"The maximum loan amount to any one student is $35,000. Within this maximum amount, the outstanding loan may be increased on an annual basis and is subject to a revised application based on current educational needs."(Rina Gouthro).
When dealing with students loans through the Credit Union this bank goes through many different processes and takes many different steps to ensure that the loan will be paid back. "Some of the things they do and take into consideration are, the purpose of the loan, repayment of the loan, interest rates and documentation of the loan."(Rina Gouthro). .
"The borrower of the loan must be a full time or part time student at any recognized post-secondary educational institution in which the student will receive a degree, diploma or certification in a particular field. In order to continue to qualify the borrower must provide confirmation of enrollment and the interest payments must be up-to-date."(Rina Gouthro) .
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Normally, co-makers will be required for the loan. However, in some circumstances, the student may qualify for some amount of unsecured loan within the credit union's unsecured loan limits. The co-makers together with the student, must qualify for the loan in all respects.
During the course of studies, the borrower and co-maker will be responsible for the payment of interest on a monthly basis. "When the borrower is not enrolled as a student, repayment will begin in the form of blended payments of principal and interest after a six month grace period has elapsed. An additional twelve month grace period may be negotiated if borrower is unemployed."(Rina Gouthro). Payments and interest rate will be negotiated and agreed with the borrower and co-makers.
A schedule of interest rates on student loans will be established and maintained by the General Manager of the Credit Union. Interest rates differ according to the eligibility of the borrower. "Depending on the security offered against the loan rates vary anywhere from 6.