Student Loans

September 28th, 2009

Student loans….. not a topic that most people really enjoy talking about.  But if you have to have one, you might as well do it right.

You probably already knew that you can deduct the interest on your student loan.  So once you graduate and start paying back that huge loan, at least the government will give you some tax relief.

But, keep in mind that in order to deduct the interest on a student loan, it MUST be a government student loan.  Some banks advertise a student line of credit.  Other banks may pitch you a loan designed for students.  I’m not saying these aren’t good products, I’m just warning you that you may not be able to deduct the interest on these loans.

If in doubt, just ask the bank if the loan is being made under either the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a similar provincial or territorial government law.

Filed under: Personal Tax by David Boese No Comments »

Neil Pardy from the lending agency CBDC-NOBL sent me an interesting email.  They have a program called Students in Business, targeted towards students age 15-35.  Qualifying students can receive up to $5,000 in interest free loans.  Mr. Pardy says in his email:  “The program is not about making everyone an entrepreneur for life, but it is about presenting self employment as an option.  In addition to the loan we will endeavor to match the students with a mentor from the business community and we provide business training programs for the students.”

In my past experience, CBDC-NOBL are excellent to work with, and they tend to provide much more support than the chartered banks.  In fact, they are worth looking at if you are considering starting or buying a business.

Mr. Pardy goes on to say:  “Students who participate in training, mentorship, counseling and repay their loans on schedule qualify for rebates valued up to 25% of the initial loan.”

So if you play by the rules, your loan is not only interest free, you also get a rebate of up to $1,250!  If you are interested, click on to get started.

Filed under: Other tips, Personal Tax by David Boese No Comments »