If you want to work in a skilled trade in Canada, you will usually need to complete an apprenticeship. But completing the necessary training will cost you time and money, so you might need financial assistance to help make ends meet while you become qualified. And that’s where the Canada Apprentice Loan comes in.
The Canada Apprentice Loan provides interest-free loans of up to $4,000 per period of technical training. You can use these funds to pay for tuition costs, buy essential tools and equipment, cover your living expenses and offset the wages you miss out on while completing your training.
You can apply for a loan for up to five periods of technical training, so the maximum amount you can access in total through the program is $20,000.
You also don’t need to make loan payments while you are still an apprentice. So if you remain a registered apprentice, you don’t have to start repaying what you borrow for up to six years.
The Canada Apprentice Loan program is available in all provinces and territories except Quebec. Quebec has its own student financial assistance program in place to provide support to apprentices.
To be eligible for the Canada Apprentice Loan, you’ll need to meet the following requirements:
However, there are also certain circumstances when you will not be eligible for a loan, such as if you’re a high school student or if you’re already receiving funding from a Canada Student Loan for the same technical training.
The Red Seal Program is designed to ensure that there are uniform standards in place to evaluate the skills of tradespeople in different provinces and territories across Canada. Provinces and territories work together with the federal government to set a national standard for each trade.
You’ll need to pass the Red Seal exam to get the Red Seal endorsement. And if your provincial or territorial trade certificate comes with a Red Seal, this indicates that you’ve completed the necessary training and have the skills to work anywhere in Canada.
You can apply online for the Canada Apprentice Loan through the Canada Apprentice Loan Online Service. Here’s what you need to do.
You can apply as early as 90 days before you start your technical training or as late as the final day of your technical training period.
It may take several days to receive your Canada Apprentice Loan funds. This is because, if you are a first-time applicant, your Social Insurance Number needs to be validated, and you’ll need to undergo a credit check. Your enrolment in an approved apprenticeship program also needs to be confirmed.
Once all these boxes have been ticked, you can expect to receive your funds within three to five business days.
The Canada Apprentice Loan is an interest-free loan, so you don’t need to worry about interest rates. Though interest did previously apply to these loans, the Government of Canada announced that as of April 1, 2023, interest would no longer accumulate on Canada Apprentice Loans.
When you apply for a Canada Apprentice Loan, you’ll need to provide your bank account details so the funds can be deposited into your account. When it’s time to repay your loan, payments can be automatically deducted from your account through pre-authorized debit.
When you reach your payment trigger date—the first day of the seventh month after the month when you cease to be an apprentice—loan payments will start being deducted from your account. You’ll be notified via your preferred method of communication when this is about to occur. The minimum monthly loan payment is $25.
The Canada Apprentice Loan can provide much-needed funds to help you set yourself up for a successful career. Best of all, loans taken out under the program are interest-free. Check whether you’re eligible for a loan, and compare other types of student financial assistance to find the funding you need.
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