Getting a quality education in today’s world is not everyone’s cup of tea. A lot of financial support is required for that.
Thus, only a few people are able to get the education of their own choice. Definitely, this may result into the loss of great intellectuals who due to scarcity of money may be left somewhere behind in their life. But, government has started thinking for their youth. Here we are talking about Canada’s government which issues loans known as student loan Canada, to only those students who live in Canada, some of students who are immigrants to Canada and those Canadian students who are interested in pursuing their further college studies abroad.
The Human Resources and Social Development of Canada is the government organization in Canada that handles student loans. Each Canadian province also has its own financial aid office. One can also obtain loans from banks and financial institutions in Canada. Interested candidates need to understand the details of the loan agreement before it is signed. But, private loans charge higher rate of interest than most government loans. Students can apply to the loan through their provincial residence
Canada student loans are of two types, namely secured and unsecured. The secured loan requires collateral as security against the loan. This ultimately benefits the borrower with lower interest rate as the lender comes up with better terms and conditions, since he is safe in this case. If the borrower fails to repay the entire loan amount, he can recover his money on the basis of collateral. On the other hand, in the unsecured loan, one is not at all required to place any of his valuable assets as security against the loan. Thus, he need not worry about the possession of his collateral in case he fails to repay the entire loan amount. But, since the lender is at great risk I this case, therefore he charges higher rate of interest on the loan. The loan repayment period is about 15 years. A borrower with a good credit history can borrow up to $25000, whereas the one with a bad credit history will get a loan amount less than $25000. |
