How to Avoid Student Loan Debt
Although it might be difficult to avoid student debt completely, our advice is to choose government loans over private loans. With government loans (federal and provincial), you’ll qualify for additional grants, have access to government support options if needed, and be able to write off all of the loan interest when you file your taxes. A private student loan or student line of credit is provided by a bank or credit union and won’t give you any of these benefits. On social media and message boards like reddit, you might read stories of Canadians who got private loans because they didn’t know that they were different from government ones. This can lead to unexpected charges, a lack of needed support, and the piling up of other debts like credit cards to make ends meet. A good rule of thumb is to apply for government loans first and private loans after if you need them.
Not having student debt is great, but if you do have it, then it’s better to deal with the loan than try to run away from it. Like with any debt, not making your student loan payments on time will severely damage your credit, making it harder to borrow for things like a car or house in the future. You can end up owing a lot more as the principal grows from interest, not to mention any fees for not paying on time. Eventually, your debt may be sent to collections, and you can face court action as well as garnished wages. These are all reasons why instead of imagining how to avoid repaying student debt, it’s better to focus on finding ways to deal with it.
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