15 Simple Steps to Apply for national student loan in Canada

A student does not just need time, effort, and social life but it also requires money to get a college degree. It leads many students to apply for loans specifically when the course they are interested in is costly. It is also helpful when they want to be financially independent and not ask their parents for money. However, just like other types of loans, it is a boring process to borrow money and can be complex to understand. Mostly, it leads many students to seek help with loans from others just like they ask them for online class help when they find it boring.

A student loan is the way by which students get financial help from federal and provincial governments to pursue post-secondary education in Canada. Student loans cover tuition costs, textbooks, and living expenses.

It is a form of credit issued by the government to cater financial needs of a student. Contrary to different lending options like credit cards or student lines of credit, there is no need for student loan borrowers to pay interest while enrolling in their academic program.

Canada is well-known for its high-quality education system. Many students wish to pursue their higher education in this country. However, the affordability or cost of pursuing it can hinder many students. Luckily, students find the opportunity of student loans in Canada which make higher education more accessible for them.

What Are The Types Of Student Loans?

The government and private banks offer loans to students. Therefore, there are three types of student loans that include private, federal, and refinance. It is where you repay money after completing your studies. Federal loans are offered by the Government and they are highly flexible. Private loans on the other hand are offered by banks and credit unions and they are highly strict. The type of student loan you choose depends on the finance you require, the year of school you are studying in, and your credit rating.

Reasons To Apply For A Student Loan

Student loans allow students to access funds to pay for their academic expenses. As compared to other types of loans, student loans provide various benefits. It includes flexible repayment terms and interest-free borrowing in some cases. Different factors participate in making students eligible like financial condition, program length, or having any dependents. Additionally, good grades also play an important role in being eligible. Many students find it challenging to achieve them. This is why they seek help from professionals with difficult tasks such as a ged test online or many other academic tasks. These professionals have the expertise to make students stand out from the crowd.

Understand The Canada Student Loan Interest Rate

When students begin to pay their loans back, their interest is automatically set to a floating interest rate. There are some accounts such as MyLoan and the National Student Loan Service Centre (NSLSC) which allow students to view their interest rates.

A floating interest rate follows the recent prime rate. It means that canada student loan interest rate changes with the change in the prime rate.

Steps To Apply For National Student Loan In Canada

We will discuss here 15 easy steps to apply for national student loans in Canada.

1. Evaluate your eligibility

It is crucial to determine the eligibility before you apply for a national loan in Canada. Canadian citizenship, permanent residency, or a protected person makes you eligible. You must be a student at a well-reputed post-secondary institution.

2. Select your program

Clarify the program you are aspiring to apply for. Whether it is a federal student loan or a provincial student loan. The Federal Government, CSLP (Canada Student Loans Program) offers loans to students. However, each region and province has its own student financial aid programs. You can also apply for federal as well as provincial loans at a time.

3. Research loan alternatives

It depends upon the provinces and territories to provide different loan options with different terms and conditions. Evaluate the different alternatives available and find out the one suitable for your needs and requirements.

4. Formulate your personal information

Collect important personal information like your SIN (social insurance number) and the SIN of your parent or spouse if applicable. You may also require income tax information for the previous year.

5. Make a MyCanada Account

Make a MyCanada account using the Government of Canada’s website. This account will be considered a portal for different services of the Government. It also includes student loan applications.

6. Fill out the online application

Log in to your account and fill out the student loan section. Complete the online application that provides appropriate information related to your education, financial position, and program of study.

7. Apply for loans

You may be required to complete other applications on the student support website of your province or place in some cases. Make sure to follow all the steps of a particular application process.

8. Analyze your application

Cautiously review the application and make sure the details you have provided are appropriate. Errors or any mistakes can cause delays in processing your loan application.

9. Submit the documents needed

You may need supporting documents in some provinces and places for the purpose of verification of your eligibility. Make sure to provide these documents as soon as possible to avoid delays.

10. Your application evaluation

After complete submission of your application, the Government will evaluate your eligibility and financial position. It may take several weeks to complete this process.

11. Get your evaluation

The government will provide you with a Notice of assessment. It outlines the funding amount you are eligible for, which includes scholarships and loans.

12. Admit the offer

Cautiously evaluate the terms and conditions of your student loan offer. Accept the offer using your MyCanada Account in case you agree with the terms.

13. Gather your funds

After accepting the offer, you will get your amount paid directly to your chosen post-secondary institution. It will cover your tuition and other expenses.

14. Handle your loan

It is important to stay updated about your loan throughout your studies. You can access your loan details using your MyCanada Account.

15. Refunding

Finally, you will have to make repayment after completing your studies. Make sure to get insights into the repayment responsibilities and make payments timely to avoid consequences.

Consequences Of Not Paying Canada Student Debt

It is crucial to understand the consequences of not paying the Canada student loan. You will ruin your credit if you are unable to pay your debts. There are some ways to get help with student loans. Luckily, students may get different options offered by the Canadian Government:

• Repayment assistance plan
• Repayment assistance plan for borrowers with a disability

Understanding the repayment assistance plan

If you have been graduated for six months or longer and your debts are in repayment due to your financial issue, apply for RAP. It is a repayment assistance program that can reduce the student loan to make it highly affordable. There is also a possibility that graduates qualify for no six-month payment required. You may even qualify for less payment if your income exceeds the threshold.

During the repayment assistance plan, the Government covers the interest that your reduced payment doesn’t cover. Your payment won’t exceed 20% of your income in case you qualify for RAP.

Is There Any Student Loan Forgiveness Canada?

There is an option available for student loan forgiveness Canada if you are unable to pay your debts. However, you are not eligible till you get enrolled in the RAP plan and make payments for sixty months or ten years after completion of school.

The government will then cover the principle and interest exceeding your reduced payment. Your payments will not exceed 15 years' time if you continue with the RAP plan.

It is important to note that students are not automatically eligible for an RAP plan for the rest of their life. They are required to reapply every 6 months. You will stay on the plan as long as you are eligible. 

Who Is Eligible For Student Loan Forgiveness Canada?

Healthcare professionals can qualify for student loan forgiveness Canada easily. However, they need to meet some criteria for it. To be eligible for student loan forgiveness, you will:

• Have to work as a medical professional
• Need to work in a rural or underserved community.
• Must work for a year or more
• Should provide almost four hundred hours of service in your community
• Have student loans in good position

Medical professionals eligible for student loans may include family doctors, registered nurses, licensed practical nurses, registered psychiatric nurses, etc.

Way To Apply For Student Loan Forgiveness

To apply for student loan forgiveness you must follow the four steps discussed here:

• Evaluate your student loans
• Begin the canada student loan forgiveness application process
• Stay consistent with making payments as scheduled.
• Make sure the loans are forgiven

Get Insights Into The National Student Loans Service Centre (NSLSC)

The National Student Loans Service Centre serves as a banker for OSAP loans. After the OSAP approves your funding, the NSLSC distributes the funds. Once you stop being a full-time student, you will have to make payments to the NSLSC. A single application can allow you to get an interest-free loan or non-repayable scholarship with the Ontario Student Assistance Program (OSAP).

The National Student Loans Service Centre is an independent and third-party agency. It is responsible for the payment and gathering of student loan funding in Canada. You can simply consider it as a “Banker” of student loans.

A personalized and secure NSLSC account can help you find the details about the overall student loans. There is also an NSLSC portal which can be used to:

• Check your student loan status and balances
• Track funding distribution
• Update banking information
• Make payments for student loan
• Access loan statement for tax purposes
• Update contact details
• Apply for repayment assistance
• Request a change to the terms of your repayment

It is crucial to keep checking the NSLSC account for amendments. These changes can be related to profile details and enrolments like study time period, program details, and more). It is suggested to check the NSLSC portal on a weekly basis to make it impossible to miss any significant updates.

Explain The National Student Loan Data System (NSLDS)

The NSLDS is the Department of education national student loan data system based in the U.S.  It is the central database to help students. It receives data from educational institutions, guarantee agencies, the direct loan program, and other different ED programs. Students can get the centralized and unified platform to evaluate and examine the Title IV loans and scholarships through NSLDS Student Access. It also allows the recipients of Title IV Aid to easily access and review the details of their loans and grants.

Frequently Asked Questions