How to Make Student Debt Repayment a PriorityJun 18, 2018
Now that school is over, are you suffering from student debt regret? You’re in good company. Our student debt poll in September found that 77 per cent of recent grads wish they hadn’t taken on so many student loans. The good news is that no matter how much student debt you’ve accumulated, you can set yourself up for success by putting a few useful practices in place.
How to pay back those loans
This podcast episode is about student debt and how grads can get on top of it instead of letting it overwhelm them. Here’s a sneak peek into what our LITs suggest:
Take stock of your living situation
Are you living at home or on your own? Grads who live at home may have the advantage of lower living costs which can allow them to crush their debt sooner. If you’re living on your own, take stock of all your expenses by setting up a budget and see how much you can dedicate to debt repayment.
Know what you owe
A 2017 CIBC poll found that students expected to owe an average of $30,000 in post-grad debt. An amount like that can feel intimidating. Breathe. You can do this! Calculate how much you owe by logging into the National Student Loans Service Centre. After graduating, you’ll have a 6-month grace period, but if you get a head start on your payments, you’ll save a lot of interest.
Find a plan that works for you
Debt repayment isn’t a one-size-fits-all plan so you’ll need to find what works for you. Our LITs recommend a number of strategies including the debt snowflake method.
Don’t let student debt hold you back from your life goals
Student loans take years to repay unless you make extra payments. Think ahead and consider which life goals you’ll have in the next 10 years and whether your student loans will prevent you from achieving them. Now might just be the best time to reduce student debt before you start adding a family, a mortgage or other expenses into the mix.