Loans for Teachers: A Financial Support Guide

Sandra
Author:
Sandra
Sandra MacGregor
Expert Contributor at Loans Canada
Priyanka
Reviewed By:
Priyanka
Priyanka Correia, BComm
Senior Editor at Loans Canada
As a senior member of the Loans Canada team, Priyanka Correia is committed to empowering Canadians with the knowledge they need to make smart financial choices.
Expertise:
  • Personal finance
  • Consumer borrowing
  • Consumer banking
  • Debt management
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Updated On: December 10, 2025
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Becoming a teacher in Canada is rewarding, but financially demanding. Aspiring teachers complete a four‑year undergraduate degree followed by a Bachelor of Education (B.Ed.), which costs a few thousand dollars per year, according to Ontario’s Brock University. Combined with housing, living expenses, books, and fees, the investment can be quite hefty.

Many new teachers begin their careers burdened with student debt and face additional out‑of‑pocket costs for supplies and membership dues. Fortunately, various loan options are available to help cover education expenses and support teachers as they establish their careers, making the path more manageable despite the financial challenges.


Key Points

  • Becoming a teacher in Canada is expensive, with total education and living costs often exceeding $20,000–$30,000, leading many new educators to rely on student loans.
  • Aspiring teachers can access federal and provincial student loan programs, as well as student lines of credit from major banks and credit unions.
  • Working teachers may use personal loans or lines of credit to manage irregular income, unexpected expenses, or classroom supply costs.
  • Additional financial supports — such as tax credits, bursaries, and repayment assistance programs — help reduce the financial burden on both student teachers and employed educators.

How Much Does It Cost To Become A Teacher In Canada?

To become a qualified teacher in Canada, the process typically involves completing a four-year undergraduate degree followed by an additional one- to two-year B.Ed. program. 

Costs can vary a great deal depending on the following: 

Institution & Location 

The cost of a B.Ed varies depending on where you go, with fees similar to or slightly more than an undergraduate degree. 

For example, getting your B.Ed. at Ontario’s Brock University will cost you about $8,000 a year (and remember that in Ontario, a Bachelor’s of Education is a 2-year degree), whereas in Victoria, B.C., it will cost an average of anywhere from roughly $5,000 to $7,500 per year

Miscellaneous Fees

Then there’s also general university costs like textbooks (range from $500 to $1500) and ancillary fees (about $1,000 a year and include things like healthcare and athletics). 

Keep in mind that none of the expenses discussed include housing costs, which will add thousands to your bill, exceeding even the cost of tuition.

Bottom Line: Much will depend on which province you choose to study, but pursuing a Bachelor of Education will clearly be a costly undertaking that could leave aspiring teachers with a large debt load just as they are beginning their careers.

Student Loan Options For Aspiring Teachers In Canada

Canadians hoping to become teachers have access to a strong selection of student loan options, including both federal and provincial government programs. 

Government Student Loans

These public financial aid programs are designed to help offset tuition, books, and living expenses during post-secondary education and teacher training.

Canada Student Financial Assistance Program (CSFA Program)

Canadian students can apply for both federal and provincial student loans concurrently (i.e. you don’t need to apply for federal and provincial funds separately) through the Canada Student Financial Assistance Program (CSFA Program) if you live in the following provinces: 

  • British Columbia
  • Manitoba
  • New Brunswick
  • Newfoundland and Labrador
  • Ontario and Saskatchewan
Example: 
If you are in Ontario, you would apply for Federal and provincial loans through the Ontario Student Assistance Program (OSAP).

The program features loans and grants to help low- and middle-income students. The amount a student can receive is based on a variety of factors, including tuition costs, family income, whether a student has dependents and/or a disability, their province or territory of residence, and other financial need indicators.

Provincial Government Student Loans

In Alberta, Nova Scotia, and Prince Edward Island, Canada Student Grants and Loans are available in conjunction with provincial assistance programs. In Quebec, Nunavut and the Northwest Territories, students must rely on their provincial or territorial student aid programs as federal loans and grants are not available. 

Student Lines Of Credit

Canada’s major banks offer lines of credit specifically for students, including those pursuing their teaching degree.

BankStudent Line Of Credit Features
BMOUp to $20,000 per year, interest-only payments while in school and for two years after graduation
TDFlexible limits, only pay interest during studies and no principal payments until two years after leaving school
CIBCEducation Line of Credit: Up to $80,000
ScotiabankInterest payments only until 12 months after graduation 
RBC Personalized limits based on field of study; interest-only payments during studies

Teacher-Specific Financial Products (Where Available)

Certain credit unions cater specifically to education professionals, offering tailored loans and lines of credit. 

For example, Teachers Plus Credit Union in Nova Scotia provides borrowing options with competitive rates for educators. Similarly, the Ontario Educational Credit Union provides loans designed to meet the needs of teachers and even offers a reduced rate of interest with full payroll deposit.

Can You Get A Loan If You Have Bad Credit?

If students have poor credit or can’t get a co-signer, private student loans may be available through alternative lenders. However, these loans often come with much higher interest rates due to the greater risk for the lender, as well as higher fees and less favourable terms.

Learn more: Student Loans & Your Credit

Loans For Working Teachers

Like many Canadians, even once they’ve started to receive a regular paycheque, teachers may find that they need to borrow money for things like sudden, big unexpected expenses, home renovations, or to consolidate debt. Here are some options:

Personal Loans

Personal loans are available from banks and private lenders (which are often a good resource for those with bad credit and who may not meet a more traditional financial institution’s lending profile). 

These lump-sum loans can be repaid with regular installments. They are especially useful for teachers whose expenses may fluctuate seasonally, such as for start-of-year school supplies or for holiday projects. Substitute teachers, who may not have a steady income, can also use personal loans to help get through periods of lower cash flow.

Learn more: 

Have Bad Credit?

If you have poor credit, there may still be ways to borrow money. Secured personal loans — where a borrower uses home equity, savings or even a vehicle as collateral — may increase your chances of approval and result in lower interest rates and better terms.

Learn more: Best Personal Loans

0% Interest Loans

Another good option that can help teachers cover small expenses is a small 0% interest cash advance or line of credit. This is a practical option for substitute teachers who may need help managing irregular income or for those looking to spread out the cost of supplies and materials throughout the school year. 

Smaller personal lines of credit may be more accessible than personal loans and can cover expenses as they creep up without the need to apply for a loan each time. Plus, they come with no interest costs and no credit check. Here are a few to consider:

NybleNyble is an interest‑free credit line that provides access to up to $250 instantly without credit score requirements.
BreeBree is a small cash advance of up to $500 with no credit check or interest fees.
MoneyUpMoneyUp’s FastForward feature provides instant access to your upcoming paycheque or government benefits. Unlike traditional loans, it provides a quick credit line of up to $1,000 without requiring a formal application.

Other Options To Help Teachers With Expenses 

In addition to government student loans, lines of credit, and personal loan programs, other options may be available:

Tax Credits And Grants For Teachers

Some government grant programs and tax credits may be available to eligible teachers:

  • Federal Programs: The federal Teacher and Early Childhood Educator School Supply Tax Credit lets eligible educators claim 25% of up to $1,000 spent on qualifying classroom supplies, providing direct financial relief every tax year.
  • Provincial Programs: Some provinces even offer a similar tax credit for school supplies. For example, Manitoba’s Teaching Expense Tax Credit Manitoba lets qualifying educators claim 15% of up to $1,000 in money spent on teaching expenses. Check your provinces or territory to see if there are similar tax credits.
  • Local Organizations: Depending on your region, there are also some organizations offering educational bursaries. For example, the Elementary Teachers’ Federation of Ontario offers scholarships and bursaries to members and non-members pursuing studies or upgrading their qualifications at faculties of education, as well as bursaries.

Student Loan Forgiveness

Currently, the Canada Student Loan Forgiveness program applies only to family doctors, family medicine residents, nurses, and nurse practitioners who work in designated under‑served rural or remote communities. However, there have been recent discussions about expanding the program for student loan forgiveness benefit to additional occupations, including early childhood educators and teachers.

Repayment Assistance Plan (RAP)

While not specifically designed for those with a teaching degree, the Repayment Assistance Plan can be a lifeline for anyone struggling to make payments on their student loan debt. It doesn’t erase your debt like forgiveness, but it can dramatically reduce or temporarily eliminate your monthly payment based on income and family size. 

If you successfully apply for the program, the government will cover the interest owed on the federal portion of the loan that the reduced payment doesn’t cover. After 5 years of participating in RAP or 10 years after finishing school, the government will start to pay the principal and remaining interest.

Those with disabilities can apply for the Repayment Plan for Borrowers with a Permanent Disability (RAP-PD). On top of the reduced monthly student loan payments, this program may also give you additional reductions to help cover some costs that result from your disability. 

Learn more: Student Loan Repayment Assistance Plan (RAP)


Final Thoughts

Becoming a teacher in Canada is a rewarding career but can require careful financial planning for some. Loans, lines of credit and specialized grants and tax credits help ease the expense of becoming a teacher. With tuition and living costs rising, tailored financial options and government support play an increasingly critical role in ensuring more Canadians can pursue and thrive in a career in education.


Loans For Teachers FAQs

Can teachers claim supplies on taxes in Canada?

Yes, eligible teachers can claim a federal tax credit on up to $1,000 in school supply purchases each year, receiving a 25% refundable tax credit. Some provinces offer additional tax credits on school supplies. 

Can teachers qualify for student loan forgiveness in Canada?

Presently, there is no federal loan forgiveness program for teachers specifically. However, there is discussion to add educators to the program (which presently applies only to eligible healthcare professionals working in rural or remote areas). While not specifically intended for teachers, the Repayment Assistance Plan (RAP) may help those having a hard time making debt payments on their student loans.

What is the average teacher salary in Canada?

The average pay for teachers varies significantly by province, school board, and experience level. In general, the average salary of a teacher in Canada starts at about $52,669 and goes up to $91,930 for experienced teachers.

Do substitute and part-time teachers get any financial breaks during summer months? 

Some substitute and term teachers may be eligible for Employment Insurance (EI) regular benefits during summer or other non‑teaching breaks if they have enough insurable hours and are not under a continuing teaching contract for the next school year. Teachers on permanent contracts would not be eligible.
Sandra MacGregor avatar on Loans Canada
Sandra MacGregor

Sandra MacGregor is a Toronto-based financial writer with over a decade of experience. She specializes in personal finance, investing, and credit cards. She also has a passion for tech and travel, but primarily enjoys helping Canadians navigate their financial journeys with confidence.

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