Here is everything you need to know about securing an international student loan in Canada and everything that is required of you to ensure that the process is seamless.
This article fully exposes the processes involved in securing an international student loan in Canada, as most international students in Canada and those still planning to move over do not know how to go about this or usually fin the process very confusing.
This article will not only lift your confusion but will give you step by step guide on how you can go about it.
Though this article is about getting a student loan in Canada, you may find it useful to take a look at our article on the cheapest universities to study in Europe.
As well, we have written a well-detailed article on how to acquire a fast accelerated online bachelor’s degree from anywhere in the world and I hope you find them helpful.
About International Student Loan In Canada
This may be your first time hearing the term “International Student Loan” so I will like to explain what it really is and what it means to have a good credit score.
What Is An International Student Loan?
An international student loan is a type of financial aid rendered to students who want to study abroad to help them take care of stuff like tuition fees, get academic materials like books and other supplies, cover their living expenses and also take care of some personal necessary issues.
However, student loans are different from other loans in terms of the interest rate and how to pay them back. The interest rate for student loans is always lower and in most cases, students are required to pay back only when they are done with their education or exceeded the agreed timeline.
As a student going to study in Canada, you should know that there are two major forms of student loan;
Types of Student Loans in Canada
- The federal loan
- The private loan.
The Federal Student Loan
This is given by the government to the student but before that happens your school would have to verify or sign off the amount you are borrowing before it is then sent into your school account where it is ensured that you use the fund only for academic purposes.
One of the limitations of the Federal student loan is that only Canadian domestic students can apply for it.
The Private Student Loan
This is given by banks or a private financial institution and it is directly offered to the student without any direct involvement of the students’ school. The school only needs to provide enrollment verification documents to the lender and then the loan will be sent directly to the student.
Both Canadian and international students can apply for Private Student Loans in Canada.
Before you set out on a journey to obtain an international student loan in Canada, you should be equipped with this basic knowledge about obtaining student loans as a foreign student in Canada and the terms involved to satisfy the conditions of the loan.
How To Apply for an international student loan in Canada
The following steps will guide you on how to secure a student loan in Canada as a foreign student; the steps, the requirements and the process.
- Apply For Landed Immigrant Status
- Get A Co-signer
- Apply Emergency Loans or
- Apply For A Private Loan
NOTE: Only Canadian students can apply for Government loans.
Application For Landed Immigrant Status
As a foreign student seeking to secure an international student loan in Canada, it is advisable that you apply for a “landed immigrant status” first. Once your status is granted, you could become eligible to secure a loan either from the government(in very rare cases), banks or private financial institutions.
Emergency Student Loans
This is a one-time loan offer that some Canadian colleges and universities make to international students.
If you are seeking for an international student loan in Canada and you happen to find yourself in one of these schools offering emergency student loans, it is advisable you ahead for the opportunity by maybe directly contacting your school’s finance aid office for information.
Getting A Co-signer
Firstly, who is a co-signer?
A co-signer is a person who agrees to pay the debt of a borrower if the borrower does not pay up at the given time.
Typically a co-signer usually has a good credit score and a long credit history which favors the borrower. Now, as an international student who wants to get a loan to study in Canada, you will need a co-signer with a good credit score of 700 and above so as to get a loan approved.
So, if you have relatives in Canada who can act as a co-signer begin to reach out to them as you could get more chances of an international student loan.
Apply For A Private Loan
I mentioned earlier that there are two major sources of student loans in Canada; Federal Student Loan and Private student loans.
However, as an international student who wants to study in Canada, you won’t be able to get the Federal loan as it is reserved for only Canadian citizens but the Private loans are open to both citizens and non-citizens so it is the only option you can go for as an international student.
To get a private loan, a co-signer is not always needed, you can get a loan from private financial institutions with or without a co-signer depending on how the company you are dealing with wants it.
It is also advisable to look for loan providers that their products are mainly for international students in Canada, carry out research and settle for the one with the lowest interest rate. Remember to go for a fixed rate interest that won’t increase over time instead of a variable interest rate.
For more tips on how to get a loan that will suit you well, click here
To see if there are loans available for your preferred school in Canada, including loans that do not need a co-signer use this student loan comparison tool to get started
Conclusion: International Student Loan In Canada
Education has shown to play a very important part in human life as it dictates your career path, makes you knowledgeable in lots of aspects and brings you academic success whether within or without the four walls of a formal school.
However, due to financial constraints, you may not be able to study, this article not only provides ways you can secure an international student loan in Canada but has also help you to know that you could get a loan to become academia.
We carefully listed out in this article every basic thing you need to know about obtaining student loans in Canada, the requirements and processes involved.