Student Loans/Debt, best way to repay?
So I'm graduating this coming spring, which means that my student loans are going to need to be repaid soon. I'm studying in Ontario but from Quebec, so while the terms are slightly different, I still have the 6 month exemption period like OSAP does.
I'm wondering what's the best approach to repaying the debt? I'm going to schedule a meeting with the bank (in Quebec, you owe the bank, not the government) to set up a repayment plan soon but wanted RFD's opinion.
I worked some Co-Ops and internships and was fairly frugal while studying so I actually do have enough money to repay the student loan pretty much in cash. However, I've put I'd say a large chunk of that available money (most of which I made during internship) away in a few funds (notably RRSP & TFSA) so it would gather some interest and whatnot. My question is, would it be the right move to literally take everything out to repay my student loans cash in one go? I keep hearing "pay it all off as quick as possible!" which does sound nice, but at the same time, I'd lose all that capital to do other stuff (downpayment, investment capital, RRSPs, TFSAs etc.). Also, I believe I wouldn't be able to withdraw from the RRSP for this purpose (not that I have much in there, but still).
Not sure where the interest rate will sit when I graduate but as of right now, it sits at around 2.5% so it doesn't seem that high. Should I pay back part of it in the 6 month exemption period (how much if so)? Stretch it out? Take a chance and repay all of it? How did other RFD members deal with it?
I know obviously some of the answers will depend on my job situation in the immediate future after graduating, but given the current info we have, what would be your recommendations?
Thanks for the advice!
I'm wondering what's the best approach to repaying the debt? I'm going to schedule a meeting with the bank (in Quebec, you owe the bank, not the government) to set up a repayment plan soon but wanted RFD's opinion.
I worked some Co-Ops and internships and was fairly frugal while studying so I actually do have enough money to repay the student loan pretty much in cash. However, I've put I'd say a large chunk of that available money (most of which I made during internship) away in a few funds (notably RRSP & TFSA) so it would gather some interest and whatnot. My question is, would it be the right move to literally take everything out to repay my student loans cash in one go? I keep hearing "pay it all off as quick as possible!" which does sound nice, but at the same time, I'd lose all that capital to do other stuff (downpayment, investment capital, RRSPs, TFSAs etc.). Also, I believe I wouldn't be able to withdraw from the RRSP for this purpose (not that I have much in there, but still).
Not sure where the interest rate will sit when I graduate but as of right now, it sits at around 2.5% so it doesn't seem that high. Should I pay back part of it in the 6 month exemption period (how much if so)? Stretch it out? Take a chance and repay all of it? How did other RFD members deal with it?
I know obviously some of the answers will depend on my job situation in the immediate future after graduating, but given the current info we have, what would be your recommendations?
Thanks for the advice!