Student Loan Debt Relief Canada
Smart tips for paying off student debt?
I’m out in the working world now, and eager to get the monkey off my back that is $50,000 in student debt. I’ve heard lots about not paying off too early due to penalties, investing, loan relief and the like, but I have no idea how to go about it. I have a Canadian degree with an Ontario-Canada integrated student loan (OSAP) as well as a line of credit.
Any advice is GREATLY appreciated.
You need to know the interest rate for each loan, any tax breaks that may apply for the interest, and the penalties associated with each loan if you pay them off. No one here can give you much help without at least those three things.
For instance, if you have a 10% loan with no tax breaks and no penalties for early payment, then you almost certainly want to pay that off as quick as you can (unless your line of credit has an even higher interest rate).
But if it’s a 5% loan, with the interest deductible on you income taxes, and a 10% penalty for paying it off early, then there’s absolutely no reason to pay any more than the minimum.
Chances are, though, that your specific situation is something in between these two extremes . . .
Good luck,
Doug
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