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The Ins And Outs Of Student Loans In Canada

The Ins And Outs Of Student Loans In Canada

All your focus as a student should be on excelling in your studies, enjoying campus life, and making new or lifelong friends. However, many students are burdened with concerns about how to pay for their studies, never mind being able to eat every day. Fortunately, Canada offers several financial resources to prospective students. We help you assess your needs and tell you where you can get assistance with student loans.

Budget Before You Get a Loan 

Work out how much money you will need to get through an academic year. This will include tuition, meals, accommodation, trips home to your family, academic books, a laptop, and something for entertainment. Start by making a list of all your possible expenses. Make another list of your income sources. This could be from a part-time job, grant, or scholarship as well as family contributions. If possible, you will want to set aside some savings every month in case of unexpected costs that may arise.

Use a good budget tracking application to keep track of your cash flow, debt, and expenses.

Compare prices of items you need to purchase up front, such as Lenovo college laptops and transport. Depending on how far you live from campus, a bicycle may be a cheaper option than a car and quicker than walking.  

Determine if you have an excess or are under on your budget. Consider ways to make up for the shortfall, such as cutting down on some expenses or getting a job. Once you have the final figure, you will know your loan requirements.

Federal Government Student Loans

Canada assists students financially with the Canada Student Loans Program. The name was subsequently changed to the Canada Student Financial Assistance Program (CSFA Program) to indicate that the institution has expanded its assistance from a focus on student loans to providing a wider range of support.

This aid is available for students engaged in post-secondary education who are studying part-time or full-time and come from low to middle-income homes. Additionally, it caters to students with dependents or permanent disabilities. 

All interest repayable on these student loans in Canada has been suspended until the end of March next year.

Other Sources of Student Loans

Your next option is to consider a loan from the provincial or territorial government. Applications for federal loans are also approved by the province. Scholarships may also be offered.

Finally, you can turn to private financial institutions. This is generally in the form of a line of credit for students. This enables you to draw money up to a limit specified by the bank to pay for tuition and other essentials.

Repayments to banks make special concessions for students. The interest you have to pay back will be less than on a federal loan and that is all you have to pay while you are studying and for a grace period after you graduate. The actual loan repayment commences after the grace period.

What’s more, your credit score is enhanced by these loans, provided payments are made by the required dates.

Sorting out your finances will relieve your concerns and enable you to look toward a bright future.