular borrowing needs of MBA students. Part-time and full-time MBA students can borrow up to $60,000 and a supporting borrower may not always be necessary. For more details, please visit www.scotiabank.com.
As a student, how do I keep more of the money that I’m earning?

Chances are, if you’re working and going to school full-time, you might not be earning enough to pay income tax. So to boost your take-home pay, ask to file a "TD1" form with your employer, so they don’t withhold any income tax!

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