Student Loans
Student loans in Canada are provided by a joint Federal and
Provincial program with the amount of and eligibility for a loan
different between the Provinces and so depends upon the Province
you are a resident of (your Province or territory of residence
is decided by where you have lived for the last 12 months
consecutively whilst NOT a student). You may, however, attend
any educational establishment in the country provided both the
establishment and the program of your choice are listed by the
assistance office in your province.
There are several different types of funding for post secondary
education that include grants and bursaries (which you wouldn't
have to pay back) but there are 2 main types of student loan -
the Federal and Provincial programs. Whichever type of loan you
wish to apply for it all has to be started off by applying to
the Provincial/Territorial Assistance office for the Province
you are officially a resident of.
The main attraction of a student loan is that although they are
REAL loans that do have to be repaid, they are interest free
while you remain enrolled in an eligible education program. Once
you graduate/leave education the repayment terms are set
(normally low interest and you agree the repayment term) and you
begin to pay them back. Banks and other lending establishments
are no longer involved in offering new loans as all funding is
provided by the federal or provincial governments.
Quebec, Northwest Territories and Nunavut are NOT involved in
the Canada Student Loans program and have their own systems. If
you are a resident of one of these 3 provinces or Territories
then you need to contact the particular office for that Province.
To start the ball rolling with the application for a loan there
are several processes that you should consider. Your eligibility
is the most important - both you (the applicant) and the course
you wish to undertake must meet the criteria laid down.
The applicant: The main factor of eligibility is whether you are
intending to be a full or part time student. If you are a part
time student (20 - 59% of full course load) you may only apply
for federal assistance though you would apply through the
provincial/territorial assistance office.
A full time student (60% + of a full course load) may apply
through the same offices but will be considered for both Federal
and Provincial support (depending upon the province in question)
though this would have to repay both the loans. The difference
between the Provinces and Territories is prevalent here as these
provinces: Alberta, British Columbia, Manitoba, New Brunswick,
Newfoundland and Labrador, Nova Scotia, Prince Edward Island and
the Yukon all would entail paying the loans back separately. If
you are from Ontario or Saskatchewan then you would make one
payment back to the NSLSC which would cover the total amount
borrowed from both the federal and provincial programs.
The course you wish to enroll on must be listed on the Master
List of Designated educational Institutions - it is strongly
advised that you ensure the establishment you wish to attend is
recognized by your provincial provider and the course choices
meet the necessary requirements before you commit to it. This
also applies if you wish to attend an overseas establishment.
Your personal financial status will determine the amount of
assistance you will be offered with the Federal loan system
covering up to 60% of the total you are assessed as needing and
the provincial system contributing up to the remaining 40%. Your
"needs" are assessed by the provincial office when you apply as
they handle the initial application and will forward you the
loan documents. Once the Provincial or territorial Student
Assistance office has received and processed your application,
it will establish the amount of loan you are entitled to apply
for and carry out credit checks. Once approved, your Canada
Student Loan will be administered by the National Student Loans
Service Centre (NSLSC) through to its termination (full
repayment).
This agency is responsible for all loans supplied since 1st
August 2000 and has two distinct sections. The Public
Institutions Division (looking after anyone attending a course
at a Public facility such as a University or Community college)
and the Private Institutions Division (for those who are
receiving instruction at a privately funded facility like a
technical college or trade school).