Canada Student Loans
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For further information, see Canada Student Loan or Student loan#Canada
The Canada Student Loans Program is a Human Resources and Social Development Canada programme indended to promote accessibility to Canada's post-secondary education institutions by allowing Canadians who demonstrate a financial need access to student loans and grants. The programme was created in 1964 by the Canada Student Loans Act. Since August 1, 1995 loans disbursed by the Canada Student Loans Program have been governed by the Canada Student Financial Assistance Act.
[edit] Criticisms
The programme has been criticised because, among other things, despite the intention to provide more access to university education for lower income students, student loan borrowers often find themselves dealing with large and sometimes unmanageable debts upon graduation and up to six different student loans each from different lenders. While the loan solves the immediate problem of financial aid for students enrolling in University studies, it fails to help the students after graduation. In fact, it takes advantage of the graduates. For example, an average loan of $30,000 is actually charged an incredible 2.5% interest on top of the prime interest rate (which floats around 6% at time of writing), and as results, monthly fees near $300 -- that is interest only. For those not economically savvy, it should be outlined that this interest is added to the original $30,000 (compounded) daily, resulting in amazing profits for the government and an impossible dilema for newly graduated students.
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