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Family Student Loan Agreement

Family tuition help usually spans four years and a dozen e-transfers — a shape that memory handles terribly. A family student loan agreement with a written deferral turns the blur into one clear obligation that starts when the degree does its job.

University financial-aid offices can’t paper the family side; a lawyer would charge $450+ to. This does it for $29, and drafting is free.

Before school: set the shape

Decide the total, or the per-year amount, before the first tuition instalment. “We’ll cover what you need” is generous and unaccountable in equal measure — four years later, neither side can say what was lent. A stated figure (“up to $12,000 a year for four years, advanced each September and January”) keeps the help countable without making it cold.

During school: nothing owing, everything recorded

The agreement’s deferral clause does the quiet work: no payments while enrolled, interest at zero (or accruing at a stated rate, if you choose), each advance dated. The student focuses on the degree; the ledger keeps itself. If circumstances change — a dropped semester, a co-op year with income — the schedule can be amended in writing rather than renegotiated from memory.

After graduation: the part everyone forgot to define

This is where undocumented tuition help goes wrong — not in bad faith, but in mismatch. The parent assumed repayment would start with the first job; the graduate assumed it was mostly a gift. A written start date (“six months after graduation”) and a modest schedule (“$250 a month”) means the first paycheque arrives with no surprises attached. And if you later decide to forgive some or all of it — a graduation gift with real weight — forgiving a documented loan is a deliberate act of generosity rather than a default nobody mentions.

Drafting is free; one $29 fee at signing (the borrower’s by default, switchable) seals the PDF with both e-signatures and a verification certificate.

Put the deal in writing before first semester

Deferral written in, repayment mapped, both signatures on file.

Create my loan agreement →

Questions families ask about student loans

Can repayment wait until after graduation?

Yes — that's the natural design, and the agreement should say it explicitly: no payments during enrolment, a defined start (say, six months after graduation or leaving studies), then a fixed schedule. Writing the deferral down is what makes the generosity unambiguous and the obligation real.

My student is 17 — can they sign?

Not yet, in any province. Ages of majority are 18 or 19 depending on where you are, and a minor's contract may not bind them. Either wait for the birthday, or structure the first year differently with advice — the builder checks ages against the governing province.

Should the loan cover everything or top up government aid?

Most families lend the gap — what tuition and living costs exceed government student aid, which usually carries better terms than any private arrangement. A family loan agreement can cover each year's top-up as a stated total or as scheduled advances.

Interest on a loan to your own kid's education?

Almost always zero, and that's fine legally. If you want a token rate to signal seriousness, the CRA prescribed rate (3% for 2026) is the conventional pick; the federal cap of 35% APR is the outer legal boundary.

About this page

Operator: RULE8 Inc. — Lend Right is a RULE8 Inc. product. Page reviewed July 3, 2026, Lend Right Editorial Team.

Legal footing: provincial ages of majority (18 or 19 — the builder checks); provincial limitation and electronic-commerce statutes; Criminal Code s. 347 (35% APR ceiling); CRA prescribed rate, 3% for 2026.

Limits: document automation with general information — not legal, tax, or financial-aid advice; no lawyer-client relationship; Quebec not yet supported. Government student aid has its own rules and usually better terms — compare before lending.

Signatures: e-signing binds ordinary contracts in supported provinces; the sealed PDF’s certificate records signers and timestamps. Evidence is the document’s job — the facts decide outcomes.

Lend Right provides self-help document automation, not legal advice, and no lawyer-client relationship is created. For complex situations, consult a licensed lawyer in your province.