By Remitbee - Jan 26, 2022
International students may need to get a loan for different reasons. One particular reason might be to support their education in Canada. Before getting a loan as an international student, it is best to exhaust all available options to fund yourself with the needed amount and consider applying for a loan as your last resort. For example, check your savings, get part-time work as an international student, seek financial help from your family, or get the available financial assistance in the form of grants or scholarships.
The Canada Student Loan Program is primarily available to Canadian citizens and international students with protected status, such as refugees. If you are an international student in Canada but are not eligible for the Canada Student Loan Program, you can still avail private student loans from a private lender who has no ties to the government.
Before you start finding a private lender that can assist in your financial needs, here are some things you should determine and remember:
When and how the money you borrowed will be disbursed
Having a cosigner is always a great help to qualify for a private student loan. Your cosigner should be a Canadian citizen who will take responsibility for repaying your loan when you fail to do so. Often, having a cosigner is not required; however, having one allows you to get better interest rates with your loan. In other cases, a cosigner is not needed for an international student to apply for a private student loan if they are enrolled in one of the schools in Canada that are approved for loans.
If you are a part-time student in Canada, you can borrow up to $10,000 of Canadian student loans. If you can pay off some of your existing loans, you can borrow again for up to the $10,000 limit. However, you can borrow money depending on the amount you need to pay for your books, tuition, housing, transportation, and other expenses. The maximum amount you can borrow is your education's total cost minus any scholarship or grants you received. It will also depend on your school and the course you are taking.
Students taking a degree in medicine, accounting, business, law, and other programs can also take out larger loans to accommodate the increased cost of these degrees. As a general rule, though, it is best to borrow the least amount you need so that you can pay for it in the shortest amount of time you can.
The interest is a percentage of a loan that the lender will charge to the borrower. So when you are choosing a student loan, make sure to consider not only the amount you will borrow but the interest rate imposed by your lender.
If you opt for a loan with a fixed interest rate, the advantage is that you pay the same amount of interest for the whole loan period, which is why most borrowers prefer this option. On the other hand, variable interest rates are often lower than fixed interest rates. So, if you have a short-term loan period, it is best to consider variable-rate loan options.
Here are some simple steps you can take to apply for a private student loan in Canada as an international student:
Determine the amount you need to borrow. Check any financial aid awards your school granted to you.
Submit your application to the lender, who will guide you through all the necessary processes and paperwork.
If the lender has received your application and approved it, the money you borrowed will be sent to your school or university to pay for your tuition. They will also give you any remaining loan proceeds.
When you study in Canada as an international student, you may work while attending school. Full-time students with a study permit in one of the eligible institutions or full-time students enrolled in an academic, professional, or vocational program at a designated school may work on-campus or off-campus without a permit. If you work while studying, you can start paying for your loan even before graduating. If circumstances don’t allow you to pay back your loans right away, you can opt for a student loan deferment so long as the lender also agrees upon it. To determine when you should start paying for your student loans, it Iis best to request a repayment schedule from your lender.
Many go to Canada to study to seek greener pastures. After graduating and paying for your private student loans, the salary you earn in Canada might be used for supporting yourself and your family, who may be residing in your home country. If you plan on sending money from Canada to your family back home, send money through RemitBee. We understand how hard it is you work for your money; that is why we guarantee you the best exchange rates and most affordable transfer fees. You can even send money from Canada abroad for free when you remit at least $500.