The most common form of private student loan is a line of credit, which is offered by practically all private lending instututions in Canada. The advantage of private loans is that they are fully funding–that is, they will cover the full cost of your training. In contrast, government student loans only cover a portion of the training.A second advantage is that private loans can be used to cover the costs of Private Pilot Licence training (which is prerequisite for Commericlal Pilot Licence training). By compariston, government student loans are not available for Private Pilot Licence training, but can only be used for the Commercial Pilot Licence, Multi-engine Class Rating, Instrument Rating, and Instructor Rating.
Lastly, private loans are not affected by the number of dependants a student has or does not have. In the case of government loans, students without dependants receive considerably less than students with a spouse and children.
The weekly funding limits are differentiated between students with eligible dependants and and students without eligible dependants. For students enrolled in the Commercial Pilot License, those without dependants can receive a maximum of $5440, while those with dependants can receive a maximum of $8670. For students enrolled in the Multi-engine Class Rating/Instrument Rating Programs, and the Flight Instructor Rating Program, those without dependants can receive a maximum of $4160, while those with dependants can receive a maximum of $6630.
Students receiving government student loans may also receive a Canada Student Grant of $1200.