A Passage offers a unique pathway for international students to fund their education and living expenses in Canada through its loan programme. Unlike traditional lenders, Passage is a fintech platform that provides integrated support, including admission assistance and job placement, without requiring a co-signer or traditional collateral. It specifically finances students entering high-demand fields like healthcare, STEM, and skilled trades, connecting global talent directly with Canadian labour shortages.
Instead of just a simple loan, Passage offers a comprehensive funding and support system tailored for the journey of an international student loan applicant. The key features are designed to address the most significant barriers students face when planning to study in Canada.
This is a private student loan created exclusively for international students. Its primary purpose is to provide the financial proof needed to secure a Canadian study permit and to cover the actual costs of tuition and living expenses upon arrival. It is an all-in-one solution to fund your education and relocation.
Co-signer and Collateral Requirements
One of the program’s most significant advantages is that it requires no co-signer, guarantor, or traditional property collateral. This opens doors for applicants who lack a family member with a strong credit history. However, Passage does require a “cash collateral” payment after your loan is approved—typically 25% of the total loan amount—which is used to begin your monthly repayments once you are in Canada.
Funding Scope and Loan Amounts
Passage loans can cover both tuition and living expenses up to a maximum of C$65,000. This comprehensive funding ensures you can focus on your studies without financial stress. If you only need a loan for tuition, you must provide separate proof that you have sufficient funds for your living costs (a minimum of C$20,635).
Interest Rates and Prepayment
The loan comes with a fixed interest rate, typically ranging from 9.5% to 10.89%. Having a fixed rate provides certainty, as your repayment amounts will not change over the life of the loan. Furthermore, Passage allows you to repay the loan early without any prepayment penalties.
Job Placement and Career Support
Passage is more than a lender; it is an active partner in your career journey. The program focuses on fields with proven labour shortages in Canada and provides support to help you secure employment. This unique feature aligns your educational path with a viable career, ensuring you can support yourself and manage repayments after graduation.
How Does the Passage Student Loan Work?
Understanding the Passage process is key to a successful application. The journey is designed to be streamlined and is split into two main pathways depending on whether you already have an acceptance letter.
Stream 1: You Need Admission and a Loan
This is the most comprehensive package, designed for applicants starting from scratch. If you have not yet applied to a Canadian college and need help with both the admission process and securing a student loan, this is the ideal pathway. Passage leverages its partnerships to manage your school application and seamlessly integrates it with the loan process, providing an all-in-one solution.
Stream 2: You Have an Admission Letter and Need a Loan
This stream is for students who have already been accepted into a Passage-listed program. If your main goal is to fund your education and secure the necessary proof of funds for your visa, this option is for you. The process focuses on verifying your documents and approving the loan. Once approved and the cash collateral is paid, you receive the “Passage Pass” needed for your study permit application.
Stream 3: You Are Already Studying and Need a Loan
This pathway is a lifeline for students already enrolled in a partner institution in Canada who face unexpected financial challenges. If you need a loan to cover your remaining tuition fees and living costs to complete your program, this stream provides a crucial safety net. The application will consider your current academic performance and financial situation.
Stream 4: You Only Need Help with Admission
For students who have sufficient personal funds but want expert guidance to navigate the Canadian college admissions system, this stream offers valuable support. Passage uses its institutional knowledge and partnerships to help you gain admission into a high-demand program. This service is purely for admission assistance and does not involve a loan.
Understanding the Costs: Interest, Fees, and Repayment
The financial terms of a Passage student loan are transparent but structured differently from a traditional bank loan.
Interest Rate
Your fixed interest rate (9.5%–10.89%) is determined by your chosen program and academic profile.
Fees
There is a non-refundable study abroad fee of US$350, paid in stages during the application process.
Cash Collateral
After loan approval, you must pay a cash deposit of around 25% of the loan value. This isn’t an extra fee; it is held by Passage and applied directly to your monthly loan payments once they begin. If your visa is denied, this collateral is fully refunded within 4-6 weeks.
Repayment
Repayment begins only after you arrive in Canada. Passage disburses your living expense stipend into your Canadian bank account, and your loan payment is made from that amount. This ensures you are financially stable while you study. You can model potential costs with a loan calculator to help you budget effectively for the future.
Pros
- No co-signer or traditional collateral is needed.
- Loan approval acts as powerful proof of funds for your visa application.
- It offers integrated admission and visa documentation support.
- Repayment only starts upon your arrival in Canada.
- The program actively helps you find work in high-demand fields.
Cons
- Funding is restricted to specific partner colleges and programs in Canada.
- You must have the funds for the upfront cash collateral payment.
- It is less suitable for students who have been out of school for many years.
Who Is Eligible for a Passage Student Loan?
Eligibility is focused on your potential for academic and professional success in Canada. Key criteria include:
- You must be an international student.
- You must be applying to or have an offer from a partner institution in Canada, like George Brown College, and many more. But you can always check with Your School if Passage Can finance your education and living costs
- Your chosen program must be in a high-demand field (Healthcare, STEM, Skilled Trades). Don’t worry, those are specified on Passage loan application portal.
- A strong and recent educational history is preferred.
Is Passage Legitimate?
Yes, Passage is a legitimate and well-regarded fintech company. Its credibility is supported by its official partnerships with designated Canadian colleges and by a successful C$40 million seed funding round led by the founder of ApplyBoard. This backing demonstrates strong investor confidence in its mission to bridge the gap between global talent and Canadian employers.
Other Loan Alternatives You may Want to Checkout For
While Passage offers a unique model, it’s wise to weigh all your options for education loans, especially when considering scholarships vs. loans. Here are some popular alternatives:
| Lender | Key Features | Co-signer Required? | Countries Covered |
|---|---|---|---|
| Passage | Integrated admission and job support for Canada. | No | Canada Only |
| MPOWER Financing | Broad eligibility for students close to graduation. Supports DACA students. More details in our MPOWER review. | No | USA & Canada |
| Prodigy Finance | Offers loans at over 750 universities worldwide. Future earning potential is considered. Learn more in our Prodigy Finance review. | No | 150+ countries |
How to Apply for the Student Loan Programme on Passage
- Begin by heading to the official Passage website at https://www.passage.com/. This is the central hub for all applications and information. Take some time to explore the site to familiarise yourself with the programs and requirements.
- Before you start filling out forms, use Passage’s pre-assessment or eligibility checker tool if available. This will help you determine if your profile (nationality, chosen field of study, academic background) aligns with what Passage is looking for, saving you valuable time.
- Select the pathway (stream) that matches your current situation. You will need to choose one of the four streams:
- Admission and a Loan
- Admission Letter and Need a Loan
- Already Studying and Need a Loan
- Only Need Help with Admission
- Fill out the application form with your personal details, educational history, and professional experience. Ensure all information is accurate and matches your supporting documents to avoid delays.
- You will be prompted to upload several documents to support your application. While the exact requirements may vary based on your stream, you should typically have the following ready:
- A valid passport.
- Academic transcripts and certificates.
- An updated CV or resume.
- Your letter of admission (if you are in the “Loan Only” stream).
- After submitting your application, Passage’s team will review it. If you are successful, you will receive a formal loan offer. This document will detail your approved loan amount, fixed interest rate, repayment terms, and the required cash collateral amount. Review it carefully.
- To accept the offer, you will need to sign the loan agreement and proceed to pay the required cash collateral. Once this is complete, Passage will issue your “Passage Pass,” which is the crucial document you will use as proof of funds for your Canadian study permit application.
Disbursing Your Loan Funds
Once your loan is finalized and you are preparing to start your studies, it is important to understand how the funds will be paid out. Passage uses a streamlined, two-part disbursement process to ensure your tuition and living expenses are handled securely and efficiently.
Passage pays your tuition fees directly to your school. This simplifies the process significantly, as you do not have to worry about managing a large international money transfer yourself. The funds are sent to your designated learning institution according to their specific payment deadlines, which could be on a semesterly or yearly basis. This direct payment system provides peace of mind for both you and the college, guaranteeing that your fees are paid on time.
The disbursement of funds for your living expenses works differently and only begins after you have successfully obtained your study permit and arrived in Canada. Once you have opened a Canadian bank account, Passage will deposit a fixed monthly stipend to cover your day-to-day costs. It is from this stipend that your monthly loan repayments are also deducted. This integrated system ensures you can manage your finances effectively from the moment you begin your new life as a student in Canada.
Frequently Asked Questions (FAQs)
1. How does the cash collateral work?
The cash collateral is a deposit (usually 25% of your loan) you pay to Passage after your loan is approved. It’s held in your name and used to make your monthly loan payments once you’re in Canada. It is refunded if your visa is rejected.
2. Can I use a Passage loan for any school in Canada?
No, Passage loans are exclusively for their list of partner institutions and specific high-demand programs.
3. What is the maximum loan amount I can receive?
You can receive up to C$65,000 to cover both your tuition fees and your living expenses for the first year.
4. When do I have to start repaying the loan?
Repayments begin shortly after you arrive in Canada and start your educational program. They are automatically deducted from the living expense stipends disbursed by Passage.
In Summary
The Passage student loan program is a game-changer for international students who lack a co-signer and want a clear, supported path to studying and working in Canada. Its unique model removes major financial and administrative hurdles, from securing education loans to finding a job post-graduation. I believe that for the right candidate, one targeting a high-demand career at a partner institution, Passage offers an unparalleled opportunity. It’s not just a loan; it’s an investment in your future in Canada.
Summary Table
| Feature | Passage Student Loan |
|---|---|
| Loan Amount | Up to C$65,000 for tuition and living expenses |
| Sectors Supported | Healthcare, STEM, Skilled Trades |
| Collateral Required | Yes—cash collateral (usually 25% of the loan) |
| Interest Rate | ~9.5%–10.89% fixed |
| Repayment Start | After arrival and commencement of studies |
| Co-signer/Guarantor | Not required |
| Eligibility Check | Skills, academic, and professional fit |
| Disbursement | Tuition paid to school, monthly living expenses to student |
| Admission Assistance | Available (Admission Plus Loan stream) |
| Refund Policy | Collateral refunded if visa is denied |
