How to Deal with Student Debt

With the cost of living and education on the rise, it comes at no surprise that there is a substantial increase in the amount of student debt that post-graduates are carrying with them. In fact, students who required a student loan of some sort during their education carry an average debt of $28,000 and more.

Recently, there has been some positive development in this area. If you’re familiar with Ontario’s 2016 budget, you’ll know that lower-income students (household incomes less than $50,000) are going to have the opportunity to get an education at no cost. While this is a great step in the right direction, this still leaves a problem for those who surpass the $50,000 threshold. That’s where speaking with a Licensed Insolvency Trustee will come in handy.

First things first. In every province in Canada, aside from Quebec, students are given a 6-month grace period where no interest is accrued on the student loan. This time is given for students to find a job and start paying making loan payments. After these 6 months is when most students have trouble managing their debt.

There is something called a Repayment Assistance Plan (RAP). In Ontario, students can apply for this program 6 months after graduation if they are having trouble repaying their loans. There are a few eligibility requirements and many different payment plans available. For more information on the Ontario RAP, visit:

Some other options are available as well. A licensed insolvency trustee may be able to assist depending how long it has been since you were in school. There is a “seven year” rule but it is best explained based on your set of circumstances.

We are Licensed Insolvency Trustees and have extensive experience in addressing financial issues and challenges and all the questions you may have regarding student debt. Feel free to email us at, call us at 416 736 4357 (HELP), or fill out the contact form on this website, to book a free, no obligation consultation with one of our debt solutions’ experts.

Make an appointment today and we will provide some solutions specifically tailored to your situation. We look forward to assisting.