How to Obtain International Student Loans in Canada

Canada is now home to 100s of thousands of international students yearly, and it is currently the third Country with the largest number of international students behind the United States and Australia.

It’s a country that has lots of quality colleges, with 6 of its universities ranked among the top 100 in the world. To add to their quality education, they have a low employment rate, at a 4.9% rate in July 2022, and have a high minimum wage of $15.55 per hour, which will still increase. Even the United States has a lower minimum wage of $7.25. 

U.S. News and World Report said that they are the best country for quality of lifestyle in 2021, so you won’t just enjoy good academics, you’ll also live a lovely life with your neighbors. Needless to say, out of 5 people in Canada, 2 are international citizens, so you have a very high chance of meeting your fellow country people.

However, whatever is great doesn’t come cheap, so it is in Canada, the tuition fee in the country is really not that cheap, but they have the best low-tuition fee colleges among English-speaking countries. 

Taking a loan is not really the sweetest choice in life, I believe if you had a better option like getting a fully funded scholarship in Canada you would have gone quickly for it.

However, most of these scholarships are preserved for their citizens, and probably the finance you have gotten from family and partial scholarships are still not enough to cover tuition and other expenses. So you’re now left with the option to try to get international student loans in Canada.

I know one part of you is biting you and asking how you will pay off this loan if you get it, believe me, there are ways you can pay off your loan and enjoy your life after graduation. Without wasting much of your time let’s see exactly how you can obtain international student loans in Canada.

How to Get International Student Loans in Canada

As I said earlier, if you’re planning to apply for a student loan, make sure you’ve exhausted every other option and come to it as a last resort. Because taking a student loan can be burdensome on its own.

Anyway, if not taking an international student loan is the only option standing between you and going to your dream college, then here it is.

1. Have a Good Credit Score

I know I said a credit score is not necessarily needed in getting international student loans in Canada, but it helps to improve your chances of getting it, of getting a higher loan, and of getting a lower interest.

As an international student, since you’re borrowing money from a private lender, then they are the ones to decide if it’s important or not. But imagine if you’re the one lending the money, wouldn’t you want to see if the student you’re lending the money has what it takes to pay back?

Credit score starts from 300 as the worst credit score and goes all the way to 900 as the best. 

2. Get a Co-signer (Optional)

I know this could be contradictory again, but you’re an international student and you’re meeting an organization or private lender who is probably not from your country. So this lender would want to make sure he has a safety net to fall back on when the borrower fails.

Even though some lenders might not demand your co-signer, getting one ready will be better.

3. Get a Study Permit

Canada has to issue you a study permit before you can study in your admitted college in the country. And before you travel to Canada, it’s necessary to apply for your study permit.

Also while processing your study permit, one of the necessary documents they will request is your proof of financial support, where you have to let them know you can financially support your studies.

4. Apply for a Private Loan 

This is the best option or probably the only option to get a student loan in Canada for international students. Also, the lender will be the one to decide if the school you were admitted to is eligible for a loan.

Conclusion

As you have seen it’s not really so easy to get international student loans in Canada, but do the best you can if it’s the only option you have left, and I wish you all the best.