An Overview Of The Canada Student Loan Program
The Canada Student Loans Program (CSLP) is an essential element of the Government of Canada. Through the agenda, the Government is working to ensure that the Canadians have the necessary skills to be able to compete with all countries in the future.
By providing loan monies to Canadians enrolled in full or part-time post-secondary education studies, the CSLP is able to offer individuals the opportunity to participate in the process of lifelong learning.
The Government has assisted over 3.8 million students with over $16 billion in loans since the CSLP was founded. The CSLP was created in 1964. However, up until July 31, 2000, the Government of Canada and participating financial institutions worked together to finance the loans.
Rules were changed and as of August 1, 2000, the Government of Canada formed the new National Student Loans Service Centre (NSLSC) and they now directly finance all loans. There are two divisions of the NSLSC, one to manage loans for students attending public institutions and the other to administer loans for students attending private institutions.
As a result, these student borrowers have one student debt and make a single payment when repaying their student loans. Already, integrated certificates of eligibility are in use for borrowers residing in all integrated provinces.
These borrowers also benefit form a single loan consolidation form and process and a single interest relief application for their student loans. Also, they maintain a separate consolidation and repayment process for their risk-shared and guaranteed loans.
They were having problems and decided to reform their system. They began improving program results, reducing costs per student, reducing defaults, decreasing loans written off, enhancing tracking data, improving on-line services to students for study, repayment and collections.
A Quick Overview Of The USA Student Loan Program
The most favorable student loan would be a Federal loan. They have lower interest rates, options to postpone payments, longer repayment terms and easier credit requirements. Eligibility for some of these loans is need based, while others are not.
The Federal loans in which a student can choose from are the Federal Perkins Loan and the Federal Stafford Loan. Both types of these loans can be either subsidized or unsubsidized due to your qualifications.
Next, is the Federal PLUS loan (Parent Loan for Undergraduate Students). Once again as stated, the Federal loans are preferable in several aspects to the private student loans.
Private loans are designed to supplement Federal loans and are available from schools, banks, credit unions, and education loan organizations. They are usually used to cover education costs that cannot be met by Federal aid.
On terms for private loans, interest rates and fees vary according to the lender and your credit history and their rules of their individual company. They are not run nor governed by the Federal Government.
As you can see, students attending college here in the US could have many options, good or poor, without having a strong voice in the situation. It is usually dictated from their family’s financial background and how they were encouraged to prepare for college.