A student loan is designed to help students pay for university tuition, books, and living expenses. It differs from other types of loans in that the interest rate is substantially lower and the repayment schedule is deferred while the student is still in school. Before accepting any kind of student loan one should be familiar with its basic attributes.
Student loans and grants are a great way to help you pay for your post-secondary education. The information provided here will help you understand your responsibilities and avoid financial difficulty.
- Send your loan applications to your province or territory of permanent residence.
- When you apply for a Student Loan, you will automatically be assessed for most Student Grants that you may be eligible for.
- You have to submit an application for loans and grants for every year of study. If you do not apply for financial assistance during one year of study, your educational institution needs to sign a confirmation of enrolment.
- The amount of your student loan and grant is based on your assessed financial need, which is different for each student.
- Normally, it takes about four to six weeks for an application to be assessed by your province or territory of permanent residence. Online applications are often processed more quickly.
- Many provinces and territories have a formal reassessment process for students who disagree with their assessed loan amount.
- While there are exceptions, you normally get two disbursements of money in a year, depending on when you apply: one during your first term and the other during your second term.
- Check your lifetime limits on student financial assistance.
Tips for Managing your Student Loans
- Learn more about the interest rates for Student Loans.
- It’s a good idea to keep a file of all of the documents you used in your student loan application, including a working copy of your application.
- Create an online student loan account. You can access information about your loans, change your mailing address and view other personal account information.
- Write your loan account number on all correspondence
- Borrow wisely. Make sure you are aware of how much you are borrowing, and never borrow more than you think you need.
- Keep track of who issues you the money — they are the ones you will need to pay back once you have finished school.
- Ask for help at the first sign of difficulty in paying back your loans.