Both full-time and part-time students can receive grants and loans through the Canada Student Financial Assistance Program to help pay for their post-secondary education.
Apply through your province or territory of residence using just one application.
You are not required to repay grants.
After graduating from college, you will need to repay your loans.
You might be qualified for multiple grant types; your province will determine your eligibility for each grant when you submit an application.
The Basics of Student Loans in Canada
The phrase “student loan” refers to a wide range of financial products, including personal loans, student credit lines from banks, and installment loans backed by the government. We’re going to concentrate most of our attention on the most typical sort of student loan in Canada, which is issued by the provincial or federal government (or sometimes both).
Government loans for students
The federal and provincial governments of Canada provide student loans that cover not just the cost of tuition but also living expenses and textbooks. The amount of federal and provincial student loans that you will receive will depend on your demands, so they could not fully cover your expenses. Your loan provider will consider a number of factors when determining the quantity of the student loan you will receive when you apply for one. These elements consist of:
- Your earnings
- Your parent’s earnings
- Whether you are enrolled in full- or part-time education
- How long has it been since you completed high school?
- What kind of post-secondary training you intend to obtain
- No matter if you have children
- No matter if you have access to funds from a Registered Education Savings Plan
- Whether you intend to move away for post-secondary education
- Regardless of whether you have funds in registered or non-registered accounts,
Additional details regarding mitigating conditions
Your loan provider will use this data to assess your eligibility for financial aid. You might be granted a loan sufficient to pay for your tuition, books, and living costs, or you might not. In order for your application to be properly evaluated, it is crucial to disclose any unusual factors in your situation, such as if one of your parents is now ill and unable to provide for your financial needs.
In most cases, you can apply for federal and provincial loans using the same application; however, this isn’t always the case, so make sure to check. Your post-secondary institution may receive your loan funds directly, or they may be transferred into your bank account. Your government-issued student loans won’t accrue interest while you’re still in school, and you’ll have a grace period of six months following graduation during which you won’t have to make any payments. You will begin paying back your student loans on a monthly basis after the grace period is over until the sum is paid in full.
Private institutions and other lenders of student loans
You may need to consider other options if you are not eligible for government student loans or if the amount of the loan is not sufficient to pay for your entire post-secondary education. If so, you may want to think about the following alternatives:
- Student Line of Credit: Offered by the majority of banks and credit unions, a student line of credit is comparable to a regular line of credit in that you are approved for a maximum limit but only have to pay interest on the funds that you actually withdraw. Student credit lines typically only require interest payments while you are a student, and some of them convert to installment loans once you leave.
- Bank or personal loans Loans to Students Numerous lenders, including conventional banks and online lenders like Loans Canada and Loan Connect, offer personal loans. To reduce the payments you’ll have to make while you’re in school, you should only borrow as much as you need to pay back personal loans, which are typically repaid monthly over time.
Maximum lifetime student assistance allotment
The total number of weeks you can receive student aid is subject to lifetime restrictions. This includes the times when there is no interest when you are in school. When a lifetime cap is reached, interest begins to build up. Additionally, you must begin repaying the loan six months after you graduate or complete your studies.
Except for students participating in doctorate studies, who may get financial aid for up to 400 weeks, full-time students are only permitted to receive it for up to 340 weeks.
Up to 520 weeks of educational help are available to children with disabilities.