Overview of Financial Aid Options for US students in Canada:

Canada offer attractive option for US students due to its proximity to the United States and number of educational institutions that maintain a good reputation and recognized by the US Department of Education. Though the cost of education is easily affordable one has to be sure of the following.

• US students are not eligible for the US need based supplement programs like Pell Grants and Perkins Loan if they wish to study in Canada.
• Most US based scholarships are not available to American Students who pursue education outside the US.
• Canadian Schools offer scholarship to international students who are freshmen, sports based scholarships and other merit based scholarships.

Stafford and PLUS Loans

Canadian schools recognized by the US Department of Education offer Stafford Loans to American students and PLUS loans parents of students pursuing their education in a Canadian School of Study. Stafford and PLUS are federal loan programs to students which come at a lower interest rate and feasible repayment options. The Canadian schools themselves offer a list of lenders for US based Stafford and PLUS Loans.

Private and Alternative Student Aid

Federal Loans do not always cover the cost of college expense; hence students opt for alternative source of finance for funding their education. State financing authority, State’s higher education agency, banks, credit unions and other lending agencies are the sources of alternative source of finance. Outstanding credit history is an important requirement for all private loans. Each state also offers scholarship and other funding options to students pursuing their course of study in their state.

Federal Tax Credits

The Canadian Government offers Federal Tax Credit to all students. Such credits are in the form of Hope Credit and Lifetime Learning credit. One cannot avail both the schemes at the same time. These schemes are greatly helpful in funding the cost of education.