For most people, getting a student loan is a step closer to making their dream of attending college or university a reality. With the rise in tuition fees and interest rates, students are struggling now more than ever to repay their ever-increasing student debt. D. & A. MacLeod Company Ltd. offers debt counselling that will help students manage their commitments and repay their loans. Managing student debts can be a daunting task, especially when you may not have a steady flow of income. Going into bankruptcy is possible when the student debt is overloaded. Trust our professionals to assess your situation and help you manage your student debt with the right financial strategy suitable for you.
As post-secondary school typically demands full-time commitment towards your studies, it could be difficult for you to take up part-time jobs to support your monthly commitments in addition to the loan amount you need to pay. Students often end up depending on credit cards and consequently pile up more debts with high interest rates. To get to the most practical solution and ease the stress of loan repayment, it is best to discuss your financial situation with the team at D. & A. MacLeod Company Ltd. We have been providing student debt counselling in Ottawa and surrounding areas, for over 65 years.
Before taking on a student loan from any bank, organization, or family, do a bit of math. Know the terms and the interest rate on your student loan. Calculate your monthly income, expenses, and plan your finances well.
If you are still confused about how to go ahead and make a wise decision, reach out to D. & A. MacLeod Company Ltd. We offer credit counselling and debt management services for students and recent graduates in Ottawa. We will work together with you to reduce your debt burden, help you with better saving methods, and provide you with practical student loan debt repayment plans.
If you’re interested in learning more about managing your expenses as a student, be sure to check out our blog to learn more:
Paying Back Your OSAP Loan
It’s very common for students to receive a loan through the Ontario Student Assistance Program (OSAP). It offers interest-free loans and the repayment process doesn’t begin until six months after you graduate.
To meet the OSAP criteria, you should:
Be a Canadian citizen, permanent resident or a protected person
Meet the full-time or part-time enrolment requirements at an approved school
Demonstrate financial need
Pass a credit check if you are 22 years of age or older
Not have defaulted on a student loan or declared bankruptcy in the past
When you opt for a loan through OSAP, you are borrowing the money from the governments of Canada and/or Eastern Ontario. You will be required to pay back the loan with any interest on the debt. While you don’t have to pay the interest that adds up when you’re still studying, you will be responsible to pay the interest on your student loans six months after your graduation.
Student loans are one of the many financial commitments that people find hard to deal with after graduation. All student loans are subject to be treated under the Bankruptcy and Insolvency Act. Your student loan cannot be discharged unless you file for bankruptcy at least seven years after being enrolled in your full-time course. This is possible only if you take a government-guaranteed student loan. This provision is set out in Section 178, of the Bankruptcy and Insolvency Act in Canada.
Filing for bankruptcy can help you clear all your debts and make the process of repaying the student loan easy and convenient. Keep in mind that even if you declare bankruptcy, you still have to pay your OSAP loan. Your student loan can also be waived if you make a debt proposal to your creditors through a consumer proposal. A consumer proposal is a process where you will be given an opportunity to negotiate repayment terms with your creditors and settle your debts for less than what you currently owe.
If your student loans are private bank loans such as student line of credit or student credit card debts, then they are eligible for automatic discharge under the Bankruptcy and Insolvency Act. The seven-year-old rule does not matter here because it will be waived off with no aging period.
If you’re worried that your spending habits are negatively affecting your life, and you are unable to waive off your student debt, credit counselling from D. & A. MacLeod Company Ltd. can help you relieve the stress and find ways to manage your debts. If you have other debts such as credit card debts, lines of credit, or payday loans, you can still opt for bankruptcy or a consumer proposal. We can help you find the right solution to help you pay them off and make repaying your student loan debt more convenient and manageable. Our licensed insolvency trustees are always ready to review all possible options for you and provide you with the right choice. Give us a call today for personalized guidance.