STUDENT LOANS INFORMATION

Please see information on Student loans below.

        

Student Loans

What is a student line of credit?

First and foremost it is important to understand that a student line of credit or indeed a student loan from a bank is different to a government student loan. A student line of credit is a personal loan from a bank, which helps students pay for their further education. A student line of credit can be applied for at any time during the academic year and supplements a government student loan if you are not able to keep on top of your finances. A student line of credit or bank student loan offers lower interest rates to a typical student credit card or traditional loan so it is worth considering if you need some additional funding to help you with your studying. With a Student Line of Credit you only pay interest on the money that you have used, so if you have not used the full allowance you are entitled to, you will not be paying interest on all the money available to you. A student loan offers flexible credit limits depending on the course you are enrolled on – definitely worth considering if you find you are short at the end of the month and struggling to keep on top of educational costs.

How can I apply for a student line of credit or bank student loan?

You can apply for a student line of credit or bank student loan in addition to a government student loan at any time during the year. To apply and obtain approval for a student line of credit you generally need to be:

  • A full-time student enrolled in a post-secondary school or university.
  • A Canadian citizen.
  • Enrolled in a program that is taught on a full time basis.
  • In a program that will lead to a diploma or certificate.

What risks are associated with a student line of credit?

Although there are no additional risks to a student line of credit when compared to a traditional loan, it is worth noting that a student line of credit often, but not always, requires you to pay the interest on what you have borrowed whilst you are at school. It is important to know this when you apply for a student line of credit or student loan so you know what your monthly outgoings will be. Having said this, you will only be paying interest on what you have actually borrowed, not the full amount of funding that you have access to.

How much can I borrow with a student loan?

With a student line of credit or student loan you are eligible to borrow up to certain amounts of money depending on the course you are enrolled on. Not only this, but the volume of money you can borrow varies based on whether you are studying on a full time or part time basis. Usually full time undergraduates are eligible to apply for $10,000 per year for a maximum of 4 years. It is important to note that some programs may be eligible for additional funds though so do double check when you apply.

Do my parents need to be involved in my student line of credit or student loan application process?

Very often a supporting borrower is required when applying for a student line of credit or student loan, particularly if you are an undergraduate. Your parent’s income will not determine how much you are entitled to, which is not the case with a government student loan. With a government student loan the more money your parents earn the lower your financial aid. Postgraduates may apply for a student loan or line of credit without the help of a supporting borrower.

What is the interest rate on a student line of credit or student loan from a bank?

When researching how to fund your way through further education, the interest rate on your student loan is usually the most obvious place to start. The interest rate on student lines of credit and student loans can be very competitive and in some instances better than a government student loan, student credit card or traditional loan. It is important to double check this before you apply for any credit and seek financial advice should you be in any doubt.

        


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