CIBC Student Loan
Canadian students can access a CIBC student loan program in Canada if you are likely to find that you still need more college funds to help pay for your Canada school tuition. When you start looking at the money needed for college, even after obtaining grants, bursaries, and government student loans, you may find that you falling financially short so a good Canada student loan program makes sense.
CIBC stands for Canadian Imperial Bank of Commerce, which is the marriage of two banks that merged in 1961 – the Canadian Bank of Commerce and the Imperial Bank of Canada. Both of those banks were established in the late 1800s, and now the merged bank has a history that dates back almost two hundred years.
When you apply for a CIBC student loan through CIBC, you are not actually applying for a standard student loan in Canada. Instead, you will be applying for a line of credit, referred to as the CIBC Education Line of Credit. It is the CIBC version of a Canada student loan. There are two possibilities for this line of credit – the credit available to undergraduate students, and the credit available to graduate students.
Unlike a traditional loan, you do not pay the principle of the credit that you have used until a year after you graduate, or six months if you leave your program of study without graduating. Unlike a Canadian student loan, however, you do have to pay interest on the credit that you have used while you are still attending school. This is the rule for the undergraduate line of credit and the graduate line of credit.
CIBC Student Loan Centre Program in Canada Explained
Under the undergraduate line of credit program, you can use up to $40,000 of your credit line through your four years of school. Those who are in graduate programs can use up to $150,000. Only certain graduate programs are approved for this extended line of credit. But other graduate students are still eligible for the funds available through the undergraduate program, even if they are already graduate students. If you are a full time undergraduate student, you can use up to $15,000 of credit annually, and if you are a part time undergraduate student, you can use up to $7500 annually in CIBC student loans.
The funds obtained from this line of credit are not paid to your school. Instead, you use your ATM card to draw the funds out of an ATM, or you can write a check for the funds. You only pay back the funds that you use, plus interest – not the entire line of credit that was available to you. Once the loan becomes payable, it is converted to a personal loan, and is no longer an educational line of credit. The interest that is added to the amount that you owe is based on the prime rate at the time that you start making payments, and this is also true for the interest that you pay on the line of credit while you are still in school. This is how simply a CIBC student loan works. It’s flexible for Canadian students when they need access to money fast all they have to do is write a check from the CIBC student loan checkbook.
Because these are actual lines of credit through a financial institution, you must either have good credit to be approved, or you must have a co-signer who has good credit. For more information go to CIBC student loan.
