Many post-secondary students are excited to be finishing their education and are looking forward to the beginning of their career. But, if you are graduating this spring, and you have student debt, you should have a repayment strategy in place. You don’t want to start your professional life drowning in debt and without a plan to get out of it.
First you should determine your payment amount and make a budget. This will allow you to determine whether you could experience financial hardship in the near future. Work with your school’s financial aid office to determine how much you will owe and when you plan to finish making payments. Once you determine these factors, work them into a budget with your other expenses. Make sure that your monthly payments are affordable.
You may be eligible for a grace period before you have to begin paying off your loans. All loans will accumulate interest during this period but at least it will give you a chance to start earning money before you have to pay off your loan.
Several events may occur during your repayment period that could prevent you from making payments. For example, a job loss or major illness could make payments more complicated or impossible. You may have options to prevent student loan default during difficult financial situations. Contact OSAP if you have questions. You may be able to work out a plan.
You could utilize automatic payments. Each month, your student loan servicer will deduct the amount owed directly from your bank account. Automatic enrollment could keep you from forgetting to pay. Just be sure to check what the monthly payment will be before your due date.
If you have found yourself out of school for seven years, and are still struggling to pay debt, contact our office today for a free consultation. After the seven year mark, student loans can be included in bankruptcy.
