I will take you through simple ways on getting an international student loan in Canada and the requirement needed to ensure that the process is fruitful. This article will guide you on the processes involved and a step by step guide on how to go about it in a fruitful way.
In this particular article, I will fully put you through the processes involved in getting an international student loan in Canada. However, some international students in Canada and those still planning to move over there will not be in confusion on how to get this international student loan.
Things to know about International Student Loan in Canada
For some people, I know this is the first time of them hearing of international student loan in Canada. I will educate you on what this international student loan is all about. Don’t panic because after reading this article everything will be clear to your own understanding.
Meaning of an International Student Loan
This student loan is a kind of help that is rendered financial to students studying abroad, this loan will help will help the student in different aspect that they are deficient in, like tuition fees, get academic materials like books and other supplies, cover other important expenses you may think about.
There is a great difference between what we called student loans and other loans in terms of the rate of interest and how to pay back. Rate of interest for student loans is frequently lower in most cases than other loan, the only time students will be required to pay back will be when they finished their studies
You should know that there are only two major forms of international student loan in Canada;
1. The private loan.
2. The federal loan
The Private Student Loan
This private loan is only giving by banks or a private financial institution and it is directly offered to the student. This loan does not pass through the school to get to the student, but the only thing that will involve the school is to provide enrollment verification documents to the lender.
This loan is applicable to both Canadian student and also International student.
The Federal Student Loan
This federal student loan is given by the government of Canada to the student. The criteria before this takes place, your school would have to sign off the amount you are lending then after that the money will now be sent into your school account for academic purposes.
The only issue is that it is only meant for domestic student in Canada.
When applying for an international student loan in Canada, the student must know the basic knowledge about obtaining student loans as a foreign student in Canada. The student should also know the terms involved to meet the conditions of the loan.
Ways to Apply for an international student loan in Canada
This few steps will put you through the ways to apply to this international student loan;
1. Apply For Landed Immigrant Status
2. Get A Co-signer
3. To Apply Emergency Loans or
4. To Apply For A Private Loan
1. Application for Landed Immigrant Status
As students that want to secure an international student loan in Canada, it is important that you must apply for what we called a “landed immigrant status” first.
When you are granted, you will be qualified to get the loan either from the governments, banks or private financial institutions.
2. Emergency Student Loans
This type of loan is given for some Canadian colleges and universities make to international students.
Read Also: 10 Budget Apps for College Students
3. Getting a Co-signer
Let me tell you who is a co-signer?
A co-signer is a person who agrees to the terms of the borrowing company that if the borrower fails to pay the given money on time or at a due time given, the co-signer will pay for the person.
However, a co-signer must have a good credit score and a long credit history that will favors the borrower. As an international student that is interested in getting a loan to study in Canada, is a must you will need a co-signer with a good credit score for you to get a loan approved.
As I have told you earlier in this article that there are two major sources of student loans in Canada; Federal Student Loan and Private student loans.
International students who aspire to study in Canada, you will need to understand that the Federal loan is for Canadian student only but international student are allowed to apply for the Private loans as this is the only loan you can apply for as an international student wanting to study in Canada.
A co-signer is not always needed to get a private loan and the co-signer must a good score card for you to get the loan granted. However, you can apply for a loan from private financial institutions with or without a co-signer and this will depend on how the private financial institution wants it.
I advise for any international student to look for loan providers that their aim is mainly for international students in Canada. The student must do research to know the ones with the lowest interest rate. I advised that you must always go for a fixed interest rate and not the ones that may increase gradually.
Education system may interest people mind if there are not faced with financial problems. If countries of the world will put their interest in providing loan to student both internationally and local student, I think education system will have a great improvement in this global world. Education has shown to play a very important part in human life because it makes life beautiful.
Financial constraints will make will make some people not to show interest in education, thanks to country like Canada that can offer loan grant to student that wants to study in this great country. I hope this great article will not only help you get a loan, but will also increase your zeal to get proper education in Canada.
This article listed out all the important information’s that you will need to know about obtaining student loans in Canada and also the requirements and processes carried out.