Are you apprehensive of getting a sizeable student loan because of your bad credit history? Now, it’s true that the credit rating of a borrower is always checked before granting a loan. A borrower with bad rating is considered to be risky. Hence, most lenders deny borrowers with poor credit. But, you must know, bad credit is not the end of the world. Yes, it makes getting a student loan difficult but things are not impossible here. The post below offers a brief on the financial option for Canadian students with poor credit history.
Look for grants, scholarships and bursaries
Financing does not always refer to loans. You can also take to grants, scholarships and bursaries offered to promising Canadian college/university students. The federal government only has started CSGP (Canada Student Grants Program) which offers grants for both full-time & part-time students. The grant amount for full-time students would be something like $3,000 per 8-month college year which comes to something like $375 a month. For part-time students, it would be around $1,800 per school year.
Apart from the federal government, Newfoundland & Labrador has started non-repayable grants for qualifying students which offer up till $100 per week. Then, there are various companies, unions and association that extend grants to students aspiring for higher education.
Look for loans with bad credit
Federal & provincial loans
While majority of the student loans demand high credit rating for approval, it’s not the case with every student loan out there. A good example is CSLP (Canada Student Loan Program) which is offered by the federal government only. As part of the loan, an eligible student will receive financing for up till 60% of the tuition fees. After you complete your graduation, you will have to repay that loan along with interest to the Canadian federal government.
Then, there are provincial loans to check out.
In fact, you will find many private lenders too who are ready to extend student loans even with a bad credit. But one thing- these loans will charge a way higher interest rates than regular student loans. You will find directories that list down the names of lenders who are ready to offer student loans even with bad credit. However, it will be easier to secure a loan with bad credit if you are supported by a guarantor who himself boasts high credit ratings.
Count on RESP
This tips is specifically for parents who are looking for ways to start saving for their child’s higher education since his/her childhood. The RESP is an amazing savings plan for the parents. If you can continue it effectively, you will be able relieved of a lion’s share of dependence of student loans and grants when your child will grow up for college. The RESP refers to a special savings account where parents can save especially for their child’s post-secondary education. The earlier you start, the better. You may consult Knowledge First Financial to open a RESP account. The company has been helping Canadian parents for 50 years now. You may check out https://knowledgefirstfinancialreviews.ca for an overview of the organization.
So, you see, there is no need to lose hope.