Are financial constraints stopping you from earning a world-class degree from one of the best academic countries in the world? If you answered yes, then Canada would be your best choice.
Studying at a Canadian university has many advantages. Canada and its government have been one of the most popular study locations for international students for over a decade. They provide a safe atmosphere and make the student loan application process for Indian students hassle-free.
Overseas candidates can apply for student loans in Canada like permanent residents and citizens, with the same interest rates and repayment schedules. Overseas students can get Student Education Loans in Canada through lines of credit and individual loans.
Like every other school loan, loan funds can be used for school fees, legitimate educational expenses other than Canadian University, lodging, transportation, and subsistence expenses.
You may now be wondering how to study with student education loans in Canada. Let’s start with the basics to understand how it works thoroughly.
Student Education Loans in Canada
Education funding is provided through the Canada Student Loan Program & provincial student loan programs based on financial need. Overseas students studying full-time in Canada can receive up to 60 percent of the cost of education through the Canadian student loan program and the remaining 40 percent through a special student loan program. It depends on the province where you live.
As an international student in Canada, you will be allowed to get student loans for 3 or 4 years, depending on your academic qualifications, including an additional year if you have any difficulties completing the program.
Documents required to apply for Student Education Loans in Canada:
- Acceptance letter from university/institution (proof of acceptance)
- Loan application form
- Passport size photo
- Academic records (certificates and mark sheets)
- Copies of qualifying exams (such as GMAT, and IELTS )
- Proof of student and guarantor residency
- Borrower’s bank account statement (1 year previously)
- Proof of guarantor’s income
Eligibility requirements for Canadian education loans:
- A student must be enrolled in a diploma, degree, or certificate program at an accredited institution for at least 12 weeks.
- The lifetime financial support limit, usually 340 weeks, must not be exceeded.
- One must have a good high school or college academic record, depending on the degree one enters at a Canadian institution.
Types of Education Loans in Canada
Private Student Loans
Federal Student Loans
Student Loans from the Private Sector
Private financial institutions or banks provide these education loans in Canada and are immediately deposited into international students’ accounts without the involvement of any institution or university. However, universities must provide students who wish to take out student loans with the necessary verification documentation (registration). This form of loan is available to international and Canadian students in Canada.
Canadian Federal Student Loans
This is a government loan for students who wish to continue their education after high school. One of the most important requirements for getting this loan is that the amount to be borrowed must be authorized or signed by the institution or university. Upon clearance, the confirmed total will be released.
Education loans in Canada – all expenses covered
It is best to research and compile a list of educational expenses covered by each Canadian education loan provider. Since private banks offer various schemes, one should research and choose the one that best suits his financial needs. In addition to tuition fees, the following costs may arise during your studies.
- Travel expense
- Cost of academic materials
- Dormitory fees
- Laboratory fees
- Laptop – if required for certain courses.
- Payment for study tours or project work.
As a result, international students looking for education loans should look for companies that include the following criteria in their plans.
So, here are some tips for choosing a Canadian education loan
Compare and choose the best option: Compare all personal loan catalogs to get the lowest interest rate you qualify for to save on interest. Check with the lender to see if they will accept delayed interest payments in some unavoidable circumstances. Also, ensure the lender can be contacted via email or phone if you have customer service issues.
Choose a fixed interest rate: Choosing a fixed interest rate can help you save money on interest that increases over time.
Also, get used to using the Canada student loan calculator to figure out your payments.
Improve your credit before refinancing:
Improve your credit before refinancing: For example, if you studied and worked in Canada for a long time and have a good credit score, you can immediately refinance your private student loans at a cheaper interest rate. In this situation, you will be asked to provide a higher credit score, proof of consistent income, and a track record of paying debts on time. Now you know financial constraints cannot stop you from obtaining a Canadian degree. Contact our expert advisors for all your questions about student loans and how to get into the best Canadian university or college you want.