Education is universally regarded as one of the most critical ingredients essential to making a successful life in the modern day. But, graduation now isn’t as realistic an affair when we consider the rising costs of education. Standard tuition fees can cost you anywhere from $8,000 to $22,000 depending on the course you opt for. And, when you add other expenses such as books, travel expenses, food, etc. the figure takes a further upswing.
To fund their respective education, students take up a student loan debt, and not everyone is able to pay it back. Part of the reason they’re unable to do that is that students have limited employment opportunities after graduation. Add to that the costs of expensive housing, travel, and food make it hard for the students to pay off their loans as per the original plan. The final result is that an astounding 77% of Canadian graduates have regrets about their student loan debts, regardless of how they borrowed this debt. At this point, the Canadian government has already had to write-off $2000 million as bad debts that they won’t be able to recover. And, they’ve raised the minimum annual income required for students to $25,000 to help them start making payments.
Students have had to delay the repayment of their student debt. This delayed repayment of the student loan hasn’t helped students as they’ve then had to put off their investments for the future, which then leads to a delay in achieving other important milestones in life. We have examined the student loan situation and we’ve come up with possible strategies that can help you with the repayment of your student loan as per schedule. Students can consider working before they could opt for their degrees as that allows them to accumulate some money, which then allows them to make a part-payment early on. Furthermore, although you’re not required to start making payments before you earn $25,000 annually, this period can be used to accumulate some money that can help you stay ahead of the ‘required rate’. And lastly, it is advisable to stay off all debt possible. Having a car loan and an outstanding credit card bill during your student loan debt isn’t going to help your cause. The aim is to ensure your student loan debt is paid off as soon as possible.
The first and foremost thing you can do is apply for ‘Repayment Assistance Plan’, which can allow you to make reduced payments and can have your payable interest waived-off. If you’re still unable to repay off the loan, you must consider selling or refinancing your assets. The next step is to approach a licensed insolvency trustee, who can offer you two major options: filing for bankruptcy or filing a consumer proposal.
Are you a parent who’s concerned about the prospect of taking up a student loan for your child’s education? You may be uncertain about your options that are limited to a government-financed student loan and a private bank financed line of credit. In any case, you can contact us for any financial advisory assistance that you and your family may need. Welcome to High Rise Financial.