Personal Finance

Guy pays off $26500 student loan in less than 2 years

  • Last Updated:
  • Nov 24th, 2013 12:32 pm
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Deal Addict
Feb 5, 2010
2764 posts
176 upvotes
Most people that paid of their students loans in short periods of time most likely had help with their living situation and rent free (i.e parents, relative etc.). Not saying its a bad thing. Whatever works to get the job done.
Deal Fanatic
Oct 7, 2010
8372 posts
924 upvotes
Abel4Life wrote:
Jan 12th, 2013 10:07 pm
Most people that paid of their students loans in short periods of time most likely had help with their living situation and rent free (i.e parents, relative etc.). Not saying its a bad thing. Whatever works to get the job done.
Not really, they could be making big bucks. So if they just pay rent/food/a cheap car, they can save enough to pay it off asap.
Deal Addict
Dec 18, 2006
1760 posts
237 upvotes
Edmonton, AB
How is this an inspirational story? It took him a whole freakin two years to pay off just $26500?
Im sure all the RFDers here will agree we can all pay that off with just half an hour of work at our amazing jobs.
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Member
Feb 13, 2011
255 posts
28 upvotes
I still have some OSAP loans left, but I can make payments comfortably every month, so having the loan doesn't bother me. It's just like having another bill to pay every month.

Still, I admire the guy's discipline.
Newbie
Oct 23, 2012
19 posts
1 upvote
MONCTON
It's not uncommon for young people to finish an undergrad degree with between 40 and 50k student loan debt now, with 10 year repayment schedules at $500 or so per month. Most end up on the 'Repayment Assistance Plan' whereby they make reduced payments for up to 15 years...one of my friends claims that after this 15 years any outstanding balance is wiped out, so to speak. Not sure if that's true or not though.
Deal Expert
Mar 25, 2005
21262 posts
2086 upvotes
bmgnbx wrote:
Jan 13th, 2013 9:11 am
It's not uncommon for young people to finish an undergrad degree with between 40 and 50k student loan debt now, with 10 year repayment schedules at $500 or so per month. Most end up on the 'Repayment Assistance Plan' whereby they make reduced payments for up to 15 years...one of my friends claims that after this 15 years any outstanding balance is wiped out, so to speak. Not sure if that's true or not though.
40-50k?? OSAP is capped at around 30k for Ontario students. Most programs can be complete well under 30k.
Deal Addict
Dec 28, 2008
1353 posts
139 upvotes
Toronto
My friends and I worked out our costs now that we are in 4th year just finishing up.

To go to school, rent, utilities, food, entertainment, books, etc.

Total costs have been $20,000 per year to live in Waterloo and attend UW or WLU.

$80,000

If they work every summer and make $10,000 each, so $40,000 has been accounted for.

Now, with the tuition reduction, old textbook grants, scholarships, bursaries, etc. I'd say would be around $10,000 over four years.

The remaining $30,000 will be some mix of debt, high school savings from their job in grade 11 and 12, and gifts from parents/RESP etc.
Deal Expert
User avatar
Feb 11, 2009
16353 posts
2366 upvotes
Toronto
I don't understand why most people just don't save money while they're in school?

You see people spending thousands on booze a year, and then when it comes time to paying back loans, they find themselves screwed. I've personally witnessed this and my only reaction was to laugh. If you do what you can't afford to that's your problem.

I fail to see how 2 years living like s*it to pay off school debt is an accomplishment.
1) Live with Parents, save at least ~$6000 per year of rent to use on payment.
2) Keep looking for a job rather than settling at $13/hr. I'm assuming it wouldn't have been impossible in whatever career line he's in considering he got one paying $25/hr

And there's so much more. Just not impressed.
Newbie
Sep 6, 2012
86 posts
7 upvotes
BEAUPORT
BryceS wrote:
Jan 13th, 2013 10:47 am
My friends and I worked out our costs now that we are in 4th year just finishing up.

To go to school, rent, utilities, food, entertainment, books, etc.

Total costs have been $20,000 per year to live in Waterloo and attend UW or WLU.

$80,000

If they work every summer and make $10,000 each, so $40,000 has been accounted for.

Now, with the tuition reduction, old textbook grants, scholarships, bursaries, etc. I'd say would be around $10,000 over four years.

The remaining $30,000 will be some mix of debt, high school savings from their job in grade 11 and 12, and gifts from parents/RESP etc.
10 000$ annual salary? Wtf are you doing at the university ? Partying night in night out?

A student can easily get 20k with a 12-13$/h job
[OP]
Deal Addict
User avatar
Jun 14, 2012
1717 posts
146 upvotes
I like how some of you are saying "that's nothing, I paid off my osap too" and then you add you lived with your parents. :facepalm: well duh, of course it's easy to do when you don't have to pay your own living costs.
deal_with_singh wrote:
Jan 13th, 2013 11:34 am
1) Live with Parents, save at least ~$6000 per year of rent to use on payment.
You are making one assumption, that everyone's parents live in a big city where it's easy to find a job. What if your parent live in a town where you can't find a job with your skills? Living with parents is not an option then.
[OP]
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Jun 14, 2012
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Chalif wrote:
Jan 13th, 2013 12:00 pm
10 000$ annual salary? Wtf are you doing at the university ? Partying night in night out?

A student can easily get 20k with a 12-13$/h job
Are you saying a student can net $20k in 1 year while making $13/hr? Can you tell me how many hours a student would have to work to net that?
Sr. Member
User avatar
Oct 29, 2006
980 posts
419 upvotes
Paying off your student loan, especially one this small isn't necessarily the smartest financial move.

Student debt is the best debt an employed person with a middle-class income can have. It's the only type of debt in Canada, where you can write off the interest. If I had student debt and a mortgage, I'd pay only the minimum amount I could.

Granted, this wasn't the scenario for the person in the article, but just FYI for those of you in a situation where this debt can actually be beneficial.
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Sep 3, 2007
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[QUOTE]An employee discount helped me cut my cell phone bill from $100 to $70 a month[/QUOTE]

This guy still getting ripped off.
Newbie
Sep 6, 2012
86 posts
7 upvotes
BEAUPORT
Xiaohaibao wrote:
Jan 13th, 2013 12:42 pm
Are you saying a student can net $20k in 1 year while making $13/hr? Can you tell me how many hours a student would have to work to net that?
Around 20-25 during school and 45-50 during summer/holidays

Not even hard
Deal Expert
Mar 25, 2005
21262 posts
2086 upvotes
Chalif wrote:
Jan 13th, 2013 12:00 pm
10 000$ annual salary? Wtf are you doing at the university ? Partying night in night out?

A student can easily get 20k with a 12-13$/h job
Summer income, 4 months.

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