Student Loan Debt in Ontario

In Uncategorized on November 13, 2009 at 2:03 pm

So, not included in my huge credit card debt is my student loan debt. The reason I don’t include it is because the interest on it is tax deductible, and it is not a high priority for me to pay off. Plus, the total amount of debt to my name would be so large I think it would scare some of you off. Ha! It scares me when I see it.

When I first graduated and OSAP (the Ontario Student Assistance Program – but more like the Ontario Student Ass-whooping Program) contacted me after my six month ‘grace’ period to start repaying my loans, I was making a measly $11/hr and commuting. Needless to say, an additional $300/mth payment was just not going to work. I extended my due date and got a lower monthly payment. Easy peasy.

Looking into my student loans is something I allow myself to do once a year because the principal takes forever to go down. It is depressing. This week I logged in and checked it out. The National Student Loan Service Centre actually improved their website immensely. It is very easy to use, and has some really useful calculators that allow you to punch in how much you want to pay per month and it divides the payment amongst your loans, showing you your months left to D-day. Or when you will be free of your student loan debt. Cool.

While playing around with the numbers, I realized if I could contribute an extra $288 per month to my student loans I would be free of them in less than 5 years. Hey, that actually fits into a foreseeable future financial plan. Not bad. But, since at this point in time my financial focus is on repaying my high interest credit card debt that keeps me up at night, I will revisit this topic again in a year’s time.

In the meantime though, I changed my monthly payments to bi-weekly. I had no idea that was even an option, but it was easy to do with a quick call to the NSLSC and no paperwork was required. Sweet! See you later student loan.

  1. You’re not alone with your OSAP debt! I owe almost $20,000. Have you looked into repayment assistance/interest relief? When I was on EI I applied and I didn’t have to make any payments for 6 months and any payments I did make would go straight to my interest. I have applied again now that I am working because my income is irregular so I don’t want to be stuck with a regular monthly payment that I might not be able to make. I’m hoping it works out but they might deny me this time around. Just a thought for you to look into!

  2. […] the original post: Student Loan Debt in Ontario « Get Out of Debt, Girl!Related posts :Home Mortgage Loans[Finance]Low Interest Rate Auto Loans – Advantages Of […]

  3. It is scary to see the big number isn’t it? Just 18 months ago my OSAP loan was $31,000! It stressed me out!!! I made extra payments whenever I could to it almost every paycheque in addition to my regular monthly payments. I would work on paying off the highest interest loan while making at minimum payments to the rest. Good luck!

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