The Situation Regarding Student Loans Debt in Canada
In Canada, the average graduates of post-secondary education hold approximately $26,000 of student-related debt, as per Statistics Canada. This student-related debt is acquired from tuition expenses, food and rent. All these have been rising gradually. For the young Canadians who aspire to get a secondary education, cost is the main factor that hinders them and the only solution they can see is to borrow money to fulfill their educational goals.
Statistics Canada also reveals that most graduates were able to finance their post-secondary education by obtaining a loan. In fact, most of the second graduates carry loads of their student loan debt when entering the workforce. Besides, a few were reprieve via scholarships, low-cost loans, and grants. These are beneficial in managing the costs in terms of student expenses and keeping the debt levels tolerable after graduation.
Ways To Finance For Post-Secondary School
Below are some of the best deals that you can consider to be able to finance your post-secondary education. Having awareness of the following means will prevent you from drowning debt after your graduation.
There are several websites that you can check out for scholarship programs, bursaries, and grants that are accessible for students. If you’re looking for free cash, Scholarships Canada is one of the best choices that you might consider. The foundation declares they have accommodated and allocate more than 99,000 scholarship awards that are almost over $200 million worth. In the highlighted scholarship segment on their website’s home page, they have offers ranging from $250 up to $10,000. Some of the points they offer to acquire these scholarships are as follows:
- Thoroughly read the application and the fine prints
- Check the criteria for qualification and make sure you met such
- Keep the deadline in mind and make sure you mark your calendar to be reminded
- Find out if you are required for an original or copy of your transcripts and other prerequisites
- Accurately answer each question
- At least indicate one reference that is not within your school
- Make sure you have someone else proofread your application
- Secure a copy of the completed application form and take note of the supporting documents that you have submitted along with your application
- Check whether you have properly followed the set guidelines in your application
- Make sure to mail the application before the deadline.
Furthermore, other sites aid students to potentially win scholarships and grats. These are universitystudy.ca and findmyscholarships.com. Apart from that, you can even check your colleges or universities, campus offices, and the student unions to see whether they offer scholarships or grants.
Financial assistance is accessible to those students who need money to fund their tuition as well as living expenses. The most affordable alternative is to get a government loan. Every province and territory administers government loans for either full time or part-time students. So, if you’re wanting to obtain government loan, you can apply for both provincial or territorial level as well as federal level altogether in one setting.
In terms of government loans, there is a non-repayment period which is for 6 months before you can begin paying your loans. This demands after you’ve ceased as a student, reducing your hours from either full-time to a part-time job, or any other reason for leaving school. After such period, you must then begin paying your loan; also, it will be subjected to accumulate certain interest rates. In this manner, two interest rate choices: Floating interest rate, (prime rate + 2.5%) or fixed interest rate (prime rate + 5%).
Managing Money Better
There are vigilant ways for students to avoid carrying loads of debts after graduating. Changing your lifestyle being a student will somehow solve it. This involves budgeting and managing your essentials. In fact, as early as possible it is better that you learn how to earn money as a teenager. Besides, you shouldn’t be relying on your part-time job alone. All you need is extensive planning on how you can make use of your skills and resources to earn more money. Additionally, there are also ways on how you can pay down student debt faster and to make it feasible is through good money habits.
Building Financial Literacy
Almost all universities and colleges grant personal finance for students. Some of it may be incorporated in the curriculum while some others may involve seminars that are being offered for the entire year. So, make use of your time and attend financial literacy to learn more about how you can build your finances. These lessons are something that you can utilize in your lifetime. As early as now, you should set things in place and plan for long-term goals and big wins.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.