Nova Scotians: Here’s How to Pay Down Student DebtOct 25, 2017
Nova Scotians are among the most in-debt graduates.
According to a recent BDO poll, university and college grads in our province owe an average of about $28,000 in debt at graduation. It’s no wonder that many of them are eager for ways to eliminate their debt. Here are a few tried-but-true methods.
Make more than minimum debt payments
While the region is hopeful about some future employment prospects, well-paying jobs for grads aren’t readily available.
That can mean it feels impossible to pay off your debt. But you’ll see relief over time if you commit to making more than minimum payments whenever possible.
Personal finance blogger Bridget Casey from MoneyAfterGraduation recommends: consciously funnelling extra money at your student loan can make a significant difference to your financial health over the course of a year or two.
If you’ve taken on extra debt on your credit card, you know that the interest rates can feel suffocating. Make a plan to pay off those large interest rate debts as soon as possible. Here is an online debt calculator specific to credit cards and loans that will help you find the right payment amount for your budget.
Get debt relief help
If you’re having trouble tackling your debt and balancing your other financial responsibilities, consider meeting with a Licensed Insolvency Trustee (LIT).
An LIT can help you find ways to pay off your debt efficiently and meet your other goals, like retirement savings, an emergency fund, or saving for a down payment on a house. If you have questions about how your student debt is affecting your credit, an LIT can answer these questions, too.
Structuring your debts in a different manner can also make it easier to make your payments. An LIT can explain what types of consolidation might be right for you and refer you to the appropriate financial professional, if necessary.
Talk to your lender
If you have a federal student loan, there is a Repayment Assistance Plan you can apply for. If accepted, it can help you reduce or eliminate monthly payments.
Nova Scotia.ca provides guidance and resources that can help you with the provincial portion(s) of your student loan. The province also offers resources on how to eliminate debt.
Student debt can seem overwhelming, and you might be afraid that you won’t be able to get out of debt. Don’t give up. Chances are very good that there are ways for you to make your payments and get debt relief.