There were almost 1 million (997,820) international students in Canada at the end of 2024, according to the Canadian Bureau for International Education (CBIE).  And in 2025, Canada continues to be a top destination for those international students.  It has world-class universities, a welcoming multicultural environment, and the benefit of many employment prospects after graduation – a significant 70% of international students plan to apply for a post-graduate work permit. Of those international students who stay in the country for 3 years after graduation, 88.6% were employed, according to Statistics Canada.

However, financing education can be challenging for you if you’re trying to get a loan for your education.  Tuition fees alone are incredibly expensive, and combined with increasing living expenses, the obstacles are high to making Canada your place of study.  Government financial aid options like Canada student loans, bursaries, and grants are generally limited to Canadian citizens or permanent residents.

One thing you can do is look into accessing international student loans.  These are specialized financial products specifically for international students and may offer you a solution for funding your higher education in Canada.  

Passage, a financial technology platform, provides streamlined, accessible loans that can be tailored to the needs of international students.  With Passage, you can even verify your eligibility online instantly with the Passage eligibility checker.

International student loans in Canada

International student loans are financial products that help you when you want to study abroad or if you’re in a foreign country already and want to continue your studies.

How is it different from student loans for domestic students

Canada student loans are offered by the Canadian government, and typically, you only qualify if you’re a Canadian citizen or a permanent resident.  

You also have to meet specific eligibility rules to get them.  International student education loans, on the other hand, can be provided through private lenders or specialized fintech platforms like Passage.  These have different eligibility criteria, like having a valid study permit, being enrolled in school full-time, and also attending an accredited Canadian educational institution.

You might also try to get a student loan from a traditional bank or lender in Canada, but you’ll frequently come up against the requirement of a co-signer who is a Canadian or permanent resident of Canada with an established credit history.  That’s not always an option.  

The costs for international students can be prohibitive - based on Statistics Canada 2022/2023 numbers, the average tuition fees for international graduate students was $21,111. Now, add the average living costs of $20,635 per year.

Eligibility criteria for international student loans

Eligibility criteria are going to vary by lender when you apply for an international student loan, but there are some generally consistent requirements across most loan programs.

General guidelines:

Here are some common requirements for international students already in Canada.

• Acceptance letter: Letter of Acceptance or enrolment letter a Designated Learning Instituitn is usually mandatory.
• Valid Study Permit: You must possess a valid Canadian study permit issued by Immigration, Refugees, and Citizenship Canada (IRCC).
• Full-time enrolment: Most lenders require that students be enrolled full-time in their academic program.
  
  • Passage can also fund students who:
    
    • Are studying in their home country but looking to come to Canada
    • Do not have admission for their first or second program in Canada
    • Only have an offer letter or admission letter
    • Are already studying at one of Passage’s partner schools (George Brown College, Niagara College, Bow Valley College)
• Financial stability: You typically need to demonstrate the ability to repay the loan, so you may need to provide bank statements, credit report, or other financial documentation.

How Passage simplifies eligibility verification

Passage starts with an online eligibility checker so you don’t have to go through the hassle first. To quickly verify your eligibility, use the eligibility checker.

Comparing loan options for international students

It is recommended that you compare different options available when looking at international student loans. Look into differences like government-backed versus private loans.

Government vs. private loans

Government-backed loans (Canada student loans) generally have more competitive interest rates and favourable repayment terms, but remain unavailable for international students. Most international students rely on private lenders, including Canadian banks and specialized platforms like Passage, to finance their education.

Passage: Specialized loans for international students

Passage is a financial technolligy platform that exclusively addresses the financial challenges faced by international students in Canada or students looking to come to Canada.

Key benefits of choosing Passage

Here are major advantages of working with Passage for admission and financing:

• Programs aligned with labor shortage area: The Passage team has done extensive research to select education programs at partner schools that fill shortage in Canadian labor market. This helps with successful work permit application (PGWP).
• Talent success team: Passage has a dedicated team help students secure job both while studying and after graduation.
• All-in-one service: Passage can provide assistance to students for everything from admission and financing to study permit and finding job.
• Co-signer is not mandatory: You may be eligible to obtain loans without the need for a Canadian co-signer.
• Transparent loan calculator: Passage provides an easy-to-use online calculator where you can clearly see loan terms, projected monthly payments, and total repayment amounts.
• No prepayment penalty: You can repay as early as possible and close the loan. There is no penalty for that. In fact, we encourage that.
• Fully online application: The loan application process through Passage is fully online and the end-to-end process can take anywhere from a week to a couple of weeks.
• Fixed interest rate: The interest rate in fixed at 11.95% APR.

Many international students have successfully funded their Canadian education through Passage. To hear firsthand from students who've used Passage, check out the success stories.

Quick comparison of loan providers

Here is a breakdown of different factors to consider when evaluating lenders:

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Step-by-step application process for international student loans

Applying for an international student loan in Canada is usually straightforward and user-friendly. Here's a step-by-step guide:

1. Eligibility check: Begin by using the Passage online eligibility checker. This will instantly show you the next steps for a loan based on your program and institution. If you need a walkthrough, given below is a video.

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2. Document preparation: Gather necessary documents, including:

1. Valid Canadian visa (student visa, visitor visa, work permit, etc.)
2. Acceptance letter from your educational institution if you already have admission. Otherwise, Passage can help with admission as well.
3. Proof of full-time enrolment if you are already studying

3. Online Application: Complete Passage's digital application form by providing personal details, academic information, and financial documentation. The application typically takes less than 30 minutes to complete.

4. Approval and Loan Terms: After submitting your application, Passage reviews your information and provides you with a loan offer outlining interest rate, repayment terms, and monthly payment schedules.

5. Acceptance and Disbursement: Upon agreeing to the terms, the loan amount is disbursed directly to your Canadian bank account, facilitating hassle-free payment of tuition and living expenses.

Managing your loan: Interest rates and repayment plans

Getting your loan is just the first step. You’ll want to understand how to manage your loan effectively, especially as an international student. Below are a few things you should consider:

Interest rates

Interest rates vary significantly across lenders. Traditional Canadian banks generally offer rates based on their prime rate + an additional compensation rate. Passage provides competitive rates of 11.95% APR on their loans. Make sure you choose a lender that will outline all fees and terms before you enter the agreement clearly.

Repayment plans

Flexible repayment plans can also help you avoid financial stress during and after your studies. Passage offers:

• Loan terms of 4 to 7 years (48 to 84 months)
• No penalty for early repayment
• Payment Structure: You’ll pay a lump sum up front as cash collateral (after you receive your loan agreement), and then a monthly payment for 4-7 years, clearly outlined for you.

Loan management tips

• Regularly monitor your loan balance and interest accrual.
• Keep your lender informed of any changes in your financial circumstances.
• If you can, consider early repayment options if possible to minimize interest costs.

Example

Let’s say you’re interested in the Welding Techniques from George Brown College in Toronto. You would first select which intake you are interested in from the loan calculator:

The calculator will then give you what your loan details: the total loan amount, the interest rate, and a note that says that there is no prepayment penalty on your loan:

The next step shows how much you need to pay upfront as collateral, after you received your letter of acceptance (LOA), and what your monthly payment will be for 48 months:

Financial aid for international students in Canada

Beyond loans, international students should explore other financial aid options to manage educational costs. Though traditional bursaries and governmental financial aid programs typically exclude international students, several opportunities remain:

• Scholarships and bursaries: Many Canadian universities offer merit-based and need-based scholarships specifically designed for international students. Checking with your university’s financial aid office regularly is a good first step, or online at Edu Canada.
• On-Campus employment: International students holding a valid study permit are eligible to work part-time, up to 24 hours per week during academic sessions and full-time during scheduled breaks. This can significantly offset living expenses.
• Financial aid offices: Every Canadian educational institution has a financial aid office dedicated to assisting students. They can provide advice on additional financial assistance programs that might not be as apparent.

Special provincial considerations (Ontario and Quebec)

The provinces of Ontario and Quebec have unique considerations and financial programs that international students should know about:

Ontario: Some Ontario universities and colleges offer institution-specific financial assistance for international students, including awards and bursaries based on academic merit or financial need.

Quebec: Quebec has distinct immigration and financial aid policies.  International students attending institutions in Quebec may find additional provincial funding opportunities or reduced tuition rates compared to other provinces, depending on their program and nationality.

International students planning to study in Ontario or Quebec should engage closely with their institution’s financial aid office to fully leverage these provincial opportunities.

Practical tips: preparing for financial life in Canada

Managing finances effectively is critical for a stress-free educational journey in Canada.  Here are some practical financial tips:

• Open a Canadian bank account: Having a local bank account simplifies transactions, including tuition payments and living expenses.
• Credit cards: Consider applying for a Canadian credit card to build a local credit history, which can benefit future financial activities like leasing apartments or purchasing vehicles.
• Budget for living expenses: Understand typical costs of housing, food, transportation, and healthcare to create a realistic monthly budget. The government of Canada estimates these (in Canadian dollars) as:
  
  • Housing and Accommodation: $500-$2,000 per month, depending on whether you live in private housing off campus (recommendation is to set aside 25% of your budget for housing)
  • Food and Groceries: $240-$480 per month
  • Utilities: $100+ per month
  • Internet: $50-$100 per month
  • Phone: $60+ per month
  • Entertainment: $120+ per month
  • Transportation: $80-$156 per month for a transportation pass
• Healthcare insurance: Ensure you have appropriate health insurance coverage, as healthcare costs for international students can be high without adequate insurance. Most of the the schools have options for health insurance. The estimate from the government of Canada is $75-$120 per month, plus travel health insurance if you need it.
• Maintain financial discipline: Pay bills promptly, manage credit cards responsibly, and keep track of loan repayments to build a positive credit history in Canada.

Frequently asked questions (FAQs)

• Can I get a loan without a co-signer?
  Yes, through platforms like Passage, eligible international students can obtain loans without always needing a Canadian co-signer.
• How do I improve my credit history as an international student?
  Regularly paying bills on time, responsibly managing a credit card, and timely repayment of loans significantly boost your credit score.
• What happens if I can't make my loan repayments?
  Communicate immediately with your lender. Platforms like Passage offer flexible repayment plans and can often restructure loan terms to help manage financial difficulties.

Conclusion

We noted how high the costs are to get higher education in Canada. You’re going to want to secure finances, and it is definitely possible if you keep yourself informed of the right financial products. Platforms like Passage are a great way to get what you need, with user-friendly tools, transparent loan terms, and flexible repayment options.

According to the Labour Market Information Council (LMIC), graduates of Canadian college programs experience substantial income growth over time. On average, college-level diploma holders see their earnings increase significantly within the first five years after graduation.

This data underscores the long-term value of college credentials in Canada. Whether you're pursuing a diploma, certificate, or postgraduate credential, a Canadian college education can be a powerful step toward a better future.