National Student Loan Center

The Canadian government has set up the National Student Loan Center (Centre) to ensure that its students have access to all the information they need to apply for and repay their student loans. The center is conveniently housed in an online website that includes all of the tools, applications, and resources that Canadian students need.

History of the National Student Loan Center

The goal of the Canada Student Loan Programs is similar to the goals of US based programs - namely to make sure that students that demonstrate the greatest financial need have access to a quality post-secondary education. The loan program was created back in 1964 as part of the Canada Student Loans Act.

Additional Resources

From 1964 to 1995, independent financial institutions administered the loan repayment process with guarantees of repayment granted to them from the Canadian Government. From 1995 until August 2000, the system was changed to one where there was a risk sharing arrangement. Today, the Canadian government directly finances student loans and administration of the program rests with the newly created National Student Loan Centre (Center).

This change introduced some complexities of loan repayment for students receiving loans prior to August 2000. Loans received before this date needs to be repaid to the lending institution responsible for administering the loan, student loans received after this date need to be repaid to the National Student Loan Center.

Government Loans in Canada

The Canada Student Loan Program (CSLP) provides Canadian students with access to money provided by the federal government. Additional loans can also be provided by the province in which a student resides. All government loans issued in Canada to students are interest free loans as long as the student remains enrolled in full time study.

Part time students in Canada will need to make interest payments on loans. Principal and interest payments are due once the student is out of school. Grants are used to supplement loans, but these are generally reserved for students with a permanent disability or those students from low income families.

Loans for Professional Canadian Students

Most of the charter banks of Canada offer programs geared towards professional students. These loans provide more funding than would be expected via a line of credit - as well as the potential to obtain lower interest rates.

Professional students obtaining loans from charter banks are also eligible for Canadian government loans that are also interest free. In fact, these private loans do not count against the student in terms of eligibility for government loans and / or grants.

Applying for Student Loans in Canada

In Canada, there are local provincial or territorial offices that assist students in the loan application process. After completing an application, it takes from 4 to 6 weeks for the provincial office to process the application.

Canada Student Loans

In general, Canadian students can expect to receive up to $210 per week for full time study or 60% of the assessed need - whichever amount is smaller. Loans provided by the local province usually will cover the remaining assessed student need.

Part time students are allowed to hold loans up to $4,000; however, they cannot carry more than $4,000 in total debt as long as they remain students. Finally, Canadian students may also be eligible for other grants such as the Canada Millennium Scholarship Foundation Bursary (CMS Grant)

As mentioned earlier, the repayment process starts after college enrollment ceases and a Copy 22A form is used annually to confirm enrollment and maintain an interest free loan

Canada Student Loan Tools

The tools you can find at the National Student Loan Center include repayment calculators, loan estimating tools, and links to outlets to make sure completed applications reach their destination.

Loan Repayment Calculator

The loan repayment calculator can help students figure out what their monthly payment obligations will be after graduation. The calculator accommodates fixed and variable rate loans as well as the number of monthly payments. (You can also find more student loan calculators on this website.)

Student Loan Estimator

The student loan estimator can be used by students to estimate their total student loan eligibility. Using a series of questions such as living arrangements, province of residence and study, the estimator walks the student through an "application" process. At the end of this questionnaire, the tool provides the student with an estimate of their financial need and eligibility.

College and University Search

A final tool worth mentioning involves an online college and university search. Students can use this tool to browse detailed information about Canadian universities, Canadian community colleges, helping them find an educational institution that suites their needs.

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