What I wish I had known about student loans

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What I wish I had known about student loans

Posted by Rob on August 12, 2013

This is a topic that comes up frequently in my social circle. Student loans are a reality for many young Canadians who wish to pursue an undergraduate or graduate degree. Let’s have an honest discussion about what they mean and things to keep in mind.

Many of you may already be aware that Canada offers student loans through the Canada Student Loans Program for full-time and part-time students. The Government of Canada and most provinces and territories work together to deliver federal and provincial student loan programs. This makes things simpler for you. You must apply every year in order to receive funding and, the sooner you do it, the quicker you can receive funding.

A student loan can help immensely in alleviating financial stress throughout postsecondary school, but, as we near the beginning of the school year, I wanted to take an opportunity to share some of my own “lessons learned” from my experiences with Canada Student Loans.

Student loans are meant to assist you in getting through school, not to pay for your education in its entirety. This means you’re still expected to contribute. Whether picking up a part-time job or applying for scholarships and bursaries, it’s important you do not rely solely on loans.
When you get your loan, I suggest putting it into a separate savings account that’s not tied to your debit card. Having all that excess money freely accessible through debit transactions is a recipe for overspending. Instead, get into the habit of having to transfer a specific amount into your chequing account as required.
You can actually start making loan payments while in school. If you’re in a position to do so, I suggest returning all unused loan funds (those that are left over after all education‑related expenses are paid). You’ll thank yourself when the repayment period begins six months after you finish school.

Ultimately, it’s important to know and fully accept that you will have to pay back your student loans; not paying back your student loan may affect your credit rating and could prevent you in obtaining further loans and grants. Be proactive and think ahead about your loan balance as you’re going through school. Make every effort to minimize your balance and spend your loan money on things that you absolutely need.

If you’re having difficulty paying back your student loan, check out what the Government of Canada and your province or territory can do to help you.

Do you have any advice to share about managing student loans?

Be sure to:

Check out CanLearn’s page on managing loans
Visit our page on Paying for School
Ask us a question or share your story on Facebook

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