Student Education Loans to Study in Canada
Are financial constraints stopping you from getting a world-class degree from one of the best academic countries in the world? If you answer yes, then picking Canada is your best bet.
Studying at a Canadian university has a lot of perks. Canada and its government, which has been one of the most popular study locations for international students for over a decade, provide a safe atmosphere and make the application process for a student loan for Indonesian students in the country go hassle-free.
Overseas candidates can apply for student loans in Canada in the same way as permanent residents and citizens can, with the same interest rates and payback schedules. Overseas students can get Student Education Loans in Canada in the form of credit lines and individual loans.
Like every other school loan, one can utilize the borrowed funds for tuition fees, valid educational expenses other than Canadian University fee, lodging, transportation, and subsistence expenses.
Now you're wondering how to study with a student education loan in Canada. Let's start with the basics to gain a thorough understanding of how this works.
Student Education loan in Canada
Based on financial needs, education funding is given through Canada's Student loan program & provincial student loan program. Overseas students studying full time in Canada can receive up to 60 percent of the education cost via the Canadian student loan program and the remaining 40 percent through the special student loan program and it depends on which province you live in.
As an international student in Canada, you would be allowed to get student loans for 3 or 4 years, depending upon your academic qualification, including an extra year in case of difficulties in finishing the program.
Documents required to apply for a Student Education Loan in Canada:
- Admission letter from university/institution (proof of admission)
- Loan application form
- Passport size photographs
- Academic records (certificates and mark sheets)
- Copies of qualifying exams (like GMAT, and IELTS)
- Resident proof of the student and the guarantor
- Statements of borrowers' bank accounts (Previous 1 year)
- Income proof of the guarantor
Eligibility requirements for a Canadian educational loan:
- A student must be enrolled in a diploma, degree, or certificate program at an accredited institution for a minimum of 12 weeks.
- The financial support lifetime limit, which is usually 340 weeks, must not have been surpassed.
- Depending on the degree they enroll in at a Canadian institution, one should have a great academic record at the high school or college level.
Types of education loans in Canada
- The Private Student Loans
- The Federal Student Loans
Student Loans from the Private Sector
This educational loan in Canada is provided by a private financial institution or a bank and is immediately deposited into the account of an international student without the involvement of any institution or university. However, the university must furnish the student who wishes to take out a student loan with the requisite verification documentation (enrollment). This form of loan is available to both international and Canadian students in Canada.
Canada's Federal Student Loans
This is a government loan for students who desire to continue their education after high school. One of the most important requirements for obtaining this loan is that the amount to be borrowed must have been validated or signed off on by the institution or university. Following clearance, the total confirmed amount will be released.
Education loan in Canada - all expenses covered
It is best to conduct research and compile a list of educational expenses covered by each Canadian education loan provider. Because private banks offer a variety of schemes, one must research and select one that best matches his or her financial demands. Aside from the tuition cost, the following fees may arise during your study term.
- Travel expenses
- Cost of academic materials
- Hostel fee
- Laboratory fee
- Laptop - if required for a particular course.
- Payments for study tours or project work.
As a result, international students seeking an education loan should look for companies that include the following criteria in their plans.
So here are some tips for selecting a Canadian education loan
Compare and choose the best option: Compare all private loan catalogs to get the lowest interest rate you qualify for to save money on interest. Check with the lender to see whether they will accept delayed interest payments in some unavoidable circumstances. Also, be sure the lender is reachable by email or phone if you have a customer care issue.
Select a set rate of interest: Choosing a fixed interest rate can help you save money on the interest that rises over time.
Also, get in the habit of using a Canada student loan calculator to figure out your payment.
Elevate your credit before refinancing:
Improve your credit before refinancing: For example, if you study and work 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 required to provide a higher credit score, proof of consistent income, and a track record of timely debt payments.Now you know that financial constraints cannot stop you from obtaining a Canadian degree. Contact our expert counselors to get all of your questions about student loans and how to get into the finest Canadian university or college you desire.