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A Look Back At Student Loans
Today student loans are almost a given for college kids heading off to school. Few parents have the financial resources to pay all of the tuition for their children, and so most students fill out a FAFSA and apply for loans. This has not always been the case, however. Student loans are quite a modern invention.
The first recorded student loan program was developed by Harvard University in 1840. These early student loans were private loans that were not funded by the government. In 1935 the state of Indiana’s General Assembly passed a law that provided student aid to students who had high test scores on their college entrance exams. This led to the formation of the Indiana State Financial Aid Association, or ISFAA, which was followed by the opening of the first Financial Aid office in Indiana University. Soon other colleges joined the ISFAA, and Indiana students had a new way to pay for school.
On October 4, 1957, Russia launched the first successful satellite into space. This had a huge impact on the history of financial aid in America, because the American government suddenly realized that they were in a race to put the first person in space. They realized that they only way to succeed in this race was to ensure that as many high school graduates as possible attended college, a feat which was out of the financial resources of many. With guidance from the ISFAA, the federal government created a working financial aid program.
After World War II, Congress passed the National Defense Education Act. This act introduced the Perkins Loan, a low-interest student loan that is provided to low-income students and has a 10-year repayment period. This was the first federally backed student loan, and more would soon follow. In 1963 the Health Education Assistance Act provided loans for students pursuing degrees in medical and health fields. This was followed by what is now known as the Federal Work-Study Program, a program that allows the federal government to pay the wages of working students.
By the end of 1965, Most of the student loan programs we use today, such as the Stafford Loan, Work-Study Program, and Perkins Loan, were in place. As the cost of education continued to rise, the government introduced the Parent’s PLUS loan program in 1981, a program that allowed higher-income families to get assistance in paying for school. Today, these loan programs allow many students to pursue an education when they would otherwise be unable to, making them a valuable resource to our country as we strive to continue as a global leader.
Student Loans in Canada & Their Features
Most of the countries in the world today provide facilities for pursuing higher education and extend various types of loans and grants. Canada is no exception. Especially the students loan program and grants program both help the students with financial assistance for pursuing their education and building up their career.
Types of Student Loans in Canada
Features of the loans and grants for students in Canada are as follows.
– Student loans in Canada and various grants are available in most of the states and cities in Canada;
-In case of grants the students do not have to pay back the amount sanctioned in their favor;
– Loans are amounts that are sanctioned but have to be repaid in future; and
-Student loans in Canada are available from the federal and state governments, private organizations, religious institutions, and even from the college where the student is pursuing graduation.
Why Student Loans in Canada is Important
Reasons for importance of the student loans in Canada is that few students become eligible for grants that are non-refundable. Hence, many others who are not eligible for the grants opt for the student loans in Canada. Pursuing higher secondary education opens up numerous avenues for building up career in the country.
Main Resources for Canada Student Loans
Some of the major resources for Student loans in Canada and grants sanctioned in favor of the students are as follows.
– Canada Student Grants Program;
– Canada Students Loans Program;
-Repayment Assistance website; and
– All the related links.
Moreover, the aspirant borrower can visit the official website of higher education department of Government of Canada for more information on student loans.
More about Student Loans in Canada
Student loans in Canada is offered to both full time as well as the part time students pursuing post-secondary courses and require financial assistance for the same. Such facilities are available in most part of the country.
– CSLP or the Canada Student Loans Program that works in collaboration between Government of Canada as well as the state governments;
– Usually it is a partnership between state and federal government;
– Central government in Canada offers 60% of the students loan offered and the upper limit for such loans is $210 per week of study for the student; and
– Provincial and territorial loans constitute 40% of such loan extended to students.
A Brief Overview of Student Loans in Canada
Since it started in the year 1964, the CSLP has covered around 4.5 million students offering around $34 billion of loans. Such expenses were incurred in form of part time and full time student loans for approximately 350,000 students. Besides such loans, the Canadian Government has also provided huge amount of grants of around $142 million that is non-refundable to students.
However, coverage of student financial assistance is much greater in form of student loans in Canada.