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Some financial institutions lend money for school. These are regular consumer loans aimed at students. Interest rates may be higher since the rates are not set by the government, and repayment terms may be more aggressive than with government-sponsored loans. Also, interest accrues (builds up) on bank loans while you’re in school, unlike most government student loans.
Some financial institutions also offer lines of credit. These are preset amounts of money from which you can withdraw sums as needed. You pay interest only on the money you withdraw.
Don't forget, the UNB has it's own university loans/advance program.
| Differences | Government Student Loan | Private/Bank/Non-Government Student loan |
|---|---|---|
| Requirement of a guarantor | No | Possibly |
| Interest while in school | full-time students do not have to pay interest until they have left post-secondary education | yes, students pay interest while in school |
| Start date of repayment | 6 months after leaving post-secondary education (interest will accrue as soon as you are out of school however) | interest payment (at minimum) begins immediately after receiving the loan |
| Repayment help | forms of help, such as getting a temporary pass on paying principal and interest are available | varies by loan provider; typically more difficult to access |
| Grants (non-payable assistance) | possible Canada Student Grants (CSG) btw $800-$2000 | not even close! |