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What is a TD Student Line of Credit?
Post-secondary education isn't cheap, but that shouldn't hold you back. A TD Student Line of Credit (SLOC) lets you borrow money you could use to cover post-secondary education costs, including tuition, housing, books, and living expenses. It is designed to help students pursuing undergraduate, graduate or professional degrees or attending college, pay their expenses and establish a credit history.
The TD Student Line of Credit comes with unique features, such as competitive interest rates based on the TD Prime Rate and program of study. The flexible repayment plan can be tailored to your budget and and timeline while in school – allowing you to choose to pay more when you have the funds or just the minimum interest payments.
Understanding your TD Student Line of Credit
With a TD Student Line of Credit, borrow what you need, when you need it, up to a pre-determined limit. Here’s a snapshot of how it works:
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Use and reuse1 your credit: Get convenient access to the cash you need during your studies by applying just once for credit and have it for as long as you’re in school2.
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Convenient access to your line of credit: Get funds through your TD Access Card3, EasyWeb, TD app, ATMs and cheques.
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Interest-only payments while you study: No principal payments are due until 24 months after you leave school.
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Make repayment manageable: Once you leave school, your line of credit converts to a student loan, to pay down the outstanding balance.
What is the difference between a Student Loan and Student Line of Credit?
Student loans are usually offered by the federal or provincial governments. Qualifying for a loan depends on a variety of factors such as family income, number of dependents, tuition fees and others.
On the other hand, Student Lines of Credit are provided by lenders such as banks.
Borrowing capacity |
Repayment of loan / interest |
Loan forgiveness |
|
|---|---|---|---|
Federal Student Loans |
You can estimate the amount of Federal Student Loan using the Student Aid Estimator. The actual amount of loan would depend on the type of program you choose, your province and eligibility criteria. |
As of April 1, 2023, Canada student loans are interest-free. Thus, you would only need to repay the Principal amount post graduation. Find out more |
The government has a list of eligible professionals (doctors, nurses, etc.) that qualify for loan forgiveness. Additionally, provinces also provide loan forgiveness programs. Check out your province's resource to learn more. |
Private Student Line of Credit |
The amount you can borrow through a Private Student Line of Credit would depend on your program and level of study. Learn more |
Private Student Line of Credit is not interest-free and you start paying interest back from the date you borrow money. You are responsible to pay back the entire loan amount along with the interest. |
Not eligible for Loan Forgiveness. |
Tips to use your Student Line of Credit wisely
Borrow only what you need for education expenses and avoid using your Student Line of Credit for non-essential purchases like vacations or luxury items.
Making timely payments during school years (Interest only) and after you leave school (Interest + Principal) can help build a good credit history and improve your credit score.
Plan your spending and set clear financial goals by figuring out your monthly income and expenses. Decide exactly how you will use your Student Line of Credit for things like tuition, everyday costs or unexpected bills.
What to bring to your appointment?
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For an Undergraduate Student Line of Credit, you’ll probably need a co-signer.
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No co-signer needed for Canadian medical, dental or veterinary schools. Applies to Canadian students only. Conditions apply4.
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Your current address (if you’ve been there less than three years, we’ll need your previous address as well).
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The sources and amount of your annual income, if any.
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Your monthly payments (loans, credit cards, lines of credit, rent or mortgage expenses).
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Your household expenses (utilities, property tax, insurance, etc.).
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Proof of enrollment.
Frequently Asked Questions
You do not need a credit history to apply for a Student Line of Credit, however, a co-signer may be required. Making your payments on time can positively impact your credit score and help you establish a credit history for your future borrowing needs.
Depending on your program and level of study, the requirement for co-signer will differ.
- Undergraduate students with limited credit history will likely require a co-signer for their Student Line of Credit. Be sure to have a co-signer ready when applying to help reduce decisioning timelines and to improve chances of being approved.
- For graduate and professional students, you may require a co-signer.
- No co-signer needed for Canadian medical, dental or veterinary schools. Applies to Canadian students only. Conditions apply4.
You may qualify for a TD Student Line of Credit as an international student if you have an eligible co-signer who is a TD customer and a Canadian citizen or a permanent resident. For additional information on co-signer requirements , Book an appointment to speak to one of our TD representatives.
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