Options for Student Loans if you are in Financial Trouble!
Over the last 20 years post secondary education has increased over 500%, unfortunately minimum wage has only increased by 60% in Ontario, which means more and more students are applying for student loans for their education.
As the economy is right now it is sometimes hard to graduate from school and land that dream job right out of college/university. If you find yourself in this situation and your cash flow is limited but you know you have to start paying off your student loan really soon there are three options you can consider.
Your first option is to contact your student loan provider as all government student loans, including OSAP have an interest free and payment free periods immediately after graduation. You may also be able to work out a payment plan with them each month. A small payment each month is better and helps you keep your loan from going into default.
If you are getting calls from a collection agency over your student loan or if you have been unable to arrange a payment plan you may want to consider a consumer proposal. The rules are somewhat complicated but with the help of a licensed trustee they will be able to answer all your questions and find the best option for your situation.
The last option you might consider would be bankruptcy. Under the Bankruptcy & Insolvency Act states that “government guaranteed student loans are only automatically discharged if you have ‘ceased to be a student’ for more than seven years prior to when you declare bankruptcy.” To completely understand this option you should contact a local bankruptcy trustee. They will be able to explain and answer any and all of your questions you might have about bankruptcy and your student loan.
Bad things happen to good people! We want to be the ones to make something good happen when you need a mortgage, to buy a home or refinance. “Your Durham Region Mortgage Doctor” will treat you with respect and guide you to an approval. Contact us!