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Planning for Student Loan Debt

Monday, November 27, 2017

Student loan debt is becoming a bigger and bigger problem for residents in Vancouver and across the entire country. Many people are spending more time in school to get the training they need for their careers. These educational opportunities are abundant, but they often also cost a lot of money. To help you navigate these concerns, there are a few things you should know about handling student debt.

student preparing

What impact can student debt have on your life?

For the past couple of decades, students that go to university have often had to incur more debt than the previous generations. Some people will still be paying in their forties or fifties for the university education they received while in their teens and twenties.

Although there are forms of debt relief available which are unique to student debt, it can still have a big impact on your life. Perhaps most obviously, onerous student debt can seriously affect your lifestyle, requiring you to scale back your expectations. For example, rather than having a house and child once you become financially stable, you may have to keep renting and put off children for a few years. Alternatively, investing in a condo may even be a safer choice for you.

  • What solutions to student debt are available?
    There are quite a few options available to help you get the education you need without it necessarily burdening yourself for the rest of your life. Everyone’s situation is slightly different but some common options for student debt relief include:
  • Applying for the repayment assistance plan
    Available to Canadian citizens through the federal government, this program provides various kinds of relief for student debt. The government may pay some portion of the interest on your debt or reduce your payments under this plan.
  • Filing a consumer proposal
    This has been an increasingly popular option for Canadians looking for debt relief without filing for bankruptcy. If your total debt does not exceed $250,000 and it has been more than seven years since you’ve left school, your student debt may be included under a consumer proposal. Unlike filing for bankruptcy, filing a consumer proposal gives you some protection from creditors but allows you to retain your assets (your home and car, for example).
  • Don’t wait around for debt to snowball
    The smartest plan for managing the future of your finances is to be organized before you are hit with debt after graduation. Debts can snowball and late payments will accumulate. If you are worried about facing bankruptcy or wish to receive credit counselling, contact the trustees from Abakhan & Associates for a free initial consultation.

Free Yourself From Debt!

No matter what your student loan debt situation looks like, you should consult with a financial professional from Abakhan & Associates Inc. for assistance and to develop the best plan for your unique situation. We have the expertise and the experience to give you the credit counselling you need to make planning your financial future less stressful. Contact us today at one of our many locations in Vancouver or across British Columbia to find out what your best options are.

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