What Is a Professional Student Line of Credit
Professional Student Lines of Credit are designed to supplement government loan programs and Faculty's Financial Aid program. All students, not just those applying to the Financial Aid program may apply to receive Professional Student Lines of Credit. Lines of credit allow you to borrow what you need when you need it up to an amount authorized by the bank. Interest is charged on the amount borrowed, not the amount authorized and must be paid to the bank on the monthly basis.
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When to Apply for a Line of Credit
You should apply for a Line of Credit as early as possible. Applying is free, however the process may take a while if you do not have an acceptable credit rating. In some situations a student may require a guarantor to arrange a Line of Credit. You can access your credit report online for free from Equifax and TransUnion.
The lack of a positive credit history, including no credit history, can be a significant obstacle to accessing financing for your legal education. Prospective students who do not have a positive credit history are encouraged to take the steps necessary to establish or to rehabilitate their credit histories well in advance of seeking financing for educational expenses. The Faculty of Law is not a lender and is unable to provide loans to students who are unable to secure credit from banks.
Learn more about Credit Reports and Credit Scores.
Where to Apply for a Line of Credit
The Faculty of Law has a working relationship with Scotiabank and T.D. banks. These lenders agreed to provide lines of credit to our students at prime rates in addition to offering other services summarized below. It is student's responsibility to confirm that the terms outlined below are valid at the time of application, as conditions may have changed:
| Comparison of Line of Credit Products Between Scotiabank Professional Student Plan and TD Student Line of Credit |
|---|
| Lending Institution | Scotiabank | TD |
| Maximum Line of Credit Granted | $160,000 | $180,000 |
| 1st Year borrowing limit | $53,300 | $60,000 |
| 2nd Year borrowing limit | $53,300 | $60,000 |
| 3rd Year borrowing limit | $53,400 | $60,000 |
| Access to funds after articling | Allowed to borrow remaining funds on the Line of Credit up to 24 months after articling | Upon completion of articling, the LOC is converted into a loan |
| Interest rate | Prime |
| Interest calculation | Interest is calculated daily on the closing balance and is charged every monthly billing cycle. The monthly interest is added to the principal amount outstanding. Monthly statements show the amount of interest charged. |
| Deferred Principal Repayment Period | Students are given 24 months grace period in which they can pay interest only on the loans after completion of their articling period |
| Principal Repayment Period | Maximum 15 years | 10 years for amounts up to $10,000; 15 years for amounts between $10,001 and $100,000, and 20 years for amounts over $100,000 |
| Optional Other features | Line of credit protection, no monthly or annual fees, free cheques, pre-approved credit card, unlimited debit transactions and Interact e-Transfer transactions | Line of credit protection, no monthly or annual fees, free cheques, pre-approved credit card, free All Inclusive Bank account and no fee credit card for the duration of the program including articling |
| Credit Score | must have a good credit score, otherwise require co-borrower |
| Approval | 5 days |
Students should use the following branches and contacts when arranging lines of credit as these individuals are familiar with our arrangement. Using other branches or banks will not guarantee the terms negotiated above.
Scotiabank - 222 Queen Street West (at McCaul St.)
- Students with last names beginning with A-H, please contact Caroline DaBreo 416-866-3940 ext. 4300
- Students with last names beginning with I-P, please contact Aaron Siu 437-655-3291
- Students with last names beginning with Q-Z, please contact Lynne Owen 416-866-3940 ext. 4206
TD Bank 77 Bloor Street West (at Bay St.)
Enrollment Confirmation
Students will be asked to provide the bank with the Confirmation of Enrollment letter when requesting a Professional Line of Credit and every year thereafter. The Confirmation of Enrollment letters are generated by students through ACORN.
For the purposes of getting an authorization for a line of credit, a letter confirming that the student is INVITED to register is sufficient. These letters are available to generate once the student accepts their offer of admission and pays their acceptance deposit.
However, in order to release the funds to the student, the bank requires a Confirmation of Enrollment letter that indicates that the student is ENROLLED. To be able to generate the Confirmation of Enrollment letter indicating that you are ENROLLED, you need to make the minimum payment in order to register as indicated on your official invoice or be granted a deferral of such payment. Students can pay or defer payments starting in mid-July, once their invoices are posted on ACORN.
The same process is used to generate both types of letters. The difference is that "INVITED letter" is available before you make the minimum payment to register (or deferred), or after May 1 for newly admitted students, and the "ENROLLED letter" is available after mid July, once the minimum payment (or deferral) has been made.
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Interest Reimbursement on Professional Student Line of Credit
Applicants to the Faculty's financial aid program are automatically considered and assessed for interest reimbursement. The applicants are notified in late September on the amounts of bursaries they are eligible to receive as well as the authorized line of credit amount on which the interest will be reimbursed. If students take out larger amounts on their lines of credit, only the interest on the authorized amounts will be reimbursed. If students take out smaller amounts, only the interest charged on the amount will be reimbursed.
Please note that students are responsible for making their monthly interest payments. The Financial Aid office issues interest reimbursements in March, once the students submit their end of January or mid February statements by February 15th.
Students who don't take out the authorized amounts in one year, will not be able to take out those amounts in the following year. The need is assessed each year and LOC authorizations are not cumulative if not used.
Students can use the Financial Aid Estimator to predict the amount of bursaries and interest reimbursement they may receive. For further questions, contact the Financial Aid Office (416) 978-3716.
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