Beneficial Features Of Student Loans FAQ - Finance

Student loans are one option to pay college expenses, but it is a good idea to look into other sources of financing first. These include personal savings, scholarships, and grants, which do not have to be repaid. In many cases, these cannot cover all expenses, and this is where student loans come to help.

Persons with less-than-perfect credit may also apply for student loans. Student loans are featured with interest-only or deferred payments, and go with a lower interest rate than other loans. These loans are more affordable because of the special conditions offered. In general, students are not the ideal candidates for standard loans because they have no or little exposure to credit and limited credit histories. Most lenders are not willing to offer low interest rates and lenient repayment schedules comparable to those of student loans.

Those who want to apply for a student loan may look into the Canada Student Loans Program first. Loans are offered to part- and full-time postsecondary students who can demonstrate financial need. The repayment period commences when the student leaves school or graduates. While borrowers are not required to make payments six months afterwards, interest accumulates during this period.

The Canada Student Loans Program is part of the Government of Canada?s Human Capital Agenda, and the main goal is to ensure that all Canadians have the necessary skills and knowledge to compete in the economy. The program promotes lifelong learning for full-time and part-time students by offering financial assistance. The program?s success is due to the close cooperation between the federal, provincial, and territorial governments. Financial need is assessed using federal criteria and by the relevant authorities in all participating provinces. They issue a loan certificate to award aid and designate eligible establishments of higher education. Nunavut, the province of Quebec, and the Northern Territories do not participate in the program. They receive payments from the Canadian government and run their own assistance programs. New regulations have been adopted in 2001, according to which all provinces have to integrate their assistance programs. First-time applicants benefit from common repayment assistance measures, one loan certificate, a single need assessment, and one application for a student loan.

Students who are looking for college loans can check private loans as well. These loans are beneficial in helping students cover their living expenses and help them pay for tuition, accommodation, and books. At the same time, private student loans differ from government loans in that students may have to pay interest while in school. Given that student loans are offered with a low interest rate, this is usually not something to worry about. Cardholders who use their credit cards to meet their living expenses also pay interest once the grace period is over. Finally, it should be noted that private student loans are more expensive, i.e. higher interest rates apply, and less flexible than government student loans.

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Source: http://www.shortmarketresearch.com/2012/02/17/beneficial-features-of-student-loans-faq/

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