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The cost of education in Canada is greatly subsidized by the Canadian Government and is far more affordable than our neighbour, the United States. However, this doesn’t mean education is free or even affordable for many Canadians. In fact, according to Statistics Canada, the average amount of student debt accumulated at the time of graduation for an undergraduate degree is $28,000.
If you’re currently looking to pursue a degree, it’s important to be aware of all the available student loan programs in your province.
Both the government and private student loan companies offer students various student loan programs to finance their education. Here are some of the student loan programs offered by the federal government of Canada:
The CSLP is a student loan program offered to all Canadians (except in Québec, Nunavut, and the Northwest Territories) in need of a loan for education purposes. Essentially, the loans are given on a financial need basis; the Canadian government pays the interest to the financial institution on the loan until graduation. In 2013-2014 almost half of a million loans were given to full-time students in need.
To be eligible for this program you must be:
The loans offered to students in Canada are limited; in fact, undergraduate students are eligible to receive interest-free assistance for only up to 340 weeks and graduate students up to 400 weeks. Once these time periods are up, interest on the loan will start accumulating and payment will be required.
This program offers many Canadian students grant based on their financial needs. Income and family size are also considered when settling on the amount given to students.
Generally, the grants are awarded as follows:
For students with disabilities or students who have children, the program offers different grants for every need. The Canadian student grant program does not require its recipients to repay any of the money they receive. This makes it a great option for students who come from low-income families.
The requirements for the student grant program are very similar to the requirements of the student loan program. The student grant program is available for part-time and full-time students. Being able to prove that you are financially in need of help is the most important part.
If you are a student in need do not hesitate to contact or to visit the website of the Canadian Government and apply for this program. Investing in yourself is the first step to take if you’re looking to change your lifestyle and transform your future.
If you are given a limited grant from the federal government or are denied entirely, your province or territory may offer you some financial support. Here is a brief breakdown of what each province and territory offers qualifying students:
Province | Student Financial Programs | |
Ontario | Ontario Student Assistance Program (OSAP) | Learn More |
Quebec | Aide financiere aux etudes | Learn More |
Alberta | Alberta Learning Information Service (ALIS) | Learn More |
British Columbia | StudentAidBC | Learn More |
New Brunswick | Student Financial Services | Learn More |
Manitoba | Manitoba Student Aid | Learn More |
Nova Scotia | Nova Scotia Student Assistance Department | Learn More |
Prince Edward Island | PEI Student Financial Services | Learn More |
Newfoundland and Labrador | Newfoundland and Labrador Student Aid | Learn More |
Saskatchewan | Saskatchewan Student Aid | Learn More |
Northwest Territories | NWT Student Financial Assistance | Learn More |
Yukon Territory | Yukon Student Financial Assistance | Learn More |
There are several ways to access financing to cover the cost of post-secondary education tuition besides government-issued student loan programs. You can apply for student loans with student loan companies, or in other words student loan lenders. Through these lenders, you can get a personal loan or line of credit to finance your education.
You can use the funds from a personal loan to cover the cost of post-secondary education and school-related expenses. Personal loans are installment loans that are made for anywhere between $1,000 to $50,000. Loan terms range from 1 to 7 years, and interest rates vary from 2.00% to 46.96%.
The rate and loan amount you can qualify is based on your income, debt, and credit score. If you opt for a shorter loan term, you’ll pay much less interest over time, though your installment payments will be higher. Conversely, longer loan terms mean smaller installment payments, but you’ll pay a lot more interest over the life of the loan.
A student line of credit works a little differently than a traditional loan. Instead, it works somewhat like a credit card.
With a student line of credit, you’ll have access to a certain credit limit. You can borrow from this credit account as often as you wish, as long as your withdrawals do not exceed the limit.
Interest is charged on the withdrawn amount. Once you withdraw from your account, you’re automatically required to make monthly payments. Once you repay the borrowed funds, you no longer pay interest until you draw from the account again.
Credit limits are typically higher for full-time students compared to those studying on a part-time basis. Amounts usually range from $10,000 to $20,000 per year based on the type of degree you’re pursuing, such as a diploma, degree, master’s, or doctorate.
To apply for a student loan with the government or student loan companies, follow these steps:
If you choose to apply with the government, you’ll need to first create an account. Go online to the website of your province or territory’s student aid office to get started.
If you choose to apply with a lender, simply visit the lender’s website to fill out an online application.
Whether you apply with the government or a regular lender, you’ll need to complete the application and include these basic pieces of information about yourself:
Add information about your program, such as:
Both the lender and student aid office will need to know about your financial situation to determine how much you are eligible for, such as:
Review your application carefully to ensure all information is accurate. If it looks good, submit it. Some websites might give you a quick estimate of your funding shortly after submission, while others could take days or even weeks.
The sooner you apply, the better.
Once your application has been reviewed your application, you’ll be notified of the official amount you’re eligible for. You may need to provide your bank account information for direct deposits and for loan repayment withdrawals. You’ll then receive the funds in one lump sum.
Student loans can make it possible for many Canadians to attend a post-secondary education facility, given the sky-high cost of college and university tuition. Students can get access to financing assistance both from the federal or provincial governments. Otherwise, many conventional and private lenders offer financing to students to cover post-secondary tuition.
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