For Canada's post-secondary graduates, the academic stress of school is often replaced by a whole new headache: years’ worth of student loans.
For Canada's post-secondary graduates, the academic stress of school is often replaced by a whole new headache: years’ worth of student loans.
To get through both his undergraduate and graduate studies, Anthonipillai took out a total of $27,000 in government loans and $5,000 in credit card debt. Though he tried to pay as much off as he could by working summer jobs during his degrees, the cost of living and tuition meant he could only start thinking seriously about paying off his debt after he was out of school.
Jessica Moorhouse, a personal finance counsellor whose expertise focuses on providing financial advice to millennials, said that identifying what’s unique about your own financial situation is one of the most important steps. Nevertheless, she pointed to a few “seemingly obvious but often overlooked” things recent graduates should keep in mind when planning their debt repayment strategy. The first decision should be to prioritize paying off loans with interest first, making only the minimum payments on those without interest, and ensuring debt-related stress doesn’t get in the way of building savings.
When the federal and B.C. governments announced a permanent end to interest on student loans, he doubled down on his strategy — resisting the common temptation to pay off his debt as soon as possible. Instead, Anthonipillai has focused his personal finance strategy on diversifying his investment accounts. Though he still has a way to go in maxing out his tax-free savings account, he hopes he will be able to start putting some of his savings into a First Time Home Account to begin planning for his next stage of life.
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