Understanding funding options for school can be a daunting task. As with any other major life decision, it pays to do your homework. Here’s a comparison chart to help you study up on the difference between a student line of credit and a government student loan.
The good news is that you can apply for a government student loan and a ScotiaLine® personal line of credit for students at the same time. And best of all, you can apply for a ScotiaLine® personal line of credit for students anytime you want – it’s no longer something that you only do at the beginning of the school year or at the start of a new semester.
Let us know if you have questions.
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Government Loans |
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ScotiaLine® Personal Line of Credit for Students |
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A government loan is funding provided by the government (provincial and/or federal) to students pursuing post-secondary education who are in financial need. Loans are provided while the student is attending school and must be paid back with interest after the student graduates. Financial need is the main factor when determining loan amounts and parents’ income is also a consideration.
In some instances, the loan amount is provided in a lump sum and may be paid directly to the post-secondary institution rather than to the student.
Permanent residents of Saskatchewan, Ontario, New Brunswick, or Newfoundland and Labrador submit applications through an Integrated Loan Program, which allows the federal and provincial loans to be managed by a single loan provider, the National Student Loans Service Centre (NSLSC).
Permanent residents of British Columbia, Alberta, Manitoba, Prince Edward Island, or Nova Scotia must manage 2 loans: 1 from the Government of Canada (Canada Student Loan) and 1 from your provincial government.
Permanent residents of Quebec, Northwest Territories, or Nunavut will only receive student financial assistance through their provincial or territorial government. These jurisdictions do not participate in the Canada Student Loans Program.
Permanent Residents of Yukon apply for a Canada Student Loan through their territory office (Yukon doesn't offer a territorial student loan program). The loan will be managed and repaid through the NSLSC.
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A student line of credit is a revolving loan provided by a financial institution (in this case, by Scotiabank) to students pursuing post-secondary education who are in financial need. While in school, students are responsible for making interest-only payments, and the line of credit must be paid back with interest after the student graduates. Parents’ income is the major consideration in determining loan amounts.
A student line of credit is provided to the student directly (with a ScotiaLine® personal line of credit for students, it is provided in annual allotments) and offers the flexibility to use only the funds the student needs, when the funds are needed. Once the amount used has been repaid with interest, that amount becomes available again for use during the term of the agreement or while the student is in school, without having to re-apply like a loan.
Even if a student receives a government loan, they may still be eligible for additional funds through a line of credit.
A student line of credit is a good option for students who either do not qualify for Government Loans or have a parent, guardian or spouse willing to be a primary borrower on a student line of credit. It can also be a supplementary form of funding for those students who require more than what they received in Government Student Loans
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How do I submit an application? |
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How much money is available |
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Government Loans |
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ScotiaLine® Personal Line of Credit for Students |
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The amount of financial aid available to you is based on a formula that compares your educational costs and expected contributions from your parents and your own income, school enrolment status, and many other variables. Students can receive enough funding to cover all school related costs including tuition, residence and related expenses. To help estimate the loan amount available to you, use the
Loan Estimator tool from the CanLearn Website.
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- Full-time undergraduates - up to $10,000 per academic year, to a maximum of $40,000.
- Part-time undergraduates up to $5,000 per academic year, to a maximum of $20,000.
- Graduate students - up to $10,000 per academic year, to a maximum of $20,000.
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What are the application deadlines? |
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What will be my parent's involvement in this process? |
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If I am approved, when can I expect to receive the funds? |
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When do I have to start paying back the loan? |
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What is the interest rate? |
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Do I have to reapply for every year I am in school? |
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For more information, please contact the Scotiabank National Student Loan Centre at 1-800-972-6842 or email@scotiabank.ca, or visit your local Scotia bank branch.
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