Student loans grow out of control during those 4+ years of university. Then you’re expected to repay loans, starting the day after graduation. But with what?
The result? Newly graduated, bottom-rung workers get themselves into serious financial strain.
Sure, some students get lucky with a job offer in their first year. But I think the majority (what, like 80-90%?) of students don’t walk into their first big job right after graduation. [if definitely over 80%, tell me; I’d love to know.] Instead, students take whatever job they can, to scrap by however they can. The first paycheck is not as big as they wanted, but the loan is still demanding payment.
Student Loans Deferred – Until You Can Pay
A new law just passed: students here in Canada can wait to pay back government loans until they are in a good position to do so. Instead of payments starting after graduation, loan repayment starts after you make the minimum salary. Starting November 1st, that minimum is $25,000. That might not seem like much, but it is an income. For most students, just having an income is a big deal.
If you read the article, you’ll see other benefits from this law, namely increased loan amounts. This is good, provided you need it.
Is There a Catch?
It’s not free deferment. There always seems to be a catch, right? The catch here is, interest continues to accumulate. You probably could have guessed that.
So, you don’t want to defer your loans forever.
Then again, you also don’t want to earn under $25,000 forever.
How to Take Advantage of This?
If you’re considering moving to a foreign country to have lower student loans, then Canada just rose in the ranks, didn’t it? I can help you move here. Either through the “Gone In One Year” program, or by phone consultation.
Do these work? Yes, very well. There are several of my clients now living, working abroad as a result.
Yes, I know… “my case is special”? Each one is, that’s where I’m most capable. I think outside the box, come up with the right way ‘out’ for you. Give me a call. Or check out the monthly program to be out in a year.