- Should students max out on all other revenue sources before taking out a Canada Student Loan, (CSL) i.e. is it always the last resort?
No, since not all debt is bad. Consider these factors to help you assess your situation:
- Minimize taking on any debt that you may have difficulty repaying.
- If you don’t apply for CSL, you may miss out on receiving a Canada Student Grant, since you apply for both simultaneously.
- Of all debt types, a CSL may be considered good debt because they are interest free while you’re in school, No interest on the federal portion during the payback period
- Payback periods for both the federal and provincial portions are generous and if you encounter repayment problems, there are several options available to adjust payments