Posts Tagged ‘canada student loans’

Student Loan Debt causing Financial problems for Canada Students

February 18th, 2013
Canada Student Loan Debt

Canada Student Loan Debt

Canada Student loan debt seems to be prevalent everywhere, even for Canadian students looking to make more money when they graduate by pursuing a post secondary education.  Most of the students in Canada are pursuing post secondary education in order to secure a good job and to become a more productive employee. Therefore, a good educational background can help the youngsters in Canada to make more money. A large number of young Canadians consider post secondary education as their right in order to pave the path to secure their future.

Of late, the students and their parents find it extremely difficult to manage their higher educational expenses. Therefore, most of the people rely on Canadian student loans to pay for an increased education. However, as student loans become exorbitant, so many students are failing to pay back the owed amount on time. In this tough economic situation, students have defaulted on payments and compounded their financial situation.

In Canada, the eligibility criteria to obtain a student loan is based on financial need, rather than on good credit or on the ability to pay off the loan. Most of the young students continuously take out student loans without realizing the peril of mounting debt.

According to the statistics in Canada, the average student debt after graduating is $19,000. In their early working years, the graduates are burdened with this overwhelming debt. The mounting interest rates on the owed amount have complicated the financial situation of these graduates and the overwhelming debts adversely affect their financial state for some time.

Well, the financial experts often suggest to pay off the debts as the accruing interest on the principal balance makes it unaffordable to pay off. According to the Canadian bankruptcy law, the borrowers are required to be out of school for 7 years before the loans are forgiven. Therefore, you may have to pay more in the long run if you take more time to pay off these student loans.

Canadian law also states that a former student who defaults on their student loan payments can face the consequences of wage garnishment. The borrowers are required to meet minimum standard to have their wages garnished. The maximum amount of wages that can be garnished is 15%. You need to earn between 220 and 240 Canadian Dollars per week, as it is the minimum income requirement for the borrowers for their wages garnished.

Generally, Canadian student loans are not discharged in bankruptcy.  However, only in exceptional cases the loans are discharged. Therefore, if you’re unable to pay off your student loan debts, you may want to take up some help of a financial expert to eliminate your financial woes.

Quebec Student Loans in Canada

November 1st, 2010
Student loans in Quebec

Quebec Student Loans

If you are seeking financial aid to help pay for college, and you are a resident of Quebec, Canada, you need to know about the Quebec student loans and Bursaries Programs that are available through Aide Financiere Aux Etudes. Student loans in Quebec and Bursaries are available for fulltime students and part time students.

To be eligible for a student loan in Quebec students must be attending a secondary school, such as a college or university or a vocational school. The school must be approved by the Ministere de l’Education, du Loisr et du Sport in order to receive funding through this program. It is the opinion of this organization, however, that it is the student’s responsibility to fund their own education, to the best of their abilities before they receive Canada student loans and aid through this program.

When you fill out the application for, which covers student loans in Quebec and bursaries, your situation will be assessed based on the information that you supplied on the application. Additional documentation may be requested, and must be submitted in a timely manner. The assessment looks at the cost of your education, your income, savings, and other sources of college financing that you have or will receive to determine your need for funding.

After this assessment, you will receive a notice that lets you know how much funding you will be receiving. You will also know which portion of that funding comes from Quebec student loans, which must be repaid after you graduate, and which portion comes from bursaries which do not have to be paid back. You will also know how much your monthly payments will be when the loan becomes payable before you ever receive it.

When you do receive your Quebec student aid funds, they are not paid to the school that you are attending. Instead, these funds are deposited directly into your bank account each month in most cases, but they may also be disbursed in full at the beginning of the term.

Other programs that are available through Aide Financiere Aux Etudes include a work/study program, an Allowance for Special Needs Programs for students who are disabled, or those who have a disabled child, the Loan Remission Program, which could allow up to 15% of your student loan debt to be forgiven, and a Deferred Payment Plan Program if you are having difficulties repaying your Quebec student loan in Canada.

As a resident of Quebec, you are not eligible for Canada Student Loans, Canada Access Grants, or Canada Study Grants. All government aid must come through Aide Financiere Aux Etudes if you are a Quebec resident, but you can obtain private funding and Quebec scholarships in Canada as well, and this may be necessary since this program requires you to assume the largest bulk of the responsibility of financing for your college education. You can also check with your college or university for other funding options that may be available to you.

For more information about Quebec student loans, visit Aide Financiere Aux Etudes. You can learn a great deal about other Canada student financial resources to help pay for college through the website as well.

Related Reading for Student Loans in Canada

NSLSC – National Student Loans Service Centre

Canadian Student Loans

Saskatchewan Student Loans in Canada and Financial Aid

October 27th, 2010
Sask student loans

Saskatchewan Student Loans

As a resident of Saskatchewan, Canada, and a current or potential college student, you may be eligible for a great deal of financial aid to help pay for your education. These funds come from Saskatchewan student loans, Canada Student Loans, and other sources that are administered by the Saskatchewan Governments Division of Advanced Education, Employment, and Immigration.

First, you will be filling out one application to apply for numerous bursaries, grants, and loans that are available from the federal government, under the Canada student loans program, and the bursaries, loans, and grants available through Saskatchewan. All of these loans will be administered through the National Student Loans Service Centre, because they will be integrated student loans.

Advanced Education, Employment, and Immigration Division

The Advanced Education, Employment, and Immigration Division administer numerous programs that can help you finance your education. This includes the Graduate Retention Program, which is a tax credit that can give you a rebate of up to $20,000 that you’ve paid towards your college education, after you have graduated, Internship programs and student jobs, The Millennium Scholarship Program, the Millennium Bursary Program, the Provincial Training Allowance, the Saskatchewan Health Bursary Program, the Student Summer Works Program, and of course SASK Student Loans.

Saskatchewan Student Loans Guidelines

Although it is your responsibility to provide funding for your education, and the SASK student loans program is only meant as a supplement, recent changes to the program make it possible for more of your education to be funded through this resource. For example, one change is that if you are a full time student, you can earn as much money as you want or can earn during the time that you are in school, and this will not affect the amount that your eligibile for funding. Those earned funds can be used towards your education or living expenses.

On all Saskatchewan student loans obtained through this program, the interest rate is the prime interest rate at the time that the loan becomes payable. This prevents you from being charged overly high interest rates on your SASK student loans. Another change allows students to own motor vehicles, without the value of the vehicle affecting the aid that they receive.

Through the integrated program with the federal government, you could receive up to $408 per week of study if you are in a one year program or a multiple year program that will result in a certificate, undergraduate degree, or diploma. You can receive the same amount if you are in a graduate program, and you could receive up to $633 per week of study if you are a medical student. There is no guarantee that you will receive the full amounts. This is based on an assessment that includes expenses, as compared to other financial aid resources. If you have dependents, you could receive up to $47 in additional funds for each week of study. Go to: student loans in Canada for more Canadian financial aid. Go to: Saskatchewan student loans for information and programs administered by the Advanced Education, Employment, and Immigration Division of the Government of Saskatchewan.

Related Reading

Nova Scotia Student Loans.

OSAP Ontario.

OSAP – Ontario Student Loans in Canada

October 26th, 2010
OSAP Ontaio


If you are a resident of Ontario, Canada, and you will be attending college, you need to know about the OSAP (Ontario Student Assistance Program) so that you can obtain Ontario student loans in Canada to help pay for your education. Even if you have a Registered Education Savings Plan, or RESP, you will probably need additional funds to finance your college education.

The Ontario Student Assistance Program, also known as OSAP, is a part of the Ontario Ministry of Training, Colleges, and Universities. Funds received through this department can be used for tuition, books, transportation, and living expenses while you are attending school.

How the OSAP Ontario Works

You can apply for Canadian federal student aid, including loans, grants, and bursaries, as well as Ontario student aid with one application. The federal loan will cover up to 60% of your financial need, with additional funds provided through Ontario. However, there are maximums that you can receive. These maximums are set to keep you from having too much debt when you finish college. For example, if your program is only two terms in length, you can only receive up to $7300 in aid.

It is vital that you understand that this Ontario student loan program was not established to fund your entire education, but instead to supplement the other sources of funding that you have in place for your education, including your RESP, grants, bursaries, scholarships, employment, and work/study programs, among other Canada financial sources.

However, if all of your education is not funded, and you are out of financial sources, you may be eligible for the Student Access Guarantee, provided by Ontario. Through this program, all colleges and Universities in Ontario are required to provide the financial assistance that you require, beyond what is provided by OSAP, so that you can get an education. Only the costs of tuition, books, and mandatory fees are covered under this program. If this funding is needed, and you are a first time student, this will be determined when you fill out your application for funding through the OSAP. If you need this funding, you will be instructed to fill out a separate application through your college or university. The college or university will provide these funds through bursaries, scholarships, summer employment programs, or work/study programs.

OSAP – Ontario Student Assistance Program Criteria

In order to be eligible for funding through OSAP, your program and school must be approved by OSAP, it must be at least a twelve week program that results in a diploma, certificate, or degree, and you must have financial need for the funding. Each program administered through the OSAP may have additional eligibility requirements that you must meet as well. If you have defaulted on a Canadian student loan, exceeded your lifetime maximum, or been less than truthful on your OSAP application, you may be barred from receiving financial aid through these programs.

When you have finished your education, and your grace period has ended, the loans that you obtained through the federal government and the Ontario government are managed through the National Student Loan Service Centre. For more information regarding Ontario Student Loans, visit the Ontario Student Assistance Program website. You can also obtain information through NSLSC student loans in Canada.

Bankruptcy Laws for Canada Student Loans

October 18th, 2010
Canada student loans bankruptcy

Bankruptcy Canada Student Loans

You’ve graduated from college, and you have your degree – along with a mountain of Canada student loan debt. Unfortunately, with the current state of the economy, repaying that Canadian student loan may prove difficult, even if you have found employment. You need to know about bankruptcy laws for Canada Student Loans, since bankruptcy may be your only viable option for getting out of debt.

Bankruptcy Laws Canada Student Loans

Fortunately, a new law was passed in Canada on July 8, 2008. Unfortunately, this law only applies to you if you have been out of school for at least seven years. In the past, you had to be out of school for ten years, and the administrator of your Canada student loans could actually take funds from your Registered Retirement Savings Plans, also known as RRSPs, to repay your student loans. Under the new law, this is no longer allowed. However, funds that have been contributed to your RRSP during the year prior to filing for bankruptcy are at risk for seizure.

In some cases, the judge in bankruptcy court will discharge your Canada student loan debt if you have only been out of school for five years, if you can prove that continuing to pay the debt, even after other debts have been discharged, would still create financial hardship for you, but this is rare.

If it has not been seven years since you have graduated or left school and your student loans are causing you extreme financial hardship, contact the administrator of your Canadian student loans to see if lower payments can be made, or if payments can be deferred for a specific period of time. In some cases, the principle portion of the payment will be deferred – or put off until a later date – but only if you continue to make the interest portion of the payments.

Additionally, the Canadian Government may actually forgive a portion of your Canada student loans – without you filing for bankruptcy. This happens more often than you might think. There is no set percentage that will be forgiven, but you can be certain that the entire amount will not be forgiven – you will still owe money. However, if some of the loan is wiped out, this will significantly lower the payment. You can find out if this is possible through your loan administrator or service centre.

Failing all of this, contact a Consumer Credit Counselor to see if they can negotiate a lower payment for your Canada student loans. This is almost always a better option than bankruptcy, or negotiating yourself, as the results are usually more favorable for you. There are many options open to you aside from bankruptcy, and those options should be explored thoroughly before taking any other action. If you do decide that bankruptcy is the way to go, you will need to get in touch with either a Bankruptcy Attorney or a Bankruptcy Trustee.

Canada Student Loans Bankruptcy Resource

For more information, or to find out how to file go to bankruptcy Canada student loans. Additionally, you should check with the administrator of your Canadian student loan to determine whether you are eligible for assistance.

Related Reading on Student Loans in Canada

Non Government Student Loans in Canada.

Canada Student Loan Debt for Canadian Students.

Non Government Student Loans in Canada

October 14th, 2010

Non government Canada student loans

Non Government Canada Student Loans

There are ‘other’ non government Canada student loans that you should consider to cover those unexpected expenses or to finish paying for your educational tuition cost when other student aid programs really don’t cover all you had hoped for. When you are ready to attend college, there are many options available to help you pay for your education. Naturally, you will apply for grants, Bursaries, scholarships, and the standard Canada student loans through the federal government and provincial or territorial governments, but there are other non government of “Canada student loans” that you should consider as well.

For this purpose, you may need to look into non government Canadian student loans, also known as student loans from private financial institutions. Most financial institutions have some sort of program for Canada student loans, and special credit cards for students as well.

Ideally, you will work with a financial institution that offers you a Canada line of credit. What this means is that a line of credit is made available to you, and you only use it if or when you need it. You only have to repay the credit that is actually used – not the credit that is available, but unused. Because you can never be sure as to what expenses will arise while you are attending school in Canada, this is an attractive type of program.

Unlike traditional Canadian student loans, which do not have to be repaid until you graduate, these types of non government Canada student loans, or lines of credit do have payments that are due while you are still attending school. In the best cases, however, you ony make interest payments until you leave school or graduate, and only then do you start making payments on the principle of the line of credit that you have used. Typically, you will have up to one year to start repaying the principle of the credit you’ve used after you graduate or leave school.

When this Canada line of credit is set up with you, a personal banker should meet with you to go over your expected educational expenses, and the financial aid that you have already secured, to determine how large your line of credit needs to be. Most financial institutions have a minimum starting limit around $5000 for undergraduate students and $10,000 for graduate students. This Canadian line of credit for students is available to you each academic year.

These funds are not paid to your school – or even to you. Instead, the funds are put into an account that you have access to, and you can actually withdraw money as you need it from an ATM machine. You can also write a cheque on the account.

For this type of non governmental Canadian student loan or line of credit, you will need an acceptable credit rating. Many college students have no credit rating at all, and in this case, you may need a Canada co-signer. Another option is for a parent or guardian to set up the line of credit for your use. In some cases, collateral will be required for the credit line.

Aside from having good credit or a co-signer, you will need proof that you are enrolled at a post secondary school in Canada, and an estimate of the cost of your tuition, an accounting of your resources – such as income, savings, and other financial aid that you have or expect to receive.

For more information, visit your bank, or your parent’s bank to obtain a non government of Canadian student loan line of credit, or a Canada student loan through that private financial institution. If you do not have a bank, you might consider RBC Royal Bank which is known for the best programs concerning non government [Canada student loans] financial help for students.

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.