Are you having trouble repaying your student loan debt?
Student loans are one of the biggest debt challenges Canadians face. As tuition fees and living expenses continue to rise, more and more Canadians are financing their post-secondary education.
Did you know that almost half of post-secondary students will take on student loan debt? Paying it off while navigating affordability challenges, like housing, grocery bills, transportation costs, is very difficult.
of post-secondary graduates
have student loan debt.
is the average balance
rely solely on
Source: Statistics Canada
If you qualify, the RAP can help reduce your payments. Depending on your income, you may be exempt from payments that exceed your income by 20 per cent or any payment at all.
Learn more about the Repayment Assistance Plan here.
By revising the terms of your loan agreements, you can extend the amount of time it takes to pay off your student loans by up to 15 years, making your monthly payments smaller.
Learn more about Revision of Terms here.
If you have been out of school for at least seven years, you can include your student loan debt in a consumer proposal, which can reduce your total unsecured debt by up to 80 per cent.
Learn more about consumer proposals here.
If you are unable to repay your debts, you may qualify for bankruptcy, which can eliminate all your unsecured debt, including your student loan debt, if you have been out of school for at least seven years.
Learn more about bankruptcy here.
Failing to make your student loan payments will have a negative effect on your credit score. Both Canada Student loans and private lenders will report late payments to the credit bureaus.
If you don’t make the required loan repayment on student lines of credit or credit cards, the bank can apply to the court to garnish your wages. Both federal and provincial governments also have the power to take your tax refunds and garnish your wages.
If you’re having trouble keeping up with your Canada Student Loans you can apply for a revision of terms, which will allow you to lower your monthly payment and extend the length of time it will take to repay your loan up to a maximum of 15 years. You can also see if you qualify for income-based repayment adjustments through the federal Repayment Assistance Program.
Student loan debt can be intimidating and stressful. Our debt professionals provide sound advice on a path forward so you don’t have to face your debt alone.
A BDO Licensed Insolvency Trustee is always available to discuss your debt relief options free of charge and without any obligation on your behalf.