Struggling with student debt is common. Many of the people I see on a daily basis are still struggling with student debt. Graduates don’t have a lot of time to start making money before they have to start paying back their loans. If you owe money to Ontario Student Assistance Program (OSAP) or have a Canada Student Loan (CSL), you have to start paying it back six months after you stop being a student. During those six months, you don’t have to make a payment but interest will start building up. In Ontario, interest does not accrue on the provincial portion of your loans during the six-month grace period. But throwing money at your student loans during this period is an ideal strategy because payments are applied directly to your principal.
Unfortunately, OSAP and CSL cannot be discharged by filing personal bankruptcy or by making a consumer proposal unless you have ceased being a full or part-time student for more than 7 years as at the date of making a consumer proposal or filing personal bankruptcy.
If you haven’t been a student for more than 7 years and are struggling with debt, we can help you get rid of that debt and get a fresh start.