Student Life Doesn’t Need to Include Heaps of Student Debt!

Let’s face it, going to university or college is a big commitment. While many jobs require a degree, a degree does not guarantee a job after graduation. Deciding to get a post-secondary education can be a daunting decision when considering the years of student loans which may follow. If you are a student or know someone who is, now is a great time to sit down and realistically look at the cost of furthering education. Here are a few reasons why students should start saving now to avoid student loans.

For many students, attending university is just the beginning of being an independent adult. University or college is a time of change and it can be very stressful. Being prepared by having a detailed budget and having saved for post-secondary costs will give students the freedom to remove financial stress and focus on more important things such as studying, eating well and enjoying the student life. Furthermore, saving for student loans at a young age sets good habits for saving down the road. After all, it is never too early to start saving for retirement. Realistically, a student’s income during university will be either part-time or limited to the summer. Being aware of this and setting good habits such as sticking to a budget will help prepare students for other times in their life when they may find themselves in a similar situation, either unemployed or unable to work full-time.

Starting to save during high school while living at home is also a great idea. Since most finances such as food and shelter should be paid for by parents, putting money towards savings becomes an easier task. Once students are in university it is a lot harder to prioritize saving when the money could alternatively be spent on essentials such as rent or food. Furthermore, after university there are a lot of financial unknowns such as deciding to buy a car or furthering education. Coming out of university debt free with no student loans or at the very least, having minimal debt will help to provide the financial freedom to make life decisions that are best for you and your future.

While nobody plans on accumulating debt, it is important to keep in mind that student loans may survive both Consumer Proposal and bankruptcy. This means that after filing a Proposal or bankruptcy you may still be responsible for student loan debt, even after being discharged. Like many things in life, being aware of the facts and preparing ahead of time can relieve a lot of financial stress.

Attending post-secondary education is a big decision but it doesn’t need to be a stressful one. Take some time to sit down and make a budget, plan how much it will cost to further your education and realistically look at what options or changes are available to help you minimize student loans. Saving before post-secondary education is the first step to set yourself up for financial success later in life. If you or someone you know, is currently struggling with student loans and accumulating debt, reach out and book a free consultation with one of our Licensed Insolvency Trustee’s for a crash course in how to start working towards a debt-free future.