Please note that effective immediately, Rotman is no longer offering loan interest subsidies to incoming students. Only students who were enrolled in Rotman’s MMA, MFRM, M/E MBA, or MFin Programs as of December 2022 remain eligible for interest subsidies under the Professional Student Loan Program (PSLP) or the Rotman Interest Subsidy Program (RISP).
General Information
By submitting a Declaration of Need, the student accepts and agrees to be bound by the terms and conditions of this document. In addition, when using the Professional Student Loan Plan (PSLP), the student shall be subject to any posted guidelines or rules applicable to the program. Any participation in this program will constitute acceptance of this agreement.
The student is encouraged to review the loan details in the bank feature sheets in the Application Information (or the EMBA, GEMBA, and GEMBA-HLS Application Information), and also is bound to the loan terms as set by the bank.
This document and its components are offered for informational purposes only; this document shall not be responsible or liable for the accuracy, usefulness, or availability of any information transmitted or made available via the document, and shall not be responsible or liable for any error or omissions in that information.
We reserve the right to change these Terms and Conditions at any time. The posting of the current Terms on this website shall be deemed sufficient notice to you of such Terms and any changes, if required.
Partnered Banks
The Professionals Student Loan Plans are specialized plans available ONLY through the specified banks and branches:
Bank of Montreal (BMO)
Bedford & Bloor Branch
(For Domestic Students)
242 Bloor Street West, Toronto, ON M5S 1T8
Lydia Peng
Branch Manager
Ashley Amaral
Personal Banker
416-921-3372
University & College Branch
(For International Students and EMBA, GEMBA and GEMBA-HLS)
700 University Avenue, Toronto, ON M5G 1X7
Liz Ferreira
Branch Manager
Jessica Pereira
Senior Personal Banker
Tiffany Chow
Personal Banker
Royal Bank of Canada (RBC)
University & Dundas Branch
443 University Ave
Toronto, ON M5G 2H6
Kirlene Toussaint
Branch Manager, University & Dundas Branch
kirlene.toussaint@rbc.com
Loan Eligibility
The student admitted to the Rotman School may seek pre-approval for a loan up to 12 months prior to the start of the degree program with a letter offering admission to the Rotman School. Disbursement of the loan is contingent upon confirmation of enrollment from the Rotman School through the Declaration of Need lists.
Please note that although the PSLP has been designed for Rotman students, the loans are governed by the banks, which make all decisions regarding approval and eligibility. The student must clarify eligibility requirements with each bank.
Domestic students (Canadian citizens and permanent residents) must have a valid Social Insurance Number (SIN) and satisfactory Canadian credit bureau report to be eligible to apply for the loan. Students who have recently become permanent residents and have neither a Social Insurance Number or a credit bureau report will require a qualified Canadian resident co-signer to qualify.
International students holding a valid study permit will be considered with a qualified Canadian resident co-signer, or cash collateral. Bank of Montreal (BMO) will also consider students with a Standby Letter of Credit from a BMO-approved bank in their home country. Note that Non-Resident Taxes apply, as well as further restrictions.
There are countries from which BMO cannot accept a Standby Letter of Credit. The list of sanctioned countries is changeable, affected by various world issues. If students from these countries have alternative forms of collateral they may still access a loan from BMO.
Loan Limits
Loan limits are set by each bank and may differ by program. While the PSLP facilitates loans to cover the educational costs of the Rotman academic programs, these are the standard limits used for initial consideration of all applications, approved loan limits are determined at the sole discretion of the banks and subject to their credit risk approval process.
Note that the full tuition fees for students in the JD/MBA program exceed the standard loan limits offered by the banks. These students can negotiate with the bank on an individual basis for an increased loan limit, and approval will be based on the strength of the application and in some cases may require a co-signer. PSLP loans for JD/MBA program can be used for the second, third, and fourth years of the combined program (years when they are paying MBA fees).
It remains the student’s responsibility to know, and monitor available loan amounts and student fee balances.
Loans are disbursed over the duration of the program to cover the total cost of mandatory tuition fees annually.
The loan is to be used for tuition fees (the sum of annual program fee, University mandatory incidental, and Rotman ancillary fees) only. The full loan limit may not be used if it exceeds the mandatory tuition fees. Although the banks may offer cheques, or online access to the loan account, these are not to be used by the student. Access to the loan must be approved by the Rotman School prior to any disbursements.
In addition to the interest-subsidized loan for education costs, banks offer other products that students may use for living expenses. For more information about these additional products, students should speak with their bank representatives. Any amounts borrowed in excess of the maximum basic amount or any other products other than the education loan are not eligible for the interest subsidy.
Interest-Subsidy
Students in the Graduate Diploma in Professional Accounting and Full-Time MBA programs are not interest-subsidized by the Rotman School and are responsible for monthly payments (interest and insurance) during their studies.
The following programs are known as “interest-subsidized programs”:
- Morning MBA
- Evening MBA
- Master of Finance
- Master of Financial Risk Management
- Master of Management Analytics
The Rotman School will pay the interest on the PSLP loan, providing the student:
- is in an interest-subsidized program;
- is approved for a loan from the specified branches of the Bank of Montreal (BMO) or the Royal Bank of Canada (RBC);
- has submitted their Declaration of Need to the Rotman School for the applicable academic year;
- maintains continuous registration in the degree program; and
- has a loan principal which does not exceed the maximum basic amount.
The Rotman School will pay interest on the loan principal up to the maximum basic amount for the duration of studies, beginning no sooner than 1 September of the first year, and usually up to 30 June of the graduating year.
The Rotman School will pay the interest directly to the bank each month.
Should the student leave the program (withdrawal or leave of absence) before the standard completion time, they immediately assume complete responsibility for the PSLP loan repayment from the effective withdrawal or leave date. Once the PSLP loan is assumed, the student will be fully responsible for payments (on the outstanding loan principal plus interest) according to the terms of the loan. The student who resumes studies after an approved Leave of Absence must resubmit a Declaration of Need; subsequently the Rotman School will resume interest payments on the outstanding loan principal up to the maximum basic amount until the student fulfills all degree requirements.
The student is responsible for monitoring their monthly loan statements, which will show both interest charged and interest payments. If the student opted for loan insurance they are responsible for paying this monthly amount. Note that any insurance premiums are billed monthly, along with any other charges to your loan account not covered by the Rotman School in the interest-subsidy.
Below are the dates when the student would assume full responsibility of their PSLP loan and repayment. The Rotman School will cover interest payments incurred before the dates listed below.
| Date Degree Requirements Fulfilled | Date Student Assumes Monthly Payments (in Graduating Year) |
|---|---|
| December 31 | March 1 |
| April 30 | July 1 |
| August 30 | November 1 |
Maximum Basic Amount
Applicable to loans which are interest-subsidized by the Rotman School, the “maximum basic amount” is the highest amount of loans for which the Rotman School will provide an interest subsidy. It covers the tuition fees (sum of annual program fee, University mandatory incidental, and Rotman specific ancillary fees) and administrative fees assessed by Bank of Montreal (BMO) (for students accessing the BMO loan using a Standby Letter of Credit). The loan principal may or may not be equal to the maximum basic amount as this is dependent upon the loan limit approved by BMO or Royal Bank of Canada (RBC). The Rotman School will pay the interest on loan principal up to this maximum basic amount only. Any amounts borrowed in excess of the maximum basic amount or any other products other than the education loan are not eligible for the interest subsidy.
Interest Rates and Fees
Interest rate is at the prime lending rate during enrollment in the Rotman program (paid by the Rotman School).
Please refer to the signed loan contract for actual interest rate.
Optional loan insurance is offered by the banks and the student is encouraged to consider this product. Any loan insurance premium remains the responsibility of the student and is not covered by the Professional Student Loan Plans.
After graduation, interest rate will be as follows:
Bank of Montreal (BMO)
Interest rate will be Prime while you are in school and also for one year after graduation. After that the rate may change as per your loan agreement. If using a Standby Letter of Credit to secure a loan, BMO will assess an administrative fee of $500 annually. This amount will be added to their BMO loan amount and will be interest subsidized. The foreign bank issuing the Standby Letter of Credit may also charge a fee at their discretion, however this will not be interest subsidized by the Rotman School.
Royal Bank of Canada (RBC)
Prime for the first 2 years after graduation (“grace period”). The interest rate is set at prime + 0.5% for the lifetime of the loan after the “grace period”.
Declaration of Need
This online form is completed by the student and serves the following purposes:
- Indicates to the Rotman School that the PSLP loan is required to pay fees. Further documentation to prove financial need is not required in order to access the interest subsidy.
- For interest-subsidized programs: Serves as the application for the interest subsidy during the applicable academic year. The student approved for a loan with a specified Bank of Montreal (BMO) and Royal Bank of Canada (RBC) branches and who submits a Declaration of Need will have their monthly interest payments subsidized.
- Used by the Rotman School to confirm enrollment and maximum basic amount with the banks.
- Provides permission for the Rotman School and the banks to communicate and share information for the purposes of confirmation of enrolment at the Rotman School, payment of interest by the Rotman School during study period, and any collection of the loan after the end of the Study Period.
The Declaration of Need is not required for pre-approval of the loan by the banks. Only a letter of offer of admission to the Rotman School is required. The student can apply to the banks for a loan prior to submitting the Declaration of Need to the Rotman School, available annually beginning June.
Personal information that the student provides to the University is collected pursuant to section 2(14) of the University of Toronto Act, 1971 and will be protected in accordance with the Freedom of Information and Protection of Privacy Act. If you have questions, please refer to the University of Toronto’s privacy information or contact the University Freedom of Information and Protection of Privacy office.
Application Process
The student may apply with a letter of admission up to 12 months prior to the start of the degree program. The student is encouraged to apply as soon as possible in order to avoid delays in processing and to allow time to schedule an appointment with the bank representative for documents to be reviewed and signed.
Applications must be submitted following these application instructions, as these are specialized plans available only through the specified Bank of Montreal (BMO) branches at 242 Bloor Street West (at Bedford Road) and 700 University Avenue (at College Street), and the specified Royal Bank of Canada (RBC) branch at 443 University Avenue (at Dundas Street).
- Apply for the loan directly with the bank.
- Once loan is approved, sign loan documents with bank representative.
- Complete the online Declaration of Need form on starting in June of each year.
Confirmation of Enrollment
The student will provide to the banks their offer of admission letter from the Rotman School in order to apply for and be pre-approved for a loan.
Confirmation of enrollment is provided by the Rotman School to the banks through the Declaration of Need lists. Further documentation to prove registration is not required from the student.
At the end of the student’s study period, the Rotman School will provide to the banks a list of graduating students to confirm the last day for which the Rotman School will cover the interest on the loan.
Loan Disbursement and Tuition Fees Payment
Only students (including returning students) who have submitted the Declaration of Need will have their loans disbursed.
Once the bank loan payment has been received by the University (by mid-September), any payments already made, such as the admission deposit (applicable in the first year of the program only), will also appear on the University of Toronto student account. If fees are already paid in full, any credit balance will subsequently be issued back to the student (via direct deposit) from the University of Toronto starting in November.
Interest-Subsidized Programs
- The Rotman School provides the banks the amount of loans to disburse towards your fees.
- Loan amount equal to the full mandatory tuition fees for each year (as long as loan limit allows for it) will be disbursed to the University of Toronto student account in September (after the fees deadline) of each academic year.
- Payments usually take 3–5 business days to appear on the University of Toronto student account.
- Should the loan limit be insufficient to cover the mandatory fees for the year, the student will be responsible for paying the balance of student fees payment using their other personal resources.
- Loans will be locked by both banks. The only disbursement happens in September in each year to pay mandatory fees, or under special circumstances at the Rotman School’s approval and instruction. Students will not be able to access the loan via cheques, online, ATM, or teller banking. Should a student require extra funds for living expenses, it must be through a separate product and will not be subsidized by the Rotman School.
Non-Interest-Subsidized Programs
- Beginning September 2019, students in the Full-Time MBA program will make their own fees payments, even when using a PSLP loan. The banks will not disburse this amount from your loan automatically, students must make their own payment.
- Should the loan limit be insufficient to cover the MPRA, the student will be responsible for paying the balance of student fees payment using their other personal resources.
- Students will be responsible for making Winter term payments following your payment schedule.
Renewal Process
Because the student applies, and is approved, for a loan for the entire degree program, it is normally not necessary to re-apply to the banks for each subsequent year of the degree program.
The student who was approved for a PSLP Loan in the previous academic year(s) must submit a new Declaration of Need to confirm enrollment, arrange for payment of their tuition fees, and enroll in the interest subsidy for each academic year.”
Fees Deadline
The student is expected to pay their tuition fees (as indicated on their fees invoice) by the stated fees deadline.
Students in interest-subsidized programs: Provided that the student has been approved for a loan at a specified BMO or RBC branch, signed all necessary loan documents, has a loan limit available to cover the required fees, and submitted a Declaration of Need to Rotman by the fees deadline, they will be considered to have paid mandatory tuition fees on time and registered into their degree program, as the banks will forward the funds directly to their University of Toronto student account.
Regardless of whether the banks disburse loans directly to the University of Toronto student account in September, the student is responsible for ensuring their tuition fees (program, incidental, and ancillary fees) are paid in full and for monitoring their fees balance on their University of Toronto student account. Any outstanding balance on the University of Toronto student account are subject to the University for Toronto monthly service charges.
Loan Repayment
The bank representative will review the dates and terms of repayment at the time that loan documents are signed. The standard timeline for students to assume responsibility of the loan falls at the end of the program in their graduating year.
Graduates may pay interest-only payments during the bank-defined “grace period” following completion of the program; beyond this time period, combined principal and interest payments will be required.
Should the student leave the program (withdrawal or leave of absence) before the standard completion time, they immediately assume complete responsibility for the PSLP loan repayment from the effective withdrawal or leave date. Once the PSLP loan is assumed, the student will be fully responsible for payments (on the outstanding loan principal plus interest) according to the terms of the loan. The student who resumes studies after an approved Leave of Absence must resubmit a Declaration of Need; subsequently the Rotman School will resume interest payments on the outstanding loan principal up to the maximum basic amount until the student fulfills all degree requirements.
Termination
Misrepresentation by the student of personal information, financial circumstances, or legal status as a Canadian citizen or permanent resident is grounds for the University of Toronto and the Rotman School of Management to revoke any financial assistance provided for the duration of the student’s program.
Tax Implications
Any interest-subsidy the Rotman School pays on the student’s behalf is considered as a bursary/grant, and fall under “other income” for tax purposes. A T4A Statement of Pension, Retirement, Annuity, and Other Income tax form is mailed to the student in late February each year to reflect the interest Rotman has paid (as well as any Rotman or University of Toronto scholarships, bursaries or fellowships) for the calendar year. However, bursaries/grants are no longer taxable and are no longer reported as income on the tax return when accompanied by a corresponding T2202A Education Certificate.
The interest payments the student/graduate makes on their PSLP loan do not fall under the Canada Student Loans Act or the Canada Student Financial Assistance Act, and therefore are not tax deductible. Only provincial and federal government student loans, such as Ontario Student Assistance Program (OSAP)‘, fall under these two acts.
Important Dates
| Event | Date |
|---|---|
| Loan Applications Open | 1 September (year prior to start of program) |
| Declaration of Need | 1 June |
| Fees Invoice Available on ACORN | Mid-July |
| Recommended Loan Application Completion Deadline | 1 August |
| Fees Deadline | 1 September |
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