A recent survey from Credit Karma Canada takes a closer look at how students in each province manage their student debt.
According to the survey, nearly one in 10 Canadian Credit Karma members have student loan debt.
Not-so-fun fact: Nunavut members have the highest student loan debt while Manitoba members have the lowest.
Canadians with student loans owe more than $17,000 on average and with rising averages of student debt, Millennial Credit Karma members in Canada carry more student loan debt than any other generation.
The effects of a student loan can linger long after graduation and as a result, Credit Karma has highlighted some tips to help students manage their debt better.
1. Knowing your repayment plan options: if your monthly loan payment is more than you can afford, you may be able to renegotiate the terms of your plan or even apply for a Repayment Assistance Kids.
More information on this can be found at the National Student Loan Service Centre (NSLSC).
2. Extending your repayment term: if you feel like your monthly payments are a bit too much, you may be able to extend your repayment term which would result in the reduction of your monthly payments.
This will also mean you will be paying more interest over the life of the loan so you may wish to consider this carefully. An online account with the NSLSC can help customize your repayment model.
3. Giving yourself extra days each month: If your monthly student loan bill is due a day or more before you get your paycheck, it may get difficult for you to afford it. You can change your payment due date to a date more convenient for your budget using the NSCLC online portal.
4. Consider consolidating your loans: You have the option of consolidating multiple loans into one which may make the repayment process simpler.
You could start by looking at options like a line of credit to consolidate your accounts.
These tips, compiled by Credit Karma Canada, could help you consolidate your accounts and manage your loan better!