Student loans from banks and financial institutions can be used to cover educational costs such as tuition, cost of living, books and other academic supplies.
These loans are secured by the personal assets of the student. Students who apply for student loans must meet eligibility criteria set by the institution issuing the loan.
There are guidelines which institutions use when deciding whether or not to issue a student loan to an applicant.
Factors include how old the applicant is, how much education has been completed so far, and how much schooling is still required for graduation or completion of a degree program.
How to Get a Student Loan in Miramichi
In Miramichi, Student Financial Assistance Program offers assistance with education funding in order to pursue post-secondary studies at any recognized institution in New Brunswick (public or private).
Students can apply for a loan from a financial institution or other lending institution to fund their education. Students can borrow money from the government, as well, through student loans and grants. Both methods of funding are provided by the Canada Student Loans Program.
Students are encouraged to apply for federal student loans and grants as soon as they’ve been accepted into an approved post-secondary program. Interest payments on any outstanding balance will not be charged while they remain in school – during both the summer break and winter holiday periods – which means that students can access their funds right away without paying any interest until after they graduate. Student loans are only for students enrolled in Canadian post-secondary institutions (public or private).
The average loan amount is $7,500 and students may borrow up to $35,000 per year. Loans can be paid back over a decade, depending on their chosen program of study. Students who borrow the maximum amount will pay interest on their loan over the life of the program. Students who study through distance education programs do not have to make monthly repayments while they’re in school and can repay the loan in full after they graduate or drop out of school.
Student loans are considered unsecured loans. This means that the lender is not held liable for any amount over the amount actually borrowed by the student. However, there are government programs that offer students financial help with repaying their loans.
Repaying Your Student Loan in Miramichi
Borrowers should be aware of these potential repayment issues:
The borrower can repay a loan over a period of time (for example, 10 years). The interest rate is calculated on an annual basis and is deducted from a monthly payment for each month. For example, if you borrowed $10,000 and have a 4% interest rate, you will pay $833 per month after deductions. If you borrowed $10,000 at 5% interest (for instance), your April payment would be reduced by $200 to $1,500.
The borrower can also pay a lump sum. If so, it must be equal to the amount of all payments that are due in future months. This can be paid within 120 days before the next scheduled payment date (for example, if you have borrowed $10,000 and your first period payment is in January 2014, the lump sum must be paid by November 2013).
Borrowers may choose to make equal monthly payments for a period of nine years (120 monthly credits) or 10 years (120 monthly credits). The amount of each payment is reduced by 1.25% per year over the life of the loan.
