Student loans are a great way to help more people afford to go to university in Ottawa. However, paying off those loans can be difficult, especially if you have trouble getting a high-paying job or if the economy takes a rough turn.
What do you do when you’re struggling to pay back your student debt? What student loan repayment help is available for students and former students in Ottawa? We’ll explore your options in this blog.
OSAP Loan Forgiveness – Loan Repayment Options
If you’re struggling with your student loans, don’t worry – there are many different ways you can ease the financial burden. These options include:
Customizing Your Payment Terms
In Canada, the standard repayment period for student loans is 114 months (9½ years). If you’re having trouble meeting your payment obligations, you may be able to change the terms of your repayment. For example, you can extend the period of amortization up to a maximum of 174 months. This gives you more time to pay it off and reduces your monthly payment. To customize your loan payment terms, contact the National Student Loan Service Centre for more information.
Making Interest-only Payments
You can make payments only on the interest of your loan for a period of up to 12 months. This is a short-term solution that can decrease your payments for a period of time, allowing you to get back on your feet when it comes to your finances.
Requesting a Repayment Assistance Plan (RAP)
The Canadian government provides repayment programs that help students deal with their student debt. These repayment programs offer a variety of benefits, such as deferring payment, reducing your monthly payments, interest relief, or even outright loan forgiveness in some cases. Students in Ottawa can apply for payment assistance from Canada Student Loan, which is the department that handles OSAP loan forgiveness.
Consumer Proposal
A consumer proposal is a legal process that lets you negotiate with your creditors to reach a settlement. The settlement may involve reducing the amount of debt you owe or extending the repayment period to reduce your monthly payments.
Bankruptcy and Insolvency
Under certain conditions, government-guaranteed student loan debts can be discharged, according to the Bankruptcy And Insolvency Act. Individuals who have been out of school for more than seven years are eligible to have their student loans included in a bankruptcy proposal.
Filing for bankruptcy should be a last resort as it can have other effects on your finances and will appear on your credit record for a period of six years afterwards.
D & A MacLeod Company Provides Student Loan Repayment Help in Ottawa
As Ottawa’s trusted source for debt and bankruptcy solutions, D & A MacLeod Company can help you with your student loans too. Our goal is to help you effectively manage your monthly expenses so you can be successful at life. If you’re struggling with repaying your student debt, you can speak with one of our licensed insolvency trustees for guidance. We’ll review all the options with you and provide you with suggestions to help you make an informed decision. Please reach out to us today.
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