American Students Head to Canada in Record Numbers

But where will they get student loans? Foreign schools are not eligible to participate in the Federal Direct Loan Program.

My son attends the largest public university in our state. It is very much a “bargain” compared to many peer institutions, but he still has federal loans. However, I guess a lot of families don’t need them. The key to understanding the full story is to compare Candian universities’ tuition and housing rates to those of similar institutions in the U.S.

As noted, Canadian tuitions are in general more affordable. And the Canadians do have loan programs but the operative difference is the consumer protections are much better. And there are more credible programs for loan forgiveness and income sensitive repayment and etc. Within the last few years Canada has made some fair progress in both reforming student loan policies and better overall student funding. But that’s not all that surprising because US corporations such as Sallie Mae and Nelnet have little influence over the Canadian governments policies. And as such Canadian affordable tuitions, and general educational policies do benefit even American exchange students. Canadian colleges are actually quite good overall, the primary difference from a US institution are less glitzy facilities and fewer programs which are not curriculum oriented. The situation in Canada has had some interesting effects on US Higher Education especially vis a vie loan policies and effects. For a period of time the Canadians were getting so many US applicants for teaching positions that they began to openly state Canadian preference in applicants. And border states like Montana actually floated proposals to deny drivers licenses to those within that state who were behind (often very slightly) on SL payments-because so many were hopping to Canada in the hope they could make more reasonable accomodations with the US loan companies by coming under Canadian law. Its interesting that a combination of a poor US economy and deeply flawed US higher education policy may result in the US’s very own ‘brain drain’ to Canada.

“Canadian colleges are actually quite good overall”?? Let’s stop being so US centric and condescending. As in the US, there are excellent, leading institutions of higher learning, good universities and others that are not quite as strong. McLeans magazine publishes a ranking of Canadian institutions every year that is very detailed at the undergraduate and graduate levels.But Americans have been going to Canadian universities in large numbers from the 60′s through the 90′s and beyond, and we are now seeing a resurgence. Why so surprising, when it is a great deal both in quality and cost?

Most Canadian universities and colleges participate in the US government Title IV program known as the Federal Family Education Loan Program (FFELP). American students may apply for Stafford loans; parents of dependent undergraduate students may apply for PLUS loans. In addition to the Stafford loans, graduate and students in professional programs may apply for Grad PLUS loans. You can search for participating Canadian schools at: http://www.fafsa.ed.gov.

Most Canadian universities and colleges participate in the US government Title IV program known as the Federal Family Education Loan Program (FFELP). American students may apply for Stafford loans; parents of dependent undergraduate students may apply for PLUS loans. In addition to the Stafford loans, graduate and students in professional programs may apply for Grad PLUS loans. You can search for participating Canadian schools at: http://www.fafsa.ed.gov.