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.
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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