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Student Services Student Line of Credit FAQGeneral QuestionsFAQs about the TD Canada Trust Student Line of Credit
What is it like to have a TD Canada Trust Student Line of Credit while I'm studying?
Interest RatesHow much can I borrow?Program Options
What happens to the TD Canada Trust Student Line of Credit after I graduate?
1. What is a line of credit?A line of credit is a loan from the Bank. Unlike a regular loan for a fixed amount, the Bank doesn't provide you with the full amount of the loan at once. Instead, the Bank establishes a "credit limit" for you as the maximum amount you can borrow. As you withdraw, the available credit reduces. However, as you pay the money back, the amount available for withdrawal increases. You control how much of your credit limit you want to withdraw and when.
2. Who is eligible to apply?Any Canadian Citizen or Landed Immigrant enrolled at a recognized college or university in Canada or out of country, provided the student is pursuing post-secondary school studies and earning credits towards a certificate program.
3. Can I apply if the post-secondary institution is out of country?Yes, provided that your co-applicant resides in Canada.
4. How do I know if I'm full-time or part-time?For the purposes of the TD Canada Trust Student Line of Credit, full-time students are those enrolled in at least 60% of the normal community college / university course load, as defined by their educational institution. Part-time students must be enrolled in at least one full course per school year.
5. Can I have a Government Student Loan and a TD Canada Trust Student Line of Credit?Yes, if you qualify. The TD Canada Trust Student Line of Credit is an excellent alternative to Government Student Loans.
6. What if I don't have sufficient income to qualify?Many TD Canada Trust Student Line of Credit applicants find that they are in this situation. The solution is to apply with a co-applicant. A co-applicant is a person who agrees to pay back your TD Canada Trust Student Line of Credit if you are unable to do so yourself.
7. What do I pay while I'm in school?While you are in school and for 12 months after graduation, you will be paying interest only. To calculate a sample payment, click here.
8. How will I know how much I've borrowed?A monthly statement will be issued to you summarizing your account activity each month.
9. Are there any fees involved in the TD Canada Trust Student Line of Credit?No! There are no withdrawal or set-up fees for a TD Canada Trust Student Line of Credit.
10. How do I get access to my money?There are three convenient ways: cash withdrawals at The Green Machine; a withdrawal from any branch; or by writing a TD Canada Trust Student Line of Credit cheque.
11. What if I want to pay off some of my outstanding balance?Pay it off any time — there are no penalties! This is an excellent way to immediately feel the benefits of a summer or part-time job!
12. What is interest?Interest is money charged by a lender to a borrower for the use of the lender's money.
13. Is the TD Canada Trust Student Line of Credit interest rate competitive?Yes! The TD Canada Trust Student Line of Credit offers you a very competitive interest rate compared to other forms of credit such as credit cards or personal loans.
14. How much money can I borrow?You can borrow up to certain maximum amounts. The amount varies based on your full-time or part-time status and your program of study. For example, full-time undergrads are eligible to apply for $10,000 per year for a maximum of 4 years. Part-time undergrads are eligible for half that amount each year to a maximum of 8 years. Certain programs may be eligible for additional funds.
15. What can I use the TD Canada Trust Student Line of Credit for?Tuition, books, living expenses, a computer, transportation... whatever you need to learn.
16. What else do I get with the TD Canada Trust Student Line of Credit?The TD Canada Trust Student Line of Credit is part of a comprehensive package that includes the Line of Credit along with a TD Canada Trust Self Serve Student Account and Overdraft Protection (subject to credit approval).
17. What is Overdraft Protection?Overdraft Protection, or ODP, is an amount of credit made available to you (subject to credit approval) on your TD account. If a cheque comes in and there are insufficient funds in your account to cover it, the cheque will be paid or honoured for you without being returned (up to your ODP limit).
18. Is there a fee for ODP?Yes. There is a monthly fee. Plus, there is a monthly interest charge on any outstanding balances.
19. Can I get Insurance for the TD Canada Trust Student Line of Credit?Yes, TD Canada Trust Student Line of Credit accounts are eligible for Line of Credit Life Insurance.
20. What do I pay when I have graduated?You are given a grace period of 12 months from your graduation date during which you continue to make monthly interest only payments. After that, each month you will pay the greater of $50 or 1% of the outstanding balance so that you are repaying part of the principal (amount borrowed).
21. How long do I have to pay my TD Canada Trust Student Line of Credit back?The maximum amortization (amount of time you have to pay it back) is approximately 20 years. This time is allowed provided that you are repaying 1% of the outstanding balance or a minimum of $50 monthly.
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