HOW TO REPAY YOUR STUDENT LOANS AND HOW TO DO IT FAST

The Canadian Federation of Students estimates

that average student debt is more than $28,000 

According to the Canadian Student Loan Program,

most students take 10 years to pay off their loans.

Here’s what you need to do to repay your student loan

Step 1:    Figure out what you owe

  • Government loans
  • Student lines of credit
  • Credit cards
  • Money owed to family

STEP 2:      RANK THEM FROM HIGHEST PRIORITY TO LOWEST

Look at how much interest each one is charging,

how much is owed, and how long you have to repay the loan.

Prioritize paying back your loans in order of highest

interest rate to lowest interest rate. 

And make sure you’re never late with your

payments because this will affect your credit rating.

STEP 3: MAKE A BUDGET

Making a budget is a lot easier than it sounds.

Once you know how much you should be

paying towards your loans each month, you

can start figuring out how much you have

left over to pay for other household stuff

STEP 4: USE THE PERSONAL LOAN CALCULATOR

Use the calculator to play around with

different repayment scenarios to find out

what is an affordable amount for you. The

faster you can repay your loans, the less you

will have to pay overall in terms of interest.

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Repay your student loans and do it fast

TIPS TO PAY DOWN YOUR LOANS FASTER

Don’t wait to start paying

If you can start paying right after graduation or before that please do it! A government loan and a student line of credit both don’t require any payments while you are in school.

With a government loan, you are given a six-month grace period after you graduate or finish your studies,

Interest charges however does accumulate during this period.

After this grace period, the government will send you a repayment schedule detailing how much you need to pay them each month.

Make extra payments no matter how little it may be

Both government loans and a student line of credit can be repaid without penalty. 

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