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Student Loan Debt By: Daniel Strange-Dedier

strange_fit — 2015-12-06 01:21:54 UTC

There is a growing problem in Canada for students who are taking loans in order to pay for post secondary education, and I will be discussing these issues within my Padlet page. I will be discussing topics such as the high economic and social cost of student loans worldwide, repayment assistance plan and other student debt solutions in Canada.

High Economic and Social Cost of Student Loans:

strange_fit — 2015-12-06 01:23:09 UTC

Website Url:

http://www.cnbc.com/2015/06/15/the-high-economic-and-social-costs-of-student-loan-debt.html

I was able to find a news article on the high economic and social cost of student loan debt in The United States of America. Currently there is more than 1.2 trillion dollars in student loan debt with an approximate $29,000 balance for each of the 40 million borrowers. Former Republican governor of Indiana, Mitch Daniels states with the financial barrier of student loan debt, men and women "are postponing marriages, childbearing and homes purchases, and...pretty evidently limiting the percentage of young people who start a business or try to do something entrepreneurial". They are finding that most people acquire post secondary education to further their social and economical opportunities while the opposite is currently occurring. It is commencing to worsen economic inequality and is lowering opportunities as high student loan debt overbears. Studies have still shown that individuals who have obtain more then high school education are better financially against those who haven’t. This makes me glad that I have chosen the right option, in terms of continuing my education.

Repayment Assistance Plan:

strange_fit — 2015-12-06 01:23:50 UTC

Website Url:

http://www.canlearn.ca/eng/loans_grants/repayment/help/repayment_assistance.shtml

The Canadian repayment assistance plan is a plan designed for student to make it easier to manage debt from student loans by reducing monthly payments. Depending on your personal financial situation, the repayment assistance plan (RAP) will aid you by either reducing you payments or eliminate them. This plan is not an automatic plan, and it is important that individuals who are enrolled to re-apply for this plan every six months.

To be eligible for the RAP you must be a Canadian residence or on a international internship or a reservist deployed abroad, and at least six month has passed since you have graduated school or have left school.

To apply you must complete the online application found on the website in which I linked for this portion, through the National Student Loan Service Centre (NSLSC) online services account, or download the RAP application and mail or fax it to the NSLSC.

The basic principal of the plan is that the Canadian Government and your provincial government pays your interest that you owe that your revised payment does not cover. This is in effect and can last for up to 10 six-month periods or 60 months during the 10-year period after you leave school. This information was very useful for me, as I do plan on taking out student loans when I further continue my education in university.

Student Loan Debt Solutions:

strange_fit — 2015-12-06 01:24:42 UTC

Website Url: http://www.bdodebthelp.ca/EN/debthelp/Pages/student-loan-debt-Canada.aspx

For the thousands of Canadians who are facing the challenges of student debt, there are a few solutions that will help you manage this debt and repayment. If you live in Canada, expect the province of Quebec, you will have a six month grace period from the time you gradate or stop being a full time student. What this grace period means is that you are not required to make any loan payments and your provincial loans will not accumulate debt for these six months.

As spoken about previously, there is a repayment assistance plan (RAP) for all Canadian students. The basic principal of the plan is that the Canadian Government and your provincial government pays your interest that you owe that your revised payment does not cover. This is in effect and can last for up to 10 six-month periods or 60 months during the 10-year period after you leave school. The repayment assistance plan (RAP) will aid you by either reducing you payments or eliminate them.

Revision of terms is an option that you would inquire about with the National Student Loan Service Centre (NSLSC). Upon contacting the NSLSC, a revisions of terms can help you by reducing your monthly repayment amount and increase the amount of time that you have to pay off your load. This can be extended up to 15 years. Though the time of your loan increases, it is important to know that there is still interest on the loan and you will be paying more from interest.

Another option to help you with student debt is to file a consumer proposal, which allows you to negotiate to reduce the amount of debt you owe and consolidate the remaining outstanding debt into manageable monthly payments. Also, it is possible to discharge your student loan debt by a consumer proposal if you have been out of school for seven years.

The last option that this website suggest is that you can file for bankruptcy. This option will discharge you from the student debt you currently have if you have not been a student for at least seven years before the time of filling. Though you will not be discharged from your student prior to the seven year cut off, you may be released from your other debts that will you in the management of your finances and aid you with debt management. All this information being very informative, and I hope I wont be in a situation where I need all these solutions, however I would consider them, if I, or anyone I knew needed them.

High Economic and Social Cost of Student Loans:

strange_fit — 2015-12-06 01:25:28 UTC

Picture from:

http://www.cnbc.com/2015/06/15/the-high-economic-and-social-costs-of-student-loan-debt.html

This picture is the median college earnings vs high school graduates. This is a good representation that though student debt can be a challenge, it is still worth while to do it. In America some reasons that individuals are striving to obtain post secondary education at a rate where student loan debt is accumulating is that American parents believe it is extremely important, the encouragement from policy makers, and even their president, Obama has stated that it is "the single most important way to get ahead". With the struggle of debt, young adults are waiting to purchase homes, putting off having a family, and other major purchases that affect the economy such as vehicle sales. Being a student who wants to have a family after education, I found this picture interesting, as I want no hindrances in my future.

Canada's Provincial Debt and Borrowers Map:

strange_fit — 2015-12-06 01:27:56 UTC

Picture Link:

http://www.esdc.gc.ca/assets/portfolio/docs/en/reports/cslp_cesp/cslp_2011/mapgraph2.JPG

This picture was found on the government of Canada's website, and it was in a article regarding the Canada student loan program annual report from 2010-2011. This report was to inform the Parliament and Canadians of the student financial assistance provided through Canada. The photo displays each province of Canada, with the number of borrowers in each along with the total loan amount and average loan amount. Based on this picture, there were approximately 424,575 borrowers in Canada, with a total of approximately $2,218.9 (mil). It was very interesting to see how much debt was accumulated by each province. In Ontario, there were 256,692 borrowers from 2010-2011, which is a good portion of the population. I liked this picture for my own personal reference and knowledge, knowing that there are not nearly as many borrowers in provinces like Yukon (211 borrowers) and the most in Ontario (256,962 borrowers), then British Columbia (60,593 borrowers) then Alberta (47,503 borrowers).

OSAP: Ontario Student Assistance Plan Photo:

strange_fit — 2015-12-06 01:28:35 UTC

Picture Link:

http://yublog.apps01.yorku.ca/wp-content/uploads/2014/06/Screen-Shot-2014-05-21-at-2.28.14-PM.png

Upon searching for a photo that was relevant to my subject, I was able to find this photo by the Ontario Student Assistance Plan (OSAP). I enjoyed this picture because is demonstrates the ease of applying for help from OSAP. The picture found on the York University website, demonstrates a three step process to be qualified for a minimum of 30% in tuition saving, other things include applying as a full-time student or a part-time student. The first step would be to register, second step is to apply, and third step is to check your status of your application which will tell you either how much money you're getting, when your money will be available and other steps after this process. They have also created a OSAP mobile, where you can check your status on your cellular phone. This is a very simple, and useful picture that explains the mechanics and ease of the application process. It appears to be almost like a advertisement. I had the money to afford my college tuition from working during high school, however I wish I could have saved 30% of my tuition and just immediately payed it off with the money I had already saved in order to receive a discount. If I would have saw this picture, or advertisement, I might have considered applying for OSAP to receive 30% of my current tuition.

Voices of Debt; The Student Loan Crisis:Video Link:

strange_fit — 2015-12-06 01:29:44 UTC

https://www.youtube.com/watch?v=uPcSYrPx3Ao

This video really impacted me regarding student debt. At the beginning of the video, student are listing off their student debt, and they are all in the thousands. In America 37 million people have student debt. Many individuals feel pressured with post secondary education, and this correlated with their attendance of college or university. Many of the people were not certain of their debt, and how to pay it, or it's interest rates. Most of the information that they were able to find, was not useful and very vague. Lack of jobs, and good paying jobs hinder these individuals to live a comfortable life. Some believe that is it not worth it, and they rather have not done school, or acquired student loans. They provided advice on the subject which was to try not to take out loans, to ask many questions before you attend school, work while your in school and take a year off to work to pay off debt, whether before or during the course of their education. They all believed that they all learned a lot, have gotten jobs that they dreamed of. That being said, they all thought it was rewarding personally and was defiantly the best choice. I enjoyed this video as it was very well filmed and that I also believe that education is important and is very rewarding. We both suggest that you learn more about debt before you attend school.

Canadian Student Loan Tips; Breakfast TV

strange_fit — 2015-12-06 01:30:59 UTC

Video Link: https://www.youtube.com/watch?v=7BO1fT0wcq8

I was able to find a television segment on student loans, and the issues with student loans and job searching. Most people think that once they complete university, that they will immediately find a job in their field, however 27% of people who graduate, graduate with $25,000 worth of student debt. They discuss the grace period of six month given by OSAP, in which they recommend that the debt should be payed as soon as possible. They also suggest that you take out a yearly loan instead of a four year loan, by doing this you can start to pay off the year's loan during the summer as much as you can then proceed with the next year, etc. This is to make sure you do not have a massive debt. Dan Chometa, from consolidated credit suggest that you get in contact with services such as the National Student Loan Service Centre, and in Manitoba, there is another program similar, to aid overall debt for students. If you neglect to pay the minimum payments, you can ruin your credit and this will prevent you from acquiring new debt. I found all of the content useful as it could be applied to my life next year when I proceed with university. I liked that he talked about not ruining you future credit, as many graduates want to start a family, and buy a house but can't do so as their debt is poor due to the lack of payments to their current debt. Considering the tips given in this video would be useful for any student who has, or is considering taking out a student loan.

OSAP: Ontario Student Assistance Plan Info Video:

strange_fit — 2015-12-06 01:31:39 UTC

Video Link: https://www.youtube.com/watch?v=FZWY-qOaMcA

Considering we live in Ontario, and most students will not be traveling out of the province for post-secondary education, I found a very informative video on how the Ontario Student Assistance Plan (OSAP). This video is from the Government of Ontario, which speaks on what OSAP is and how it works. They begin by stating that is it a assistance plan consisting of grants and loans consisting of 15 program that can help you get the aid you need. Explains how much money you can receive based on your income and your family's income, up to $12,410 a two term academic year, which caps your debt at $7,400 per year. The video is also stating that your loan will be interest free during your academic period and you will not have to pay back your loan until 6 months after you have graduated. The reason I chose this video was because it is a very brief, visually aesthetic video, that contains a lot of information on OSAP. This video makes it easy to understand how OSAP works, how to apply, and what to do next. For those who didn't want to read a lengthy document on the subject of OSAP, this is a great alternative. Like previously discussed, if I had the opportunity to view a video like this one before I had payed for my tuition in full, I would have most definitely considered applying for OSAP to receive a reduction of my tuition. Anyone who doesn't know what OSAP is, should check out this two minute video.

Entire Document + Reflection Questions

strange_fit — 2015-12-06 02:04:15 UTC