So say financial experts urging young Canadians to rein in debt incurred during college and university, and aiming to skewer misconceptions around it.
“If you’re a doctor and you’re going to make a lot, it’s OK to get a bit more into debt, knowing you have more chance of repaying,” Kindarji said. While some experts say there’s no harm in paying off a portion of debt during your studies — so long as it doesn’t compromise educational priorities — others argue for borrowing as much as you can from the government at zero per cent interest and then putting a small chunk in safe investments such as high-interest savings accounts or Guaranteed Investment Certificates.
To keep a lid on debt, high school students can even look for college- and university-level credits available via Advanced Placement courses. That can result in tuition savings if fewer classes are needed down the line.“You have to really think about your lifestyle costs and where you need to make some sacrifices,” Kindarji said.
Applicants to the federal Repayment Assistance Plan may qualify for reduced payments or none at all, depending on income. If approved, the government will pay any interest owing on the part of the student loan that a reduced payment fails to cover, among other measures.