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OSAP vs private student loans in Canada

Updated September 2026

Start with government aid. In Canada that means your provincial or territorial program (OSAP in Ontario) plus Canada Student Grants and Loans. Private bank lines of credit are a different product — usually for a gap after government aid, not a replacement for it.

Government aid first

Apply through your province or territory. Ontario students use OSAP. Other provinces have their own portals. Federal Canada Student Loans and grants are delivered through that provincial process and managed afterward on the National Student Loans Service Centre (NSLSC).

Interest on Canada Student Loans

Federal Canada Student Loan interest is 0%. Confirm current repayment, RAP, and provincial loan interest rules on NSLSC and your province’s site — they are not the same product as a bank line of credit.

OSAP is grants and loans

Ontario OSAP is a mix of grants and loans. 2026 changes shifted more aid toward loans — confirm current rules on ontario.ca and NSLSC. Do not assume last year’s grant/loan split still applies.

Private bank lines of credit

A student line of credit from a bank is a private loan. It usually needs a co-signer (often a parent), and many products are interest-only while you are in school. Advertised rates are not quotes. Compare only on the lender’s site after you know your government aid.

International students

International students generally cannot get OSAP. Government Canada Student Grants and Loans are for eligible Canadian students through provincial aid. International students typically look at school payment plans, private credit if a co-signer qualifies, or home-country funding — confirm with the school and any lender.

Find lender starting points on Loan Tools. Official overviews: Canada Student Financial Assistance, NSLSC, and Ontario student aid (OSAP).

This is education, not a loan offer. WealthNutz is not a lender, broker, or licensed advisor. Always confirm eligibility, interest, and repayment on the official government or bank site before you apply.