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The student line of credit: A tool that lets you focus on your studies

Posted on Wednesday July 07, 2021

The student line of credit: A tool that lets you focus on your studies

Barely making ends meet, even with help from your parents? In situations like that, the slightest unforeseen event can wreak havoc on your financial health. Pricier-than-expected school supplies, car breakdowns and other unforeseen events can be tough to handle when you're a student. The solution? The student line of credit: a tool that provides flexibility and peace of mind.

Benefits of a student line of credit

The interest rate on a line of credit is always lower than on a credit card and often equal to or lower than on a personal loan. That's one of its main advantages. With interest rates on credit cards sometimes as high as 20%, it's best to look for another source of credit.

What's a student line of credit? It's a line of credit with a preset limit and flexible terms so you can repay it at any time, in full or in part, during or after your studies. UNI even offers a 6-month grace period after you graduate. Manage repayment of this loan wisely, and you'll build an impressive credit history.

Also, if you are considering a line of credit, ask about government student loans, since both solutions can be combined. Receiving Employment Insurance? You may be eligible for the New Brunswick Employment Insurance (NB-EI) Connect Program, which allows you to continue receiving regular benefits while in school. Consider your options before deciding if a student line of credit is right for you.

Line of credit maximum amount

The amount of the line of credit that UNI offers will depend on your needs, financial situation, ability to repay and program of study. For example, students enrolled in a college program can get up to $9,000. For a university education, you can have access to $40,000 to $275,000. An engineering student could potentially get $100,000 and a dental student $275,000. Note, however, that these amounts would not be available all at once, but would instead be spread out evenly over each year of study.

The first step is to meet with a UNI advisor who will determine your needs and your ability to repay. Then you'll find out the exact amount you're entitled to and can even get help managing your student budget. For your line of credit to be effective, you have to use it properly!

The right way to use your UNI line of credit

Debt affects approximately 70% of students in New Brunswick. So it's important to be careful when using a tool such as a line of credit. In other words, the important thing is to focus on your needs, such as housing, transportation, food and school supplies, and make sure you have the optimal conditions in place to successfully complete your education. Do you have back pain from studying without a proper computer monitor or sitting in a non-ergonomic chair? Now might be the time to take advantage of that financial cushion. Is the used car you drive to get to class in need of an urgent repair? Thank you, line of credit!

A line of credit should be viewed as a financial cushion that's always with you. In an emergency, it gives you access to funds to bridge the gap between future income and immediate expenses. If you've already spent your allotted amount and something unexpected happens, your line of credit will be of little use!

UNI is proud to support New Brunswick's next generation of students by offering a range of products and services specifically designed for the student community. To learn more about the line of credit, contact us.

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Learning to manage your student debt
Back to school: Shopping smart to start the new year off right

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