Canadian Student Loans

One of the best places to obtain Canadian student loans for Canada college students is through the government. This is important because this is typically where you will get a very good interest rate, making it easier and more cost effective to pay off the loan after your graduation. If you are a fulltime student, no interest will accumulate on the loan until you have graduated or left school. If you are a part time student, however, interest accumulates while you are in school.

In either case, payments are not required until six months after you have graduated or left school. Interest starts accumulating on your loans one month after leaving school or graduating, if you were a fulltime student, even though payments are not due for another five months. You can, however, start repaying the loans while you are still in school, and those payments are applied directly to the principle, significantly reducing the amount that is owed, including interest, once you graduate.

These “student loans in Canada” are available to Canadian students who attend a post secondary institution as a full time student or as a part time student, if financial need is demonstrated. However, regardless of how much financial need actually exists, these programs will only provide up to 60% of the need. The most that you can get from these loans is $210 for each week that you are in school. The other 40% of the financial need will be provided for by provincial or territorial Canada student loans, instead of Canadian federal student loans.

These are ‘directly financed student loans’ from the government of Canada. This is not the same as a guaranteed student loan, or a private student loan, such as a loan you may receive from a financial institution. These are also not ‘risk-shared’ loans, which is a different program. Canada student loans that are issued directly by the government are governed by the Canada Student Financial Assistance Act, and they are administered by the National Student Loans Service Centre, or NSLSC.

Applications for these student loans for Canadian students can be obtained through your high school, the university that you will attend, or through the Student Financial Assistance Office in your province or territory. You can apply online as well, which usually results in a quicker response. Apply as early as possible, since it generally takes four to six weeks for your application to be processed. Loan proceeds are disbursed twice each year – at the beginning and middle of the academic year. You will have to apply for a new loan each year that you are in school, as they do not automatically renew.

After you have applied for all of the Canada grants that you are eligible for, as well as Canadian scholarships that you are eligible for, you may find that you still haven’t completely covered the cost of your education. If this happens, and if you are a Canadian student, you need to then apply for Canadian student loans for college.

Related Reading

BC Student Loans for Canadian Students

CIBC Student Loan Program for Canadian Students

NSLSC National Canadian Student Loan Service Centre

OSAP Ontario Student Loan Assistance Program in Canada

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