international student life

international student

Student loan and Financial Aid in Canada.

Canada Student Loan Program, Loan Assessment, Loan participation and improvements suggested.

The Canada Student Loan Program and other Student loan programs in Canadian provinces have helped millions of Canadians attend college and improve their lives regardless of their social economic backgrounds.

There are however some issues that people complain about including that some students who don't need the money are able to get it while others in need are not, and that there is no flexibility in repayment terms.

In recent years, there has been an increase in College Tuition fees hence increasing student borrowing and this leads to defaults in their repayment since they are borrowing more and more money which they may have difficulty paying.

There are also concerns that the rise in college tuition and fees is deterring capable people from pursuing college especially people from low income backgrounds.

A students eligibility for student loan is assessed based on an assessment of the Direct educational costs like tuition and books, and living costs and expenses. Then they factor in the students savings from summer jobs, expected parental contribution, scholarships, financial aid and other sources of income. If the costs exceed the expected resources, then the student is allowed to borrow up to a certain amount to cover the difference.

The Canadian Student loan programs issues the loans directly to students and pays the interest while the student is in college. It also assumes the risk for default.

For people facing trouble repaying their debt, due to factors like unemployment, being disabled or ill, there is repayment help and sometimes the debt is reduced or cancelled.

There are some worrying trends because the borrowing rates have not grown although there is a great need for most people to go to college to be able to function in today's job environment that requires that people have skills obtained in college.

This is mainly due to people worried about the high college costs and their repayment ability skipping college all together so they don't have to get the loans. This is more so in lower income families and is causing a problem because these lower income people need to go to college to be able to pull themselves out of that low income status.

Therefore it is recommended that more help be availed to those facing difficulty paying their loans so as to encourage low income people take these loans and improve their education.

There should also be higher loan limits for people wishing to pursue graduate and post graduate studies. Eligibility to these loans should also be broadened to cover as many people as possible with the aim of bringing as many people to college as possible.