Are Student Loans Needed?
It is most often true that the higher your level of education is the higher your income will be in the future. The trouble is that education in Ontario takes time and costs money. If your family pays the education costs, wonderful, but that is not the case for most students. For the student that has to pay for all or part of their education costs in Ontario and do not want to have a significant debt load on graduation there is help available. Prepare a budget showing what your tuition, books and living costs are for the year and then look how to pay for it. Help can be obtained from the school’s financial aid office/the internet or the personal banker at your local bank. If you do get a student loan do not treat it as a piggy bank for vacations, clothes or partying. It was borrowed for education- use it for that purpose. Consider getting a part-time job. Just make sure that you balance the working hours and school hours so that one does not affect the other. Before borrowing the student loan see if there are any grants, bursaries or prizes available for your course. Some companies in Ontario will sponsor you at university and provide summer jobs if you agree to work for them after graduation for a couple of years.
Beware of the credit cards that are mailed to students during the year. They usually have an attractive low introductory interest rate but they also have to be paid each month.
After you graduate the student loans need to be repaid. In Ontario, OSAP loans are repayable starting six months after graduation (12 months if you are working in a not-for-profit job). If it has taken too long to get a job or if you are only able to find a low paying job it is likely you will get into trouble and not be able to make you payments. ASK FOR HELP! Whether you owe student loans, credit cards or bank loans, if you have a problem making the monthly payments, phone the institution involved, explain what is going on and ask if they can help you. In most cases you will be pleasantly surprised that they will set up a reduced repayment plan with you which may even allow for a grace period of “interest only” if you have not yet, reached your income potential.
Contact Rumanek & Company Ltd. for more information on bankruptcy in Ontario and debt solutions. Please fill out the bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt in Ontario for more than 25 years.