Student Loans – Good or Bad?
In years gone by a student going to university had a part-time job or at least a full-time job during the summer to help finance his tuition and other costs. If your parents could help, great, if not there were a few scholarships and bursaries that you would try to get. If a student could not afford to go to university, they would apply to a college or trade school where you could earn some money as an apprentice while you studied.
Times change. Now, there is a sense that every person is entitled to a university education regardless of whether they can afford it or not. The Federal and Provincial Government have now set aside hundreds of millions of dollars to assist those students whose ability to pay tuition, even with help from parents, falls short of the actual tuition costs. That is the good part – money is available to those who need it.
However, there are those students who apply for and receive Canada or OSAP (Ontario Student Assistance Plan) funds that are more than they need for tuition. I understand that at age 17-18, there has been little financial training in your life for budgeting and you really want that TV, lap top, Canada Goose jacket or trip to Fort Lauderdale at spring break. And, hey, the loan is interest free and it is several years until you graduate and have to start paying it back. That is the trouble. Over the years at school, you can build up a huge debt so that when you do graduate and find a job, you are saddled with debt payments which will take many years to pay off. And this is the time when you are building a personal relationship with someone and starting a life career.
We do not advocate taking the loans that you do not need. We do ask that you consider the long term effect of taking a loan higher than you actually do need. This is not “play money” like when you were a child. This is real money that will eventually have to be paid back by yourself with interest. Decide wisely what is in your long term best interest.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.