A line of credit is a personal loan from the bank. Unlike a regular loan for a fixed amount, the bank doesn't provide you with the full amount of the loan at once. Instead, the bank establishes a "credit limit" for you as the maximum amount you can borrow. As you make withdrawals, the available credit is reduced. However, as you pay the money back, the amount available for withdrawal increases. You control how much of your credit limit you want to withdraw and when.

Yes, if you qualify.

This will depend on your bank. Students usually only have to pay the monthly interest. After students finish their studies, banks usually allow a grace period where students only make interest payments. After the grace period expires, repayment is negotiated with the lending bank and students must start making monthly payments that include part of the principal as well as the interest. For exact details, use the contact information on this page or speak with your bank representative for full details.

The student line of credit is designed for Canadian or Landed Immigrant students pursuing post-secondary education at an accredited/recognized post-secondary institution. Usually, full-time and part-time students qualify for the line of credit, with part-time students having lower credit line maximums. Some banks even give out lines of credit for students who are studying abroad in non-Canadian institutions.

A co-signer is a person who acts as a guarantor for a student (who may have a limited or poor credit history) in case the student is not able to pay off the line of credit. Typically, a co-signer is a parent or guardian who co-signs the line of credit so if the student is unable to make payments, the co-signer will take over and pay the balances. Most banks require co-signers for undergraduate students, but usually not for graduate students.