RBC offers a suite of student loan solutions tailored to meet the diverse needs of Canadian students pursuing post-secondary education. With a focus on accessibility and flexibility, RBC's student loan offerings provide financial support to students enrolled in undergraduate, graduate, professional, and specialized health sciences programs. The Royal Credit Line for Students serves as a versatile borrowing option, accommodating various educational pursuits ranging from college and trade school programs to undergraduate and graduate studies. Flexible credit limits, competitive interest rates tied to the RBC Prime Rate, and adaptable repayment timelines are key features of these student credit lines, ensuring that students can access the funds they need with terms that align with their academic journeys.
For students enrolled in professional graduate or specialized health sciences programs, RBC offers tailored financing solutions through the Royal Credit Line for Students in Professional Studies. This specialized credit line caters to the unique financial requirements of students pursuing advanced degrees in fields such as medicine, dentistry, and health sciences. With generous credit limits, competitive interest rates based on the RBC Prime Rate, and flexible repayment options, this program provides students with the financial flexibility to focus on their studies without the added stress of managing their finances.
Types of RBC Student Loans
Student Line of Credit. With the Student Line of Credit, borrowers can access a range of credit limits, starting at $5,000, to meet their borrowing needs throughout their academic journey. The loan offers competitive interest rates, potentially as low as Prime Rate plus 1%, depending on the program of study, budget, and qualifications. Additionally, borrowers enjoy a grace period of up to 2 years after completing their studies before principal repayment begins, providing financial flexibility during the transition to post-graduation life. Optional LoanProtector® Insurance is available to provide financial backup during difficult times, with life and disability or critical illness insurance options, although a co-signor is required for this loan option.
Student Line of Credit – Professional Studies. For students in professional programs such as health sciences, medicine, and dentistry, the Student Line of Credit – Professional Studies offers similar benefits, including a range of credit limits tailored to program costs and competitive interest rates. However, unlike the standard Student Line of Credit, co-signors are not required for this loan option.
Royal Credit Line for Medical and Dental Students. Students in medical and dental programs can take advantage of the Royal Credit Line for Medical and Dental Students, which offers access to up to $350,000 in financing with flexible repayment terms and a preferred interest rate of Prime minus 0.25%. Moreover, the RBC Healthcare Advantage program unlocks additional benefits, including fee waivers, welcome points, and rewards, providing valuable financial support tailored to the unique needs of medical and dental students.
RBC Advantage Banking for Students. This student banking option features a $0 monthly fee for full-time students, providing financial flexibility during their academic pursuits. Students can benefit from unlimited debit transactions within Canada, facilitating seamless access to their funds. Additionally, RBC Advantage Banking for Students includes free Interac e-Transfer transactions, enabling students to conveniently send and receive money without incurring additional fees.
RBC ION+ Visa. The RBC ION+ Visa card offers students an opportunity to earn rewards while managing their expenses. Cardholders can earn 3X Avion points for every $1 spent on various categories such as groceries, food delivery, transportation, streaming services, and more. With the RBC ION+ Visa Card, students can accumulate up to 7,000 Avion points, equivalent to a $50 value in gift cards. Moreover, this credit card comes with no annual fee when linked to an RBC Advantage Banking for students account, providing added value for students seeking financial flexibility.
Key Features
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Flexible Credit Limits. RBC offers a range of credit limits tailored to student needs, starting at $5,000, with higher limits available based on a program of study and qualifications.
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Competitive Interest Rates. Students can benefit from competitive interest rates based on the RBC Prime Rate, potentially as low as Prime Rate plus 1%, helping to minimize the cost of borrowing.
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Grace Period for Repayment. Upon completing studies, borrowers enjoy a grace period of up to 2 years before commencing principal repayment, providing financial flexibility during the transition to post-graduation life.
Pros and Cons
Pros
Optional LoanProtector® Insurance. Borrowers have the option to add LoanProtector® Insurance for additional financial protection, covering events such as disability, critical illness, or death, providing peace of mind during their studies.
Co-Signor Consideration. For borrowers with limited credit history or studying outside of Canada, RBC may require a co-signor to support the loan application, ensuring accessibility to financing options.
Study Abroad Program. RBC offers support for students participating in studying abroad programs, facilitating educational experiences beyond Canadian borders.
Cons
Credit Approval Required. Like any other loan, RBC student loans are subject to credit approval, which may pose a challenge for students with limited credit history or financial resources, potentially requiring a co-signor for approval.
Debt Accumulation. Taking out student loans can lead to significant debt accumulation, which may become a financial burden for students after graduation, especially if they struggle to find employment or experience changes in financial circumstances.
Interest Accrual. Interest may accrue on RBC student loans while students are still in school or during the grace period, potentially increasing the total amount owed over time if not managed effectively.
How to Get an RBC Student Loan?
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Research RBC Student Loan Options. Begin by exploring the various student loan options offered by RBC, including the Royal Credit Line for Students and specialized programs for professional studies. Familiarize yourself with the features, benefits, and eligibility criteria of each loan option to determine which best suits your needs.
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Determine Eligibility. Ensure that you meet the eligibility requirements for RBC student loans, which typically include enrollment in an eligible Canadian post-secondary educational institution or a Canadian medical or dental educational institution. Additionally, be prepared to provide documentation such as estimates of education costs and lists of financial resources.
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Gather Required Documents. Collect the necessary documentation to support your loan application, including proof of enrollment at an eligible educational institution, estimates of education costs (tuition, supplies, fees, etc.), and details of financial resources (RESPs, scholarships, government funding, etc.).
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Apply for the Loan. Once you've determined eligibility and gathered the required documents, you can proceed to apply for the RBC student loan of your choice. You can typically apply online through the RBC website or by visiting a local RBC branch. Be prepared to provide personal information, financial details, and documentation to support your application.
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Complete the Application Process. Follow the instructions provided by RBC to complete the loan application process. This may include filling out an online application form, submitting supporting documents, and agreeing to the terms and conditions of the loan.
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Await Credit Approval. After submitting your loan application, RBC will review your application and assess your creditworthiness. This process may take some time, so be patient while awaiting a decision on your loan application.
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Consider Co-Signor If Necessary. If your credit history is limited or you're studying at an educational institution outside of Canada, RBC may require a co-signor to support your loan application. Be prepared to provide information about your co-signor, if applicable.
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Receive Loan Approval. Once your loan application is approved, you will receive a notification from RBC confirming the approval of your student loan. Review the terms and conditions of the loan carefully and ensure that you understand your repayment obligations.
Requirements and Conditions
Requirements
Enrollment at Eligible Educational Institution. To qualify for an RBC student loan, borrowers must be enrolled at an eligible Canadian post-secondary educational institution or a Canadian medical or dental educational institution. Proof of enrollment, such as a confirmation letter from the institution, may be required during the application process.
Financial Documentation. Borrowers are required to provide documentation to support their loan application, including estimates of education costs (tuition, supplies, fees, etc.) and a list of financial resources (RESPs, scholarships, government funding, etc.). This information helps RBC assess the borrower's financial needs and determine the appropriate loan amount.
Credit Approval. RBC student loans are subject to credit approval, and borrowers must meet certain credit criteria to qualify for financing. While having a strong credit history is beneficial, borrowers with limited credit history or studying at educational institutions outside of Canada may be required to provide a co-signor to support their loan application.
Conditions
Flexible Credit Limits. Borrowers can access a range of credit limits tailored to their program of study and educational needs. Credit limits start at $5,000 and can extend to higher amounts depending on the borrower's specific circumstances and the program being pursued.
Competitive Interest Rates. RBC student loans feature competitive interest rates based on the RBC Prime Rate, offering borrowers the opportunity to save on interest costs compared to other borrowing options. Interest rates may be as low as Prime Rate plus 1%, providing affordable financing solutions for students.
Grace Period for Repayment. After completing their studies, borrowers are granted a grace period of up to 2 years before they are required to start repaying the principal amount of the loan. During this time, borrowers have full access to their credit line without the immediate pressure of repayment obligations.
Optional LoanProtector® Insurance. Borrowers have the option to add LoanProtector® Insurance to their student loans, providing valuable financial protection in case of unexpected events such as disability, critical illness, or death. This insurance coverage offers peace of mind to borrowers and their families, helping to safeguard their financial well-being.
Ways to Receive the Money
How to Repay an RBC Student Loan?
Understand Repayment Terms. Familiarize yourself with the repayment terms outlined in your RBC student loan agreement. Pay attention to details such as the grace period after completing your studies and the length of the repayment period.
Make Timely Payments. Once your grace period ends and repayment begins, make timely payments on your RBC student loan according to the terms of the loan agreement. Missing payments can result in additional fees and negatively impact your credit score.
Monitor Your Loan Balance. Keep track of your RBC student loan balance and remaining payments to stay informed about your progress toward repayment. You can view your loan balance and payment history through your RBC online banking account.
Explore Repayment Assistance Options. If you experience financial hardship or difficulty making payments on your RBC student loan, explore repayment assistance options available to you. Contact RBC to discuss options such as interest-only payments or temporary payment deferrals.
Things to Pay Attention to
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Eligibility Criteria. Before applying for an RBC student loan, carefully review the eligibility criteria to ensure that you meet all requirements. This includes being enrolled at an eligible Canadian post-secondary educational institution or Canadian medical or dental educational institution, as well as providing the necessary documentation to support your application.
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Borrowing Limits. Pay attention to the borrowing limits offered by RBC for student loans. Understanding the maximum amount you can borrow will help you determine if the loan will cover your educational expenses adequately.
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Repayment Terms. Carefully review the repayment terms of the RBC student loan, including the grace period after completing your studies and the length of the repayment period. Understanding these terms will help you plan for loan repayment and budget accordingly.
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Fees and Charges. Be aware of any fees or charges associated with the RBC student loan, such as application fees or late payment fees. Understanding these costs upfront will help you avoid any unexpected expenses later on.
Editorial Opinion
Additional Resources
- Royal Bank of Canada Review
- Royal Bank of Canada Account Review
- How to PayOff Royal Bank of Canada
- Royal Bank of Canada Mobile App
