Student Loan Debt – How to Pay it Off ASAP!
The struggle to pay student loans is a challenge faced by thousands in the Greater Toronto Area.
The sooner you pay off your student loans, the sooner you will be able to get on with your life and your career, as well as reduce your risk of debt overload.
Here are some of the best ideas we have encountered to pay student loans faster:
- If you are able to pay off a portion of your student loan debt while you are still in school – do it. According to CanLearn.ca the Canadian Government website: the portion of your student loan that is paid off before you graduate will not be subject to interest charges!
- Check carefully with your loan provider(s) if you are thinking about switching from full-time to part-time student status. You might find that your full-time student loans will move into the repayment process if you switch to part-time attendance.
- Until your student loans are paid off – keep living as if you were still a student. That means, whenever possible:
- setup and keep a very tight, student-style budget
- don’t move into a more expensive apartment
- avoid buying a new or new-to-you car unless you absolutely need it for work
- avoid upgrading your wardrobe unless you absolutely need to for work
- avoid getting new furniture – get by with your student furniture
- keep your habits and tastes on a strict student-budget
- take a second job to speed up paying off your student loans
- Find out all the details of your repayment responsibilities – amounts, how, where etc. Don’t wait to be notified, check it out right away. Find out your best course of action to speed up repayment, from your loan provider(s).
- Remember, during the six month ‘grace period’ following your graduation – you are not required to make payments, however, you are being charged interest – so start making payments as soon as you possibly can.
- Pay your student loans in full and on time every month – without fail! *
- Get into the habit of paying more than the minimum required payment. According to the Government of Canada at CanLearn.ca – if your payments and interest charges are up to date and you make higher than minimum payments – the extra money you pay is taken directly off the principle. Check with your loan provider to make sure this is the case for your loans.
- Put every cash gift, tax refund, bonus, and wage increase you possibly can, into paying down your student loans.
- Don’t give up – you can do this!
We know that once people graduate, they are tired of the pressure of being a student on a limited income – and want to start living it up a little. However, the faster your student loans are paid off – the better your financial future will be.
You are not really finished school, until all your student loan debt is paid off.
* If you cannot repay your loans on time, look into Student Loan Repayment Relief. Both the Ontario and Canadian governments have plans that help: