Everything You Wanted To Know About Student Loans

May 9, 2011 - PRLog -- Education in Canada is gradually becoming costlier for average students. This has made it quite difficult for these students to get admission in good universities. Student loans are now provided in Canada to solve this issue. Students who wish to get proper qualification from institutes can get these loans. Although, this presents a way out of this problem, students still get bogged down in debt and loans even before they land on a proper job. College loans can be acquired in Canada by two methods. (http://www.canadabanks.net/default.aspx?article=Student+Loans)

One way is to apply for the government launched Student Loan Program and the other way is to go for Canadian banks that give loans and debts privately to students as for education purpose only.

Canada Student Loan Program

CSLP- short for Canada Student Loan Program-is a loan funded by federal government to Canadian citizens. However, this loan has no interest charges if students wish to avail it for full-time studies at an institute. According to a policy implementation of August 1, 1995, undergraduate students can get a maximum time period of 6.5 years without paying any interest . Students who have taken the loans for a doctoral educational pursuit have 7.5 years to their interest free loans. Lastly, physically challenged students are given a relaxation of 10 years without interest on loans. Once this time period is crossed, a student will have to pay back all debts with the interest rate. It is important that students consider their time period of study before taking on a loan.

Private Banks and Institutions

Loans that are funded by government, though interest free, are still not without tedious formats. For this reason, students opt for private banks and financial institutions to get loans quickly and effectively. However, these private loans may have an interest amount to them that has to be regularly fulfilled, albeit at a low rate. Another problem is that the interest rates of private banks and institutes differ from each other depending upon the status of the company, the association with the university and so on. Students have to be very careful when they apply for any loan from a private association, as these loans are in no way connected to government funded loans, and you would be at the mercy of the private lender, instead of governmental assistance.

Once a student picks on a government student loans, the borrower must be extremely cautious of the way it is to be spent so as not to over-burden himself. The parents, if possible, should monitor the loan payment by making a budget so that payments are made on time. The main point is that if the payment is not done on time, the student will have bad credit history even before he gets a job for himself and this will damage his professional standing.

Looking for student loans and getting frustrated? Don't be, just visit this student loans guide. http://www.canadabanks.net/default.aspx?article=Canada+St...

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