Education in Canada is gradually becoming costlier for average students. Students have to go through many difficulties to get admission in renowned institutes. To overcome this problem, many students are provided with student loans Canada. These loans are granted to students who want to complete their education. Though this is a good way to encourage students with their studies, it is also a burden on students, as they have to go through the process of debts and loans even before getting a stable job. Government student loans are available in two different ways.
One is through the Canada Student Loan Program, which is a government funded program and the other is through Canadian banks that offer student loans in the form of private loans and debts.
CSLP- short for Canada Student Loan Program-is a loan funded by federal government to Canadian citizens. However, this loan has no interest charges if students wish to avail it for full-time studies at an institute. According to a policy implementation of August 1, 1995, undergraduate students can get a maximum time period of 6.5 years without paying any interest . Students who have taken the loans for a doctoral educational pursuit have 7.5 years to their interest free loans. Lastly, physically challenged students are given a relaxation of 10 years without interest on loans. Crossing this period means paying back the loan with interest charges. It is important that students consider their time period of study before taking on a loan.
Private Banks and Institutions
Government funded loans may be interest free, but the process itself is pretty lengthy and complicated. Students instead opt to take loans from private banks and institutes as the process is fast and effective. However, these private loans may have an interest amount to them that has to be regularly fulfilled, albeit at a low rate. The private loans have different interest rates according to their financial strength, dealings with the university etc. Students must take a word of caution against applying for private loans, as these are totally different from government funds and they have to totally rely on the rules set by the private lender.
Once a student picks on a government student loans , he must be very careful with the way he spends the money. The parents, if possible, should monitor the loan payment by making a budget so that payments are made on time. If the loan is not repaid well, the student might have a bad credit history, before joining the workforce, thus damaging his professional image. Our loans guide, will assist you in finding more about student loans in Canada.
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