Student loan debt

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Student loan debt help

Are student loans causing serious financial problems? Worried that you are heading for bankruptcy? Our debt management experts in Ontario & Alberta can help. Call today to arrange a meeting.

Harris & Partners Inc., a Licensed Insolvency Trustee (formerly called a Trustee in Bankruptcy) and leading debt management firm, offers assistance in dealing with all types of financial problems related to bankruptcy, credit card and personal loan repayment. We will evaluate your financial situation and suggest the most appropriate course of action for you. Our team of qualified and experienced debt experts has helped many men and women in Barrie, Toronto, the GTA, Hamilton and surrounding areas get their lives back on track.

What is the average student loan debt in Canada?

The average student loan debt as of 2018 is an eye-watering $14,729.

Student debt in Canada is rising. This has been driven partially by increasing tuition fees, which has risen at an average rate of 3.7% over the past 10 years. In fact, as of 2016/17, Canada Student Loans (CSL) was administering $18.2bn in loans to 1.7 million people.

It’s not surprising that for over 17% of insolvencies in Ontario in 2018, student loan debt was a contributing factor.

With rising tuition fees, former students are declaring insolvency to deal with their debts, including student debt, at increasingly younger ages. In 2012, the average age for a student debtor was just over 36. In 2018, that had decreased to 34.6.

The reassuring news is you can get help for your student debts. And you can get debt relief for your student loan. Contact us today to find out how you can get debt relief for your student loan.

What are the options for clearing student debt?

There are a number of options for people who need debt relief for their student loan.

Both bankruptcy and consumer proposals can be viable options for dealing with student debt.

Can filing for bankruptcy clear your student loan debt?

A question we are often asked is if filing for bankruptcy can help alleviate the financial problems caused by inability to repay student loans.

The answer is not simple and depends on your specific case. However, what you must know is that:

  • Student loans can only be released in a personal bankruptcy if it is more than 7 years since you ceased to be a full- or part-time student.
  • If the 7-year period has not passed, you may be eligible for some repayment assistance or interest relief. This website may be of assistance in applying for relief:

https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02057.html.

Consumer proposals for student loan debt

Consumer proposals for student loan debt must also comply with the “7 year rule”. This means student loans are exempt from both bankruptcy declarations and consumer proposals if it’s been less than 7 years since you were a student.

If it’s been longer than 7 years since you were a student, you can apply for a consumer proposal to resolve your student loan debt.

A consumer proposal can help you negotiate more manageable repayment terms with your creditors and can be implemented through a Licensed Insolvency Trustee.

A big benefit of filing for a consumer proposal is that you can reduce your debts significantly and will stop annoying calls from creditors.

We can help you file a consumer proposal for your student loan debt. Get in touch with a licensed trustee today to find out more.

Other debt relief options for student loan debt

If you fall outside of the 7 year rule, you can apply for a Repayment Assistance Plan (RAP). This is a federal and/or provincial incentive to help those on a low income manage their repayments by allowing them to adjust payments based on their income.

Student Loans

How to get expert help with your student loan debts

If you are finding it difficult to make even the minimum payments on your student loans, chances are you are in over your head. Borrowing more money against your credit cards or taking personal loans to cover the gap is not the solution. It is important to recognize the danger signs and act before the situation worsens. Our full-service insolvency firm is here to help you get back on your feet as soon as possible.

The first step to dealing with your financial problems is to consult a Licensed Insolvency Trustee at the Harris & Partners Inc. office in Barrie. Filing for bankruptcy or getting repayment assistance is a legal process and can be confusing. You will also need a Licensed Insolvency Trustee and Restructuring Professional to act on your behalf.

We will walk you through your options, help you determine if you qualify and, more importantly, decide on the right steps to take. Make the call for a new beginning.

The highly qualified and experienced team at Harris & Partners Inc. is here to make your situation as easy as possible. No matter what your financial problems are, you can count on us to help you work things out. We have helped many individuals in Barrie and the surrounding areas of Toronto start fresh.

Call Harris & Partners Inc. in Barrie at 705-728-7111 or toll-free at 1-800-268-8093. Book an appointment to discuss solutions to your financial problems caused by student loans or other types of personal debt.

We have additional offices across the Greater Toronto Area in North York and Markham, as well as in Oshawa, Pickering, Brampton, Brantford, Hamilton, Kitchener, and St. Catharines. We also serve customers in Mississauga, Oakville, Vaughan, London, and Waterloo.

Getting rid of student loan debt

Recent reports suggest that with rising tuition fees, student debt is also growing. This can have a big financial impact on students’ lives after they graduate. Lack of employment, the gap between income and expenditure, and/or irresponsible spending causes many students to default on loan payments. This can affect your credit ratings and financial future.

Professional assistance from our personal debt experts can relieve your financial problems and help you take the right steps towards financial recovery. Get started today.

Student loan debt FAQs

How can I get help with student loan debt?

There are several ways to deal with student loan, but help and support is always there if you seek it. Some options include:

  • Repayment assistance plans
  • Revision of terms
  • Consumer proposals
  • Bankruptcy

As Licensed Trustees, we at Harris and Partners can help you get debt relief for your student loan. Contact us today for more information.

Can I get a mortgage with student loan debt?

In short, yes you can still get a mortgage whilst having student loan debt.

What’s worth remembering is that when you apply for a mortgage the lender will consider a number of factors, such as your credit history, income, assets and initial payments.

If you have a solid income and no other debts to speak of other than your student loan, you will find it easier to get a mortgage.

However, if you have a number of debts in addition to your student loan, then the lender will be more reluctant to proceed with your mortgage application.

How much student loan debt is too much?

This is a very subjective question and depends on your earnings. As a broad guideline, you should try to keep your student loan monthly repayments below 10% of your gross monthly income to make sure it’s easy to manage and doesn’t overburden your debt-to-income ratio.

Can you include student loans in debt consolidation?

Yes you can. A debt consolidation loan can take into account your student loan and merge it with the rest of your debt repayments.

However, this is often inadvisable. That’s because your ‘new’ debt in the form of a consolidation loan is likely to come with higher interest rates than your existing student loan debt, meaning it doesn’t make sense financially to pay your student loan back in the form of a new debt consolidation plan.

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Contact information

It's never too late to obtain debt help. Book your free consultation today

Phone number
1-800-268-8093
Email
hello@harrispartners.ca

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