A government student loan or a loan through your credit union or bank – which one is right for you?
Student loan through my financial institution
Borrowing money from a credit union or bank to pay for your education is a great option. These type of loans typically come with variable interest rates so you’ll have an interest-only minimum payment while in school. These types of loans are also very flexible in the sense that you can withdraw money and repay at any time with no penalties. After you graduate your loan goes into repayment and that’s when you’ll be required to make regular monthly payments. Most financial institutions will offer a grace period before this happens, for example, Affinity’s grace period is 24 months! For those who prefer to tackle their loans and get them paid off early, the option to make extra payments is available at any time. Just keep in mind that depending on your financial situation, a co-signer may be required to get a line of credit.
Government student loan
Canada Student Loans, offered through the Government of Canada are another option when it comes to financing your education. Although government student loans don’t require interest payments until after you’ve graduated from post-secondary education, there’s a shorter grace period of just six months before you’re required to start paying your loan back. Something to keep in mind, in order to qualify for a Canada Student Loan, there are specific eligibility requirements that must be met.
Which one should you choose?
When it comes to being a student, you have many options. This is a good thing but it can also be overwhelming at times, which is why you don’t have to make this decision alone. Contact us at 1.866.863.6237 or visit us at an advice centre near you to learn more about our student options.