The Ultimate Guide To Td Student Line of Credit

Did you know that the difference between students being able to pursue their desired education and not even getting a chance lies in lines of credit and loans? That’s right – the financial support provided by institutions like TD Bank can make all the difference.

That’s why it’s crucial to understand the importance of the Student Line of Credit and Loans, especially those offered by TD Bank. In this article, we’ll tell you everything you need to know about TD’s line of credit specifically designed for students in Canada.

If you’re a student in Canada looking to secure a credit facility line from Toronto Dominion Bank, keep on reading. We’ve got you covered.

Line of Credit and a Student Loan: The Ultimate Difference

When it comes to accessing credit, loans and credit lines are two popular options. But what sets them apart? Read on

Let’s start with loans. Picture it as a lump sum handed to you by a lender or financial institution. The catch? You have to pay back the entire loan amount, along with the interest it accrues, within a specified timeframe.

To make things more manageable, loan repayments are typically divided into regular installments. And depending on the loan, you may need collateral to secure it or enjoy the flexibility of an unsecured loan. A secured loan needs collateral while an unsecured loan does not.

A credit line is a type of credit that offers flexibility to you as a borrower. It allows you to access funds or borrow money up to a certain maximum limit. With a credit line, you can withdraw the funds whenever you need them, as long as you do not exceed the credit limit.

A credit line also enables you to pay interest solely on the withdrawn funds within the limit. It can be secured or unsecured and is suitable for business-related expenses.

And the significant difference between a credit line and a loan lies in the way funds are distributed and repaid.

With a loan, you receive the full loan amount upfront and start paying interest on the entire sum. This means your payments remain consistent throughout the repayment term.

On the other hand, a credit line provides you with funds as needed. You only pay interest on the amount you use each month. This offers greater flexibility in your repayment schedule.

Speaking of repayment, loans have a fixed schedule and amount for each payment period. Meanwhile, credit lines allow for more flexibility with varying payment amounts and due dates, depending on the funds withdrawn.

The Government offers Student Lines of Credit with lower interest rates than government student loans. While studying, you only need to pay the interest. You can find more information about Student Lines of Credit on the government website.

So whether you prefer a straightforward loan or a more adaptable credit line, understanding the differences will help you make the right financial choice.

Overview of the TD Student Line of Credit

TD Student Line of Credit is a reliable financial solution designed specifically for undergraduate students and Canadian students who require assistance in funding their higher education. This exclusive offering is provided by esteemed financial institutions such as Toronto Dominion (TD) and more.

With the TD Student Line of Credit, you gain access to a flexible and convenient form of credit, allowing you to borrow funds up to a predetermined credit limit. This versatile credit option can be utilised for various purposes, including tuition payments, textbook purchases, living expenses, and any other expenses directly related to your education.

You will experience the advantage of the TD Student Line of Credit with its unbeatable low-interest rate. Their interest rates are lower than those offered by credit cards and personal loans, giving you a smart financial choice.

And also their variable interest rate keeps pace with market conditions, but don’t worry – eligible students can enjoy a Prime Rate discount that saves them money on interest charges.

With the TD Student Line of Credit, you have the freedom and flexibility to withdraw funds as you need them, up to your credit limit.

With flexible interest payments, you only pay for what you borrow and can take control of your finances, and reduce your debt load while pursuing your education.

But the benefits don’t stop there. TD also offers a generous grace period of up to 12 months after graduation or leaving school. During this time, you won’t have to worry about making any repayments. Instead, focus on securing your dream job and getting settled before taking on the responsibility of repaying your debt.

To qualify for the TD Student Line of Credit, students must be currently enrolled in a Canadian post-secondary institution, be 18 years or older, and have a good credit history. Additional requirements for a higher credit limit may include providing proof of income or having a co-signer.

Understanding the Workings of TD Student Line of Credit

TD Student Line of Credit is designed to assist Canadian students in financing their post-secondary education and covering related expenses. The following is an explanation of how the TD student line of credit functions:

Obtain a TD Student Line of Credit:

To obtain a TD Student Line of Credit, either visit a TD Bank branch or apply online as a student. Personal information, such as your name, address, date of birth, and Social Insurance Number, must be provided. Additionally, provide details about your program of study, expected graduation date, and income.

Obtain Approval for a Credit Limit:

The moment your application gets approved, TD will offer you a credit limit that depends on your income and creditworthiness. The credit limit can range from $5,000 to $350,000 or even more, based on your financial situation and the student’s study category requirements.

Students pursuing professional programs can enjoy higher credit limits with the same benefits as a standard Student Line of Credit.

Get Your Money when Required:

After the credit line is approved, you may access funds as needed but within the set limit. You have the option to withdraw funds through cheques, online transfers, or using a TD Student Line of Credit access card. Only the amount withdrawn will incur interest, not the entire credit limit.

Return the Borrowed Funds:

With a flexible repayment plan, you have the option to make interest-only payments while still in school or wait until after graduation to begin making payments. Additionally, you can make extra payments at any time to reduce your balance quicker.

You will also be required to make consistent payments on the borrowed money after you graduate. The payment amount will vary based on the borrowed amount, interest rate, and repayment plan.

Oversee the Credit Line:

TD’s online banking platform enables you to manage your TD Student Line of Credit by checking your balance, making payments, and transferring funds. For further assistance, you can get in touch with TD’s customer service team.

Reasons You Should Obtain a TD Student Line Of Credit

Obtaining a TD Student Line of Credit in Canada can offer numerous benefits for students, and here are a few reasons why.

1. Attractive Interest Rates:

The interest rate is lower compared to credit cards and personal loans, which saves you money on interest charges over time.

2. Flexible Payment Plans

TD offers flexible repayment options, such as interest-only payments while you’re still in school. This gives you the freedom to manage your finances and reduce your overall debt load. Plus, after graduation, you can choose a repayment schedule that works best for your budget.

3. Gain Funds at Your Disposal:

With a TD Student Line of Credit, you have access to funds up to your credit limit whenever you need them. This means that you can cover your education-related expenses without worrying about running out of money.

4. Post-Completion Grace Period:

TD provides a grace period of 12 months after you graduate or leave school, allowing you to delay making any payments on your credit line. This offers you some relief and the opportunity to secure a job and establish yourself before starting to repay your debt.

5. Enhance Credit Records

When you make consistent payments on your TD Student Line of Credit, it can help you build a strong credit score and credit history. This will be beneficial when you plan to request other loans or credit products later on.

6. Competitive Pricing and Exciting Discounts

TD’s student line of credit comes with competitive terms and discounts, such as a Prime Rate discount for eligible students. This can help students reduce their interest charges and save money.

TD Student Line of Credit Maximum Amount

The credit limit for the TD student line of credit is determined based on the level of post-secondary education category you fall into.

Professional Category

This exclusive category offers flexible credit limits tailored to students based on their chosen field of study.

For dental medicine students, you can access credit limits of up to $350,000, with a generous maximum limit of $100,000 in your first year of study.

For professional medical students, we offer credit limits of up to $250,000, with an impressive $85,000 available in your first year of study.

The best part? You won’t need to go through the hassle of re-applying each year. Plus, when it comes to medical credit, there’s no need for a co-signer (subject to approval).

As a veterinary student, you can receive a maximum of $125,000 in funding, along with up to $31,000 in your first year. This funding category does not require annual reapplication, and you may not need a co-signer (approval dependent).

Undergraduate Category

To be eligible for a TD student line of credit, undergraduates must be enrolled as full- or part-time students at a recognized university or college in Canada.

The full-time and part-time students can receive a maximum of $80,000 over a four-year period, with full-time students receiving up to $20,000 per year just like part-time students.

Graduate Students Program Category

The determination of graduates who are eligible for the TD student line of credit is based on their chosen field of study.

• Students pursuing Masters’s or Ph.D. degrees can receive up to $80,000 during two years of study.
• Naturopathy students receive up to $80,000 in funding for their four years of study.
• Chiropractic students receive up to $100,000 throughout the four years of their study.
• Students studying Optometry or Pharmacy can receive up to $175,000 in total for the four years of their program.
• In the course of three years of study, law students are eligible for up to $150,000.
• MBA students at the Richard Ivey School of Business can receive up to a maximum of $85,000 throughout their program.

Simplified Guide To Obtain TD Student Line of Credit

There are several methods through which you can apply for a student line of credit.

Obtaining Virtually

To apply for a TD Student Line of Credit, You can visit the TD Bank website and complete an online application form. The form requires your personal information such as name, address, date of birth, and Social Insurance Number, as well as details about your program of study, expected graduation date, and income.

Obtaining Physically

To apply for a TD Student Line of Credit, you can visit a TD Bank branch in person. You must take identification documents like a passport or driver’s license, along with proof of income such as tax returns. And also, you should be prepared to provide details about their program of study and expected date of graduation.

Important Items to Bring to Your Appointment

When going for your TD Student Line of Credit appointment, you will need to gather several items. Some are;

· Amount the student spends monthly on their house rent or mortgage

· What are the sources and how much is your annual income?

· To apply for the Undergraduate Student Line of Credit, you must have a co-signer.

· If you have lived at your current address for less than three years, please provide your previous address as well. Otherwise, provide your current address.

Repay The TD Student Line of Credit Like This

Repaying your TD Student Line of Credit is simple. Here are the primary steps involved in repaying the credit:

TD Student Line of Credit allows you to pay only the interest on your balance as the minimum payment requirement while you are still in school and for 24 months after you finish school.

In getting the funds from your TD Student Line of Credit, you must make monthly or periodic payments to repay the borrowed amount.

The payment amount will vary based on the amount you withdrew and the credit’s interest rate. You have the option to make payments manually or establish automatic payments to ensure timely payments.

Conclusion

TD Student Line of Credit is available to Canadian students and offers various credit limits to support their academic pursuits. We have previously explained why students might consider utilizing this option.

The bank sets different maximum credit limits for students based on their category. Professional students may have higher credit limits of up to $350,000 in certain cases.