Student Loans and Education Financing updated 2013

1.  What student loan options do I have?

There are 2 main government student loan options (National and Provincial) and there are Education Loans from Financial Institutions like Credit Unions and banks.

2.  Which is best for me?

 I would recommend starting with the Provincial and National student loan programs.  You apply for both on the same application.  With these government student loans you do not pay or accumulate interest while you are going to school, there are some payment relief programs in place after graduation, and the interest paid on government student loans is tax deductible.  There are also some scholarships or grants that may decrease what you owe for government student loans.

More information can be found at http://alis.alberta.ca/ec/fo/pay/loans-grants.html

3.  So why would I use a credit union or bank education loan?  

Are we teaching students enough about debt?

Students are leaving university with more debt than ever, often crossing the $40,000 mark, and then they go out into the world and accumulate even more debt buy buying rent-to-own furniture and borrowing for vehicles. 

The real scare comes from credit cards.  They are freely offered with little explanation of how to use them and how they affect your credit score.  And those habits that people form in their teens and 20's usually carry on throughout their life.

This may seem a little alarmist, and it is.  But I really want everyone to understand that excessive spending and debt accumulation can cause problems for not only you, but your whole household for decades after you bought that TV or went on that vacation.

Check out this article at Canada.com to find out more details about Canadian debt loads.

Take care of your debt.  Life will be so much easier.  Jerry

Student Loans and Education Financing

1.  What student loan options do I have?
There are 2 government student loan options (National and Provincial) and there are education Loans from Financial Institutions like Credit Unions and banks.

2.  Which is best for me?
I would recommend starting with the Provincial and National student loan programs.  You apply for both on the same application.  With these government student loans you do not pay or accumulate interest while you are going to school, there are some payment relief programs in place after graduation, and the interest paid on government student loans is tax deductible.  There are some scholarships or grants that may decrease what you owe for government student loans.

3.  So why would I use a credit union or bank education loan?