FLM2017 What Students Should Know About Debt Relief HelpNov 03, 2017
The impact of student debt can last long after graduation, but there is debt relief help available. Earlier this year, a BDO poll revealed that three-quarters of graduates under forty had regrets when it comes to student debt. And six-in-ten are still in the process of paying off that student debt.
As part of Financial Literacy Month, we’ve put together a list of key facts that all students should know about debt and debt relief help. Let’s dive in…
- There are debt repayment assistance options with your government loans.
If you are carrying a government student loan after you graduate and are struggling to make payments, look into what repayment assistance options are available to you. Take advantage of them rather then not paying or making late payments on your loans.
- Credit cards, personal loans, and lines-of-credit still need to be paid while in school.
Government-backed student loans generally do not need to be paid while you are attending school. However, private lender funds such as credit cards, personal loans, and lines-of-credit will still need to have at least the monthly payment made each month. Factor it into your monthly budget to avoid negatively impacting your credit rating.
- Student loans can’t be included in some debt relief options immediately.
For student loans to be included in a consumer proposal or bankruptcy filing, you will have to be out of school for seven years in most cases. That’s why having a plan to deal with your student debt payments is critical to your financial health.
What are some things you can do to minimize the amount of student debt you take on?
There are multiple ways to avoid taking on student debt all together, or at least minimize the amount you take out. Here are some steps you can take:
- Work while in school – even part time income can help a lot
- Barry Choi offers his ideas on ways you can make more money
- Save as much as possible – it might mean making social sacrifices
- Look for grants and bursaries to help offset education costs
- Split costs by living with other students rather than alone
Improving your knowledge about and the kinds of debt relief help available to you before you take on debt can go a long way in helping you make informed decisions moving forward. Keep researching topics and improving your financial literacy as you work your way through school.