Student loan consolidation in Canada has got easier recently. The Government of Canada in association with several Canadian provinces has simplified student financial assistance in Canada. Starting August 1, 2001, students in Ontario and Saskatchewan have allowed integrated federal and provincial student loans. Starting April 1, 2004, Newfoundland and Labrador now offer Canada student loan consolidation l and on May 1, 2005 New Brunswick also started to participate in this system. Since the Government of Canada and each of the provinces agreed to consolidate their Canada student loan program, the result has been an easier way for a Canada student to have a consolidation loan.
With a student loan consolidation in Canada, first time student borrowers benefit from one application, one need assessment, one loan certificate and loan agreement form, and common repayment assistance measures.
As a result, these borrowers have one student debt and make a single payment when repaying their student loans. Already, integrated certificates of eligibility are in use for borrowers residing in all integrated provinces. These borrowers also benefit from a single loan consolidation form and process and a single interest relief application for their integrated student loans.
Borrowers with student loans issued prior to August 1, 2001, also benefit from Integrated Student Loans in Ontario, Saskatchewan, Newfoundland and Labrador and New Brunswick. It is important to remember, however, that they will maintain a separate consolidation and repayment process for their risk-shared and guaranteed loans.
Tuesday, July 29, 2008
Monday, July 28, 2008
Canada Student Loan Debt-Interest Loan Rates
Common sense would suggest that the lower the interest rate on your Canada student loan, the less student debt you will have. Interest starts to be charged on your Canada student loan principal beginning the first day of the month following the end of your full-time study period.
The actual interest rates and conditions for repayment are set at the time you enter the repayment phase of you loan and your interest rate will vary depending on the prime interest rate in Canada, and as well, different Canadian provinces may charge different interest rates on their provinical student loans in Canada.
On Canada Student Loans, the current fixed rate of interest is prime + 5% and the current variable (floating) rate is prime + 2.5%. Some provinces such as Ontario, an Ontario Student Loan have an interest rate of prime + 1%.
You can check out the prime rate which is posted by most banks on a daily basis. For example the prime rate posted was around 4.75 percent in May of 2008 in Canada.
In general, the interest rate charged for either your federal canada student loan or your provincial canada student loan will be less than if you were to consolidate your canada student loan to reduce your student debt load.
The actual interest rates and conditions for repayment are set at the time you enter the repayment phase of you loan and your interest rate will vary depending on the prime interest rate in Canada, and as well, different Canadian provinces may charge different interest rates on their provinical student loans in Canada.
On Canada Student Loans, the current fixed rate of interest is prime + 5% and the current variable (floating) rate is prime + 2.5%. Some provinces such as Ontario, an Ontario Student Loan have an interest rate of prime + 1%.
You can check out the prime rate which is posted by most banks on a daily basis. For example the prime rate posted was around 4.75 percent in May of 2008 in Canada.
In general, the interest rate charged for either your federal canada student loan or your provincial canada student loan will be less than if you were to consolidate your canada student loan to reduce your student debt load.
Sunday, July 27, 2008
Canada Student Loan Consolidation Problems
Several potential problems can exist with a student loan consolidation in Canada . While many students in Canada want to consolidate their student loans to reduce their student debt, the long term outook on the consolidation loan may present several issues during the term of the consolidation loan for the Canada student.
One potential problem a student might run in to with their Canada consolidation loan is having to pay a much larger sum of money over the term of the loan due to a greater interest rate on their Canada student consolidation loan versus their provincial or federal Canada student loan.
Many people feel that the Canadian government charges a larger interest rate on a Canada student loan that in necessary and this creates a debt for a student in Canada to pay back.
As well, a typical student loan consolidation in Canada in viewed the same as a typical consolidation loan, meaning the student may have to meet the same qualifications as a non student consolidation loan.
In future posts, we will discuss alternative to a consolidation student loan and making wise decisions in you choose to consolidate your student loan in Canada.
One potential problem a student might run in to with their Canada consolidation loan is having to pay a much larger sum of money over the term of the loan due to a greater interest rate on their Canada student consolidation loan versus their provincial or federal Canada student loan.
Many people feel that the Canadian government charges a larger interest rate on a Canada student loan that in necessary and this creates a debt for a student in Canada to pay back.
As well, a typical student loan consolidation in Canada in viewed the same as a typical consolidation loan, meaning the student may have to meet the same qualifications as a non student consolidation loan.
In future posts, we will discuss alternative to a consolidation student loan and making wise decisions in you choose to consolidate your student loan in Canada.
Saturday, July 26, 2008
Student Loan Consolidation In Canada-Quick Facts
Student loan consolidation in Canada can be a time consuming and a frustrating process for many students. Due to the complexity of the student loan system in Canada, many students are confused about their current student loans and the financial particulars regarding their student loan debt.
Thankfully, the lending industry in Canada has taken a more relaxed attitude to a student in Canada, and many students now enjoy loan options to them not available as little as five years ago. That being said, it is up to the student to make sure that a student loan consolidation is a wise choice for them.
The advantage of a student loan consolidation for a student in Canada is to lower their overall monthly payments to a payment that is more affordable to them. While that is a big advantage to many students in Canada who face a large amount of debt, chances are your interest rates will be higher than the interest component you would pay on either your provincial or federal Canada student loans.
This means that while your Canada consolidation loan may result in lower payments, over the long term you will be repaying a larger sum of money that includes both the loan principal amount plus your interest charges.
Future posts will discuss in more detail about the student loan consolidation process for students in Canada and what options this may include
Thankfully, the lending industry in Canada has taken a more relaxed attitude to a student in Canada, and many students now enjoy loan options to them not available as little as five years ago. That being said, it is up to the student to make sure that a student loan consolidation is a wise choice for them.
The advantage of a student loan consolidation for a student in Canada is to lower their overall monthly payments to a payment that is more affordable to them. While that is a big advantage to many students in Canada who face a large amount of debt, chances are your interest rates will be higher than the interest component you would pay on either your provincial or federal Canada student loans.
This means that while your Canada consolidation loan may result in lower payments, over the long term you will be repaying a larger sum of money that includes both the loan principal amount plus your interest charges.
Future posts will discuss in more detail about the student loan consolidation process for students in Canada and what options this may include
Friday, July 25, 2008
Student Loan Consolidation Canada
This blog is dedicated to bringing information and resources for student loan consolidation in Canada. Many students in Canada have several student loans and with rising living costs, more and more students are having a difficult time being able to afford all of their debts.
Consolidation of a student loan in Canada has become more and more popular and easily over the last few years BUT you must know the correct ways and have the proper information to make sure your consolidation loan is done correctly.
Stay tune for future posts which will outline all of the advantages, problems and how a student loan consolidation in Canada can work for you.
Consolidation of a student loan in Canada has become more and more popular and easily over the last few years BUT you must know the correct ways and have the proper information to make sure your consolidation loan is done correctly.
Stay tune for future posts which will outline all of the advantages, problems and how a student loan consolidation in Canada can work for you.
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