Yes, you can use FAFSA to get US federal Direct Loans at eligible Canadian universities and colleges. Federal grants such as the Pell Grant are not available at foreign schools.
Many Canadian institutions take part in the US federal student loan program, and many are also approved for GI Bill benefits. This guide explains which US aid you can use in Canada, how to check if your school is eligible, and what changed for 2026-27.
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What US Federal Aid Can You Use in Canada?
Note: To use federal loans at a foreign school, your program must be at least one academic year long, lead to a certificate, diploma, or degree, and be studied in person. Programs taught partly or fully online or by distance education are not eligible.
How to Check If Your Canadian School Is Eligible
- Go to the FAFSA school search on StudentAid.gov.
- Search by foreign country and select Canada.
- Look for your school and note its Federal School Code. You will need it for your FAFSA.
- Contact the school's financial aid office to confirm it can certify US federal loans for your program.
How to Apply for Federal Loans for a Canadian School
- Complete the FAFSA. You must submit a Free Application for Federal Student Aid (FAFSA) and list your Canadian school's Federal School Code.
- Get admitted. Apply to your program and accept your offer.
- Work with the school's financial aid office. The school calculates your cost of attendance and certifies your loan. Ask about their process and deadlines early, as they can differ from US schools.
- Complete entrance counselling and the Master Promissory Note on StudentAid.gov, if this is your first federal loan.
- Plan for timing. Loan funds are usually released close to the start of term, so you may need other money to cover deposits, travel, and your study permit proof of funds.
Tip! A confirmed student loan can help you show proof of funds for your Canadian study permit. Ask your school's financial aid office for a letter confirming the amount. See the proof of funds requirements.
What Changed for Federal Loans in 2026-27
New federal student loan rules took effect on 1 July 2026. The biggest change for graduate students is that Grad PLUS loans are no longer available to new borrowers. New annual and lifetime limits also apply to graduate Direct Unsubsidized Loans. Students who already had federal loans for their current program before 1 July 2026 may be able to keep borrowing under the old rules for a limited time. Check StudentAid.gov for the limits that apply to you.
Compare the full cost of studying in Canada
See how Canadian tuition compares with out-of-state and private US tuition.
Using GI Bill Benefits in Canada
Veterans and eligible family members can use GI Bill benefits at Canadian schools that are approved by the VA. Check approval using the VA's search tools, such as the GI Bill Comparison Tool, and contact the school's VA certifying official.
Under the Post-9/11 GI Bill, benefits at foreign schools generally include:
- Tuition and fees: paid up to a yearly cap for private and foreign schools. For 2026-27, this cap is about USD 30,900. You pay any amount above the cap.
- Housing allowance: based on a national average rate, rather than a local rate for your school's location.
- Books and supplies: a yearly stipend of up to USD 1,000.
Disclaimer: GI Bill rates and rules change each academic year and depend on your benefit level. Confirm your entitlement with the VA before you enrol.
Other Ways to Fund Your Canadian Studies
- 529 savings plans: Withdrawals can usually be used tax-free for qualified expenses at foreign schools that are eligible for US federal student aid.
- Canadian scholarships: Many Canadian universities and colleges offer entrance scholarships to international students. See entrance scholarships.
- Private loans: Some private lenders offer loans for study abroad. Compare interest rates and terms carefully.
- Part-time work: You can usually work up to 24 hours per week off campus during academic terms.
Frequently Asked Questions
No. Federal grants, including the Pell Grant and TEACH Grant, cannot be used at foreign schools. You can still use federal Direct Loans at eligible Canadian schools.
No. Only schools that take part in the US federal student aid program can certify federal loans. Search for your school's Federal School Code on StudentAid.gov and confirm with the school's financial aid office.
No. Programs delivered partly or fully by distance education at foreign schools are not eligible for federal loans.
Only if the school and program are approved by the VA. Check approval with the VA before you apply, and contact the school's VA certifying official.
US federal loans and GI Bill benefits can make studying in Canada much more affordable. Check your school's eligibility early, complete your FAFSA, and work closely with the school's financial aid office to make sure your funding is ready when you arrive.
Plan your move to Canada
Follow our step-by-step guide, from choosing a program to getting your study permit.