A student line of credit is a form of credit (a loan) designed specifically for students. Students who qualify for a student line of credit are responsible for making payments on the accrued interest from the moment that funds from the line of credit begin to be withdrawn. Students are generally required to make monthly interest payments on the amount they have borrowed while they are in school.
The primary difference between a student line of credit and a government student loan is that, in addition to eligibility for additional financial aid in the form of grant (non-repayable assistance), government student loan borrowers do not accrue interest and are not required to make any monthly payments while they are pursuing full-time studies. Government student loans carry a 6-month grace period following the completion of full-time studies and borrowers who are unable to afford monthly payments may be eligible for federal and provincial repayment assistance programs, including debt-reduction and debt-forgiveness.
Due to the advantages offered by government student loan programs, we recommend you consider government loans first before looking at student lines of credit. If you do decide to pursue private funding sources, they are available from most major financial institutions. Be sure to research the terms and conditions carefully as they can vary. A co-signer may also be required.