Student Loan Options

Getting a university education is more expensive than buying a luxury car every year for four years. Almost no one can afford that kind of expense, especially since most people going on to university are only just out of high school and have never had a job. Therefore it falls to the parents to make enough selling to finance their children's university educations. If they can't afford it, the student will have to bank on his or her future earnings as a university grad by taking out a student loan. Here are some of the options.


The federal government sets aside a large amount of money each year to help finance the education of its citizens. Any student studying full time or part time in Canada who can demonstrate that they or their parents don't make enough working to pay for their education can qualify for a loan. Interest rates are prime plus 5% for fixed loans and prime plus 2.5% for variable ones, and you do not need to start repaying until you graduate.


Most federal student loans do not grant enough money for students to pay for their tuition as well as their rent on rooms in Annex houses, food, and other necessities. Therefore the individual provinces and territories also have their own loan programs. Provincial loans are separate from federal ones, but can be applied for on the same application. When you start repayment, you will have to do so to two different sources. Generally you would not get a provincial loan without also getting a federal one.

Bank Loan

Unfortunately, not everyone who needs a loan will qualify for one from the government. There is a large grey area between actually making enough to pay for a child's education and the government's maximum parental income requirement. Some parents may be forced to go for refinancing for a mortgage adjustment that will free up cash for tuition. Other students may choose to get a loan or line of credit from their bank for their schooling, but these generally have higher interest rates than government loans. If you live in the city of Toronto and want to discuss mortgage options, you need to speak with experts.


Foreign students do not qualify for student loans in Canada. Therefore if you're a foreign student and you need money to rent new condos in Toronto and pay your tuition, you will have to look for loan options in your home country. However, most countries will only grant loans to students studying locally, as education abroad is much more expensive. Need a lawyer to discuss options? Contact

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