EDUCATION LOANS IN CANADA
Student loans in Canada help post-secondary students pay for their education in Canada. The federal government funds the Canada Student Loan Program (CSLP) and the provinces may fund their own plrograms or run in parallel with the CSLP. In addition, Canadian banks offer commercial loans targeted for students for students in professional programs.
Table of Contents 1. Government loans 2. Histroy 3. Students in professional progrms 4. Loan administration and repayment 5. Repayment assistance 6. References 7. External links
Government loans
Canada citizens, permanent residents of Canada living in any province for over a year , and protected persons are normally eligible for loans provided by the federal government, through the CSLP, in addition to loans provided by their province of residence. Loans issued to full-time students are interest free while a student is in full-time studies. Students receiving a Canada Student Loan (CSL) for the first time on or after August1, 1995, are eligible for up to 340 weeks ( 6.5 years) of interest-free assistance. Students in doctoral programs are eligible for an additional 60 weeks, up to 400 weeks (7.5 years). Students with permanent disabilities and students who received their first CSL prior to August1, 1995 are eligible for up to 520 weeks of assistance (10 years).
History : Prior to 1964, the national students loan program was known as the Dominion- Provincial Student Loan Program. This Program was a matching grant partnership system between the federal and provincial governments. It was started in 1939 and ended with the start to the CSLP in 1964. Some text from the Department of Human Resources and Social Development Canada. The CSLP was created in 1964. Since it is inception. the Program has supplemented the financial resources available to eligible students from other sources to assist in their pursuit of Post- secondary education. Between 1964 and 1995, loans were provided by financial institutions to post-secondary students who were approved to receive financial assistance. The financial institutions also administered the loan repayment process. In return, the Government of Canada guaranteed each Canada Students Loan that was issued, by reimbursing the financial institution the full amount of loans that went into default.
Students in professional programs
Most charter banks in Canada have specific programs for students in professional program (e.g.medicine) that can provide more funds than usual in the form of a line of credit, sometimes with lower interest rates as well. Students may also be eligible for government
Most charter banks in Canada have specific programs for students in professional program (e.g.medicine) that can provide more funds than usual in the form of a line of credit, sometimes with lower interest rates as well. Students may also be eligible for government
loans that are interest free while in school on top of this line of credit, as private loans do not count against government loans/grants.
Loan administration and repayment
Thae Canada Students Loan (sometimes referred to as the National Student Loan) is administered by National Students Loan Service Centre.
Repayment assistance
CSLP offers a number of programs to assist students who find themselves facing financial difficulty during repayment. Among these programs are:a. Interest Relief b.Debt Reduction in Repayment. c. Revision of Terms d. Permanent Disability Benefit
References :
1. "Determining Eligibillity for Canada Students Loans"
2. "How long can i apply for and receive student financial assistance?
3. "Frequently Asked Questions-13"
External links : * Canlearn.ca *Canada Student Loans Program * Provincial/Territorial Student Loan Offices