What is a Faculty of Law interest-free loan?

A Faculty of Law interest-free loan is a loan designed to supplement, not replace, government loan programs.

If a student qualifies for interest-free loan assistance, the Faculty will advise the student as to how much interest-free loan s/he is eligible to borrow from his/her line of credit. The Faculty will reimburse the interest on amounts borrowed up to the amount of the interest-free loan while enrolled in the JD program. 

The interest will be reimbursed by the Faculty from the time the student takes the loan until two months after the last day of the final year of law school.

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How much Interest-Free Loan can I receive?

The actual interest-free loan is determined by the Financial Aid Office based on the annual financial aid application submitted by a student.

Students may take out of their line of credit amounts over and above the Faculty interest-free loan that they are eligible for. However, the Faculty will only provide interest coverage for the approved interest-free loan amount. Any borrowed amounts not approved by the Faculty will not receive interest coverage.

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Am I eligible for an interest-free loan?

If you apply for the Faculty's financial aid program, you will be automatically considered and assessed for interest-free loans.

If you are concerned about your eligibility, or you are not a citizen or permanent resident of Canada, please contact the Financial Aid Office at financialaid.law@utoronto.ca or by phone at (416) 978-3716.

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How do I apply for interest-free loans?

In order to qualify for an interest-free loan, students must complete both of the following Application Form:

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I've applied. What happens next?

The information that you provided in your financial aid application will determine how much interest-free loan you will receive from the faculty.

If you wish to get an estimate of how much interest-free loan you are eligible for, you can use the Financial Aid Calculator: https://www.law.utoronto.ca/financial-aid-calculator


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What about repayment?

With the exception of the fact that interest costs will be reimbursed by the Faculty while eligible financial aid recipients are in school, the loan is treated as any normal bank loan and is repayable to the lenders after graduation.

For amounts over $10,000, the loan amortization period will typically be 10 years.

In addition, students can choose to service the loan by making interest-only payments during the articling and 24 months post their articling period for Scotiabank. However, TD bank will not give you interest-only payment after your articling period. Repayment which includes both the principal and interest, will begin on the 25th month after articling for Scotiabank and right after articling for TD bank.

Students in a Combined J.D./Ph.D program who have completed the J.D. portion of the program and are still working on the thesis portion of the combined degree will be responsible for their bank loans after graduating from law school.

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How do I get a line of credit for my interest-free loan?

You can secure a line of credit with any financial institution; however, our preferred lenders are Scotiabank and T.D. Bank, and effective 2019-2020 academic year, they provide up to $160,000 (Scotiabank) or $180,000 (TD bank) line of credit at prime for the three years of Law school. If you choose to go with another lender, keep in mind that we will pay the interest on your interest-free loan at prime only.


Am I eligible for a line of credit?

Scotiabank and TD Bank require that the student be a citizen or permanent resident of Canada, have a credit history in good standing (i.e. not recently bankrupt, in default of a current loan or have a history of chronically missed payments) and not be overly debt-involved (maximum loans at time of graduation cannot exceed $160,000 (Scotiabank) or $180,000 (TD bank), with certain exceptions).

If you are concerned about your eligibility, or you are not a citizen or permanent resident of Canada, please contact the Financial Aid Office at financialaid.law@utoronto.ca or by phone at (416) 978-3716.


How do I apply for a line of credit?

In order to qualify for a line of credit, students must choose and complete one of the following Application Forms (If you choose to go to one of our preferred lenders. You can choose another lender if you wish):



  1. Fill out and submit a Faculty of Law Financial Aid Application.

  2. Check your credit rating.

  3. Apply for a bank loan.
    Apply online at: Scotia Professional Student Plan or
    apply for a TD Bank loan by setting up an appointment in person via. www.tdcanadatrust.com/uoftlaw

  4. Apply for government assistance from your home province.
    Apply as early as possible because
    • processing of government student financial assistance applications may take a long time.
    • proof of having applied, and being eligible for, government student financial assistance can be used in mid-July to defer payment of tuition to a later date.


Students not applying for Faculty of Law financial assistance

All students are encouraged to apply for financial aid assistance. Students who are not considering seeking financial aid assistance from the Faculty:

  • Are encouraged to continue to apply for federal and provincial government student assistance (both loans and bursaries). These loans are interest-free while a student is registered full-time; loan repayment assistance and debt-relief programs are also available. These loans are also considered eligible loans for the Post-Graduation Debt Relief Program.
  • Can access the interest-bearing lines of credit by submitting from your bank or from our preferred lenders (see number 3 above).

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