Considering the increase in tuition fees related to post-secondary studies, it can sometimes be difficult to find the necessary funds to pay for your studies. As a result, many opt for student loans and … the debt that follows. It goes without saying that the money you spend on repaying this school debt means that you will have to put aside other projects, such as buying a car or a house. While we recognize that education is an investment, it is important for you to know how to negotiate your student loan.
Student loans have their reason for being. Indeed, they offer the possibility to those who otherwise would not have the means to pursue studies. This financial assistance obviously comes with responsibilities. Because who says ready, also says refund. Because of this, it is important to make good decisions and be well advised.
We invite you to read the following information to make it easier for you to negotiate your student loan. So, before signing any document, take a few minutes to find out what you are getting into.
Do some research on the help available
Before applying for a loan, do some research to find out what options are available to you. For example, are you eligible for scholarships? Can you benefit from provincial and federal grants? To evaluate these opportunities, make an appointment with a financial advisor at your school or financial institution.
Be aware of the loan amount
It’s important to know the total amount you will have to repay. Sometimes students have access to loans and scholarships. In addition, when you commit to a financial institution for a loan, you will probably be asked to set a date for the start of repayments. So to be sure of meeting your commitment, you need to know the exact amount of your loan in order to be well prepared for the repayment. Non-payment is never a valid option, as it would result in high interest charges. Also be aware that late payments could affect your credit in the future.
Borrow only what you need
It’s common to receive a lot more when you apply for a loan. But be careful, that does not mean that you have to spend all the money you receive. The temptation is great, you will tell me! But be responsible and serious, because once you graduate, the amounts to be repaid should only be a small portion of your salary.
Understand the terms of your loan
Be sure you understand the terms and conditions of your loan. What will the interest rate be? Over which period will the refund be spread? When will your payments begin? Will they be established weekly or monthly? Once the agreement is established and signed, you agree to repay the loan according to the terms indicated in the document. If you have not completed your education, changed your program during the year, or any other understandable reason, you will still have to repay your student loan. So be sure to always keep copies of all documents relating to your loan.
Always pay on time
Once you start repaying, usually 6 months after completing your education, stick to the payment dates. You are obligated to repay the full amount according to your repayment plan. If you are unable to make a payment on time, contact the loan department to see what options are available to you. It is important to keep a good reputation, and your loan is an opportunity to demonstrate your credibility. Always honor your commitments.
Remember that you must repay your loan in full. Analyze your situation well before committing yourself to a financial institution. Consider your goals before deciding on the loan amount. And borrow what you really need to continue your education. Make yourself a plan. So you will know in advance what is waiting for you, and what exactly are your financial commitments. Plan your education as much as your finances!