A student loan is the perfect solution for you if you are struggling to fund your way through further education because your government student loan is not quite enough. A student line of credit offers you flexible credit limits depending on what you are studying, low interest rates and flexible repayment terms. Unlike a traditional student loan, where you receive all your funding up front at the beginning of the year, a student loan allows you to access a specific approved, amount of money every year you are studying keeping you on top of your finances. You are able to use all the money you have been approved for or you can just use a portion of it - this helps you manage debt and reduce the interest costs on the money you have borrowed.
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What is a student loan?
A student loan, also known as a student line of credit, is a personal line of credit that can help students pay for their tuition fees and student expenses when they are needed throughout the academic year. This loan can be used for any purpose the student chooses – tuition, books, accommodation or resources. With a student line of credit you make interest-only payments whilst you are in school or college and then start the repayments of the student loan 12 months following graduation. There is no cost for you to pay if there is no balance on your student line of credit so you can control your spending more easily. You can apply for a student line of credit at any time during the academic year and in addition to a government student loan if you have already received this. It is a great way of supplementary funding if you require more than what you are receiving from your government student loan – which may be the case!
What is the difference between a government student loan and a student line of credit or traditional student loan?
The most important thing to note about a Student Line of Credit is it can be used as supplementary funding for students who need to top up their government student loan. A student line of credit or student loan should not be thought of as an alternative to this loan, but in addition to a government student loan should the financial need arise. With a Student Line of Credit a student only pays interest on the money that they borrow so there is no cost if there is no balance on your line of credit. If you are in any doubt you do not need to hurry your decision, unlike a government student loan, most student loans can be applied for during the academic year so you do not have to rush into a decision if you want to do more research before you commit to a lender.
Are there any disadvantages to a student loan?
A student line of credit or student loan often, but not always, requires you to pay the interest on what you have borrowed whilst you are at school. It is worth checking this before you commit to a provider so you know if you will have monthly outgoings during the time you are studying. It is also worth noting, as not many students realise this until it is too late, interest paid on a government student loan generates an income tax credit, however, this is not the case with a student line of credit or student loan from a bank. Having said this, a student line of credit should or student loan from a bank not be thought of as an alternative to a government student loan but in addition to the loan.
Who is eligible to apply for a student line of credit or student loan?
Any Canadian Citizen who is enrolled on a full time post-secondary school studies program at a recognized college or university in Canada can apply for a student line of credit or student loan. The student must be earning credits towards a certificate program. Full time students are usually those who are enrolled in at least 60% of the normal community college/university course loan as defined by their educational institution.
13 October 2015
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Check Out our latest new product range added to Which Way To Pay: Student Loans
More and more students are find the Educational fees are rising . This is no become more to blame on the Student Loans being offered.
16 July 2015
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Most of the students studying in Canada at present are finding themselves spending more and more on there education , it is now being emerged this is because of the number of student Loans being offered.
06 June 2011
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Almost two million Canadian have taken out student loans. The total Canadian student debt stands at around $20 billion.There is a proportion of student debt that is unrecoverable: Current estimates sit at around $149.5 million.