Interest is only charged on the amount that you actually borrow. This means that you will be required to make regular payments towards the borrowed amount and accumulated interest, and that you can no longer access it to borrow more money. Make interest-only payments while in school and for two years after graduation. You must also be a Canadian citizen or permanent resident. What is a student line of credit?
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Read MoreTD Bank offers a Student Line of Credit for full-time and part-time undergraduate students, graduate students, and students in professional degrees. What is a Student Line of Credit? Other banks, such as CIBC, may allow you to convert your student line of credit into a personal line of credit. To be eligible for a student line of credit, you must be enrolled in a full-time or part-time undergraduate, graduate, or Medical, Dental, or Veterinary professional program at an accredited Canadian university or college. Your line of credit's minimum monthly payment will start including principal payments after this period. After graduation, each bank offers a grace period in which you will continue only paying back the interest amount.