Students

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Mar 4, 2008
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BC

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Last edited by JimboD on Dec 4th, 2018 1:34 am, edited 1 time in total.
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Dec 19, 2010
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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]
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Mar 4, 2008
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Last edited by JimboD on Dec 4th, 2018 1:35 am, edited 1 time in total.
Sr. Member
Nov 9, 2011
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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
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Aug 15, 2015
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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.
Sr. Member
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Mar 27, 2011
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Toronto
Without the student loan your wife wouldn't have been able to get the education, perhaps she might not even have met you!

As others suggested, go through your finances, project your goals and analyze, see what makes sense. Break down the interest payment amounts and the gains to be had if you continue to save for DP. We put our tax returns for several years towards her loan to minimize the interest. Of course ideally government gives you free education but all these controls are in place for sustainability; Unless you want pay 40% tax for free education (Scandinavian countries).

You and your wife can do it. Many people are doing it and have done it, myself included.
Newbie
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Nov 27, 2018
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JimboD wrote:
Nov 7th, 2018 2:53 pm
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 :(
Like other have said, they gave your wife 5 year loan without any interest the entire time with fairly low rates now. They also highly subsidized her tuition (probably paid for half of it) and depending on where you live they are maybe even asking for less than you actually borrowed back because some actually automatically give people a lot of grants. Now they are going to pay your wife to work 9 months a year, for less hours per day than the average person, give her a bunch of benefits most people don't get, a fancy pension, and for just about as much as the average Canadian until maybe 10 years where she'll be making close to or more than six figures depending on where she lives. How are they taking advantage of her?

Anyways, the safe thing to do is to just pay off your loans. There are people who will try to invest that money instead but that's risky.
Deal Expert
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Oct 26, 2003
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Winnipeg
it is really hard to beat 7% rate risk free, S&P500 long term average return is around 7%, but you might as well avoid the risk by dumping into the loan. If it makes you feel better, the tuition in the states is easily 3x what we pay here.

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