Student line of credit
There are many types of credit facilities available for students for meeting their education and other related expenses and one among them is student line of credit. Student line of credit is quite popular in Canada where thousands of students get this facility for meeting various types of expenses. One of most important features of this facility is that unlike student loans, a person can withdraw the money from student line of credit as per his need. In fact, this facility can be used as a student credit card where student can withdraw and deposit sums as per his requirements.
Interest is applied on the amount that is actually utilized by a student rather than the limit granted. However, there are some disadvantage too that are attached with student line of credit. First of all, in some student line of credit, a student may be required to pay the interest right away as it is applied in the account. In student loans, principal amount becomes repayable after the student has completed his job. Even interest is not required to be paid in case of subsidized student loans. However, there are certain institutions that allow students to repay principal amount after they have completed their courses. Second restriction attached with student line of credit is that a student has to provide a co-signor for getting the credit facility. Co-signors generally accepted are parents or other guardians. If a student is not able to repay the loan amount, co-signor becomes liable for the repayment of same.
Student lint of credit is offered by different types of financial institutions like banks. Maximum amount of loan, interest rate and other terms vary. Shopping for large number of lenders can help a student in getting cheap student line of credit and the best offer. It is advised that before signing the documents, a student should understand various loan terms in detail. If possible, terms of loan may be negotiated.
Some sources
Let us try to understand more about student lines of credit by discussing some sources. TD Canada Trust is one of most important providers of student line of credit in Canada. It is fully understood that higher education is a costly affair and a student has to resort to different ways for meeting related expenses. This lender offers customized student line of credit so that all requirements are fulfilled. A student can easily cover expenses related to living, tuition, books etc. A student gets access to money whenever he needs it and for any purpose. There are many benefits of student line of credit offered by TD Canada Trust. First of all, there is no annual or monthly fee payable.
Interest rates applied are very competitive and are applied by adding a variance rate to the TD Prime rate. One of most important advantages is that this variance does not increase after a student graduates. There are no restrictions on amount that can be withdrawn up to provided limit. After a student finishes his course, he has to pay interest only for one year. Even after the interest only period is over, repayments asked are lower and spread up to a period of 20 years. Money from the student line of credit account can be accessed from Green Machine ABM. Other modes allowed are checks, internet banking, direct payment through Interac and approaching any branch of TD Canada Trust. There are basically three lines of credit offered.
These are undergraduate, graduate and professional. A person can easily call at 1-866-222-3456 for getting more information. For undergraduate student line of credit, a student must be enrolled in a full time or part time college accredited by the Canadian University. For full time students, maximum annual amount is $10000 while for part time students, this amount is $5000. For graduate students, maximum amount offered per year is $8000 and up to a maximum of $48000 which also includes debt towards undergraduate courses. Professional students are offered maximum loan amount as per course. For example, students in Chiropractic stream can a maximum of $62000 for full course. Dental students can get maximum of $150000 and MBA students can get maximum of $80000 for full course period. A student can approach any branch of TD Canada Trust for getting student line of credit.
Bank of Montreal is another source offering student line of credit in Canada. It can be called at 1-800-665-9665 for getting required information. Students are offered limit for tuition, living expenses, expenses towards books and all other types of expenses related to education. All full and part time students that are citizen of Canada or are landed immigrant that have taken admission in any post secondary institution are eligible to apply. Students in non Canadian institutions can also apply. Student must be at the post secondary level and course should lead to a certificate or diploma.
There must be minimum 20 hours of instruction per week. Maximum loan amount is $45000. In the first year, a student can borrow up to $15000 and in subsequent years, maximum amount allowed is $10000. Interest is charged at 1% over prime rate of Bank of Montreal. Money can be accessed through no fee master card or through check at any branch. Medical students are allowed to get maximum loan amount of $150000 and annual amount of $30000. Students in Chiropractic can get up to $80000 as full amount and maximum annual amount offered is $20000. For students in Pharmacy and Accounting fields, maximum loan amount is same as applicable in Chiropractic.
Laurentian Bank also provides student line of credit. Loan is provided in a tailored manner so that student can fulfill all his requirements and can concentrate on his studies. While studying, a student has to repay monthly interest only and there is no principal amount repayment. Minimum amount offered is $1500. Undergraduate students can get up to $20000 and graduate students can get up to $30000 for full course. Interest is applied on the loan amount used and on variable basis. Rate fluctuates as per the base rate of Laurentian Bank. Money can be accessed through direct services of bank or through ABMs or through checks.