Debt Consolidation and your Student loans
Student loan debt is a big concern for many these days, as this is a payment added on to your regular monthly expenses, such as transportation costs, mortgage/rental costs, food, entertainment etc. Plus for some, their student loan debt could be sizable, and at times making ends meet can be a bit tough.
If you were ever considering debt consolidation for your student loans, there are a few considerations to review.
A Few Considerations
When you keep your student loan as is, you might be able to qualify for the interest relief programs when you are filing for your taxes each year. If you were to look at consolidating your student loan, you automatically lose the interest relief option.
Next there is the possibility that your student loans may be tax deductible. The Interest with a debt consolidation loan will not be tax deductible. Going with a debt consolidation loan will also stop any possible tax breaks with your provincial or federal student loan.
What is the interest rate on the loan? Ideally you want to have the lowest interest rate possible so you are paying less on that loan. If you happen to have a poor credit history, or no established credit history, then there is the possibility that the interest rate on the loan will be higher than your student loan interest rate.
With your student loans, there is also the option to have interest only payments. You can contact your student loan office to see about these options if you are having problems making ends meet until you can resume making your payments.
Student loans can only be discharged in a bankruptcy when the individual ceased to be a full or part-time student at least 7 years before the date of bankruptcy.
- For more information on student loans, see https://davidsklar.com/student-loans/
- For more information on debt consolidation loans, see https://davidsklar.com/debt-consolidation-loans/