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.