Common Forms of Student Credit

A government-funded financial aid program consisting of grants and loans provided by both by the Ontario and federal government.

A type of loan that lets you borrow money repeatedly up to a preset limit.

A type of loan that lends you a limited amount of money.

Available to Ontario residents who are: Canadian citizens, permanent residents or protected persons who are enrolled in full- or part-time studies at an approved public or private postsecondary school.

Be prepared to provide proof of enrolment as a full- or part-time student at a recognized Canadian postsecondary institution. A parent or guardian may need to co-sign your line of credit application. By co-signing your application, they are also responsible for the debt should you be unable to pay it back.

Be prepared to provide proof of enrolment as a full- or part-time student at a recognized Canadian postsecondary institution.

Having trouble choosing a card? Consider using the Credit Card Selector Tool from the Financial Consumer Agency of Canada to compare features of different credit cards.

OSAP funding is based on several factors including education expenses and personal financial situation.

Financial institutions may access your income and potentially your co-signer's income (if applicable).

Financial institutions tend to not require a large income or proof of income which makes them great first cards for you to establish credit history.

If you graduated high school within the last four years, your family financial status may be accessed to determine the amount of funding you’re eligible for.

Parents are not financially responsible for the loan.

A parent or guardian may need to co-sign your line of credit application. By co-signing your application, they are responsible for the debt should you be unable to pay it back.

Parental support is generally not required when applying for a student credit card.

Interest-free status is granted to full-time students while they compete their studies. During this time, no interest accrues on your student loan.

Interest will accrue as funds are used. You must pay at least the interest, even while in school. Interest rates vary. Contact your financial institution for more information.

Interest rates vary, but are generally in the high-10s to low-20s per cent range. If full balance of the credit card is not paid by the due date, interest will accrue daily. Contact your financial institution for more information.

No payments are required for six months after your last confirmed study period. During this time you will be notified by the National Student Loan Service Centre (NSLSC) of: how much you owe, your total number of payments, the date of your first payment and the interest used to calculate your payment. Payments are made to the NSLSC (not OSAP).

Use OSAP’s repayment calculator to find out what your monthly payments will be when you leave school.

Additionally, the NSLSC offers online webinars on demand to educate you about your loans in general (Orientation Presentation) and about what to do when it is time to repay your student loan including the repayment process, tips on how to save on interest, and what to do in the event that you are having difficulty making payments (Repayment Presentation)

Once you graduate, most financial institutions allow you to continue paying only the interest for a grace period of six to 12 months. After that time, you are required to start paying back the money you borrowed (the principal) and the interest until debt is paid back in full.

Payment is required monthly by a set due date. If the entire balance of the credit card is not paid by the due date, interest will accrue daily. 

Are you currently carrying a balance on your credit card and wondering how long it’ll take to pay off? Consider using the Credit Card Payment Calculator from the Financial Consumer Agency of Canada.

You are required to complete an OSAP application each year.

If you are in good standing, there is no need to reapply. A student line of credit lasts for the duration of your studies.

If you are in good standing, there is no need to reapply. A student credit card lasts for the duration of your studies. 

If you are having trouble paying back your student loans, you can apply for the Repayment Assistance Plan to make reduced monthly payments or no payments.

There is no payment support available if you are unable to pay your debt.

There is no payment support available if you are unable to pay your debt.

Often offer cardholders incentives, some of which may include:

• No annual fees: financial institutions understand that most students have minimal income while completing their studies and often offer cards with a $0 annual fee. This allows students to obtain a credit card at a low cost.
• Earn rewards: when using your credit card, you could be eligible to receive reward points that are redeemable for cash back, retail merchandise, travel and gift cards.