Overview

Higher education is something most of us strive for. Getting your degree is often the stepping stone between you and your dream career and according to membership organization, Universities Canada, there were 1.7 million university students in 2017.

However, your degree often comes with a hefty price tag. In 2018/2019 students will pay an average of nearly $7k per year for tuition alone, which according to Statistics Canada, is up 3.3% from previous years. Factoring in your general living costs and this can all mount up to a rather substantial bill by the time you graduate.

Now, all graduates are given a six-month non-repayment period to allow you time to prepare to begin paying your loan(s) back. However, interest does build up in this time and it is often suggested that you make payments to clear this in the interim. Many students will graduate with as high as $27k debt and according to the Canadian Student Loans Program, this will take most of them at least ten years to clear.

In an article posted by the Financial Post, it was reported that tens of thousands will fall into default with their student loans each year. Many will also be reported to a credit bureau which affects their ability to obtain mortgages, rent an apartment and even getting a job.

The government does offer repayment assistance plans for those who are struggling, if you contact them in enough time. If you default on your loans for more than 90 days, you then forfeit the option to utilize this option.

Many students will graduate with as high as $27k debt and according to the Canadian Student Loans Program

Warning Signs

If you’re feeling the strain of student debt, the following signs will likely be familiar to you:

• Defaulting on priority bills such as utilities
• Taking out further lines of credit such as credit cards or loans
• Feeling stressed or anxious about paying the loan back
• Leaving yourself without enough money for necessities
• Avoiding the topic with others

Many people will hide their debts from others, but if you think someone you know might be in trouble with their student debt, you might notice the below signs:

• They become secluded, spending less time with friends or family
• Having several lines of credit
• A clear change in a relationship (if you are a couple)
• Showing signs of irritation or stress when the topic is brought up

It isn’t always easy to know where to turn when you are struggling, it is always suggested to contact your loan provider or the government to find out if you can apply for repayment assistance.

How to Get Help

Student debt can be scary and there are many ways to deal with this. The points below are some steps you can take to try and regain control of your finances and get back on track:

Talk about it – Sometimes all it can take is opening up to someone and talking about your struggles to help you face the issues you are having.

Get Some Advice – Speak to the loan provider, they may be able to work with you and negotiate a better payment plan for you. They may also be able to help you budget for this.

Get Help – At Money Advice Canada we know how stressful debt can be, and we will always do our best to relieve you of this stress. Our experts will always listen to your situation and offer you free and confidential advice to help you find the best solution for your circumstances.

In 2018/2019 students will pay an average of nearly $7k per year for tuition alone