As most of us already know, Canadian students are constantly reminded of the privilege of being able to benefit from world-class, low-cost education. Without a doubt, compared to our neighbors to the south, the United States, the cost of education in Canada is largely subsidized by the Canadian government. Nevertheless, that does not mean that education is free or even affordable for many Canadians.
In fact, according to Statistics Canada, about 50% of bachelor’s degree students, 44% of master’s students and 41% of doctoral students use some sort of student loan to pay for their studies. Many will argue that the debt required to pay for education is much lower in Canada than elsewhere. Honestly, the average amount of student debt accumulated on graduation is $ 28,000. The reality is that by completing a 1st or 2nd cycle program, most students will spend the first year of their full-time job paying off their debt. Moreover, the majority of these students can not afford to participate in unpaid internships (which often provide rewarding work experience), thus finding themselves underemployed in a field other than their studies, largely because of their lack of experience or simply to find a job as quickly as possible.
Before you want to complete a degree, understanding the current situation of these students is essential in order to organize and prepare your finances. This article will give you an overview of everything you need to know about the government loan program and the Canadian stock exchange program.
Canada Student Loans Program (CSLP)
What is the CSLP?
The CSLP is a program available to all Canadians, except in Quebec, Nunavut and the Northwest Territories, which require a student loan. In short, loans are given on a basis according to financial need; the Canadian government pays the interest on the loan to the financial institution until graduation. In 2013-2014, almost half a million loans were given to full-time students in need.
Why the CSLP?
These loans do not require repayment until 6 months after graduation and interest begins only once graduated. The program offers students either a fixed interest rate at a prime rate of + 5% or a floating rate at a prime rate of + 2.5%. The prime rate for a student loan is the average of the rates for Canada’s top 5 financial institutions (after removing the highest rate and the lowest rate). Thus, this plan is the most sensible way to avoid a huge accumulation of post-graduation debts. In other words, a quick and safe way to invest for yourself.
What are the requirements
To be eligible for this program, you must be at least a permanent resident of Canada (in one of the participating provinces). You must be enrolled in a post-secondary institution. For a part-time student loan, you must be enrolled in at least 20% of the total course load. For a full-time student loan, you must be enrolled in at least 60% of the total course load. If you are 22 years old or older, you must make a credit assessment. You will need to fill out a loan application form and will need to provide some documents. You can validate this information and find the necessary form on the Government of Canada website.
Loans for Canadian students are limited. In fact, students in cycle 1 can receive assistance without interest only up to 340 weeks and for a period of 400 weeks for students of 2nd cycle. Once these times are up, interest on the loan will accumulate and payments will be requested. Before applying for a student loan, it is important to anticipate the number of years of study required to complete a program. Sometimes, waiting to reach a certain level will be more profitable and affordable.
Refund the CSLP
As mentioned above, the first payment of a student loan is only required 6 months after graduation. The interest is however in force as soon as the graduation. The payment method may vary depending on the repayment structure established with the loan provider. On the other hand, a monthly payment is usually the most common form. In addition, if you are in a precarious situation financially, the Canadian government also proposes a repayment plan for those who need it.
Without a doubt, being organized is the best way to control your finances so you can enjoy peace of mind by investing in your future.
Canadian Studies Bursaries
What is it about ?
This program offers many Canadian students a grant based on financial need; income and family size are the main factors that determine the amount awarded to students. Generally, scholarships are calculated as follows: $ 250 per month of study for students from low-income families and $ 100 per month of study for students from middle-income families. In addition, for students with disabilities or students with children, the program offers different scholarships as needed. In 2013-2014, a scholarship was awarded to approximately 368,000 students.
Why this program?
The Canadian Scholarship program does not require a refund from its recipients .
What are the requirements?
The requirements of the Canada Student Grants program are similar to those of the student loan program. Canada Student Bursaries are available for part-time or full-time students. To prove that you are in a precarious situation financially is the most important thing. If you are a student in need, do not hesitate to contact or visit the Government of Canada website and apply for the program. Investing in yourself is the first step if you want a better way of life and transforming your future.