The Canadian Imperial Bank of Commerce announced Thursday it had agreed to finance $3 million in loans for students to cover the cost of the first semester of their college education.
The bank’s Canadian arm said in a statement that the loan will be repaid through a combination of the bank’s existing reserves and additional loans made available under the Canadian Investment Bank’s Direct Loan program.
It’s the first time the CIBC has announced it would fund students’ education through direct loans.
The Canadian Investment Corp. (CIBC) said in April it would begin financing student loans with the aim of helping students prepare for a better future.
In addition to the CIFC’s existing $1.3-billion Direct Loan programme, the CIBA is providing $1 billion to the Borrowing Assistance Centre, which helps students repay their loans.
As a result, the loan program is set to expand.
CIBC said in May it had received $3 billion in loans through direct lending.
It said the program is being developed in conjunction with the Canadian Centre for Advanced Education, which provides technical support and funding to students.