#FLM2017 3 of the Best Ways to Get Relief from Student DebtNov 06, 2017
School’s out and a lot of Canadian graduates are wondering how to get relief from their student debt. What’s the best way to manage it?
If you’re one of the many Canadian millennials who graduated with debt this year, you might be feeling a little overwhelmed. Even with new government measures in place which allow free access to a post-secondary education to lower income Canadians, many turn to student loans to meet basic living expenses while in school, adding to debt.
Grads don’t need to repay student loans until they’re earning $25,000 (soon to increase to $35,000) which can be extremely helpful while getting on your feet. OSAP’s deferral program can also help while getting situated in the workforce, but eventually, it will be time to pay up.
Here are three ways to make debt repayment a little easier:
- Get debt advice. Turn to online resources for debt relief so you’ll feel both motivated and connected to a support system. There’s a community of personal finance bloggers online who offer advice and first-person experience on dealing with student debt.
- Christine Drummond from The Wallet Diet blogs about how she paid down 35k in student debt by cutting out unnecessary expenses and adopting a minimalist lifestyle.
- Make extra payments. Do your student loans have variable or fixed interest rates? Here’s a chart to show how much more you’ll pay over the life of your loan using a variable rate, especially as rates continue to rise.
- The Financial Consumer Agency of Canada recommends making extra loan payments, even $50 extra per month to cut down on overall interest and repay your loans quicker.
- Seek assistance. Missed loan payments can result in fractured credit and financial stress. If you can’t meet your payments, see if you qualify for the Repayment Assistance Program. This government program can help you get relief from your student debt by allowing you to defer or reduce your payments until you’re able to resume your regular payments again.
Want more tips about the best way to manage debt? Read our blog!