The Canada Student Loan Program offers repayable loans for international students. Canadian citizens and some international students with protected status may be eligible.
2. Private Student Loans
Private lenders are the main source of loans for international students. A cosigner is usually required, but select Canadian institutions offer loans without a cosigner.
Student loans have an interest rate, which can be fixed or variable. Fixed rates remain the same, while variable rates can change over time. Fixed rates provide stability, while variable rates may be lower.
For federal Canada Student Loans, there is a 6-month non-repayment period after graduation. International students can work on-campus or off-campus without a permit to earn money for repayment. Deferment is an option if immediate repayment is not possible.
Frequently Asked Questions
1. Can I apply for a student loan as an international student in Canada?
Protected persons may be eligible for federal loans, while private loans are available to international students at supported universities.
2. Are Canadian citizens eligible for private loans?
Yes, Canadian citizens can use the loan comparison tool and apply online.
3. Will the lender check my credit?
Credit checks may be required by most lenders, although some consider the borrower’s potential to repay the loan.
4. Do these loans require a cosigner?
A cosigner is not required, but having one may result in a better interest rate.
5. What is the minimum amount needed to study in Canada as an international student?
Tuition fees and living expenses vary, but a rough estimate is $20,000-$30,000 CAD for tuition and $15,000 CAD for additional costs.
6. What should I use the loan money for?
The loan can be used for tuition fees, accommodation, books, and school supplies.
7. What permission do I need to study in Canada?
International students need a valid Canada Study Permit, obtainable through the local Canada embassy.
8. How much money can international students borrow?
The loan amount depends on the lender, but it is generally advised to borrow the total cost of education and living expenses, considering other sources of financial aid.
9. What are the terms of repayment?
Repayment terms vary and will be agreed upon with the lender. Payments usually start 6 months after graduation.
10. Is it worth taking out student loans?
Considering factors such as scholarships, financial assistance, interest rates, and repayment terms, it is a personal decision. Having the means to repay the loan and the desire to study in Canada can make it worthwhile.