According to recent statistics by the Canadian Student Loan Program, the average time of student loan repayment is 10 years. Education is one of the most important part of our lives and getting a student loan is an investment that is beneficial for our future. Sometimes the repayment of our loans can be tough, especially if we are freshly graduated and new to the world of adults and bank accounts.
Here are 3 tips that will help you get through the repayment of your student loans:
You can start paying off the loan after finishing the studies or if you have decided to take a year or semester off studying. Every student loan is different and before you start repaying yours, find out about your situation and the best solutions for it, consult with your loan advisor and ask him about these important details:
How much are the interest rates and the monthly payments? In how many years should my loan be repaid? Can I prolong the repayment? Can I lower my interest rate? How will the money be transferred? Can it be withdrawn from my credit card? Can I make my repayments weekly instead of monthly? How can I lower the amount I have to pay off? What will happen if I’m late with a payment?
Do not be afraid of asking too many questions. It’s a matter of finance and stability. Consult with loan advisors to get the ideal solutions for your repayment problems. Also know that people can get repayment assistance plans in specific situations as getting extremely injured or if working as a nurse, doctor, medical assistant in rural communities.
After you find out your monthly amount, get a notebook and start calculating. Make a list of all possible monthly spending and compare it with all possible sources of income. Get a job that will satisfy your financial needs. Do not settle for less and always keep in mind your true worth. At the beginning it may be difficult to find a job in the field you were expecting or studying; so be prepared to work in other areas until you get on your feet. For some people it is necessary working 2 jobs or night shifts.
Figure out what type of payment is most suitable for your needs. Will your monthly repayments be automatically withdrawn or will you send checks to the bank? Each of us has different schedules and tempos, for instance some people prefer weekly repayments instead of monthly.
A good tip is opening up a separate savings account where you can stash the money planned to be spent on debts, insurance, rent, loans and other obligatory spending. This helps you saving up that money and prevents the wild, spontaneous and reckless spending.
Be prepared to give up luxurious ways of life. Do not drink a Large Pumpkin Spiced Latte at the coffee shop and do not live alone. Rent is becoming more expensive and unaffordable, especially for people who’ve just finished university. Finding a roommate is a great and fun way to save money whether your roommate is your coworker, friend, parent or other relative. When picking your roommate, make sure it is a sane and reasonable person. You do not want to ruin your mental health for some extra savings.
It may be tough at first but until you get a steady job, you can also try freelancing which offers flexible working hours and a various market for trading crafts. Also, if you have studied a subject whose basis are taught in high school like biology, math, languages or others then put up some adds on the internet and offer lessons to high school or college students. Besides working, another way to earn money is by selling old items as clothing, books, technology devices or furniture. This will liberate your living space and make room for new beginnings.
Financial Advisor focused on financial management in Mississauga, ON. Specializing in financial services: Investment – RRSP, Insurance – Critical Illness Insurance, and Mortgage to suit your investing goals, retirement goals, and financial needs.