Student loans in Canada are relatively easy to get because they are available from the federal and provincial governments. In addition to the government-funded loans, banks and credit unions offer financing solutions to help students fund their post-secondary education.
The loan will cover the cost of tuition to help students complete their education without having to worry about money. Loan recipients are mandated to make payments six months after graduation, regardless if the loan is federal or provincial.
Get to know more about Canadian education financing available and the best student loans you can get. Read on to know about the interest rates, loan amount applicable, application, requirements, and other information.
Line of Credit Vs Loans
Most Canadian banks offer line of credit financing solutions to help students pay for their education. Unlike loans, a line of credit is a revolving account that lets borrowers draw, repay, and redraw from available funds.
Loans, on the other hand, are a lump sum of money lent to borrowers and are repaid over a fixed term. For student loans, the amount depends on a number of circumstances including the cost of borrower’s housing, borrower’s parents’ annual income, and type of degree.
Canada’s Best Student Loans
RBC Student Line of Credit
The RBC Student Line of Credit is a form of student loan that grants borrowers competitive rates and flexible limits. With a two-year repayment period, you can get an extra breathing room to pay back what you borrowed from the bank.
The prime rate is as low as .25 percent based on the program of study and budget. Additionally, the credit limits are flexible to meet a student’s borrowing needs throughout post-secondary education.
TD Student Line of Credit
TD also offers a student line of credit to assist students in need of funding for tertiary and post-university education. The good thing about TD’s Student Line of Credit is, borrowers can get financial assistance for living expenses and books.
TD also allows interest-only monthly payments while borrowers are attending school. The borrowed amount can be paid 24 months after you leave school.
Scotia Bank Personal Line of Credit
Borrowers can get a maximum of $20,000 credit limit per year with Scotia Bank Personal Line of Credit. You can only pay for interest while you are still in school and settle the rest a year after graduation.
For graduate education, students can get a maximum credit limit of $100,000 per year. The interest rate is calculated by multiplying the daily balance by daily interest rate. Contact Scotia Bank for more information.
BMO Student Line of Credit
To get easy access to education financing, Bank of Montreal (BMO) offers a Student Line of Credit at a competitive interest rate. The amount depends on the program of the student, about $45,000 over four years of education.
The interest rate is also based on the student’s program and several factors like parents’ annual income.
Application and Requirements
In applying for student financing products, you need to present confirmation that you are enrolled at a Canadian university, college, or educational institution. Some banks require borrowers to present a list of financial resources and proof that you are a Canadian citizen.
Applications are
subject to credit approval
and if you will be studying outside of Canada, the bank may require a cosigner.
Conclusion
Turning to student loans or a line of credit can help you to afford post-secondary education. Most banks and lenders provide extra breathing space for students to find a job before having to start paying back.
Check out the best student loans mentioned above to maximize to find a borrowing opportunity that feels comfortable for you.
