Factors to Consider Before Borrowing Student Loan in Canada
It is not all about knowing how to get a student loan in Canada, you also need to consider some things before you agree to a lender’s terms and conditions. Here are some factors to consider;
- Loan Amount – Never borrow more than you need
- Interest Rate – make sure the interest rate is workable for you.
- Annual Loan Limit
- Disbursement of funds – you also need to review how and when your fund will be disbursed.
- Repayment time
How to Pay Student Loan Fast in Canada
It is one thing to borrow a student loan in Canada, it is another thing to pay back this loan without it affecting your other lives.
Make Payment as a Student
It’s important to start your loan payment as a student, this maintains the interest rate because once you have graduated and started working, your interest rate almost double (depending on the lender). So you can start by making a monthly payment, but if this will affect your concentration on studies then wait till you graduate.
Make Extra Payment
If you borrowed $20,000 and your repayment plan is in 20 years, if you pay an extra $200 monthly, you will be out of this loan for 10 years.
Sign up for Autopay
Signing for automatic monthly payment offers you some discounts, which will reduce your interest rate.
Use Extra Money
If you got a bonus, a raise, or a money gift, you can channel most of it to the loan which enables you to reduce the loan and also reduce the repayment period.
I believe in this how to get a student loan in Canada guide that you can kick-start your study abroad career, but make sure to exhaust all other financing options like scholarships and finance from family before concluding on student loans.
How to Get a Student Loan in Canada – FAQ
How long does it take to get a student loan in Canada?
Getting a student loan in this country can take 12 to 14 business days. T&C applies to loans from the province and federal government.
Do student loans go to your bank account in Canada?
Most loans from private lenders go direct to the school’s financial aid office, and not to your bank account.