How to Study in Canada with Student loan

4 minutes reading time (828 words)

For over a decade, Canada and its government have been one of the most popular study destinations for international students. They provide a safe atmosphere and also are very affordable when it comes to studying there. Even if students have no financial support, they make the process of applying for a student education loan for international students in the country go hassle -free. 

International students can apply for school loans in Canada in the same way as permanent residents and citizens can, with the same interest rates and payback schedules. International students can get Student Education Loans in Canada in the form of credit lines and separate loans.

The money loaned can be used for tuition fees, valid educational expenditures, lodging, travel, and subsistence expenses, just like any other education loan.

There are few documents required to apply for a Student Education Loan in Canada, they are

  • Admission letter from university/institution (proof of admission)
  • Loan application form
  • Passport size photographs
  • Academic records (certificates and mark sheets)
  • Copies of qualifying exams (like GMAT, and IELTS)
  • Resident proof of the student and the guarantor
  • Statements of borrowers' bank accounts (last one year)
  • Income proof of the guarantor

In order to apply for an educational loan to study in Canada, you must meet the following criteria:

Firstly, a student must be enrolled in a diploma, degree, or certificate program at an accredited institution for a minimum of 12 weeks.

The financial support lifetime limit, which is usually 340 weeks, must not have been surpassed.

Depending on their curriculum at a Canadian institution, one should have a great academic record at the high school or undergraduate program level. 

Types of education loans in Canada

Student Loan (Private)

This education loan in Canada is provided by a private financial institution or a bank and is immediately credited to the account of an international student without the involvement of any institution or university. However, if a student wishes to take out a student loan in Canada, the university must furnish the requisite verification documents (enrollment). This form of loan is available to both international and Canadian students in Canada.

Canada's Federal Student Loan

This is a government loan for students who desire to continue their education after high school. One of the most important requirements for obtaining this loan is that the amount to be borrowed must have been validated or signed off on by the institution or university. To ensure that the loan is exclusively utilized for academic purposes, the complete confirmed amount will be credited to the institution's account after approval. This loan is only available to Canadian domestic students.

Education loan in Canada - all expenses covered

It's a good idea to do some research and get a list of educational expenses that each education loan provider in Canada covers. Because private banks provide a variety of schemes, it is necessary to investigate and choose the one that best meets one's financial needs. Aside from the tuition cost, the following fees may arise throughout the course of your studies.

  • Expenses for travel
  • Academic materials are expensive.
  • The cost of staying at the hostel
  • The cost of the laboratory
  • If a laptop is necessary for a specific course, bring it with you.
  • Payments received in exchange for study tours or project labour.

As a result, international students seeking an education loan should look for companies that integrate the above-mentioned criteria in their plans.

In Canada, there are a few things to consider while choosing an education loan.

Compare your options and pick the best one: To save money on interest, compare all private loan catalogs to get the lowest interest rate you qualify for. Check with the lender to see whether they will accept delayed interest payments in some unavoidable circumstances. Also, be sure the lender is reachable by email or phone if you have a customer care issue.

Select a set rate of interest: Choosing a fixed interest rate will help you save money over time by lowering your interest rate.

Also, get in the habit of using a Canada student loan calculator to figure out how much you'll have to pay after the specified number of years.

Although, refinancing may be an option, there are a few things that needs to be done before getting on with it. First things first, improve your credit before refinancing: For example, if you study and work in Canada for a long time and have a stellar credit history, you can immediately refinance your private student loans to a much cheaper interest rate. In this situation, you will be required to provide a higher credit score, proof of consistent income, and a track record of making on-time debt payments.

Fill out the enquiry form now if you want to study in Canada with the help of a student loan! Our expert education counselors will contact you to assist you in completing your study abroad journey needs without any hassle.

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