International students have special considerations to keep in mind when holding debt within Canada. This article will answer all of the common questions asked to us by international students. Learn how to best recover from high debts before returning to your home country and/or beginning work.
How International Students Get in Debt
International students pay approximately 4x more in tuition fees than a Canadian student. Despite this, international students are not eligible for loans or grants provided by post-secondary student financial assistance programs like OSAP.
This makes their education more costly, with limited funding options.
Despite not being a citizen, international students are free to get a credit card and apply for loans in Canada. An international student can easily accumulate debt if they’re not careful.
Loan and credit cards quickly go from being a lifeline to something the student depends on. The debt slowly grows throughout their time studying in Canada.
Additionally, international students are extremely vulnerable to predatory lenders. Small loans quickly snowball into unpayable debt balances, owing more than double of what they initially borrowed.
What Having Debt Means for an International Student in Canada
If you’re an international student, you’re likely wondering what effects your debt may have on your education and time in Canada. Here’s a summary of everything you should know:
- Paying off a loan or credit won’t directly cancel your study permit. However, you may be subject to other collection actions, such as wage garnishment.
- Your study permit could be at risk if your debt has made you unable to pay your tuition. Your school could ask you to withdraw from your studies. If you are unable to demonstrate you are actively studying in Canada, your study permit will be invalid.
- If you plan to stay after your studies, your debt will make your life in Canada more difficult. Your debt will always be visible on your credit report. Your credit is checked whenever you do something like apply to rent an apartment or apply for a car loan. You can (and likely will) experience rejections as a result of bad credit.
How to Clean Up Your Debts in Canada
Paying off your debt may take awhile, but it’s possible. It’s strongly advised if you plan to live in Canada at any point in your life.
There are multiple debt relief options available for international students. You don’t need to be a Canadian citizen to be eligible. Common debt relief options for international students include debt consolidation loans, consumer proposals, informal settlement, and bankruptcy.
You can learn more about each of these options and how they work in this blog:
How 4 Pillars Debt Advocates Can Help
At 4 Pillars, we’re dedicated to making debt and credit easy to understand for everyone in Canada, including international students.
We understand that international students are vulnerable to predatory lending. We want to make sure you have all the resources you need to eliminate debt safely and legally.
By booking a meeting with one of our debt advocates, we can take you through the debt recovery process. We’ll explain how each option works, and highlight special considerations for protecting your visa status.
Our consultations are completely confidential and free of charge. You will not be obligated to continue services with us after the consultation unless you wish to do so.
Find out what to expect from us by reading our reviews on Trustpilot!
