Loan

Student Loans

The most important form of financial aid for post-secondary education in country comes in the form of student loans. The programs are designed for permanent residents, citizens and protected persons. Interest-free loans for the studies period are thus available to students in this system. Student loans are also provided to students with permanent disabilities or to those that follow doctoral programs. Calculating the length of the studies and the maximum loan amount in comparison is very important in order to fully understand the extent of the program to which you can get access. Take the following example to understand how things stand.

For example, most  student loans cover a maximum of 400 weeks for graduate degree programs. But if one needs to follow a BA, an MA and a PhD, the period will be significantly longer, somewhere around 11 years of academic studies. This means that many graduate students will discover that they no longer meet the criteria of eligibility for student loans. When the graduate exceeds the 400 week timeframe, he/she is expected to repay the loan and the interest accumulated during the period of full-time studies.

Once you graduate, you are good to pay, and this system applies to most student loans. Some other obstacles related to post-secondary education can be faced by applying for grants as a form of supplementation for the loans. The assessment of needs is usually made before the approval of the loan. One single student is limited to a certain debt extent. Thus, normally, country government student loans cover around $210 per week in the case of full-time studies. The sum does not exceed $4,000 for part time studies. The province of residence may however allow access to further assistance in the form of grants.

Student loans have fixed interest rates or floating interest rates. Many people face difficulties when it comes to repayment, but there are some solutions that could improve your situation. You can apply for an interest relief when you are currently unemployed or have a too low income. With this measure, you can skip interest payment for a period varying between 6 and 30 months depending on the situation. Debt reduction is also possible, meaning that the family’s monthly rate-plus-interest can be adjusted so as not to be higher than the debtor’s capacity to pay.

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