Canada Student Loans Program, otherwise known as CSLP, has the comprehensive commission of providing all educationally fund-needy Canadian college students in financial straights the means of obtaining lower cost educational funding. These Canada student loans are federally funded and guaranteed loans in place due to the Canada Student Loans Act that was passed in 1964 and further updated in the 1994 when Royal Assent was received for the Canada Student Financial Assistance Act, although this Act was once more amended in the year 2000 to permit direct funding through the Canadian government instead of any private lending establishment or bank.
As of July 31, 2000 the Canadian government took back the administration of Canada Student loans from private lending institutions due to the lack of banks stepping up to the plate providing these much needed loans. Historically, up until 1995, the Canadian governments guaranteed student loans one hundred percent. This guarantee was enormously costly for the Canadian governments, the lenders found very little reason to aggressively seek out repayment. Borrowers got very little support as well. As of the year 1995, the program was amended to such a state that banks and other lending institutions were forced to accept the liability of administering to all respects of student loans repayment, together with the high risk of the loan being defaulted on and going unpaid. The federal government then would pay the banks and other lending agencies a risk payment of five percent a year on the worth of that particular loan consolidation annually to pay compensation for the extremely elevated possibility of student defaults. At this point very few Canada Student loans were being given out as the banks and other lending institutions were not finding the substantial risk worth taking.
Currently the Canada Student loans are handled directly by the Canadian government. Since the concluding integration of federal and provincial student loans in May of 2005 New Brunswick was the final providence to join in the integration. This integration has and will continue to benefit all of Canada student loans and should be looked into to see if the new consolidation plans will benefit you with earlier period consolidation loan agreements issued before August 1st of 2001. It is imperative to remember that each of the providences, such as Saskatchewan, Newfoundland, Labrador, Ontario and New Brunswick will retain a separate consolidation and settlement process for their guaranteed and risk shared loans.