Student Loans

Canada Student Loans

Canada student loans represent the main financial aid for post-secondary students that need to pay for their college studies. Financial aid programs are available only for Canadian citizens and permanent residents, as well as for persons with a protected status. Full-time students can receive interest-free loans for the complete period of their studies. Canada student loans are also provided to students with permanent disabilities or to those that follow doctoral programs. Calculating the length of the studies and the maximum loan amount in comparison is very important in order to fully understand the extent of the program to which you can get access. Here is a clear example of how things stand.

For instance, the maximum graduate degree programs specific to the best Canada student loans cover 400 weeks. But if one needs to follow a BA, an MA and a PhD, the period will be significantly longer, somewhere around 11 years of academic studies. This means that many graduate students will discover that they no longer meet the criteria of eligibility for student loans. When the graduate exceeds the 400 week timeframe, he/she is expected to repay the loan and the interest accumulated during the period of full-time studies.

With Canada student loans, repayment starts the moment they are no longer students. Some other obstacles related to post-secondary education can be faced by applying for grants as a form of supplementation for the loans. The assessment of needs is usually made before the approval of the loan. There are some maximum amounts of debt that can be accumulated by one student alone. Thus, normally, Canada Student Loans cover around $210 per week in the case of full-time studies. For part time loans the maximum sum is of $4,000 at a time. The province of residence may however allow access to further assistance in the form of grants.

As for repayment, the beneficiaries of Canada student loans can choose between a fixed interest rate or a floating interest rate. Financial difficulties can be encountered during the repayment period, but there are also various options meant to assist students go through the repayment more easily. You can apply for an interest relief when you are currently unemployed or have a too low income. The interest relief is granted for a period ranging between 6 and 30 months. Another solution is the debt reduction in repayment that brings the monthly rate-plus-interest at an affordable level on the basis of the family income.

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