In order to assist with the continued rising costs of post-secondary education, Bow Valley Credit Union offers a Student Line of Credit for members enrolled in an approved post-secondary program that will result in a certificate or diploma.
Qualified students can be approved for a maximum amount of $7,500 annually at special student line of credit rates, for up to three years. Interest only payments are required only on the amount borrowed or advanced from the line of credit, and is required to be paid monthly. Annually you also be required to provide proof of enrollment to maintain the student line of credit. Upon completion of the program, the student line of credit is termed out into a loan with principal and interest payments. The term of the loan is worked out based on affordability, and something we work with each member on to ensure the best repayment option is set up.
The first step to applying for a student line of credit is to make an annual budget. It is important to know all your expected expenses in order to understand how much you will need to borrow. Expenses to include in your budget are estimated costs for books, transportation, tuition, and cost of living. Next will be to determine how much you have available of your own saved money, any government funding to be received, and any income you plan to make while in school. If there is a shortfall between the differences of the two amounts, this would be the amount you will need to borrow.
To help protect you and your loved ones, Bow Valley Credit Union offers life, disability and accidental insurance on our student lines of credit. In the event something happens to you that could alter your ability to continue with school or pay back your line of credit, your insurance coverage will cover both interest payments due monthly, and pay back a part of the balance owing based on the amount owing over the past few months. This option provides you with the peace of mind knowing that your payments will be covered, while maintaining your good repayment history, so that you can focus on getting better. Flexibility is also available in that you only pay for insurance coverage monthly, based on the amount you had borrowed for the previous month.