Like many students, you borrowed money from the federal and provincial governments to help you pay for your college or university education. While you would like to pay back your loan, changing economic conditions, an unexpected life event, or maybe not being able to find work in your chosen field has challenged your ability to do so.
If you find yourself struggling to repay your student loan, you have several debt relief options available to help you manage payments:
The Repayment Assistance Plan (RAP) could be a viable option for you to reduce your monthly loan payment. You may qualify for it if you reside in Canada; at least 6 months have passed since you graduated or left school; and your loans are up to date. You can find out more about this option by visiting the Government of Canada website about the Repayment Assistance Plan.
If you have been out of school for 7 years or longer and feel that you need more help paying back your loans, consider learning more about how a consumer proposal can lower your monthly unsecured debt payments with a repayment plan tailored to your financial needs. Visit our Consumer Proposals page and find out if it’s right for you.
Under the Revision of Terms Plan, you can lengthen the amount of time it takes to pay off your loan’s principal and interest by up to 15 years. This option would make your monthly payments smaller, but you will pay more interest in the end because it will take you longer to repay your loan. Find out more about this plan and whether you are eligible by visiting the Government of Canada website about the Revision of Terms Plan.
Similar to a consumer proposal, you must be out of school for 7 years or longer to be able to discharge your student loans through a bankruptcy. Depending on your circumstance, this could be a viable option for you to eliminate your student debt. We will look at all your other debt relief options first before considering bankruptcy.
Our local debt professionals will sit with you and go over what your options are for paying back your student loan debt. We will help you decide on the best solution for your case and also answer any questions you may have about your personal finances. Contact us today for a free assessment of your financial situation, with no obligation.