What is The Student Line of Credit? 2022 Ultimate Guide:

by | Jul 8, 2022

If you live in Mississauga and need student loan, a student line of credit is one tool that can help. A student line of credit can provide direct exposure to your loan in various ways. If you qualify for a student line of credit, you will find it much simpler to repay your student loans. 
This is where YOGI & ASSOCIATES can help. We understand that it is one of your most important decisions. There are many factors to consider. So, it is best to seek professional advice and examine all available options. So give us a call today!

1. What is a Student Line Of Credit?

It is an unsecured line of credit. You can use this credit to cover some or all your tuition fees and living expenses. You may also borrow for reports, supplies, equipment, books, and other personal needs. You can access the cash via a line of credit. Also, the interest you charge your students will pay off their loans at the end of each term. 

Additional Information:

In Canada, the five largest banks currently offer student lines of credit ranging from $325,000 to $350,000. A student line of credit is a loan given to students enrolled in school or studying. It doesn’t matter how long they have been there or how many years they have been there.

2. How Does Student Line of Credit Work?

Following are the factors of student line of credit:

  1. The student line of credit allows you to borrow money from an institution offering the product.
  2. Like a loan, it will meet your tuition payments, books, or other school-related expenses.
  3. You only have to return the money you lend.
  4. You can also pay no interest until your line of credit is closed.
  5. If you’re in university or college, getting this credit is a great way to pay for tuition and textbooks.
  6. You can use it as an emergency fund or to cover everyday expenses.

3. Eligibility Criteria for Student Line of Credit:

If you’re a student with good credit, you may be eligible. As a student, your eligibility criteria include the following:

  1. Student lines of credit are available to anyone in school, complete or part-time, regardless of where they study.
  2. Canada must recognize your post-secondary institution as an eligible institution to qualify.
  3. You must be a Canadian citizen, resident, or landed immigrant.

4. Insurance on Student Line of Credit:

You can get loan insurance on this credit if you want protection from financial hardship. Some lenders offer this type of credit and loan insurance as optional. While others need you to decide whether you want the coverage. If your lender provides an optional range, it’s essential to read the fine print before signing up.
  • Accessing Money for Student Line Of Credit.
  • Accessing money from your student line of credit is simple. You can get access once.
  • You’ve signed the papers.
  • Your application is approved.
  • You’re ready for your funds.

5. Paying Back your Student Line Of Credit:

While at school, you must pay the interest but can defer repaying the principal. Once you finish school, you have a grace period (usually 6 to 12 months) where you continue to pay only the interest on your line of credit. After that period ends, you’ll repay the principal and interest.

6. How to Apply For Student Line Of Credit?

You’ll need to provide the financial institution with the following:

  • Proof of identity.
  • Proof of enrolment in a Canadian post-secondary institution.
  • Proof that you are using the loan to attend school (education cost estimate).
  • Proof of funding for your education.

If you want to learn more about the Line of Credit, you can look into our article by clicking The Basic Lines of Credit in Canada.

The Bottom Line!

So, if you are a student living in Mississauga and need extra funding, Then Yogi & Associates is the place to go! We can help you apply for a student line of credit available. This will include elementary, secondary, and undergraduate students. Our goal is to assist with whatever it takes for you to achieve your educational goals. Feel free to contact Yogi & Associates today!

Contact YOGI & ASSOCIATES!