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Every year, thousands of local and international students apply to Canadian schools. If you’re one of them this year, Canada student loans are a great way to fulfill your desire for higher education. Despite escalating tuition fees, enrolling in college remains a good choice for many as it is an investment in the future. This is why loan providers like Loans Canada have become popular for Canada student loans in recent years.
Based on your borrowing requirements, the service can match you with the best lender from a pool of potential lenders. There are many other ways of obtaining Canada student loans, and you’ll find them all here.
Terms and conditions may differ across provinces
Best Canada Student Loans On the Market
Loans Canada – Flexible Canada student loan interest rate and terms
LoansConnect – No credit score requirement
Mogo – 100-day money-back guarantee
goPeer – Flexible terms for loan payback
Overview of the Best Canada Student Loan Providers
Loans Canada: Best Overall
Loan Amount: $500 – $300,000
Annual Percentage Rate (APR): 3 per cent – 46.96 per cent
Loan Term: 3 – 60 months
Star rating: 5/5
>> Apply Now
Loans Canada is one of the country’s most trusted lender networks, and they have a good reason to be trusted. The service can provide the ideal lender based on your borrowing needs from a large pool of available lenders. Additionally, Loans Canada has an A+ rating from the Better Business Bureau and is a member of the Canadian Lenders Association.
Why we chose it: If you’re searching for awesome Canada student loans, Loans Canada provides fantastic features that are worth exploring. This platform will not disappoint you, from low-interest rates to a large network of partner lenders.
The lenders affiliated with Loans Canada often provide Canada student loan interest rates as low as 1.99 per cent but as high as 46.96 per cent on sums ranging up to $50,000, with financing being made accessible for some loans in as little as 24 hours. The website offers lenders exclusively for persons with bad credit, and neither credit nor income limitations are stated in clear terms.
Pros:
Flexible interest rates and terms
The capability of comparing numerous lenders in one place
Different loan types, including secured and unsecured loans
Cons:
Penalties for late payments
Bad credit loans may have higher interest rates.
Some loans have penalties for early repayment.
Features of Loans Canada
The most significant feature of Loans Canada is that it conducts research for you. You can submit a single loan application through its platform, which is then reviewed for eligibility with a large network of lenders.
These features offer two key advantages: First, it makes the loan application procedure simple, quick, and easy on your credit score. The second advantage of Loan Canada’s system is that it lets customers rate and review lenders. This will help you decide whether or not a suggested lender is best for you.
Services of Loans Canada
Loans Canada provides a variety of loans, including personal loans, debt consolidation loans, loans for cars, businesses, building credit, and home equity. The lending network has a simple, user-friendly website layout jam-packed with additional services, such as credit monitoring and credit score reports, as well as a ton of financial recommendations.
Fees and rates of Loans Canada
The minimum amount of the loan is $500, and the maximum loan amount is $50,000. Furthermore, Loans Canada offers loan periods ranging from three to 60 months. Rates of interest range from 2.99 per cent to 46.96 per cent, depending on the lender.
Eligibility at Loans Canada
Although each lender has its qualifying requirements, the following are the five most typical things you should have ready before applying for Canada student loans at Loans Canada: Proof of identity, a bank account that accepts automatic deposits, proof of address, proof of employment status, birthdate, and Social Security number. Additionally, you must have worked for at least three months and make at least $1,800 per month to qualify for a Loans Canada loan.
Terms and conditions may differ across provinces
LoanConnect: Best for Low APR Personal Loans
Loan Amount: $500 – $50,000
Annual Percentage Rate (APR): 4.6 per cent – 46.95 per cent
Loan Term: 6 – 60 months
Star rating: 4/5
>> Apply here
LoanConnect is an internet search engine that compares personal loan rates in Canada. It is a BBB-accredited company with an A+ rating and offers some of Canada’s lowest personal loan rates. LoanConnect is not a direct lender but acts as a middleman between lenders and clients. They provide unsecured loans from unsecured lenders, giving loans for every purpose.
Why we chose it: LoanConnect acts as a search engine for several loan providers that will meet your requirements. They are Better Business Bureau accredited and have an A+ rating, making them a top choice for many customers. Furthermore, LoanConnect has no minimum credit score requirement and offers a variety of loan choices.
Pros:
Available throughout Canada
Loans of various types
There is no credit score requirement
Cons:
Limited amount of lenders
Possibility of bias in search outcomes
Lenders can only be found online
Features of LoanConnect
LoanConnect is a loan search engine that can get you started in as little as five minutes. According to their website, LoanConnect intends to be "Canada’s premier online loan search and approval institution." The firm is well-known for assisting Canadians in finding competitive rates for loans up to $50,000, regardless of credit score. The loan’s rates, terms, and other details are determined solely by the lender of your choice, but LoanConnect will supply you with all relevant information.
Services of LoanConnect
Almost all types of loans are available on LoanConnect because it is a search engine that links borrowers and lenders. Whether you need quick cash for a medical emergency, a kitchen renovation, or to pay some bills, LoanConnect has a solution for you. In addition to student loans, LoanConnect also provides a variety of other typical loan types, such as debt consolidation, personal loans, business loans, home improvement loans, and loans for emergencies.
Fees and rates of LoanConnect
The platform offers loans in amounts as low as $500 and as much as $50,000, with terms ranging from 6 to 60 months. The range of interest rates is usually 4.6 per cent to 46.96 per cent. However, the fees are determined by the lender you choose.
Eligibility at LoanConnect
You must satisfy only two conditions to apply for a loan with LoanConnect. You must be a Canadian resident or citizen and at least 18 years old. You can also apply for a loan if you have bad credit and existing debt. The sole requirement is that your debt not exceed 60 per cent of your income.
Terms and conditions may differ across provinces
Mogo: Best for Unsecured Personal Loans
Loan Amount: $100 – $35,000
Annual Percentage Rate (APR): 5.9 per cent – 46.96 per cent
Loan Term: 9 – 60 months
Star rating: 4/5
>> Apply Now
Mogo is a lender that scores well among Canada’s best lenders. Mogo is a Vancouver-based, publicly traded firm subject to FINTRAC regulation. There are more than a million customers of the company, and it has created more than 1,300,000 loans as of this date. Mogo debuted in 2015 on the TSX (Toronto Stock Exchange) and in 2018 on the NASDAQ.
Why we chose it: Mogo is a customer-friendly business that offers its customers a stylish website and an app with an easy-to-use interface. Mogo is an excellent choice for people who cannot obtain personal loans through a bank or lender due to a low credit score.
Pros:
100-day money-back guarantee
Online registration is quick and simple
Loan approval is straightforward
Cons:
High-interest rates
Additional loan fees are not indicated on the website
Unresponsive customer service
Features of Mogo
With various financial options, Mogo operates in practically all provinces and territories. There’s also 24-hour customer care, on-time loan payments that show up on your credit record, a free Mogo Visa Platinum Prepaid Credit Card, and free credit score monitoring.
For borrowers dissatisfied with Mogo’s service, the company offers a 100-day money-back guarantee, a notable feature. This guarantee is quite an uncommon personal loan option.
Services of Mogo
Aside from providing Canada Student Loans, Mogo provides a wide range of financial services to Canadians, including credit cards, cryptocurrency, personal loans, mortgages, free credit score monitoring, and identity fraud protection.
Fees and rates of Mogo
They provide a range of personal loans, up to $35,000, with durations ranging from nine months to five years. Depending on your financial situation, the interest rates on these personal loans range greatly from 5.9 per cent to 46.96 per cent. Although Mogo does not have a minimum credit score requirement, applicants with low scores will likely be given interest rates at the higher end of the scale.
Eligibility at Mogo
To obtain a Mogo loan, you must be a legal resident of Ontario, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland & Labrador, the Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, or Saskatchewan. Candidates must be above the majority age to be eligible to apply for a loan (18 or 19, depending on the province or territory). There are no limitations on how Mogo may use the loan.
Terms and conditions may differ across provinces
goPeer: Best for Peer-to-Peer (P2P) Loans
Loan Amount: $1,000 – $25,000
Annual Percentage Rate (APR): 8 per cent – 33.92 per cent
Loan Term: 36 – 60 months
Star rating: 4/5
>> Apply Now
goPeer is Canada’s first licensed consumer peer-to-peer lending service. goPeer is not popular for Canada student loans alone. The loan platform brings together Canadians seeking loans and Canadians looking to invest. goPeer is a Toronto-based company founded in 2019 which intends to provide Canadians with good to excellent credit with the lowest affordable Canada student loan interest rates. With goPeer, you can apply for a loan and have it approved entirely online without leaving your comfort zone.
Why we chose it: goPeer is a specialized alternative lending platform. For candidates considering getting personal loans such as Canada student loans, it has a lot of wonderful advantages, such as competitive interest rates, an online application process that takes little time, and extended terms.
Pros:
Flexible terms for loan payback
Lower interest rates
Available in all provinces
Cons:
No physical location
High-interest rates for clients with bad credit
Strict eligibility requirements
Features of goPeer
goPeer, the most well-known P2P lending network that makes it simple for consumers to obtain personal loans, is a platform that is growing in popularity among Canadians. Canadians can use goPeer to obtain loans with better interest rates, more flexibility in loan repayment, and quicker access to funds than conventional lenders. The platform is also available to Canadians who want to diversify their investment portfolio beyond conventional asset types.
Services of goPeer
In addition to Canada student loans, the goPeer platform provides several other services. Many choose to obtain loans through goPeer because of its simplicity and convenience. goPeer also provides an investment service. Investors can make gross returns ranging from 7.5 per cent to 28 per cent, according to goPeer. Also, keep in mind that no costs are associated with deposits, transfers, or withdrawals, so your profits flow as they do.
Fees and rates of goPeer
Users can apply for unsecured loans at goPeer ranging from $1,000 to $25,000. They have repayment periods of 36 to 60 months and interest rates ranging from 8 per cent to 32.92 per cent. On loans you take out through the P2P lending platform, goPeer gives you affordable interest rates. However, depending on your total credit score, the interest rates on your loan may change.
Eligibility at goPeer
Having a debt-to-income ratio lower than 35 per cent, a credit score above 600, an active bank account, residing in Canada for at least three years, and being 18 years of age or older are all requirements for being eligible for a goPeer loan.
What to Know About Canada Student Loans
Post-secondary education may hold the key to achieving the goals of many Canadians. People of all ages can obtain the skills necessary to thrive in their chosen sector by pursuing a variety of diplomas and degrees offered by colleges and universities. Even though the cost of post-secondary schooling in Canada is lower than in other nations, some people may not be able to afford it on a tight budget. In this situation, student loans become useful.
What Is a Student Loan?
A student loan is, as the name implies, a loan provided by the government or lending firm with the sole purpose of covering a borrower’s post-secondary educational expenses. This can include tuition for a college or university, books, and other associated costs.
Canada student loans are a type of debt. Therefore, it is the same as any other debt in that you borrow money and are required to repay it as specified in the documents. But what makes student loans special is that their collateral is your potential future earnings. It is anticipated that you will eventually repay the debt.
Students do not get to pick the loan amount when they apply. Instead, various aspects of their financial condition, like salary, the number of dependents, and the cost of tuition, will determine how much of a student loan they need.
Terms and conditions may differ across provinces
Student Loans Canada: The Basics and Types
The term "student loan" refers to a wide range of financial products, including personal loans, student credit lines from banks, and installment loans backed by the government. Most Canada student loans are issued by the provincial or federal governments, or sometimes both.
Most believe that federal government loans are the only available student loan options. However, there are other lending options available. Whatever method you choose, there are specific Canada student loan interest rates, leverages, and repayment options for each. Below are the types of Canada student loans.
Federal Government Student Loans
Although you request these loans via your province or territory, the federal government is the one that provides them. The Canada Student Loans Program approves and processes federal student loans. As long as they stay within a specific budget, this program offers loans to Canadian students to help them pay for post-secondary tuition and other costs.
These loans must be fully repaid. Upon graduation or completion of studies, the entire loan balance, plus interest, will be due as a debt. However, the loan does not accrue interest while enrolled in school and for six months following their graduation. Additionally, during that period, students are not expected to make any payments toward their student loans.
The Canadian government recently increased the zero-payment income threshold for Canada student loans and Canada Apprentice Loans to $40,000 from $25,000 for a family of one. The implication is that single borrowers may not have to repay Canada student loans issued by the government until they start earning at least $40,000 per year.
The Canada Student Grants Program (CSGP)
Non-repayable grants are available to qualifying students with financial needs under the Canada Student Loans Program. Eligible students do not have to repay the grant money, unlike Canada Student Loans, although the grant could reflect on their taxes. Federal grants and student loans Canada are disbursed in collaboration with participating provinces and territories.
To be eligible for the Canada Student Grants Program (CSGP), students must prove that they have extreme financial needs. Once the application has been approved, the grant will be disbursed to the student.
Provincial and Territory Student Loans Canada
These loans are ones that your province or territory is offering. You might occasionally be eligible for a provincial student loan in addition to your Canada Student Loan. If you are rejected for Canada Student Loans or one is not offered in your province or territory, it may also take the place of one. It’s vital to remember that the criteria used to determine loan eligibility, amount, and repayment will vary by province.
Private Institutions and Other Student Loan Providers
Consider other alternatives if you are not eligible for government student loans or if the loan amount is insufficient to pay for your post-secondary education. If so, you may want to think about the following alternatives:
Student Line of Credit: A student line of credit is similar to a regular line of credit in that you are approved for a maximum limit but only pay interest on the amounts you withdraw. The majority of banks and credit unions provide it. Student credit lines typically only need interest payments while you are a student, and some of them transition to installment loans once you leave.
Personal Loans: Personal loans are available from various lenders, including banking institutions and online lenders such as Loans Canada, LoanConnect, Mogo, and goPeer. Personal loans are often repaid monthly over time, with 60 months commonly the maximum.
Bank student loans: Banks provide loans for various requirements, including home loans and loans for the purchase of automobiles. You can get Canada student loans from banks to pay for your college or university tuition. Banks can also grant you loans that must be repaid monthly over a predetermined time frame. It is advisable to borrow the amount required to make your payments as it is paid back in regular installments.
Terms and conditions may differ across provinces
The Impact of Student Loan Debt in Canada
Although attending a university or college can give you the necessary skills to support yourself, the effects of student loan debt in Canada cannot be downplayed. With an average student loan debt of $28,000 for those with a bachelor’s degree and $15,300 for college graduates, many young Canadians find it challenging to launch their enterprises, purchase homes, or save money for the future. Instead, a sizable amount of their income is used to cover interest and loan payments.
Student Loan Forgiveness Canada
The nation’s economy has been significantly impacted by the billions of money students owe. As a result, many people have started looking into Canadians’ options for student loan forgiveness. For instance, certain political parties have stated their intentions to advocate for student loan forgiveness Canada, which would erase each Canadian’s federal student loan debt of up to $20,000.
One of the purposes of eliminating interest on Canadian student loans is to assist lessen the strain of repaying them. Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance, announced a new plan that will completely eliminate interest on the federal portion of all Canada Student and Canada Apprentice Loans, including those that have already been paid off, as part of the federal government’s 2022 Fall Economic Statement. The program is scheduled to start in April 2023.
The interest on the provincial part of the student loans will still be applicable and accrue in Ontario, though. Only the federal share of student loans would be covered by the proposal; the provincial or territorial portions would not. As a result, interest will start to accumulate on Ontario Student Assistance Program (OSAP) loans six months after a student completes full-time study.
Managing Debt from Canada Student Loans While in School
Money management practices are ways that students can use to stay out of debt from student loans. Instead of waiting for the government to start preparing for student loan forgiveness Canada, you might limit or even prevent debt with smart money management.
So what should be taken into account to reduce a student’s debt by the time they graduate?
Know your field of study and its cost
Want to pay off your debt quickly so you won’t need debt relief programs or student loan forgiveness? If yes, consider choosing a field of study with a high employability yet relatively inexpensive tuition fee.
For instance, acquiring a Masters in Business Administration is less expensive than studying medicine. The degree or specialty you choose will influence the size of your debt payments, which will be years after acquiring the loan.
Consider enrolling in a course or career with a lower tuition cost but a better likelihood of employment. In light of this, never sacrifice your interests. Look for less expensive alternatives in your area of expertise, then progress from there. Don’t limit your inquiry to the hiring rate. Make sure you are aware of the starting pay for recent graduates, the maximum earning potential, and the many employment possibilities your degree entitles you to.
Choose a campus that is nearby your home
For college and university students, housing can be a significant financial burden. Consequently, commuting from home may be more cost-effective than living on campus. A parking pass and gas are frequently far less expensive than a pricey dormitory.
As an alternative, consider looking for apartments not on campus but nearby. Even though rooms near schools can be pricey, they are frequently less expensive than dorms. To cut costs further, you can share a room with another student. This could enable you to extend your housing budget further and save money to repay your Canada student loans.
Create a budget and implement it
Whether you are on Canada student loans or not, the key to successful student life is budgeting. Keeping track of your finances and necessary expenditures is the essence of budgeting. Creating a budget during college or university will enable you to comprehend your expenses and next steps.
It would be best to determine your revenue before worrying about your expenses. Your income can be your part-time salary, a monthly allowance from a relative, or the interest you receive on any assets you own. The next stage is to record your expenses when you have determined your income and are aware of your liquid assets. Start with the fixed monthly payments that you must make. Some examples are rent, student loan payments, utility bills, etc. Then you start keeping track of the other expenses you have each month, including recurring expenses like groceries, clothing, video games, and gas for your automobile.
Check to see if you have a surplus at the end of the month after you have them. If the answer is yes, you are doing well and most likely have nothing to be concerned about. When expenses outweigh income, it’s time to start making sacrifices. By reducing your variable costs, you can reduce your spending. You can occasionally reduce your fixed costs by downgrading your mobile service or moving to a location with lower rent. Always strive for a positive income-to-expense ratio, which entails having excess cash after covering your expenses.
Consider repaying Canada student loans while still in school
It is ideal to start paying off student debts while enrolled in school if you have a well-paid part-time job. You can reduce the principal by doing this. Before interest on their loans begins to accrue, students have a grace period of six months, according to the law. Furthermore, they are not required to pay until receiving the diploma.
You can significantly reduce your principal amount by making payments while enrolled in school, preferably in the first six months. Additionally, less interest may accumulate over time since interest is deducted from the principal. That makes it much simpler to repay your debt as you seek a career after graduation. Finding work might be difficult, and your first few years out of college and in your profession will pay the least. To pay off as much debt as possible, you need to plan.
Terms and conditions may differ across provinces
How to Apply for Canada Student Loans
One option is to use a line of credit or a private loan for your education. A bank or an online lending platform can be used for this, and the bank will require particular papers to approve the loan. The bank will be pleased to provide you with the loan if you can establish your financial stability and ability to make payments. With Canada student loans provided by the government, the procedure is very different.
You must submit your application well before the start of your academic year if you choose to use a government-backed student loan to pay for your education. The province offers these loans on a semester-by-semester basis. You can check the application deadlines on the websites of the provinces where you reside. If you are not qualified, learning sooner can help you prepare a backup plan before it becomes urgent. So, applying early is advantageous.
You need the following details and related documents to apply for Canada student loans:
Name, birthdate, residence address, and SIN number
Your earnings, those of your parents, and those of your spouse (if applicable)
Detailed information about any funds, RRSP savings, or RESPs you may have
Information about the university you plan to attend and the chosen program. (You must specify whether you are going full- or part-time because doing so modifies the terms slightly).
Most provinces provide an online application that doesn’t need supporting documents like bank statements or letters of acceptance. However, if you want to dispute the loan amount that has been approved, you can provide these records.
Terms and conditions may differ across provinces
What If I Can’t Repay My Student Loans?
If you’ve had trouble finding a job after college and cannot make your monthly student loan payments, you don’t need to turn to a debt consolidation loan or a credit counselor. You are eligible to apply for the repayment assistance plan (RAP). RAP is available in every province, and while some differ in detail, the majority are comparable to the federal RAP.
When applying for RAP, you must establish that your financial circumstances prevent you from making monthly payments. You will be required to supply information about your income; depending on that information, you may be required to make a payment that does not surpass 20 per cent of your earnings.
When your student loans start to be repaid or if your financial situation changes, you can apply for RAP. RAP has no time restrictions, but it demands that you reapply every six months. The federal government will start to pay the interest and principal overdrafts once you’ve met the eligibility requirements for 60 months.
Getting Canada Student Loans – Conclusion
Everyone knows that getting Canada student loans is no piece of cake. Providers of federal and provincial student loans give a great, affordable method to pay for your education. Government student loans have several advantages, including an interest-free term and forgiveness options. The application process is no more difficult than a typical personal loan.
However, to increase your school funds, it’s often wise to consider an online lender such as Loans Canada. In addition to a longer grace period than the 6 months offered by government student loans Canada after graduation, this private lender also has a lower Canada student loan interest rate. For this reason, it ranks as best overall on our list of best Canada student loan providers. Other popular loan providers that give Canada student loans are LoanConnect, goPeer, and Mogo.
Terms and conditions may differ across provinces
FAQs
Below are the frequently asked questions about student loans Canada
How do Canada student loans work?
You can apply for Canada student loans if you want to enroll in a college or university but lack the funds to cover your tuition or living expenses. There are many different kinds of student loans in Canada, but the one that the government finances is the most commonly used. You apply, it is reviewed, and you are offered a loan for post-secondary studies. The government then grants you six months after graduation to repay your debts.
What happens if you don’t pay back student loans in Canada?
Not making student loan payments inevitably has consequences. The first strike designates the student debt as delinquent and lowers your credit score after 90 days of non-payment. After 270 days of non-payment, the loan defaults and may be turned over to collection and recovery agents.
How to get rid of Canada student loans?
For Canadians with student debt, the government is working on loan forgiveness for Canada student loans. Additionally, a bill drafted by several political parties in Canada may cancel up to $20,000 in federal student debts for each Canadian. In addition, you could refinance your debt. However, paying off a student debt is the only real method to get rid of it. You may be eligible for student loan repayment assistance to assist you in effectively managing your loan repayment.
What is student loan forgiveness?
Student loan forgiveness simply means erasing all or part of a student loan debt. Certain provinces (like British Columbia) offer student loan forgiveness programs such that all or a percentage of your government loan debt will be forgiven when you meet stipulated conditions (e.g employment for five years).
Where do I get student loans?
You can obtain Canada student loans from online lenders such as Loans Canada, goPeer, LoanConnect, and Mogo. This is because they give you ample time to repay and offer great Canada student loan interest rates. Government student loans are also great, particularly due to the zero interest and forgiveness options.
Disclaimer This content was supplied by the advertiser.
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