As tuition prices rise, student loans have become a major part of the post-secondary experience for many students. The process of application, budgeting, and paying off these loans is daunting but important to understand if you want to make the most of your post-secondary experience and live to see yourself debt-free.
The most important points to remember when applying for or paying off a student loan are to:
1. Do your research
Make sure you are clear on what terms work best for you and what you are applying for in terms of bursaries and grants.
2. Budget!
Make sure you have a set budget that is comfortable and sustainable for your lifestyle and a deadline for repayment.
3. Never miss a payment
The repercussions could range from challenging to irreparable for the long term.
4. Seek guidance
Talk to your bank, your school counsellor, and your parents or family members and communicate all the way through if you are struggling with your financial burdens.
5. Relax
Understand that most adults are carrying the weight of student loan debt and this is not the end of the world if it means getting a good education and a career you love.
Thankfully, here in Canada, there is some relief for students struggling to make payments. The Repayment Assistance Plan is provided by the provincial government and provides help for temporary repayment difficulties as well as long-term help with ongoing repayment difficulties.
If you do not meet the terms of repayment assistance, you have to start paying back into loans six months after graduation or if you’ve discontinued classes.
