Student Loans

Higher education comes with a big price-tag

Higher education comes with a big price-tag, which most students can’t afford right off the bat. So, they take out loans in order to make it to class and get their degrees, then end up saddled with thousands in debt after graduation. It’s an all-too-common problem.

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Based on 676 reviews
Daniel Domingues
22:19 23 Jan 21
Ashley Carter was very nice to me and professional and she helped me with my issue and she answer my questions in email. She helped me a lot and she gave me less stress.
1 blaze
18:36 21 Jan 21
Jackie Stanley take you step by step in explaining the process professionally, replying on our every question over the telephone or e-mail. We are very satisfied and grateful for her work and effort.
Tree Broker
14:33 20 Jan 21
Jackie and the team at David Sklar and Associates took my very stressful situation and made me feel at ease. I was treated with respect and understanding from the start of my process right through to the end. Prompt email and phone responses made it feel like I was at the top of their priority list.Jackie and the team at David Sklar are the best in the business. I would highly recommend using their services.
Jeremy Y
14:04 20 Jan 21
Has helped me put to gather all my financial debt and find a reasonable offer and deal in making payments towards all my debts as one. Has been patient and kind service one on one. A big thanks to Jackie for helping guide me through my process!
WhoisDriaB
02:09 20 Jan 21
Jackie is an amazing person, she takes her time to make sure you understand everything. Every question I had she was always a email or text away with a quick response. Thank you again
danny adlabi
20:11 19 Jan 21
Jackie Stanley was amazing she was kind and wonderful to work with i am so grateful for her help she set down went over all my questions and my situation and i got all the help i need it
mer irf
19:59 19 Jan 21
Jackie made me feel very comfortable from the minute I walked in. She treated me with humanity and respect. She is also very professional and knowledgeable; she explained very clearly what was involved. Thank you Jackie for giving me the chance to start anew.
Dorianne White
15:06 19 Jan 21
We were so tired of our debt holding us back. We reached out to Jackie at David Sklar and she was so great from day one! She was quick understanding caring! Our experience was excellent! Everything was smooth and easy. What a relief it was with Jackie at David Sklar!Thank You so much 😊
F Volpe
05:07 11 Jan 21
Best thing I ever did! Don't let the messaging out there convince you being unable to manage your debt is shameful and a failing. Cori is amazing! She knows what she's talking about and she will guide through all your options. Everyone I've dealt with at David Sklar has been respectful and friendly. This was life changing help for me.
Maria G.
19:07 03 Jan 21
Cori, she’s very helpful and patient. She treated me with respect. She took so much time to explain to me what’s the best way to resolve my financial problem and teach me how i can save to avoid thesame problem again. Cori thank you so much.
Nilda H.
23:34 21 Dec 20
I highly recommend David Sklar & Associates, especially Rhoda Lewis, she listened with patience, understood my whole situation, advised professionally, she has many years of experience and is very knowledgeable, I felt confident with her work, she handled my case and guided me every step of the way, she reviewed with me in detail, and is very caring. I really trust David Sklar’s team, they really work and help people in a very simple and professional way. I am so grateful for Rhoda’s work helping me through this situation. Now it is like I received a 2nd chance to live free, I can take control and now take care of other things that matter in my life. Thanks for taking away the stress & weight I was carrying on my shoulders. I can now sleep at night. God Bless you for all your work. Thank you.
J H
21:14 12 Dec 20
The staff at David Sklar are professional, respectful and honest right from my first phone call. It made a really embarrassing and difficult situation easier to handle. Now I'm on the way to rebuilding my life for my family.Thank you to the team and especially Ashley from the Brampton location.
Omair pasha
17:32 11 Dec 20
Ashley Carter was great and helpful. Answered every and each questions in detail and politely. Thanks
L. M.
15:29 10 Dec 20
I'm am very pleased that I contacted David Sklar & Assoc. I dealt with Rhoda Lewis, she was very professional and understood my need for their services. Rhoda set up a repayment plan, that was very easy to follow and made everyone satisfied.Going to David Sklar & Assoc. Was the best choice, to make for rebuilding my credit. I recommend David Sklar & Assoc. to anyone who needs help with debt relief.
evangia cawley
17:51 09 Dec 20
From consult to resolution the service was highly professional. I felt heard and understood. There was no judgement. Jackie always responded to my questions in a timely manner. Most of all, Jackie went all out to see that I got the best care and advise she could find.
Jackie
16:20 09 Dec 20
So grateful to the whole team at Sklar for the opportunity to start fresh after a very difficult time of job loss. They went the extra mile for me and have been stellar! J
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STUDENT DEBT IN CANADA

Canada is currently in the midst of a student debt crisis. Over 20% of Bachelor degree holders graduate from their programs owing more than $25,000 in debt. Those findings are from 2017 — the numbers have likely grown since then. Tuition costs have gone up every single year for the past three decades, and the majority of students are having trouble keeping up.

 

According to Statistics Canada, undergraduate students currently pay an average of $6,838 for tuition in a single year. In 2017, that average was approximately $6,500 a year. Graduate students pay an average of $7,086 per year. And the following specialty programs come with astronomical tuitions in Canada:
 

  • Pharmacy: $10,746 a year
  • Law: $13,332 a year
  • Medicine: $14,780 a year
  • Dentistry: $23,474 a year

 

The steady rise in tuition costs isn’t the only thing causing students to take out massive loans. The student debt crisis is aided by precarious employment and stagnant wages — these can barely cover the costs of living in the GTA, let alone the rising costs of higher education.

 

Decades ago, students could pay off their yearly tuition with the money that they made during a summer job. Now, a student would have to make almost $7000 from seasonal employment. The minimum wage in Ontario is currently $14.00 an hour — this means that students would have to work over 490 hours just to match the price of tuition. If they worked for forty hours a week for three months straight at a minimum wage job and saved every single penny of their paycheques, they would still come up short.

 

Plus, tuition isn’t the only expense that comes with the university/college experience. Students have to pay for books, dorm rooms/rent, utilities, food, transportation, phone bills and more. When you tally up the costs, it’s easy to see why so many people turn to loans for help.

STUDENT LOAN CHALLENGES IN ONTARIO

A steep tuition rate is one thing that makes paying for secondary education difficult. Another challenge is student loan interest. These interest rates make your debt grow long after you’ve received your cap, gown and diploma.

 

When it comes to federal student loans, applicants are given a six-month grace period after graduating where they won’t have to start their repayment plan. The grace period allows for graduates to adjust from their full-time schooling to find full-time employment.

 

Previously, federal loans during the grace period were still subjected to accruing interest. Although you had the opportunity to delay your repayment plan, you would dig deeper into debt. Now, graduates are free from collecting interest during the grace period.

 

Unfortunately, provincial student loans don’t carry the same benefit for applicants. In January 2019, the Ontario Government announced that OSAP (Ontario Student Assistance Program) would undergo some changes in the upcoming year. One of the biggest changes was that the six-month interest-free grace period has ended — the loans will collect interest from the moment that students graduate. Now, students using OSAP will be given no interest-free buffer between their schooling and their job hunt.

 

Many shared their worries about the changes for OSAP grants and loans on social media. They were upset that they would get less funding and face greater debt than they did the year before. They wondered if they could even afford to stay in their programs. And some admitted that they would be forced to juggle employment with their full course load in order to make ends meet.

Student Loan Repayment Relief plans

Maybe you’re struggling to find stable employment and you’re not bringing in enough income to settle the repayments. Maybe you’re dealing with other types of unsecured debt and your student loans are taking the backseat to higher interest rates. Whatever the reason, you should know that there are resources that can help you repay your student loans.

 

Start by trying out Student Loan Repayment Relief plans for provincial and federal loans: 

  • OSAP’s Repayment Assistance Plan
  • Canada’s Repayment Assistance Plan
  • National Student Loans Service Centre

 

 

These will be your most straightforward options. You may be tempted to try student loan debt consolidation but that move comes with several downsides. Debt consolidation loans often have high-interest rates — student loans don’t. Taking out a consolidation loan in order to pay off the student debt isn’t the best strategy since your debt from the former loan will build up much faster. Your resolution could end up costing you more in the long-run.

 

Plus, a debt consolidation loan will eliminate the possibility of filing for a tax break.

 

So, what other options are there? When you’re struggling with insolvency, and you’re looking for a crucial form of debt relief, you have two options: a consumer proposal or personal bankruptcy.

CONSUMER PROPOSALS AND PERSONAL BANKRUPTCY 


A consumer proposal is a legally binding agreement made between a debtor and their unsecured creditors, giving them a lowered amount to pay off over a maximum five-year period.

 

Personal bankruptcy is the legal declaration of insolvency, followed by the settlement of major assets and the distribution to creditors. It is usually thought of as a last resort. Licensed insolvency trustees will check to see if you’re a more suitable candidate for a consumer proposal before suggesting a bankruptcy filing.

 

The problem is that graduates looking for student debt help will meet some roadblocks with consumer proposals and bankruptcy filings. There are specific guidelines for Student Loans. If you don’t meet those guidelines, these relief methods will not help rid you of the student loan debt.

 

To be able to rid yourself of your student loan debt in a bankruptcy, you must have ceased being a student for a minimum of seven years. The seven-year qualification also applies to student loan debt and consumer proposals — along with restrictions for the repayment process. The Student Loans Program participates in dividends during the proposal or bankruptcy. Once the proposal or bankruptcy is complete, you will still have to pay the outstanding balance, plus the interest, minus the dividends. If you ceased being a student more than seven years prior to filing the proposal or bankruptcy, when the proposal or bankruptcy is complete, your student loan debt is considered paid in full.

Speak to a Licensed Debt Professional

If you’re having trouble with your student debt and live in Ontario, you can always book a consultation with one of the licensed insolvency trustees at David Sklar & Associates for assistance.

 

You’re not alone. Many Canadians are struggling with the burden of student loan debt long after graduating from their program. The positive news is that many Canadians have also found a way to relieve themselves of that burden — and you can, too. Follow these financial tips and you can say goodbye to your student loans forever.