Best Education Loans for Master’s Students in Canada 2026

Best Education Loans for Master’s Students in Canada 2026

Completing a master’s degree in Canada can require a substantial budget for tuition, housing, health insurance, books and daily expenses. Although scholarships and graduate assistantships should be the first sources of funding, an education loan may help cover the remaining cost.

The best education loans for master’s students in Canada include government student aid for eligible residents, graduate lines of credit from major Canadian banks and specialised financing for international students.

Can master’s students get education loans in Canada?

Yes. Master’s students may finance their studies through:

• Canada Student Grants and Loans.
• Provincial or territorial student aid.
• Graduate student lines of credit.
• Private education loans.
• Loans from banks in their home country.
• University emergency loans.
• Employer or government sponsorship.

Your immigration status is especially important. International students who only hold a Canadian study permit generally cannot access federal student aid. Canada Student Grants and Loans normally require the applicant to be a Canadian citizen, permanent resident or designated protected person.

Best education loans for master’s students in Canada

1. Canada Student Grants and Loans: Best for eligible residents

Government student aid is generally the first option to consider because it may include both repayable loans and non-repayable grants.

Applicants normally must:

• Be Canadian citizens, permanent residents or protected persons.
• Demonstrate financial need.
• Reside in a participating province or territory.
• Attend a designated post-secondary institution.
• Maintain the required course load and satisfactory academic progress.

Students submit their applications through their provincial or territorial student-aid authority. Quebec, Nunavut and the Northwest Territories operate separate financial-assistance systems.

Students should also verify that their university appears on Canada’s list of designated educational institutions. Starting August 1, 2026, new federal funding restrictions apply to certain private, for-profit schools.

Best for: Canadian citizens, permanent residents and protected persons enrolled in an eligible master’s programme.

2. TD Professional Student Line of Credit: Best for a long grace period

TD offers a Professional Student Line of Credit to students enrolled in graduate programmes, including master’s degrees, MBAs and PhDs.

Its main features include:

• Funding for tuition, books and living expenses.
• Reusable credit during the study period.
• Interest-only payments while studying.
• No principal payments until 24 months after leaving school.
• Annual proof of enrolment requirements.

International students must have a co-borrower who is a Canadian resident and an existing TD customer in good standing. Cosigner requirements for other applicants depend on credit history and are assessed individually.

Because the interest rate is variable, students should ask TD for the current rate and calculate how higher prime rates would affect monthly payments.

Best for: Master’s students who want flexible access to funds and can provide an eligible Canadian co-borrower when required.

3. CIBC Education Line of Credit: Best for a clear graduate borrowing limit

CIBC offers an Education Line of Credit for students attending accredited Canadian universities, colleges and trade schools.

Graduate students may receive:

• A recommended total limit of up to CAD 80,000.
• No fixed annual borrowing limit within the approved programme limit.
• Interest-only payments while studying.
• Interest-only payments for 12 months after graduation.
• Repayment periods of up to 20 years after the line is converted.
• Penalty-free early repayment.

CIBC advertises the product at a variable rate based on CIBC Prime, with its current product page showing CIBC Prime plus 1%. The rate can change whenever the bank’s prime rate changes. Approval remains subject to CIBC’s lending criteria, and a qualified guarantor may be required.

Best for: Graduate students who need a larger approved credit limit and want to borrow only as expenses arise.

4. RBC Royal Credit Line for Students: Best for flexible credit limits

RBC’s Royal Credit Line for Students covers undergraduate and graduate programmes, including standard master’s degrees.

Key features include:

• Credit limits starting at CAD 5,000.
• Interest charged only on the amount used.
• Variable interest rates based on RBC Prime.
• Flexible repayment terms.
• Funding for tuition, supplies, accommodation, food and travel.

Applicants must provide proof of enrolment, estimated education costs and details of scholarships, savings, government aid and other available financial resources.

RBC states that a cosigner may be required when the applicant has limited credit history. This is particularly relevant for newly arrived international students who have not yet established a Canadian credit profile.

Best for: Master’s students seeking a flexible credit line rather than receiving the entire loan in one payment.

5. Scotiabank ScotiaLine: Best for international students with a Canadian co-borrower

Scotiabank provides a particularly clear pathway for international graduate students.

An international student enrolled in a Canadian graduate programme may apply for a ScotiaLine Personal Line of Credit when supported by a co-borrower who is:

• A Canadian citizen; or
• A Canadian permanent resident.

After graduation, the student receives a 12-month grace period on principal repayment. Interest must still be paid during this period, after which the balance converts to fixed monthly principal-and-interest payments.

Best for: International master’s students who have a financially qualified Canadian citizen or permanent-resident co-borrower.

6. MPOWER Financing: No-cosigner loans currently paused

MPOWER Financing has historically offered private education loans to international students without requiring:

• A Canadian cosigner.
• Property collateral.
• An established Canadian credit history.

However, MPOWER states that it has reached its current funding capacity and is temporarily unable to offer new loans for 2026. Students can join its waitlist, but MPOWER should not be treated as confirmed funding unless applications reopen.

Best for: Potential future applicants seeking a no-cosigner loan, once 2026 lending becomes available again.

Can international master’s students get loans without a cosigner?

No-cosigner loans in Canada are extremely limited in 2026. Most Canadian banks assess:

• Canadian credit history.
• Current income.
• Immigration status.
• Programme duration.
• Expected graduation date.
• Existing debts.
• The financial position of a guarantor or co-borrower.

A newly arrived international student may therefore need to consider:

1. A loan from a bank in their home country.
2. A Canadian loan with a citizen or permanent-resident cosigner.
3. A university scholarship or entrance award.
4. A teaching or research assistantship.
5. Employer or government sponsorship.
6. A tuition instalment plan.
7. Personal and family savings.

Documents required for a Canadian master’s loan

Banks commonly request:

• Passport and identification.
• Canadian study permit, when applicable.
• University admission or enrolment letter.
• Tuition-fee statement.
• Proof of Canadian address.
• Estimated study and living costs.
• Scholarship or assistantship documentation.
• Bank statements and income evidence.
• Canadian credit report, when available.
• Cosigner or guarantor financial documents.

How to compare master’s education loans

Before accepting an offer, compare the following:

• Interest rate: Determine whether it is fixed or variable.
• APR: Include compulsory fees and interest.
• Total credit limit: Check whether it covers the full programme.
• Interest during study: Many bank lines require immediate monthly interest payments.
• Grace period: Confirm when principal repayment begins.
• Cosigner responsibility: The cosigner becomes legally responsible for unpaid debt.
• Repayment term: Longer repayment reduces monthly payments but increases total interest.
• Early repayment: Look for penalty-free additional payments.
• Currency risk: This matters when the loan and future salary use different currencies.

Reduce borrowing before applying

Before taking a private student loan, search for:

• University entrance scholarships.
• Departmental graduate awards.
• Research and teaching assistantships.
• Employer tuition support.
• Provincial scholarships.
• Government-funded international scholarships.
• Paid internships or cooperative programmes.

Canadian institutions and government programmes offer scholarships, fellowships and grants for some international graduate students, although eligibility varies by nationality, programme and institution.

Final verdict

The best education loan for a master’s student in Canada depends on residency status and credit eligibility:

• Canada Student Grants and Loans are best for eligible citizens, permanent residents and protected persons.
• TD offers a strong grace period and flexible graduate borrowing.
• CIBC provides a published graduate limit of up to CAD 80,000.
• RBC offers flexible limits starting at CAD 5,000.
• Scotiabank is a practical choice for international students with a Canadian co-borrower.
• MPOWER Financing is not currently accepting new 2026 loan applications.

Students should prioritise scholarships and assistantships, then borrow only the amount needed to close the remaining funding gap.

Official Sources

• Government of Canada – Canada Student Grants and Loans
• TD – Student Lines of Credit
• CIBC – Education Line of Credit
• RBC – Royal Credit Line for Graduate Students
• Scotiabank – Banking and Credit Options for Students
• EduCanada – Scholarships for International Students