Canada Student Loan Changes for 2026–27: What Students Studying Abroad Need to Know

14 September 2026

If you’ve searched “Canada student loans” lately, you’ve probably seen headlines suggesting that students studying outside Canada are losing access to government funding altogether. That’s not quite the full picture.

Yes, there have been real changes at both the federal and provincial level for the 2026–27 school year. But for most students attending recognized universities abroad—including our partner institutions—government loans and grants are still typically available. The details just matter more than ever.

This guide breaks down what’s actually changed, federally and in each province, so you can separate the headlines from what applies to your situation.

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The Big Picture: What’s Actually Changing

 Before getting into the specifics, three things are worth understanding up front:

1. Designation still matters and most of our partner schools qualify.
Every province that’s tightened its rules (Alberta and Manitoba, for example) still maintains a list of approved, or “designated,” institutions. If a school and program are on that list, students can still access provincial aid. If a school isn’t yet listed, it can apply for designation. The federal government maintains its own list of designated educational institutions that determines eligibility for federal loans. If you’re unsure how your prospective school is classified, you can check directly against the relevant designation list for your province.

2. The changes mostly affect private, for-profit schools.
Most of the restrictions making headlines are aimed at private for-profit institutions abroad. Private non-profit universities are generally treated differently and, in many cases, remain eligible. While both Bond University and University of Notre Dame Australia are private, they are non-profit so should still be eligible for loans in most cases.

3. Loan amounts and eligibility rules are largely unchanged.
Weekly maximums and eligibility criteria have mostly stayed the same this year. The bigger story is that rising tuition and living costs mean the same loan amount covers a smaller share of total expenses than it used to.

If you’re already fairly far along in planning your studies abroad, it’s also worth remembering that government loans were never designed to cover the full cost of an international education. They’re one piece of the funding picture, alongside savings and, for many students, a private bank loan. A change in loan value doesn’t necessarily change whether studying abroad is realistic for you, but it’s still worth understanding the numbers.

 

Federal Student Loan Changes for 2026–27

A few federal-level updates apply to every Canadian student, regardless of province.

  • Tuition tax credit reduced slightly. For the 2026 tax year, the federal tuition tax credit rate has decreased from 14.5% to 14% of eligible tuition. Unused credits can still be carried forward to future years, or up to $5,000 can be transferred to a parent, grandparent, spouse, or common-law partner in the same tax year.
  • 0% interest continues. The federal portion of student loans has carried a 0% interest rate since April 2023. That hasn’t changed.
  • Private for-profit schools outside Canada lose federal aid. As of August 1, 2026, students attending private, for-profit institutions outside Canada are no longer eligible for federal student aid. Students who were already receiving funding are protected under a transition period until July 31, 2029. This does not affect students at private non-profit or public institutions.
  • Weekly loan cap unchanged. The maximum federal Canada Student Loan amount remains $300 per week.
  • Lifetime study limit. Canada Student Loans can be accessed for up to 340 weeks of study (400 weeks for doctoral programs).
  • Grant increase extended. The temporary increase to the Canada Student Grant for full-time students from $3,000 to $4,200 per year has been extended.
  • Repayment relief expanded. Under the updated Repayment Assistance Plan (RAP), single borrowers earning less than $40,000/year (higher for larger families) don’t need to make payments on the federal portion of their loan. Borrowers above that threshold have monthly payments capped at 10% of income.
  • New loan forgiveness for healthcare professionals. As of December 31, 2025, select healthcare professions working in eligible rural communities qualify for Canada Student Loan forgiveness.
  • Province-by-Province Breakdown
  • Provincial rules vary quite a bit, so we’ve broken down what’s generally changed and what hasn’t.

British Columbia

  • Students at international for-profit schools are no longer eligible for BC Grants. Students at international public or private non-profit schools remain eligible for BC Loans, full-time Canada Student Grants, other Canada Grants, and Canada Loans. (All OzTREKK partner universities are public or private non-profit institutions.) Students can verify a school’s designation status directly with Student Aid BC.
  • Provincial grants generally aren’t available for study outside B.C., with an exception for the B.C. Access Grant for Deaf Students, which still covers eligible students at Gallaudet University and the National Technical Institute for the Deaf.
  • Maximum provincial loan is $220/week ($280/week for students with dependents), which combines with the federal portion for a maximum of $520/week.
  • BC has a lifetime cap of 520 weeks or $50,000 in BC Student Loans (a rule in place since 2011, so it isn’t a new change, but it’s worth knowing if you’ve previously taken loans for an earlier degree).
  • BC has eliminated interest on the provincial portion of loans.
  • Repayment begins after graduation, leaving school, or hitting the lifetime cap, following a 6-month grace period.

Alberta

  • Schools and programs must be designated. Use Alberta’s eligibility search tool to confirm or ask us about applying for designation if your program isn’t listed yet.
  • The minimum required student contribution has increased from $1,500 to $3,000 per loan year, which means students are expected to self-fund a larger share of costs before a loan is calculated.
  • The Alberta Student Grant for full-time students is unchanged: up to $425/month, averaging about $3,400/year.
  • The annual loan limit remains $8,500/semester for public or non-profit private universities outside Canada. Lifetime limits are $85,000 for undergraduate programs and $200,000 for medical, dental, veterinary, chiropractic, and optometry degrees.

Saskatchewan

  • Saskatchewan does not appear to exclude international schools outright but instead generally follows the federal designated institution list.
  • Full-time students may be eligible for up to $13,900 in loans and up to $5,200 in non-repayable grants per eight months of study, plus up to $3,160 per dependent in additional grant funding.
  • Saskatchewan has one of the highest provincial weekly caps in the country at $227/week ($500/week combined with federal funding); medical, dental, and veterinary students qualify for an increased cap of $365/week.
  • The lifetime maximum is 340 weeks of study (400 for doctoral programs).
  • Students are expected to contribute up to $3,000 out-of-pocket per loan year, calculated based on family income, family size, and weeks of study.
  • The zero-payment income threshold has increased, so no repayment is required on the federal or provincial portion if gross income is under $40,000/year.
  • Interest is charged at prime (floating) or prime + 2.5% (fixed).
  • Loan forgiveness of up to $20,000 on the Saskatchewan portion of a loan is available for high-demand occupations, including nurses and veterinarians.
  • The Graduate Retention Program tax rebate for post-secondary graduates who live and file taxes in Saskatchewan increased in 2024, from $20,000 to $24,000.

Manitoba

  • Manitoba’s changes are still being finalized, so there isn’t a complete, definitive answer yet for every institution and program. Here’s what we do know:
  • If a program is currently designated as eligible, that eligibility continues. You can check Manitoba Student Aid’s designation page to confirm a specific program.
  • Designation is program- and institution-specific, not blanket. For example, University of Sydney Doctor of Dental Medicine is eligible when checked individually (as of September 10, 2026).
  • Manitoba Student Aid has referenced a “demonstrated labour market need” exception but hasn’t specified exactly how that’s determined. The Manitoba In-Demand Occupation List may be a useful reference point if you’re in a field like pharmacy, physiotherapy, law, occupational therapy, or nursing.
  • Manitoba has eliminated interest on the provincial portion of loans.
  • Bottom line for Manitoba students: don’t assume you’re ineligible. Check your specific program’s designation status and contact Manitoba Student Aid directly to confirm before ruling out provincial funding.

Ontario

  • The OSAP grant-to-loan ratio has shifted: the maximum grant portion has dropped from 85% to 25%, with a minimum of 15% of funding now issued as a loan.
  • Maximum weekly aid remains unchanged at $300/week.
  • RESPs do not affect your loan value.
  • Interest is charged at prime + 1% and begins accruing during the 6-month grace period after leaving school. This isn’t a new rule, but with a larger share of OSAP now issued as a loan rather than a grant, more students will see interest accrue on a larger balance.
  • As of 2019 students are expected to contribute $3,600/year out-of-pocket toward their costs (deducted before OSAP calculates your loan amount).
  • Ontario’s new Learn and Stay Grant for Medical Education covers undergraduate medical school costs for students who complete a postgraduate family medicine residency in the province. It requires completing medical school in Ontario, so it doesn’t apply to international medical graduates.

Québec

  • Québec Student Financial Assistance adjusts its indexed living cost allowances, parental contribution thresholds, and student exemption limits annually.
  • If you are pursuing studies outside Canada, contact Aide financière aux études (AFE) for the code of your educational institution and the procedure to follow to obtain financial assistance. Financial assistance is unavailable for students in police technology or medical programs outside Québec.
  • Use the assessment simulator to estimate the potential value of financial assistance you could receive if eligible.

Nova Scotia

  • Nova Scotia Student Assistance uses the federal list of designation educational institutions to determine program and school eligibility.
  • Interest on the provincial portion of loans has been eliminated.
  • The provincial portion of the loan must be repaid and begin to accumulate interest starting 6 months after leaving school unless the student applies for and qualifies for 0% interest.
  • Maximum weekly amount of $200, totally $500 when combined with the maximum federal portion of the loan. Students in medicine, law, or dentistry might be eligible for an additional $140/week.

New Brunswick

Prince Edward Island

Newfoundland and Labrador

  • StudentAidNL uses the federal list of designation educational institutions to determine program and school eligibility.
  • No interest is charged on the provincial portion of student loans.
  • The provincial weekly loan maximum has increased 20%, from $100 to $120/week. There’s an additional grant maximum of $120/week, but students studying out of province generally only receive the loan, not the grant.
  • Newfoundland and Labrador leads the Atlantic region in converting provincial loan debt into non-repayable grants after graduation.

 

What This Actually Means for You

If you’re early in your research, it’s worth keeping some perspective:

  • Government loans and grants have always covered only a portion of the total cost of studying abroad, and in many cases, even studying domestically. Savings and, for many families, private financing, fill the rest. A change in loan value shifts that balance but doesn’t eliminate government aid as an option.
  • The specific rules that apply to you depend on your home province, your school’s designation status, whether that school is public, private non-profit, or private for-profit, and your own personal circumstances — not on the general headlines.
  • If your school and program are on your province’s approved designated institutions list, you’re very likely still eligible for meaningful provincial and federal support.

Our Recommendation
Don’t rule out an international education or government funding towards it based on a headline alone. Check your province’s student loan program, confirm the designation status for your program of interest, run the numbers through your province’s aid estimator based on your personal situation, and talk to an OzTREKK advisor about how loans fit alongside your total budget.

This information reflects student loan program details for the 2026–27 school year as of September 10, 2026. Loan amounts, eligibility rules, and designation lists can change. Always confirm current details directly with your province’s student aid office before making financial decisions.

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Would you like more information about studying in Australia or New Zealand? Contact us at info@oztrekk.com or call toll free in Canada at 1-866-698-7355 to discuss your options!

 

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