Td Student Line Of Credit Quick Review

TD Student line of credit and other lines of credit or loans are the differences between many students being able to fund their education and such students not getting a chance at the type of education they wish to get in their chosen field.

Therefore it is very important to note that a student line of credit or a loan such as that offered to students by TD Bank is very important. 

In this article, you will learn what you need to know about TD’s line of credit offered to students in Canada. Read on if you are a student in Canada wanting to apply for a credit facility line from Toronto Dominion Bank. 

What is the Difference Between a Line of Credit and a Student Loan 

A credit line and a loan provide access to credit to individuals and businesses, nevertheless, loans and credit lines have significant differences between them. The difference between loans and credit lines is discussed in this section. 

A loan is given as a lump sum by a lender or a financial institution. The loan receiver must pay back the entire loan and its accrued interest over a specified period.

Loan repayments are often structured in periodic installment repayments. A loan may be secured or unsecured. A secured loan requires you to bring collateral, the same is not the case with an unsecured loan, on the other hand

A credit line is a flexible source of credit that allows a borrower to access funds or borrow money to a predetermined credit limit. A credit line allows the borrower to withdraw funds when they have the need for it up to the credit limit.

The borrower on a credit line only pays interest on the amount of funds withdrawn on the credit limit. A credit line may be secured or unsecured.  Credit lines are best used for business purposes. 

The method of funds distribution and repayment is a major difference between a credit line and a loan.

For a loan, the borrower gets all the loan amount upfront and begins to pay interest on the received amount, which amounts to the loan payments. For a credit line, the credit agreement is the borrower gets funds when they need it and then pays interest monthly on the amount used.

The Repayment term is another major difference between a loan and a credit line. A Loan has a fixed repayment schedule and amount for each due repayment period. A credit line has a more flexible repayment schedule and amount, for each due repayment period based on the funds withdrawn.

Student Lines of Credit offer lower interest rates compared to government student loans. Additionally, during your studies, you are only required to make interest payments. You can read more on students line of credit here on the governments website

About TD Student Line Of Credit

TD Student Line of Credit is a financial product built for undergraduate students and Canadian students in need of help to finance their post-secondary education and it is offered by financial institutions like Toronto Dominion (TD) amongst others.

TD student lines of credit is a flexible form of credit offering access to funds up to a predetermined credit limit. TD student line of credit can be used for tuition payments, textbooks, living expenses, and other education-related costs.

One of the main benefits of TD Student Line of Credit is the low-interest rate it offers students. The interest offered is lower than the interest rates offered by credit cards and personal loans.

The interest rate offered by TD is variable, this means that the rate changes over time in tandem with market conditions. Nevertheless, TD offers eligible students a Prime Rate discount, which helps them save money on interest charges.

The TD Student Line of Credit offers substantial flexibility to students. Students are able to withdraw funds as needed, up to the credit limit.

Students only pay interest on the amount of money they borrowed. TD allows students to make interest payments while they are in school, this helps such students to manage their finances and reduce their overall debt load.

TD Student Line of Credit also offers a grace period of up to 12 months after graduation or when they leave school. During the grace period, students do not have to make any repayments on their credit line. This arrangement provides such students time to find a job and get settled before beginning to repay their debt.

To be eligible for TD Student Line of Credit, students must be enrolled in a Canadian post-secondary institution, be at least 18 years old, and have a good credit history. Students may also need to provide proof of income or have a co-signer to qualify for a higher credit limit.

How Does the TD Student Line Of Credit Work

The TD Student Line of Credit is a flexible financial product that is designed to help Canadian students finance their post-secondary education and pay for expenses related. Below is how the TD student line of credit works:

Apply for a TD Student Line of Credit:

To apply for a TD Student Line of Credit, you need to visit a TD Bank branch or apply online as a student. You need to provide personal information, including your name, address, date of birth, and Social Insurance Number. You also need to provide information about your program of study, expected graduation date, and your income.

Get Approved for a Credit Limit:

Once your application is approved, TD will offer you a credit limit based on your creditworthiness and income. The provided credit limit ranges from $5,000 to $350,000 or more, depending on the student’s study category needs and financial situation.

Professional students can access higher credit limits, while still enjoying all the benefits of a standard Student Line of Credit.

Access Funds When Needed:

Once the credit line is approved, the student can access funds as needed, up to the credit limit. The student can withdraw funds by writing a cheque, transferring funds online, or using a TD Student Line of Credit access card. Interest is only charged on the amount of money withdrawn, not on the entire credit limit.

Repay the Borrowed Funds:

Students can choose to make interest-only payments while they are in school or defer payments until after graduation, they have a flexible repayment plan. They can also make additional payments at any time to pay down their balance faster. After graduation, the student will need to start making regular payments on the borrowed funds. The payment amount will depend on the amount borrowed, the interest rate, and the repayment schedule.

Manage the Credit Line:

Students can manage their TD Student Line of Credit through TD’s online banking platform, which allows them to view their balance, make payments, and transfer funds. They can also contact TD’s customer service team for assistance with their account.

Why apply for a TD Student Line of Credit?

There are several reasons why students in Canada may want to apply for a TD Student Line of Credit:

Low-Interest Rates:

The interest rate on a TD Student Line of Credit is typically lower than the rates offered by credit cards and personal loans, which can help students save money on interest charges over time.

Flexible Repayment Options:

Students can choose to make interest-only payments while they are in school, which can help them manage their finances and reduce their overall debt load. They can also choose a repayment schedule that works best for their budget after graduation.

Access to Funds as Needed:

With a TD Student Line of Credit, students can access funds up to their credit limit as needed. This means they can pay for tuition, textbooks, living expenses, and other education-related costs without having to worry about running out of money.

Grace Period After Graduation:

TD offers a grace period of up to 12 months after graduation or leaving school, during which time students do not have to make any payments on their credit line. This can give them time to find a job and get settled before they have to start repaying their debt.

Improve Credit History:

By making regular payments on their TD Student Line of Credit, students can improve their credit history and establish a good credit score, which can be beneficial when they apply for other loans or credit products in the future.

Competitive Terms and Discounts:

TD offers competitive terms and discounts on their student line of credit, including a Prime Rate discount for eligible students, which can help them save money on interest charges.

TD Student Line of Credit Limit 

The credit limit given to students using the TD student line of credit depends on the student’s post-secondary education categorization level. 

Undergraduate

Undergraduates seeking a TD student line of credit need to be:  

Full- or part-time students at an accredited Canadian university or college.

The student can get up to $20,000 per year, to a maximum of $80,000 over four years of study, the same as the part-time students.  

Graduate Students Program

Graduates who require the TD student line of credit are determined depending on the student’s course of study. 

Masters or Ph.D. students can get up to $80,000 over two years of study

Naturopathy students get up to $80,000 over four years of study

Chiropractic students get up to $100,000 over four years of study

Optometry/Pharmacy students get up to $175,000 over four years of study

Law students get up to $150,000 over three years of study

MBA students get up to $85,000 maximum amount over their study period. Students of the Richard Ivey School of Business MBA

Professional

This category of the TD student line of credit provides credit limits to students depending on their course of study. Dental medicine students get up to $350,000 and a $100,000 maximum limit in their first year of study. 

professional medical students get up to $250,000 and $85,000 in their first year of study. The students do not require an annual re-application, the student does not also need a co-signor for the medical credit (subject to approval)

Veterinary students get up to $125,000 and up to $31,000 in their first year of study. This category does not require you to reapply annually, you also do not need a co-signor(subject to approval).

How to Apply For A TD Student Line of Credit

You can apply for a student line of credit through several methods including: 

Applying Online

Students can apply for a TD Student Line of Credit online by visiting the TD Bank website and filling out an online application form. They will need to provide personal information, including their name, address, date of birth, and Social Insurance Number, as well as information about their program of study, expected graduation date, and income.

Applying in Person

Students can also apply for a TD Student Line of Credit in person at a TD Bank branch. They will need to bring identification documents, such as a passport or driver’s license, as well as proof of income, such as pay stubs or tax returns. They will also need to provide information about their program of study and expected graduation date.

What to Bring to Your Appointment

When going for your TD Student Line of credit appointment you will need several things including: 

• For the Undergraduate Student Line of Credit, you will need a co-signor
• The student’s current address (if the student has lived in their current address for less than three years, The bank will require your previous address too)
• The sources and amount of the student’s annual income
• Amount the student spends monthly on their house rent or mortgage

How to Payback The TD Student Line of Credit 

Repaying your TD Student Line of Credit is a straightforward process. Here are the main steps involved in paying back the credit:

TD Student Line of Credit is that while you’re in school AND for 24 months after you’ve left school, your minimum payment requirement is only the interest on your balance.

You can also make monthly payments: Once you have access to the funds from your TD Student Line of Credit, you will be required to make monthly or periodic repayments.

The amount of the payment will depend on the withdrawn amount and the interest rate on the credit. You can choose to make payments manually, or you can set up automatic payments to ensure that your payments are always made on time.

Conclusion

The TD Student Line of Credit offers a wide range of credit limits to students in Canada to enable them to go through their studies without worrying about funding. We have discussed why students should make use of the TD Student Line of Credit.

The bank offers varying maximum credit limits to students. The credit limit maximum is determined depending on the category of the student. Professional students have access to higher credit limits of up to $350,000 in some instances.