Canada Student Loan Debt
If your a Canada student and slowly falling in debt with loan after loan financing your college education, those Canada student loans may seem like a virtual lifesaver at the time so you can stay in school. However, once you have graduated from college, or left school, those loans will become due. Suddenly, Canada student loan debt doesn’t seem like a lifesaver. In fact, those loans could feel more like weights that are pulling you under a sea of debt, making it hard to breathe.
Depending on how long you attended school, and how much you received in grants, bursaries, and scholarships, you could have an astounding amount of Canadian student loan debt facing you six months after your graduation. In fact, that debt could be the largest expense you have each month, and depending on the size of the debt, it could take you all of your working years to repay that debt. You don’t want to feel like you attended college for the purpose of paying off the loans to pay for that education.
Fortunately, you have some options. You could consolidate your Canada student loan debt, creating one payment, which could be lower if you can negotiate a lower interest rate. Before you do this, however, you should check with the administrator of your loan, or the Canadian student loan service centre, to see how much of your loan could be forgiven, or at least significantly reduced.
The first program that you should look into is Interest Relief. This option is available to individuals who are temporarily unable to make their Canada student loan payments due to low income or unemployment. You can get relief from the interest on your loans for a period ranging from six months to thirty months, and this is determined on a case-by-case basis.
If you have long term financial problems, you may be eligible for Debt Reduction in Repayment. This lowers the total amount, or principle that you owe, which reduces the monthly payment, making it more affordable for you. You can actually receive up to three reductions, for a total reduction of approximately $26,000.
You can also do a Revision of Terms, which can decrease your monthly payments, by increasing the length of the loan by up to five years. There is also a program that covers you in the event that you become permanently disabled.
Finally, the Canada Repayment Assistance Plan, which came into effect in 2009, is available to those who have a lot of Canadian student loan debt who are having difficulties in paying them off. Through this program, your loan can be extended, your payments will be adjusted based on your income and expenses, and the loan payment will not exceed 20% of your monthly income. Under this program, you may not even have to make payments until your income increases. Canada loan forgiveness is available to those who become permanently disabled, if they are unable to work, under this program.
For information regarding the repayment of your Canada student loans, or making them more affordable, visit the National Student Loans Service Centre. There are options that will help you get your Canada student loan debt payments under control, making them more affordable.
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