Canadian Student Loan

Canadian student loans are good options for the financing of higher education in Canada. Canadian federal and provincial governments together administer financial assistance for college attendees through the Canada Student Loan Program. There are several types of assistance available in addition to these, including provincial loans, grants, and bursaries (or scholarships). Future students need to prepare and plan for payment for college courses and not miss these important funding opportunities. "Prepare thy work without, and make it fit for thyself in the field; and afterwards build thine house." (Proverbs 24:27)

Both full-time and part-time college attendees can apply for the federal Canadian lending, but only full-timers are eligible for provincial lending. The Canadian student loan is processed through the provincial or territorial college assistance office and is repaid to the federal government through the National Student Loans Service Centre (NSLSC). Eligibility requirements stipulate that the college attendee must be a Canadian citizen or permanent resident. Also, the program of study must lead to a degree, diploma, or certificate.

While a college attendee is pursuing his or her full-time studies, the government pays the interest that accumulates on this type of lending. A college attendee does not need to make any payments on the debt while in school full-time. Once school is finished, the interest will begin to accumulate. College attendees are given a six-month grace period after their studies are completed before they need to start making payments. People who face difficulties repaying their Canadian student loans may be eligible for interest relief and, perhaps, debt reduction.

Residency determines the application process for this lending. Full-time college attendees who are residents of Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, Manitoba, Alberta, British Columbia, or Yukon can apply for both federal and provincial Canadian student loans through their provincial college assistance office using just one application form. However, two types of lending will need to be repaid: one to the federal government through the NSLSC, and one to the provincial government through the bank or other lender that issued the Canadian student loan.

Full-time college attendees who are residents of Ontario or Saskatchewan are eligible for integrated lending. This is an easier form of repayment in that only one amount is repaid to the NSLSC, even though both the federal and provincial governments provided the funding for the Canadian student loans. The Northwest Territories, Quebec, and Nunavut do not participate in the lending program, but they do operate their own financial aid programs. College attendees from these areas can contact their provincial or territorial Student Assistance Office for information on each Canadian student loan opportunity.

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