| A great percentage of students while pursuing higher | | | | students who have already taken up loans. |
| studies in various areas, feel the definite urge to take | | | | Canada is known to have weaker economy and |
| loans through different channels in order to cope up | | | | hence the jobs that its public and private sectors |
| with the financial problems and they tend to pay it up | | | | provide are relatively low-paid ones. Hence most of |
| with parts of their income from the job, after their | | | | the students are not able to do justice to repayment |
| graduation. However not all students are able to do | | | | of their bank loans and result in further problems. So |
| the same. As some students can't sustain the | | | | in this case, consolidation is as told, comes to a |
| pressure or the amount is bit too much for them to | | | | rescue somehow. |
| pay up. | | | | It caters to that particular bunch of students who |
| Some go bankrupt and some through different | | | | can afford to pay the entire amount of money but |
| phases so as so that they become unable to pay up. | | | | much after the stipulated period. Just that they need |
| The consolidation channel brings some relief to these | | | | bit more time. So consolidation program takes care |
| category people providing some relatively easier | | | | of this situation and gives the students with more |
| considerations. With increased cases of bankruptcy | | | | grace time to pay back the entire amount much in |
| of loan holders, many governments including Canadian | | | | student's convenience canalizing all his loans in one |
| government has sighted huge problems in giving loans | | | | pocket. So student loan consolidation is a better |
| to much number of students, which has resulted in | | | | scheme than the other orthodox repayment |
| increased level of amount of loan in the existing | | | | methods for Canada. |