Resources if You’re In Payment
Sarah, age 23, graduated with a BA in Geography last spring. It took so long to get work in her field that she’s glad to have her job, but the annual pay ($29,000) is less than her $34,000 student loan debt. Most of her pay goes to rent, food and student loans. But at the rate she’s going, she feels like she’ll be paying student loans forever.
David, age 32, has an MBA. He paid off a private student loan and a federal loan during his first two years of a high-paying job. That only left one provincial student loan. After getting downsized, he started a business. But his income is still so low that he’s on Interest Relief for his student loan. Unlike Sarah, he’s not actually paying anymore.
Sarah and David are "In Payment" because:
- They’re out of school, with debts to pay off
- They’re in 'good standing' with their government student loans.
‘Good standing’ means you haven't missed enough payments to “default” on student loans. That keeps you eligible for government loan repayment aid programs. If David uses up the maximum allowed Interest Relief before his income improves, he’ll be at risk of default. But for now, he’s eligible, files his paperwork on time and is therefore “In Payment” under the rules of government loans programs.
If you're in good standing, like Sarah and David, you can take advantage of the strategies and loan repayment aid programs covered here. Back to your In Payment Resources