With the cost of attending university growing every year, more Canadian students need to use student loans to pay for their education. Student loans are not required to be paid back until after graduation. If your student loans haven’t been top of mind while you were in school and you recently graduated, the thought of paying it back can be overwhelming.
Here at Speedy Cash, we know that thinking about paying back student loans can be scary. For many people, managing student loan payments can be tough when you’re just starting out in your first job or searching for employment in these uncertain times. Fear not, student loan repayment is within your reach. Speedy Cash has put together a list of what Canadians need to know about paying back your student loans:
Getting started with paying back student loans
If you have a Provincial or Canada Student Loan, you are not required to make any payments for the first six months after you graduate. The 6-month non-repayment period starts after your graduation, switch from full-time to part-time studies, leave school or if you choose to take time off school. If your lender is Canada Student Loans, interest doesn’t accrue during this non-repayment period. However, it’s possible provincial loans will accrue interest, so we recommend checking with your lender.
If you are working with a private lender, many private Canadian lenders will give you a 4-12 month grace period. During this timeframe, you will only have to pay the interest on your line of credit. After this time, you will begin paying back your student loans as agreed upon with your lender.
You can still make payments during your non-repayment period. It is a smart idea to make those extra payments when you do have money every month because you can pay it down faster. That being said, we know money can be tight and Speedy Cash is here to help you get cash today to help your budget go further.
What to do when you can’t make a student loan payment
If you’re struggling to make your loan payments, we recommend that you work with your lender on finding the right solution as soon as possible. This may include reducing your overall monthly payment, contacting your lender to request a reduction in your interest rate or possibly changing your repayment plan. Alternatively, you can apply for an instant payday loan through Speedy Cash to help your paycheck stretch a bit farther to pay your bills.
We can’t stress this enough: don’t stop paying your loan. If you start to struggle with making payments, contact your lender right away to work together on a solution.
Pay off your student loans faster
Did you know that 36% of Canadian borrowers pay off their student loans within three years after graduating? Luckily, there are ways to pay down your debt even faster.
Make extra payments when you can. If you’re able, making a couple extra payments every year will help pay down the principal of your loan. This will reduce the amount of time and how much interest you will pay.
Make payments before you graduate. While finances can be tight when you’re at university, the more you can put towards your loan while you’re still in school, the less debt you will have when you graduate.
Get a head-start on repayment. Once you start your job after graduation, if you’re able to, you can use this added income to get a head start on repaying your loan. Paying down the principal reduces the total amount you owe, which means you pay less interest over time.
Make a plan for monthly payments. Having a budget puts you in the driver’s seat of your finances. Budgeting for loan repayments is important because you can plan ahead to make monthly repayments. One way you can make this easier is to set up automatic payments right after your payday so you can plan for your payment.
Looking for an online payday loan? Turn to Speedy Cash
We know that repaying your student loans amongst other bills and financial emergencies can be stressful. Speedy Cash is here for you as a trusted lender in Canada. Check to see if you meet our eligibility requirements, then apply online today!