Feb. 7, 2013

5 Tips to Help you Pay off your Student Debt


I know I know, there’s not really a simple answer. But there are a few things you can keep in mind if you are fresh out of school with that student debt lingering over your head.

1. Attack highest interest debt first: If you have other debt besides student debt, pay that down first - assuming it's at a higher interest rate. Especially if you have that dreaded Credit Card debt where you’re owing 20% interest.

2. Is your debt with OSAP?: See if you qualify for the “Cap on Debt” program. The program ensures you only owe back $7,300 per standard 2 term academic year.

3. Consolidate if you need to: If you are feeling overwhelmed with debt beyond just your student debt, speak with a financial advisor at your local branch. They may be able to consolidate your debt together and give you a simple payment structure that will work for your budget.

4. Don’t let it get out of control: Coming up with a plan to deal with debt today is better than letting it get out of your control tomorrow. Deal with it today.

5. Budget: Once you’ve discovered how much you can pay down per month on your debt – stick to it. Don’t spend money you don’t have. To learn how to budget as a student, visit A Student’s Guide to Spending.

I know none of the options are that appealing (besides the Cap on Debt program), but you can do it. And it’s better to attack the debt now than deal with an even worse situation later.

7 comments:

  1. Great advice! So many students are leaving school with huge student loans and it can be overwhelming at first.

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  2. I really hope I don't have this debt hanging over me for the rest of my life. I'm not great with the whole budgeting thing, outside of winning the lottery I think this could be trouble for me.

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  3. I will have to use some of these tips when I start paying back my student debts!

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  4. I was debt-free after I graduated 4 years in university but this past year at college definitely put be a step back (and way back I might add). Thank you for your tips - I know little to nothing about investing and this blog has helped me out a lot! Please be my banker.

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  5. These are great advice that soon-to-graduate students will benefit from. I was debt-free 3 years after graduation and I know that I could've done better. If only I read self help books or if I knew how to manage my debts, then I could've paid my student loan a lot faster.Jaden Allred

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  6. It’s always good to be aware of how you’re spending your money, especially if you are up to your armpits in student loan debts. Getting credit cards is a no-no. Well, maybe for emergency purposes only. But having that looming in the background can be a big temptation to buy stuff. I’d rather just put aside money while budgeting than charge it to my card.

    Paddon+Yorke

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  7. This is just the information I am finding everywhere.Me and my friend were arguing about an issue similar to this! Now I know that I was right.
    Equity Tips

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