Student Line of Credit Canada — Professional Programs

Professional student lines of credit offer access to $80,000–$350,000+ during school. Here is how they work, what they cost, and how to manage them responsibly.

What Is a Professional Student Line of Credit?

A professional student line of credit (PSLOC) is a revolving credit facility offered by major Canadian banks to students in high-earning professional programs — primarily medicine, dentistry, law, pharmacy, optometry, and MBA programs. Banks offer these products because professional graduates have predictably high post-graduation incomes, making them low credit risk despite carrying significant debt during school.

Unlike a government student loan, a PSLOC is bank-issued private credit. It carries interest, requires a co-signer in most cases (especially in early years of the program), and the interest is not subsidized by the government. However, for professional students whose government aid falls far short of actual program costs, a PSLOC is often the essential gap-filler.

Professional PSLOC Limits by Program

Program	Typical PSLOC Limit	Bank Examples
Medicine (MD)	$300,000–$350,000	RBC, TD, Scotiabank, BMO
Dentistry	$300,000–$350,000	All Big 5
Law (JD)	$80,000–$150,000	All Big 5
Pharmacy (PharmD)	$150,000–$200,000	All Big 5
MBA	$80,000–$150,000	All Big 5
Optometry/Chiropractic	$150,000–$200,000	Selected banks

Interest Rate and Repayment Structure

PSLOCs typically carry an interest rate of prime rate minus 0.25% to prime rate flat during the study period. As of early 2025 with prime at approximately 5.45%, that means interest rates of roughly 5.2–5.45% on drawn balances. During school, most banks require only that you pay the monthly interest — the principal does not need to be reduced.

After graduation (or after completing residency for medical students), the PSLOC typically converts to a term loan with principal and interest payments over 5–10 years. Some banks offer a grace period of 6–12 months post-graduation before principal repayment begins.

Interest-Only Payments During School

Only paying interest during school means your PSLOC balance does not grow with compounding during your studies — but you are still paying real money. A $200,000 PSLOC balance at 5.45% interest requires $10,900/year or approximately $908/month in interest payments. Many students capitalize this interest (add it to the principal balance), which means the balance at graduation can exceed the amount actually borrowed.

Comparing Banks for Your PSLOC

All major banks compete aggressively for professional student accounts, knowing these students will be high earners. Key differences to compare: interest rate (prime minus 0.25% is better than prime flat), whether a co-signer is required and in which years, whether the rate converts post-graduation, what repayment flexibility is offered, and what bundled benefits come with the account (free banking, free safety deposit box, travel insurance).

Apply to multiple banks and negotiate. The professional student market is competitive and banks will match or beat competitors' terms. Apply in the summer before your first year — before your credit score takes any hits from multiple applications.

Managing PSLOC Debt Responsibly

• Borrow only what you need, not the full limit available. Every dollar borrowed at 5%+ costs money.
• Make interest payments during school if possible rather than capitalizing — prevents your balance from growing.
• Keep a separate budget for school living expenses versus education costs to avoid lifestyle inflation on borrowed money.
• Plan your repayment strategy before graduation. A $300,000 PSLOC at prime rate converted to a 10-year term at 5.45% is $3,220/month in payments.