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The significance of education can’t possibly be overemphasized, which is why it comes as no surprise that some youngsters would travel to a different country, possibly a different continent for their post-secondary education.
The cost of living in a new country coupled with tuition and associated fees might be too much for a student to handle, which is where the option of Student loans comes in.
A student loan is a lump sum of money that a student gets from the federal government, their state government, or a private company, which they can use to pay their tuition or for other school expenses, and then pay it back after graduation, plus interest.
This loan differs from other types of loans both in terms of interest rate and repayment schedule.
Another feature that separates the loan from others is that the collateral for it is the student’s future income.
Canada International Student Loans
Canada accepts thousands of international students every year from all over the world as students come to the country for the sake of pursuing their studies in one of the best study destinations in the world.
While they are in the country, if students are not able to care for their needs both inside and outside of school, Canada offers international student loan which students can apply for and it will be granted to them as long as they meet the requirements.
What are International Student Loans?
These are private loans offered by specialist education loan providers. They are accessible for international students who are studying at approved universities in Canada.
Loans for International Students in Canada without a cosigner
There are some Canadian universities where both local and international students can apply for a private student loan without a cosigner.
These particular schools have been approved by a lender and instead of asking for a cosigner, the lender only assesses your academic success and career path, amd probably your home country, your expected graduation date and the school you are attending.
Expenses Covered by Student Loans
- Tuition fees.
- Health insurance (if required).
- Educational supplies.
- Books etc.
Student Loans for International Students
Here are the types of student loans specifically available for international students:
Federal Student Loans
The Canadian government offers a federal option known as the Canada Student Loan Program which allows some international students with protected status, such as refugees to borrow loans and pay then back at a later date. Visit the Government of Canada website to see if you’re eligible.
Private Student Loans
The most common option for international students who are looking for Student Loans is the Private Student Loan. The private lender is independent of the government and a cosigner is sometimes not needed.
Types of Student Loans
Most people assume that the only student loans available in Canada are the ones offered by the government but this is not true. In fact, there are numerous options to choose from and each of them comes with their own interest rates, leverages, and repayment methods.
Below are the types of student loans in Canada:
Government student loan programs
There are two options available under this type of student loan, they are the Canada Student Loan Program (CSLP) and the Canada Student Grant Program (CSGP).
1. Canada Student Loan Program: CSLP offers students a loans that can cover up to 60% of their tuition fees.
Requirements to qualify for CSLP
- Student must have a permanent residency in Canada, in the province which issues the grants or loans.
- Student must be enrolled in a degree program for 12 out of 15 weeks.
- A full-time student must take at least 60% of the entire course load in the year.
2. Canada Student Grants Program: This is a an option that every student strives to acquire but due to the strict criteria surrounding it, not everyone gets it. The great thing about CSGP is that students don’t need to pay it back. To qualify, the student must be in dire need of financial aid.
Private student loans
If the funds gotten from the government is insufficient, students can always take up an extra loan, usually in form of a line of credit (student line of credit).
Bank student loans
It is no secret that banks offer different types of loans which include student loans. You can opt for this and pay it back according to the arrangement made with the bank.
Provincial student loans
Another option is to apply for a student loan in your province. The interest rates differ depending on the province.
How to Apply for Student Loans in Canada
If you decide to opt for a private student loan, you can get a line of credit through a bank where you will need to provide certain documentation for the approval of the loan.
However, if you decide to go for a government-funded student loan, you are expected to apply ahead of your academic year. These loans are available per semester, through the province.
It is advisable to apply early so as to know your eligibility status, and if you don’t qualify, you can find an alternative option before it becomes too late.
The following information and documents are needed for the application:
1. Applicant’s Name, DOB, Address, and SIN number.
2. Applicant’s income, parent’s income, and partner’s income (if applicable).
3. Information on any cash, RRSP savings, or RESP savings you may have.
4. Details on the selected program and the institution you plan on attending (Whether you are going full-time or part-time).
However, some provinces offer an online application that does not require documentation such as letters of acceptance or bank statements.
To round off, when you’re thinking of getting a student loan, it is absolutely essential to weigh all your options and gather all the necessary information so as to make an informed decision. We hope we’ve been able to help out with this informative article on Canada International Student Loans.