Canada is the most preferred student destination when it comes to higher education. It is considered an educational hub for international students who desire to study abroad.
Student Loans in Canada
After the USA, Canada is the most preferred destination for students who wish to study abroad. It may not be possible to manage all the expenses required while acquiring education in foreign universities. Therefore a lot of students prefer student loans to cover their educational costs. Student loans in Canada offer monetary help related to the expenses incurred in education. Educational loans can be taken for seeking education in foreign universities or for admission to domestic universities. Before seeking educational loans, it is essential to know about the terms and policies it holds.
Apart from the primary documents like an identification card, bank details, and passports, some major documents are also required while seeking educational loans in Canada. Before you search for a financial institution to get your loan, it is very important to check the interest rates, terms, and conditions. Different banks have different rules for the money offered and money repaid. Therefore it is crucial to check different institutions and select the best.
The first thing required to get a loan is filling the application. You need to fill an application form offered by the bank and submit several documents that are required by the institution. Here’s a list of documents needed for Student loans in Canada.
- Admission letter granted by the University: When you apply for an educational loan, the bank requires a confirmation regarding your admission to the university. If you have cleared the entrance, the University grants you an admission letter. You need to submit a copy of this letter with your application form to the bank.
- Academic documents like mark sheets and certificates: Some financial institutions require you to submit your previous mark sheets and reports to showcase that you are a brilliant student and have completed your previous education from a recognized board. You need to submit a copy of the same along with your application form to the bank.
- GMAT, IELTS certificate: Every student who desires to study abroad needs to clear GMAT and IELTS exams. After you’ve scored the required percentage in these tests, you are approved to apply to a foreign university. Therefore, banks need a copy of your GMAT and IELTS certification to check your eligibility for educational loans in Canada.
- Residential proof: Loans are only granted when you are a resident or a citizen of the country. A resident has stayed for a long time in the country, and a citizen is a person who is born and holds the citizenship of that particular country. Therefore, banks need proof of your residence along with the application form.
- Borrowers bank account statement: The financial institutions check your previous bank records before granting a loan. Therefore, you need to submit your account statement of six months before the application date.
It is necessary to know about the coverage the loan offers. Sometimes, the terms of the loan mention coverage of educational expenses only. Some financial institutions offer complete coverage. Right from traveling expenses to expenses made on study tours, a good education loan covers all the expenses. It is therefore important to check several plans before choosing one. The expenses covered under the student loans in Canada are listed below.
- Travel expenses: It covers all the traveling expenses, be it ticket booking, going abroad, or returning from the University.
- Tuition fee: The tuition fee includes the academic fee that is paid in the university for the course. The primary purpose of the loan is to cover your tuition expenses.
- Lab fee: Lab fee is the amount paid in the university for any practical you do. Fields like science and technology require practical learning. Therefore lab fee is paid to acquire lab facilities in a university. The education loan plan covers laboratory expenses as well.
- Hostel fee: If the student stays in a hostel or an apartment, the banks can pay any expenses related to the same.
- Expenses made on books and study material: It is significant to search for institutions that offer coverage for the study material’s expenses. It can cut your fees’ cost, and you can go for the best material available even if it incurs a considerable expense.
- Expenses related to study tours: Almost every university in Canada offers a study tour once or twice a year. Such tours are educational trips that require a considerable amount of expenditure. Many financial institutions promise to cover the expenses of your education tours.
Repayment and Collateral
Student loans in Canada can be of great help for all the students who desire to study abroad. It not only finances your educational expenses but provides you with tax benefits, complete coverage, and security. The repayment of educational loans starts just after the course is completed. Student loans in Canada require the borrower to repay the total amount within 5-10 years from the repayment terms’ commencement.
If the borrowing extends to the limit mentioned in words, an asset is needed as collateral security with the banks. Also, several tax benefits can be claimed on student loans. Therefore, student loans are proven to offer several advantages for the applicant. It can be a great alternative to finance all your educational expenses.