Top 10 Best Student Loans in Canada for International Students (2025)

Canada continues to be a top destination for international students thanks to its world-class education, multicultural society, and promising career opportunities. However, studying in Canada as an international student comes with significant expenses – tuition fees, living costs, and other educational expenses can quickly add up.

If you’re planning to study in Canada and need financial support, student loans can help make your educational journey more accessible. This in-depth guide highlights the best student loan options in Canada for international students in 2025, along with essential factors to consider before borrowing and other financial aid opportunities to explore.

What International Students Should Consider Before Applying for a Student Loan

Before choosing a student loan in Canada, here are several critical factors international students must evaluate:

🔍 Eligibility Requirements

Most government-funded student loan programs in Canada are available only to Canadian citizens or permanent residents. As an international student, you’ll need to look primarily at private lenders, international loan providers, and school-specific financial aid programs.

💼 Cosigner Requirements

Many private loan providers require a creditworthy cosigner based in Canada or the U.S. A cosigner agrees to take on the loan repayment if you fail to meet the obligations. Some international student loan providers may offer no-cosigner options, but they are limited.

📈 Interest Rates and Loan Terms

Always review the interest rates (fixed vs. variable), repayment terms, grace periods, and any associated fees. Variable interest rates may fluctuate over time, which could affect your monthly payments.

💳 Repayment Flexibility

Look for lenders that offer flexible repayment options, such as income-driven repayment, extended terms, or grace periods after graduation. Some lenders allow you to defer payments while you’re still in school.

💰 Total Education Costs

Don’t just focus on tuition. Consider the full cost of attendance, including:

• Housing and utilities
• Food and transportation
• Books and course materials
• Health insurance
• Miscellaneous personal expenses

Knowing your total expenses will help you determine how much you need to borrow – and if a loan is even necessary.

Additional Financial Aid Options for International Students in Canada

Before applying for a student loan, exhaust all other forms of financial aid:

🎓 Scholarships and Grants

Unlike loans, scholarships and grants do not require repayment. Many are offered by:

• Canadian universities
• Government programs in your home country
• Non-profit and private organizations

Use tools like ScholarshipsCanada.com or explore school-specific scholarships for international students.

💼 Work-Study Programs

Many institutions offer on-campus part-time work opportunities for international students. These jobs can help you earn income and gain Canadian work experience while studying.

🏦 Personal Savings and Family Support

If possible, save in advance or seek support from family to minimize how much you need to borrow.

✅ Top 10 Best Student Loan Options in Canada for International Students (2025)

Note: Always verify the most recent interest rates, terms, and eligibility on the lender’s official website before applying.

1. Prodigy Finance

• Best for: Graduate-level students
• Cosigner Required: ❌ No
• Highlights: Offers loans based on your future earning potential, not credit history. Available for select postgraduate programs in business, engineering, and public policy.

2. MPOWER Financing

• Best for: Undergraduate and graduate students in select Canadian universities
• Cosigner Required: ❌ No
• Highlights: Offers loans up to CAD 100,000. Fixed interest rates, no prepayment penalties, and career support services included.

3. Mogo

• Best for: Tech-savvy students seeking a fast, digital loan process
• Cosigner Required: ✅ May be required
• Highlights: Competitive interest rates, environmentally conscious financial products, and an easy-to-use mobile app.

4. International Education Financial Aid (IEFA)

• Best for: Students looking for a variety of loan options
• Cosigner Required: ✅ Varies by lender
• Highlights: A portal that connects international students to lenders offering education loans. Some programs may offer no-cosigner loans.

5. Royal Bank of Canada (RBC)

• Best for: Students enrolled in RBC-partnered institutions
• Cosigner Required: ✅ Yes
• Highlights: Offers personal student lines of credit. Some programs tailored for international students, but eligibility varies.

6. Canadian Imperial Bank of Commerce (CIBC)

• Best for: Professional or graduate programs
• Cosigner Required: ✅ Yes
• Highlights: Offers custom student credit lines. May include special offers for international students in select schools.

7. HSBC Bank Canada

• Best for: Students with a Canadian cosigner
• Cosigner Required: ✅ Yes
• Highlights: International students enrolled in qualifying institutions may be eligible for loans with a cosigner.

8. EduCanada

• Best for: Scholarship and funding resources
• Cosigner Required: ❌ N/A
• Highlights: Government initiative providing centralized access to scholarships, grants, and limited financial assistance for international students.

9. Scholarships Canada

• Best for: Finding scholarships and bursaries
• Cosigner Required: ❌ N/A
• Highlights: Lists thousands of scholarships, including many available to international students in Canada.

10. Private Lenders (e.g., LoanConnect, Lendwise)

• Best for: Students needing additional options beyond traditional banks
• Cosigner Required: ✅ Often
• Highlights: Flexible terms, but interest rates can vary widely. Always compare multiple lenders before choosing.

📌 Final Tips for International Students Considering a Loan in Canada

• Only borrow what you need. Remember, every dollar you borrow must be repaid – with interest.
• Understand your repayment responsibilities. Read the fine print and make sure you’re aware of any penalties, repayment schedules, and grace periods.
• Explore all financial aid options first. Grants and scholarships should always be your first choice.
• Keep your credit in good shape. If you plan to stay in Canada after graduation, your loan repayment history may impact your Canadian credit score.

🎯 Summary

Studying in Canada is a dream for many international students – but it doesn’t have to come at the cost of financial stress. With smart planning, thorough research, and the right student loan option, you can focus on your studies and build a bright future.

Want help finding scholarships or comparing lenders? Let me know your target school or program, and I can guide you further.