Students

Paying off student loan...

  • Last Updated:
  • Nov 15th, 2018 7:29 pm
[OP]
Member
Mar 4, 2008
336 posts
40 upvotes
BC

Paying off student loan...

Currently on the repayment assistance program. Will be coming off in the next couple of months. Most likely wont be eligible for at least 6 months. Have a savings of approx. $20,000. Student loan is $47,000. Been out of school for 2 years now. Trying to build up a down payment for a house but can't because of the student loan having to be tackled first. Interest rate is something like 6-7% on the student loan. Suggestions? Dump all the $20,000 on the student loan?

Unfortunate that the gov takes advantage of making money off student loans while putting 5 years and $$ into becoming an elementary school teacher to help teach future generations...

Bah :(
4 replies
Member
Dec 19, 2010
244 posts
14 upvotes
Are all your living expenses taken care of?

If it was me, I would try and pay down the loans first, can't get better than a guaranteed 6-7% return.
[OP]
Member
Mar 4, 2008
336 posts
40 upvotes
BC
CavemanJ wrote:
Nov 7th, 2018 9:12 pm
Are all your living expenses taken care of?

If it was me, I would try and pay down the loans first, can't get better than a guaranteed 6-7% return.
Actually, the student loan is my wifes. She does cover some of her living expenses, but we are trying to live for buying things we need v.s. want. So I am trying to think of anything kind of tactical to do to get rid of it. I know the NDP in BC "promised" to have student loans at 0% interest, so we were hoping for that.

Ya, that's what I was thinking of tackling it as much as we can for that 6-7% interest. The MBNA 0% BT doesn't seem to exist anymore.
Member
Nov 9, 2011
461 posts
182 upvotes
Toronto
JimboD wrote:
Nov 7th, 2018 2:53 pm
Unfortunate that the gov takes advantage of making money off student loans while putting 5 years and $$ into becoming an elementary school teacher to help teach future generations...
I don't want to sound like an ass, but didn't she get the interest-free loan for the 5 years that she was in school? What other lender give you interest-free loan?? And I am pretty sure she received some free money that she didn't need to pay back. Also, 7% interest rate is still cheap considering it is an unsecured loan. How are the government taking advantage of your wife?

My advice is to use that $20K to pay it down (if she doesn't have any other higher interest debt).
Deal Addict
User avatar
Aug 15, 2015
1145 posts
150 upvotes
Markham, ON
When I was young, I paid off my student loan with my minimum wage job. People are less forgiving as you become older. How much did she pay off the last five years? How much can the two of you afford to pay each month. It is less scary when you see the end.

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