In 2024, about 1 million international students held a valid Canadian study permit. These students came from around the world and studied in many parts of Canada, such as Ontario and British Columbia.
Canada is a popular choice for students from around the globe because it’s known for being safe, stable, and welcoming. The Canadian people are known for being welcoming to foreigners, and the diversity in large cities celebrates the blend of many different cultures! The education system is also known worldwide for being of high quality.
Although Canada is a great country to study abroad, it can be costly. The average cost for international students typically falls in the range of CAD 20,000 and CAD 40,000 per year. After converting that into the student’s domestic currency, it can feel like an overwhelming amount of money.
This guide will help you understand the costs of studying in Canada, how to apply for a student loan, and your best options as an international student.
Why do international students love studying in Canada?
Top universities like the University of Toronto, McGill, UBC, and the University of Waterloo attract students worldwide. These schools offer degrees that are respected worldwide.
Canada also has many great technical colleges that help international students learn specific skills and trades. Schools like Niagara College, George Brown College, and Bow Valley College offer strong programs in fields like nursing, computer science, and engineering.
Canadian universities and colleges offer degrees recognized worldwide, and their hands-on experience prepares students for workplace success. In Canada, students can access cutting-edge STEM, healthcare, and environmental science research facilities to join teams of experts in creating innovations.
Understanding the costs of studying in Canada:
Let’s break down the financial requirements of studying in Canada. It’s important to understand the average cost of studying in Canada before completing the loan application form.
Tuition fees for studying in Canada
Tuition fees for studying in Canada can vary depending on the program and institution you hope to attend. Students choosing a shorter certificate program may have smaller tuition fees than those in a full-time postgraduate program, for example.
On average, you can expect tuition fees in Canada for international students to be as follows:
| Program type | Tuition fee |
|---|---|
| University undergraduate programs | CAD 20,000 – CAD 30,000 per year |
| University graduate programs | CAD 15,000 – CAD 35,000 per year |
| College diploma or certificate programs | CAD 13,000 – CAD 20,000 per year |
Living expenses for studying in Canada
Living expenses will depend on the student and the region in which they are living. Instead of living off of credit cards while studying abroad, students can include their living expenses in the loan and pay them back alongside their tuition fees.
According to the Government of Canada, the minimum living expense proof per year a student must present is $20,635.
To help understand the average cost of studying abroad, here are some of the average living expenses associated with studying in Canada:
| Category | Cost |
|---|---|
| Accomodation | CAD 700 – CAD 1,500 per month |
| Food and groceries | CAD 300 – CAD 400 per month |
| Transportation | CAD 100 – CAD 200 per month |
| Utilities | CAD 100 – CAD 200 per month |
Additional costs to consider
Although most of the large costs associated with studying abroad in Canada fall under the “tuition fees” and “living expenses” categories, some other fees cannot be forgotten.
Other expenses may include:
| Category | Cost |
|---|---|
| Books and educational supplies | CAD 800 – CAD 2,000 per year |
| Health insurance | CAD 600 – CAD 1,000 per year |
The Canada student loan application process
Obtaining a loan for study in Canada involves several steps. If this is your first time applying for a student loan as an international student, don’t panic! Passage helps international students receive loans to study abroad. With Passage, the study loan application is simplified and easy to understand.
Let’s use a 1-year certificate program from Niagara College as an example for the loan application process:
Example of certificate programs from Niagara college available on Passage
- Check the eligibility criteria for a study loan
Passage makes it easy to check your eligibility for a financial loan to study in Canada. Use their online eligibility checker to see what size loan you are eligible for, depending on your program, current status inside or outside Canada, highest level of education, or grade point average.
- Determine how you would like to pay your tuition fees
You can, of course, pay for the full cost of tuition upfront without a loan. However, if you want to apply for a loan, you have a few options with Passage. First, decide if you want to include estimated living costs in the loan or not. This will change the amount of the loan you’ll receive.
We’ll show you the total loan amount, upfront fees, monthly payments, and interest rates so you can understand the loan details before you continue your application.
- Upload your documents
Through our admission and loan application process, you’ll be walked through the required documents to submit. This may include bank statements, academic records, proof of income taxes, admission letter, etc.
Example of document collection
One by one, you can upload your scanned documents directly to the Passage application.
- Complete your loan profile
To better provide you with the most suitable solutions tailored to your needs, we ask each individual to complete a short loan profile that provides more accurate information about themselves.
- Add a guarantor (optional) to support the loan
With Passage, it is not mandatory to add a guarantor or co-applicant to support your loan. However, it can help your chances of securing the loan depending on your financial situation or how much money you have in your bank account. If you aren’t sure what to put at this moment, you can submit your application without a guarantor and add one later.
- Pay and submit your application
After providing us with all the above information, you’ll simply need to pay the application/processing fee (which may be eligible for a waiver) and submit your application.
What should I do after I submit my loan application?
Your application with Passage is set up as simply as possible. Once you’ve submitted your application, you’ll be guided through the following steps to receive your loan approval or rejection:
Application process example with Passage
Once you’ve been accepted for the loan and begin studying at your chosen program in Canada, you’ll have a repayment period of either 48 months or 84 months.
There is no penalty for repayment, and the interest is always fixed!
Exploring loan options for international students in Canada
| Loan Type | Requirements | Pros | Cons | Best For |
|---|---|---|---|---|
| Loans from Home Country | – Co-signer/guarantor – Proof of admission – Collateral (property/fixed deposit) – Good financial background | ✔ Familiar banking system ✔ Sometimes lower interest rates | ❌ Hard to qualify without assets ❌ Requires strong financial backing | Students with financially stable families and assets |
| Private International Student Loans | – Often require co-signer – Collateral (in many cases) – Credit evaluation | ✔ Can cover full study costs ✔ Widely available | ❌ High or variable interest rates ❌ Strict repayment terms ❌ Penalties for late payment | Students who need full funding and have strong financial support |
| Institution-Linked Financial Programs | – Admission to partner institution – Limited eligibility – Case-by-case approval | ✔ Easier access through school partnerships ✔ More flexible terms ✔ Designed for international students | ❌ Limited availability ❌ Not all programs or students qualify | Students applying through partnered platforms like Passage Loan |
| Government-Backed Loans (Canada) | – Special status (e.g. PR applicant, refugee) – Residency eligibility | ✔ Low interest rates ✔ Flexible repayment (income-based) ✔ Grace periods | ❌ Mostly NOT available for international students | Students with special legal status in Canada |
International students have few options when seeking a loan to study in Canada. It’s important to check the pros and cons of each option before applying, understanding that every international student’s case is unique.
- Loans from lenders in your home country
Some students may secure education loans from banks or financial institutions in their home country. These loans often require a co-signer or guarantor, proof of admission to a foreign university, and collateral in the form of property or fixed deposits. These types of educational loans are typically unavailable for students whose families do not have established credit or financial assets in their home country.
- Private international student loans
You’ve probably already seen the ads from private financial institutions in your area. These groups offer private loans to students looking to study abroad. Although they offer loans that may cover all expenses associated with studying abroad, it comes at a cost. Many of these private institutions require a co-signer and collateral in order to receive a loan. They also may give varying interest rates that increase with time, as well as prepayment terms that punish the student if they are unable to pay on time.
- Institution-linked financial programs
Some Canadian colleges and higher education institutions partner with financial institutions or government programs to offer loans or payment plans for international students. These are often available in limited quantities and only for specific cases. Passage, for example, partners with many educational institutions to provide international student funding for foreign individuals looking to study abroad in Canada.
- Government-backed loans
In some cases, international students with specific statuses (protected persons, refugees, or permanent resident applicants) are eligible for government-backed student loan programs in Canada. These loans typically offer income-contingent repayment options, low interest rates, and generous grace periods. However, they are typically only available to domestic students. Talk with a representative from your school to see if you qualify.
Studying abroad in Canada with the help of Passage X AUFIN
Passage is changing how talented and ambitious individuals are able to receive opportunities to contribute to growing economies worldwide.
Millions of people are eager to contribute to growing economies worldwide, but they lack the resources to make it happen. Passage has a data-driven approach to match top international talent with labor shortages in Canada by helping fund their journey.
What makes Passage Loan different?
Passage has built a platform that connects individuals with the best available study opportunities, as well as loan opportunities, to help fund their studies. We take the work out of finding programs and figuring out how to fund your studies.
Passage Loan is an all-in-one platform that provides assistance to students, from financing their student loans to helping them find a job. With us, a co-signer is not mandatory, and our application process is fully online. We offer competitive interest rates that are fixed for the length of the loan and no pre-payment penalties.
With us, it’s much more than a lender-borrower relationship. We’re your partner in making you successful.
How to use Passage Loan to calculate your loan amount to study in Canada:
Start by using our Eligibility Checker Tool. With just a few questions, we’ll get to know you and your eligibility for applying for a student loan. Select the educational program that sparks your interest, and we’ll calculate the loan details for you.
Select the loan type you want by choosing between a tuition-only loan or a tuition + living costs loan.
Then, take a look at the loan details. You’ll see your fixed interest rate and the estimated total tuition fees. Given below is an example using the Loan Calculator.
For the Autism and Behavioural Science (Postgraduate) program at George Brown College, the tuition-only loan option covers the full tuition of CAD 18,324, which Passage pays directly to the school.
To qualify for this option, students must provide proof that they can cover their living expenses independently.
Tuition-only loan example
We’ll also show you a breakdown of what you’ll need to pay upfront and monthly for the payment period. In this case, the student is required to pay a CAD 4,500 upfront collateral after loan approval. Repayment begins in October 2025 (one month after the program starts), with fixed monthly payments of CAD 388.35 over 48 months. The loan has a fixed interest rate of 11.95% and no prepayment penalty.
Cash collateral and monthly payment amount
If you choose to include living costs in your loan, Passage will disburse approximately CAD 1,700 per month directly into your Canadian bank account. This amount helps cover essential expenses like rent, groceries, and transportation. Keep in mind that a portion of this disbursement will be automatically deducted each month as a repayment toward your loan.
For example, CAD 540 in case of Autism and Behavioural Science Program at George Brown College. So, the net amount a student will receive each month based on this example will be CAD 1180.
Example of monthly disbursement when living cost loan is selected
📩 Need Guidance?
At AUFIN, we help you:
- Choose the right program
- Support your full application and loan process
📩 Contact: admission@aufin.org
