How to Apply for a Student Loan and Grant in Canada

Ruthy Siemens
Jun 3
4 min read

Updated: Aug 8

When to Apply for Student Loans: A Comprehensive Guide

Timing is Everything!

Ideally, you should apply 60 days before the start of classes. This means aiming for July 2025 or earlier! Give yourself plenty of time. If you don't qualify for a grant or loan, you’ll want to have alternate financial plans ready.

Your application can take up to 8 weeks to be assessed. So, don’t leave it until the last minute!

Why Apply Early?

You need to see if you qualify for any grants, not just loans. There are Alberta student grants available for full-time students that you might be eligible for! Your eligibility often depends on your family income.

Why Do You Need the Money?

Let’s face it, education can be expensive!

Understanding Eligibility

If you don't qualify for a grant this year, don’t lose hope! You can keep applying each year. Your status will start as a dependent under your parents. Eventually, you’ll become independent based on factors like age, marital status, or if you have children.

Dependent vs. Independent Students

What’s the difference? A dependent student relies on their parents for financial support, while an independent student is self-sufficient.

If you don’t qualify for a grant, you might still qualify for a loan. However, keep in mind that the federal and provincial governments expect students to contribute a certain amount towards their education. For Alberta student loans, this is typically at least $1500, unless your parents receive AISH or CPP-D.

In Canada, the expected contribution ranges from $1500 to $3000 unless you are indigenous, have a disability, or were in government care. Be honest when answering questions about contributions; otherwise, it could be considered fraud.

Loan Limits and Expectations

There are annual loan limits for both Canadian and Alberta student loans. These limits are based on your living situation—whether you live with your parents or on your own. If you attend school in the same city as your parents, it’s expected that you’ll stay at home instead of renting or living in student housing.

Don't forget to keep applying for scholarships! They won’t affect your student aid.

Understanding Program-Specific Loan Limits

Loan limits can also vary based on the program or degree you’re pursuing. For instance, a loan for medical schooling typically has a higher lifetime limit than a mechanic journeyperson certificate.

Where to Start the Application Process

If you’re new to this process, there’s a new and improved way to access your account.

I love that they’ve combined it with your My CRA account, putting everything in one place. If you bank with any of the big five banks, you’re likely already set up with Service Canada and won’t need to verify with a personal access code.

Banking Tips

It’s a good idea to have a student account or a line of credit with one of the Big Five Banks. However, consider opening a savings account with an online bank that offers better interest rates! As soon as my son turns 18, he’ll be opening an EQ account. He already has accounts with Tangerine and TD. Remember, you can have more than one bank account. Don’t feel tied to the bank you’ve had since childhood!

Another bonus: if you already have a provincial account, it links with My CRA. If you’re in Alberta, all your health information is also on this Alberta Account.

If you don't have a provincial or My CRA account, then you will have to register for one with your SIN, Birth Registration Number of UCI.

One Application for Both Federal and Provincial Loans

Thankfully, you only need to submit one application for both the federal and provincial loan processes.

What Information Should You Prepare?

Before you start filling out the application, gather the following information:

Are you a full-time or part-time student? This will affect your loan amount.
Are you an independent or dependent student?
How much will your parents contribute through RESPs or other savings? You can use a federal calculator for your expected parents' contributions to help with this.

Know your educational costs, including tuition, mandatory fees, books, and supplies. If you’re studying overseas, costs may be higher than in Canada.
Know your total income, line 15000 on your 2024 Notice of Assessment for you and both parents.
Have your student ID number ready.

Once you have all this information, you can use a federal Student Aid Estimator to get an idea of what to expect for both grants and loans.

If you think the estimated amount is incorrect, you can fill in a lesser amount or go back to change any contribution amounts. This will adjust your preliminary loan amount.

This application took us a total of 30 minutes to fill out because we had all the information readily available!

After Approval: What’s Next?

Once you receive approval for your loan, you need to complete your loan agreement. Your school must confirm that you’re registered. Some of the loan may go directly to the post-secondary institution, with the remaining funds deposited into your bank account.

Remember: The funds won’t be deposited until one week before classes begin!

Payback Time!

When it’s time to pay back your loans, remember that there’s a separate provincial and federal loan payback schedule and interest amount.

Don’t forget to do the five minutes of paperwork to keep your student loan in good standing while you’re still attending part-time studies.

It can be a bit confusing because Canada student loans are interest-free, but you must start paying them back within six months, even if you’re still a part-time student.

On the other hand, if you have an Alberta-only student loan, you can keep your loan in interest-free status while you’re still a part-time student, as long as you fill out the Form B paperwork.