Check out the information on Student Line of Credit: What is Student Line of Credit in TD, RBC, CIBC, BMO, Scotiabank? from this article. Different information regarding Student Line of Credit: What is Student Line of Credit in TD, RBC, CIBC, BMO, Scotiabank? and other relevant things are included in this article.
Student Line of Credit
A student line of credit allows students to borrow money up to a pre-set limit. This type of line of credit allows the students to pay for the costs associated with post-secondary studies, such as books, tuition, etc.
In addition, the student line of credit can also be used to cover other expenses such as transportation, food, etc. The students have to pay back what they have borrowed from the credit. Also, the interest will only be applied only to what the students have borrowed.
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What is Student Line of Credit?
A line of credit is different from traditional loans. In a student loan, the students have to pay back all the money, whether they have used it or not. In contrast, with the line of credit, the interest will only be applied to the borrowed money.
For example, if a student applies for a student line of credit and receives a credit limit of 10,000 dollars. However, the student only borrows 5,000 dollars out of the set limit. Therefore, the student has only to pay the interest on the borrowed 5,000 dollars instead of 10,000 dollars.
How does the Student Line of Credit Work?
After the approval of the application and signing of necessary agreements, the students should be able to borrow the money from the pre-set credit limit. The money can be accessed online, through ATMs, or through the branch of the lender (bank/financial institution).
Each lender can have a different interest rate and repayment terms on this type of line of credit. Additionally, how much a person can borrow can also depend on whether they are enrolled in a full-time, part-time, or graduate program.
Some banks even offer personalized lines of credit for students that target specific courses and needs. However, before getting a loan, students should consider whether they can receive scholarships from the government or not. It might be possible that they are eligible to receive a scholarship that can cover their education.
Also, they should consider the portions, such as part-time jobs or co-op programs. These can also help them to cover the costs of their education. If they cannot cover the costs with them or are ineligible to get the scholarships, they should consider a line of credit.
Furthermore, they should consider the line of credit offered by different financial institutions before settling for one. This is because each bank has different policies, terms, interest rates, and types. Students should take the line of credit that is more suitable for their needs, i.e., amount, lower interest rate, flexible repayment options, grace period, etc.
Student Line of Credit in TD, RBC, CIBC, BMO, Scotiabank?
The line of credit is offered by many banks in Canada, such as TD Bank, RBC, BMO, CIBC, Scotiabank, etc. Although each of these banks offers a line of credit, they have different maximum credit limits, interest rates, terms, etc.
TD Bank:
- TD Bank offers three plans – Undergraduate, Graduate, and Professional.
- Undergraduate: Full-time/Part-Time Students enrolled at an accredited Canadian College/University.
- Graduate: How much a student can receive depends on the course – Masters, Chiropractic, Naturopathy, Law, MBA, and Optometry/Pharmacy.
- Professional: The credit depends on the course of study – Dental, Veterinary, and Medical.
RBC:
- There are 3 available types –
- Royal Credit Line for Students: Prime Rate + 1%
- Royal Credit Line for Medical and Dental Students: Prime Rate – 0.25%
- Royal Credit Line for Students in Professional Studies: The rate can become as low as the Prime Rate
CIBC:
- There are 3 available types – CIBC Education Line of Credit, CIBC Professional Edge Student Program, and CIBC Medical, Dental and Optometry Student Banking Bundle.
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BMO:
- The maximum program length that can be covered is up to 4 years.
- Students can borrow up to 20,000 dollars per year (80,000 dollars in 4 years).
Scotiabank:
- There are 3 available types – Full-time, Part-time and Graduate.
- Each one has a different minimum and maximum yearly credit limit.
More detailed information on all the available options to get a student line of credit can only be obtained by visiting their respective branches. Moreover, the rates and terms offered by these banks are also available on their respective websites.