On this page
Why government student loans are closed to you
The Canada Student Financial Assistance Program is open to Canadian citizens, permanent residents and protected persons. A study permit does not qualify you, and no provincial student aid program fills that gap either. This is the single fact that shapes everything else on this page: you are borrowing in the private market, at private-market prices, and the personal loans market is where most of it happens.
The program's own pages set out who qualifies: Canada Student Grants and Loans for the funding itself, and financial assistance for protected persons, which confirms that protected persons receive the same loans and grants as citizens and permanent residents. Verified 31 August 2026.
What lenders actually assess
A Canadian lender looking at an international student sees no domestic credit history, income that is capped by permit conditions, and a residency status with an end date. None of that is personal; it is what the underwriting model has to work with. So lenders look past you to whatever else can carry the loan.
- A co-signer who is a Canadian citizen or permanent resident. The most common route to approval, and the one that gets the best rate. The co-signer is fully liable; treat the ask accordingly.
- Collateral, usually a deposit or an asset, which substitutes for the credit history you do not have yet.
- Your institution and programme, which some specialist lenders weight heavily, along with expected earnings after graduation.
- Time in Canada and a domestic banking record. Even six months of a Canadian chequing account with regular deposits helps more than most students expect.
The four routes that work
- A loan in your home country. Often the cheapest option and the most overlooked. Domestic banks lend against family income and local credit history you already have, at rates that are frequently below anything available to you here.
- A Canadian loan with a co-signer. Banks, credit unions and online lenders will all lend on a co-signed application, and the rate is priced on the co-signer's file.
- A student line of credit, where a bank offers one to international students, usually with a co-signer and sometimes restricted to specific programmes. Interest-only payments while studying is the standard structure.
- Specialist international student lenders, which underwrite on programme and future earnings rather than credit history. Rates run above bank rates and below the cap. Verify any such lender's provincial licence before applying, using the three-minute check; this space attracts scams that target people without local banking relationships.
What education borrowing costs
Education is one of the larger reasons Canadians borrow privately. Across Smarter Loans personal loan applications from August 2025 to July 2026, borrowers citing education as the purpose requested an average of $3,278. Most of that is domestic borrowers topping up government loans. As an international student you are usually covering a larger gap without that base, which is why the co-signed or home-country routes matter more than the rate you can negotiate on a small loan here.
A $10,000 tuition gap: with a co-signer and without
| Route | Monthly payment | Months to clear | Total interest |
| Co-signed at a bank | $212.42 a month | 60 months | $2,745.27 interest (9.99%) |
| Specialist lender, no co-signer | $264.88 a month | 60 months | $5,892.99 interest (19.99%) |
The co-signer is worth roughly the difference between those two totals, which is the real reason to ask someone rather than avoid the conversation.
Illustrative example, not quoted offers: $10,000 over 60 months at the rates shown. Your rate depends on the co-signer's credit, your programme and the lender.
Before you borrow: cheaper money first
- Entrance and in-course scholarships at your own institution. Many go unclaimed each year, and the international student office knows which.
- Your institution's emergency bursary fund. Most Canadian universities and colleges run one for students facing a short-term shortfall; it is a grant, not a loan.
- A payment plan with the registrar. Splitting tuition across a term is common and usually free, and it beats borrowing to pay a lump sum.
- Your home country's government study-abroad support, which sometimes travels with you and rarely appears in Canadian search results.
Working while you study
Study permit holders can generally work while studying, subject to the conditions attached to the permit at the time, and hours limits have changed more than once in recent years. Confirm your own permit's current terms before counting on employment income, because a lender counting that income will ask, and the conditions change more often than the advice online gets updated.
As of 31 August 2026, Immigration, Refugees and Citizenship Canada sets the off-campus limit at 24 hours per week during regular terms for students who meet the eligibility conditions, with the work conditions printed on the study permit itself. Check your permit before you rely on that income.
If you have a co-signer who is a citizen or permanent resident, one application shows which lenders will consider the file.
Frequently asked questions
Can international students get student loans in Canada?
Not government ones. Canada Student Loans require citizenship, permanent residence or protected person status. What is available is private borrowing: a co-signed loan or line of credit from a Canadian lender, a specialist international student lender, or a loan from a bank in your home country, which is often the cheapest of the three.
Can I get a loan in Canada without a co-signer as an international student?
It is harder and more expensive, but possible. Specialist lenders that underwrite on programme and expected earnings do lend without co-signers, and a secured loan against a deposit is another route. Both price above what a co-signed application would get.
Do international students need a credit history in Canada to borrow?
For mainstream lenders, effectively yes, which is why co-signers dominate. Building one takes time: a Canadian chequing account with regular deposits, then a secured credit card paid in full monthly, reports to the bureaus and opens better options by second year.
Sources
- Government of Canada, Canada Student Grants and Loans and financial assistance for protected persons, for who qualifies. Verified 31 August 2026.
- Immigration, Refugees and Citizenship Canada, work off campus as an international student, for permit work conditions. Verified 31 August 2026.
- Smarter Loans personal loan applications, August 2025 to July 2026, for the education borrowing figure.
Related reading: student loans in Canada and how to get a personal loan with bad credit.
Written by:
The Smarter Loans Editorial Team produces in-depth, original content to help Canadians navigate borrowing, credit, and personal finance with confidence.
