Student Loans In Canada

Students who want to further their education and live in Canada without enough money to get them by can apply for a student loan that is provided by the federal government. This service is made possible with the Canada Student Loans Program (CSLP). There are also loans that are provided by their province of residence. Both full-time and part-time students can get a loan, although, if you are a full-time student, then your loan is interest free while you are in full-time studies. Part-time students, however, have to make interest payments while they are in study, and they must make payments of principal and interest when their part-time studies are over. An upside to this is the fact that they may have grants in conjunction with the loan if they have permanent disabilities or come from a low-income family and the loan can not cover the costs of everything that they need. There is a limit, however, on how much money they can receive each year in loans and grants put together. This is used to make sure that no one is too deep into debt that they can't get themselves out.

To get financial aid, the student must apply through their provincial government for the Canadian and provincial loans. Normally your province of residence is defined as where you have lived in the last twelve moths, but this determination may vary sometimes. Provincial programs only provide students with enough money to cover their basic needs. There are also specific programs for students who wish to pursue a professional program. They are provided with more funds with a line of credit by Canadian charter banks. This line of credit may have a lower interest rate, will not accumulate interest while they are in study, and will not count against government loans and grants.