Best Student Loans for International Students in Canada 2026

Financing a degree in Canada can be difficult for international students. Tuition alone may cost tens of thousands of Canadian dollars per year, and temporary international students generally do not qualify for the same government student loans available to Canadian citizens, permanent residents, and protected persons.

Fortunately, several private and bank-based options may help.

The main choices include:

• No-cosigner international student loans
• Canadian student lines of credit with a local cosigner
• Graduate-specific bank financing
• Education loans from the student’s home country

This guide compares the best student loans for international students in Canada in 2026.

Quick Comparison

Eligibility and interest rates can change. Always check your exact university, program, nationality, and study intake before relying on a lender.

Can International Students Get Government Student Loans in Canada?

Most temporary international students cannot access Canada Student Loans.

Current federal student aid eligibility requires an applicant to be:

• A Canadian citizen
• A permanent resident
• A designated protected person

A standard international student with only temporary study status does not meet this requirement.

International students therefore usually need to consider:

• Scholarships
• University funding
• Private lenders
• Bank lines of credit
• Home-country education loans

1. Prodigy Finance

Best overall no-cosigner option for eligible master’s students

Prodigy Finance provides education loans for international postgraduate students studying at selected Canadian universities and programs.

Its main international loan product does not require:

• A traditional cosigner
• Family property as collateral

The lender evaluates factors including the applicant, university, program, and expected future earning potential.

Current 2026 rate

Prodigy currently advertises eligible Fall 2026 loans starting from:

10.69% variable interest

Its published representative example includes:

• $40,000 borrowed
• 4.2% administration fee
• $41,680 total credit amount
• 11.99% variable interest rate
• 13.12% representative variable APR
• 180-month repayment period

The representative example produces a total repayment exceeding $113,000, showing why students must compare the full cost rather than only the original loan amount.

Examples of supported Canadian institutions

The current Canada page highlights programs or partnerships involving institutions such as:

• McGill University
• University of Toronto
• York University
• McMaster University
• University of Waterloo
• Western University
• University of Calgary
• Simon Fraser University

Support depends on the exact school and program.

Best for:

• MBA students
• Business master’s students
• Engineering and technology students
• Other eligible postgraduate applicants
• Students without a Canadian cosigner

Main disadvantages:

• Primarily focused on postgraduate study
• Not every program qualifies
• Variable rates can rise
• Administration fees may significantly increase total cost

2. Scotiabank ScotiaLine for Students

Best Canadian bank option for international graduate students

Scotiabank explicitly allows eligible international students enrolled in Canadian graduate programs to apply for its student line of credit.

However, the international student must apply with a co-borrower who is:

• A Canadian citizen

or:

• A Canadian permanent resident

The student must also provide valid proof of enrolment.

Current credit limits

For international graduate students, Scotiabank currently publishes:

Program shorter than 18 months

• Minimum annual limit: CAD $1,000
• Maximum annual limit: CAD $100,000
• Maximum total limit: CAD $100,000

Program longer than 18 months

• Maximum total limit: CAD $100,000

Final approval depends on the applicant and bank credit assessment.

Main advantages

• High potential credit limit
• Designed for graduate education expenses
• Borrow only what you need
• Interest applies only to the amount used

Main disadvantages

• Only available to international students in Canadian graduate programs
• Requires a Canadian citizen or permanent resident co-borrower
• The rate is variable

Best for: International master’s and PhD students who have a strong Canadian co-borrower.

3. TD Student Line of Credit

Best for students with an eligible Canadian cosigner

TD states that an international student may qualify for a Student Line of Credit when they have an eligible cosigner who:

• Is a TD customer
• Is a Canadian citizen or permanent resident

The exact amount available depends on the student’s program and level of study.

How it works

Unlike a traditional loan, a student line of credit allows you to:

1. Receive an approved credit limit.
2. Withdraw only the amount needed.
3. Pay interest only on the amount borrowed.
4. Reuse available credit as the balance is repaid.

Important

Private student lines of credit are not interest-free.

TD states that interest starts from the date money is borrowed, and the borrower is responsible for repaying both principal and interest.

Best for:

• Undergraduate or graduate students
• Students who already have a trusted Canadian cosigner
• Students who prefer flexible borrowing rather than receiving one large loan

Main disadvantage

Without an eligible Canadian citizen or permanent resident cosigner, most international students will not qualify through this route.

4. RBC Royal Credit Line for Students

Best for flexible bank borrowing

RBC offers student lines of credit for:

• Undergraduate programs
• Graduate programs
• College and trade school
• Professional studies
• Medical and dental programs

General student credit limits currently start at:

CAD $5,000

Interest rates are variable and based on the RBC Prime Rate.

RBC’s current guidance for international students explains that a Canadian credit history may be required and that a cosigner who is a Canadian citizen or permanent resident may be needed. Approval depends on the full financial profile.

Repayment structure

RBC currently states that students:

• Pay at least the interest while borrowing
• Receive a 24-month period after graduation before principal repayment begins
• Continue paying interest during that period

Main advantages

• Flexible borrowing
• Only pay interest on funds used
• Multiple program categories
• Long transition period after graduation

Main disadvantages

• International students may need a Canadian cosigner
• Variable interest rates can increase
• Approval is credit-based

5. MPOWER Financing

Best option to monitor—but not currently available for new 2026 loans

MPOWER has historically been one of the best-known international student lenders for Canada because its model does not normally require:

• A cosigner
• Collateral
• Canadian credit history

Its published Canadian loan information describes potential loans of up to US$100,000 for eligible students and universities.

However, this is the critical July 2026 update:

MPOWER currently states that it has reached its funding capacity and is temporarily unable to offer new loans for 2026.

Its active eligibility page currently directs applicants to a waitlist.

Therefore, students should not currently depend on MPOWER for:

• Immediate tuition payments
• A study permit application
• An approaching university deposit deadline

Monitor the official website for reopening.

Student Loan vs. Student Line of Credit

These are not the same.

Traditional student loan

You generally receive a specific approved amount.

Examples:

• Prodigy Finance
• Specialist international education lenders

Student line of credit

The bank approves a maximum limit, but you borrow only what you need.

Examples:

• Scotiabank
• TD
• RBC

Main advantage of a line of credit

You pay interest only on the amount actually borrowed.

Main risk

Bank student lines of credit usually have variable rates, so borrowing costs can rise.

Can an Education Loan Be Used as Proof of Funds?

Yes, a student or education loan from a bank may be included among the documents used to demonstrate financial support for a Canadian study permit application.

IRCC currently lists proof of a student or education loan from a bank as one example of acceptable financial evidence.

However, students must also demonstrate sufficient funding for their studies.

For applications made on or after September 1, 2025, a single applicant studying outside Quebec must currently show:

CAD $22,895 for first-year living expenses

This amount does not include:

• Tuition
• Transportation costs

For programs longer than one year, students must also explain how they plan to finance the remaining study period.

What Should You Compare Before Borrowing?

1. APR and total interest

Do not focus only on the initial advertised rate.

2. Fixed vs. variable rate

• Prodigy currently uses variable-rate pricing.
• Canadian bank lines of credit are generally variable.

3. Cosigner requirements

Ask:

• Must the cosigner be Canadian?
• Must they be a bank customer?
• Are they legally responsible for the entire debt?

4. Fees

Check for:

• Administration fees
• Origination fees
• Late fees

5. Total repayment

Calculate how much you may repay over the full term.

6. Currency risk

Some international loans may be denominated in a currency different from your future salary.

Which Student Loan Is Best?

Best without a traditional cosigner:

Prodigy Finance

For currently eligible postgraduate students and programs.

Best Canadian bank option for graduate students:

Scotiabank ScotiaLine

Potential credit of up to CAD $100,000 with a qualifying Canadian co-borrower.

Best for students with a TD-based Canadian cosigner:

TD Student Line of Credit

Best for flexible borrowing:

RBC Royal Credit Line for Students

Best no-cosigner option to monitor:

MPOWER Financing

Currently paused for new 2026 loans.

Final Thoughts

The best student loans for international students in Canada in 2026 depend mainly on two questions:

1. Are you a postgraduate student?
2. Do you have a Canadian citizen or permanent resident willing to cosign?

Without a Canadian cosigner, Prodigy Finance is one of the main active options for eligible master’s students.

With a Canadian cosigner, students can also compare:

• Scotiabank
• TD
• RBC

Before borrowing:

1. Apply for scholarships first.
2. Calculate your exact funding gap.
3. Confirm that your university and program are eligible.
4. Compare rates and fees.
5. Calculate the total repayment cost.
6. Borrow only what is necessary.

A loan can help finance a Canadian degree, but the wrong loan can remain expensive for many years after graduation.

Official Sources

• Government of Canada – Student Loan Eligibility
• IRCC – Proof of Financial Support for a Study Permit
• Prodigy Finance – Student Loans for Canada
• Prodigy Finance – Fall 2026 Loans
• Scotiabank – Student Line of Credit
• TD – Student Line of Credit
• RBC – Student Line of Credit
• MPOWER Financing – Current Loan Availability
• MPOWER – Canadian Student Loans