Posts Tagged ‘canada student loan’

CIBC Student Loan Centre in Canada

October 21st, 2010
CIBC Student Loan Centre

CIBC Student Loan

Canadian students can access a CIBC student loan program in Canada if you are likely to find that you still need more college funds to help pay for your Canada school tuition. When you start looking at the money needed for college, even after obtaining grants, bursaries, and government student loans, you may find that you falling financially short so a good Canada student loan program makes sense.

CIBC stands for Canadian Imperial Bank of Commerce, which is the marriage of two banks that merged in 1961 – the Canadian Bank of Commerce and the Imperial Bank of Canada. Both of those banks were established in the late 1800s, and now the merged bank has a history that dates back almost two hundred years.

When you apply for a CIBC student loan through CIBC, you are not actually applying for a standard student loan in Canada. Instead, you will be applying for a line of credit, referred to as the CIBC Education Line of Credit. It is the CIBC version of a Canada student loan. There are two possibilities for this line of credit – the credit available to undergraduate students, and the credit available to graduate students.

Unlike a traditional loan, you do not pay the principle of the credit that you have used until a year after you graduate, or six months if you leave your program of study without graduating. Unlike a Canadian student loan, however, you do have to pay interest on the credit that you have used while you are still attending school. This is the rule for the undergraduate line of credit and the graduate line of credit.

CIBC Student Loan Centre Program in Canada Explained

Under the undergraduate line of credit program, you can use up to $40,000 of your credit line through your four years of school. Those who are in graduate programs can use up to $150,000. Only certain graduate programs are approved for this extended line of credit. But other graduate students are still eligible for the funds available through the undergraduate program, even if they are already graduate students. If you are a full time undergraduate student, you can use up to $15,000 of credit annually, and if you are a part time undergraduate student, you can use up to $7500 annually in CIBC student loans.

The funds obtained from this line of credit are not paid to your school. Instead, you use your ATM card to draw the funds out of an ATM, or you can write a check for the funds. You only pay back the funds that you use, plus interest – not the entire line of credit that was available to you. Once the loan becomes payable, it is converted to a personal loan, and is no longer an educational line of credit. The interest that is added to the amount that you owe is based on the prime rate at the time that you start making payments, and this is also true for the interest that you pay on the line of credit while you are still in school. This is how simply a CIBC student loan works. It’s flexible for Canadian students when they need access to money fast all they have to do is write a check from the CIBC student loan checkbook.

Because these are actual lines of credit through a financial institution, you must either have good credit to be approved, or you must have a co-signer who has good credit. For more information go to CIBC student loan.

Canada Student Loan Debt for Canadian Students

October 14th, 2010
canadian student loan debt

Canada Student Loan Debt

If your a Canada student and slowly falling in debt with loan after loan financing your college education, those Canada student loans may seem like a virtual lifesaver at the time so you can stay in school. However, once you have graduated from college, or left school, those loans will become due. Suddenly, Canada student loan debt doesn’t seem like a lifesaver. In fact, those loans could feel more like weights that are pulling you under a sea of debt, making it hard to breathe.

Depending on how long you attended school, and how much you received in grants, bursaries, and scholarships, you could have an astounding amount of Canadian student loan debt facing you six months after your graduation. In fact, that debt could be the largest expense you have each month, and depending on the size of the debt, it could take you all of your working years to repay that debt. You don’t want to feel like you attended college for the purpose of paying off the loans to pay for that education.

Fortunately, you have some options. You could consolidate your Canada student loan debt, creating one payment, which could be lower if you can negotiate a lower interest rate. Before you do this, however, you should check with the administrator of your loan, or the Canadian student loan service centre, to see how much of your loan could be forgiven, or at least significantly reduced.

The first program that you should look into is Interest Relief. This option is available to individuals who are temporarily unable to make their Canada student loan payments due to low income or unemployment. You can get relief from the interest on your loans for a period ranging from six months to thirty months, and this is determined on a case-by-case basis.

If you have long term financial problems, you may be eligible for Debt Reduction in Repayment. This lowers the total amount, or principle that you owe, which reduces the monthly payment, making it more affordable for you. You can actually receive up to three reductions, for a total reduction of approximately $26,000.

You can also do a Revision of Terms, which can decrease your monthly payments, by increasing the length of the loan by up to five years. There is also a program that covers you in the event that you become permanently disabled.

Finally, the Canada Repayment Assistance Plan, which came into effect in 2009, is available to those who have a lot of Canadian student loan debt who are having difficulties in paying them off. Through this program, your loan can be extended, your payments will be adjusted based on your income and expenses, and the loan payment will not exceed 20% of your monthly income. Under this program, you may not even have to make payments until your income increases. Canada loan forgiveness is available to those who become permanently disabled, if they are unable to work, under this program.

For information regarding the repayment of your Canada student loans, or making them more affordable, visit the National Student Loans Service Centre. There are options that will help you get your Canada student loan debt payments under control, making them more affordable.


Related Reading

Canada Student Loan Application Advice

Canada Student Loan Application Advice

October 12th, 2010

application canadian student loan

Canada Student Loan Application

Here’s what you need to know about filling out a Canada student loan application when you’re a senior in high school or just looking to attend college in Canada. If you are Canadian, and planning to attend college, you will need financial help, in most cases. Higher education is expensive, and these days, parents and students simply cannot shoulder the entire cost without assistance. You will have to fill out a Canada student loan application – but you need to know which application to fill out first.

The first thing that you need to know is that regardless of where you live, or where you will be attending school, you must apply for your Canadian student loans in the province or territory where you reside – where you are a permanent resident. You may also be eligible for multiple Canada student loans – those that are offered by the Canadian Government, and those that are offered by your province or territory. In some cases, you are not eligible for those that are offered by the Government if you live in certain provinces or territories however.

For example, you are eligible for Canada student loans and provincial or territory loans or grants if you live in Alberta, British Columbia, Manitoba, Nova Scotia, or Prince Edward Island. You are only eligible for the Canada student loan program if you live in Labrador, New Brunswick, Newfoundland, Ontario, or Saskatchewan, since these territories work in partnership with the federal loan programs. If you live in the Northwest Territories, Nunavut, or Quebec, you are not eligible for Canada student loans, and instead you must depend on the student loan programs in these territories. In the Yukon, there are no territory loans available, and you are only eligible for Canada student loans.

If you are a part time student, you will not be eligible for provincial or territorial student loans in most cases. In these instances, you can only get Canada student loans, and then only if you are eligible for these student loans based on where you reside.

The application process is different from one territory or province to another. For example, if you live in New Brunswick, Newfoundland, Labrador, Ontario, or Saskatchewan, you will only complete one application, and this will cover territory loans as well as federal loans. Additionally, this one application will also cover the application for any grants that you may be eligible for. Your loans and grants are all combined into the same payments, and the same repayment plan.

The same is true if you live in Alberta, British Columbia, Manitoba, Nova Scotia, or Prince Edward Island, except that you may have two loans to manage and repay. In the areas where Canada student loans are not available, the application only covers the Canadian student loans available in your province or territory, and they may or may not cover grants in that area as well. This is information that you will have to obtain through that financial aid office.

For more information go to Canada student loan applications. If you aren’t sure as to what financial aid or Canadian student loan program you are eligible for, talk to your guidance counselor at your high school, or the financial aid office in the province where you live for more information.

Canada Student Loan Program for Canadian Students

October 12th, 2010
Canadian Student Loan Program

Canada Student Loan Program

When considering what best Canada student loan program Canadian students should look into, getting it right the first time around will save you from redoing things over. If you are planning to attend college, the chances are very good that you will need some level of financial assistance to help pay for it. This is often even true for those who have college savings. If you plan on securing a Canadian student loan, there are things that you need to do before applying for the Canada Student Loan Program.

Scholarships before a Canada Student Loan Program
The first thing that you should do is to apply for any scholarships that you may be eligible for before any Canadian student loan program. Check with private foundations, community service organizations, corporations, and small businesses. Consider all of your talents and your academic standing when you are searching for potential scholarship opportunities, and don’t forget to include scholarships that are awarded based on physical characteristics, your heritage, illnesses, or other factors. Scholarships, of course, do not have to be repaid.

Bursaries before a Canada Student Loan Program
The next step is to look into Bursaries. Bursaries are essentially scholarships that are awarded by the Federal Government of Canada, but some provinces or territories also have Bursaries available. These do not have to be repaid, and they are awarded based on academic need, but a show of outstanding citizenship will also help you to win these awards.

Canada Federal Grants before a Canadian Student Loan Program
Following Bursaries, you should look into federal grants, as well as grants that are only offered in your province or territory. Grants are available to those who are permanently disabled, those who have children, and those who have financial need. Additionally, if you are a woman and you are working towards a doctorate degree, you will also be eligible for grants. Grants, like scholarships and Bursaries, do not have to be repaid. This amounts to anywhere from $2000 to $8000 per academic year in free funds to help pay for your education.

Canada Work/Study Jobs before Student Loan Program from Canada
Another option for financing your education in Canada is Work/Study Jobs. These jobs are available through your college or university, and it is essentially a part time job. This work/study program helps to fund your education, which will significantly reduce the amount that you might owe in student loans when you finish school. Work/Study jobs get snapped up fairly quick, and there are a limited number of jobs. Make sure that you apply for the work/study program through your school as soon as possible.

Federal Government Canada Student Loans
The final option is to apply for Canada student loan programs. You need to apply for loans that are available from the Federal Government in Canada, as well as the Government of your providence or territory. In providences or territories where it is possible to obtain both types of loans, one application takes care of everything. These are the least expensive Canadian student loans that you can get, but if you need more funds to pay for your education, you can additionally apply for Canada student loans through private financial institutions as well.

For more information regarding how to pay for your college education in Canada go to: Canada student loan. You also need to visit the Canada student loan service center for your providence or territory to make sure that you are getting all of the aid that you are eligible for.

Related Reading

BC Student Loans for British Columbia Students

CIBC Student Loan Program

NSLSC (National Student Loan Service Centre)

OSAP Ontario Student Loans