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Student Loans Are Going To Bankrupt Me

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chriswtburke View Drop Down
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    Posted: 05/November/2009 at 1:21pm
I did college in New Brunswick, I trained to be a youth pastor.. due to the financial status of my family at that time, the only way I could go to college was to get student loans.

I got my loans, which I was very thankful for at the time, but, if I had of known the burden they would be on my family and I 4.5 years later, I would have tried to find some other way to go to school.

By the end of my 3 years of college, my student loan debt was $22,486.52 I was very lucky, and was into a job when I graduated, so, I was able to start paying back right away.  Initially, when student loans asked for repayment, they want around $550/month for repayment.. as a youth pastor, I make around $2200/month.. this amount covers rent/car and all those other bills that you get, once you are out on your own.

I had them reassess my replayment, and they dropped it down to around the $200/month mark.  To this day, I always make my payments of approx $200/month and, when added up, I've paid student loans canada approximately $10,000.. however, when I look at my loan online, I still owe them $19,457.29

When I do the math on that, according to what I currently owe, I have only paid student loans just over $3000 meanwhile, I've paid them OVER $10,000 which means I've paid $7000 in interest.. thats more than double what I have paid towards the principle.

My understanding is that student loans were suppose to be a good thing, not a thorn in your side, and not something that is going to make people say "no" when you try to buy a house, try to get a credit card, try to buy a bed.. but, my experience has been that, because of these damn student loans, I have to continue wasting my money by renting a house, and continuing to get further in debt as a result.

Oh, and to add to it all.. during my last year of college, I got married.. my wife also having student loans. Her initial amount was $28,318.15 we have paid at least $250/month for the past 4.5 years, and yet she still owes $25,515.70 so while she has paid $13,500 towards her loan, she has only taken $2700 off of the principle, which means she has paid $10,800 in interest..

EXPLAIN THIS TO ME.. and please, if you have any advice.. DO TELL
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 05/November/2009 at 10:49pm

A very good post with very real points.  This is one of the reasons why this site is here and why we want the government to drop the interest rate on student loans...  its the interest that keeps people paying and paying.... hopefully the new RAP program will help.... they've put a limit of 15 years of payments but thats still a long time....

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Mark O'Meara

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chriswtburke View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote chriswtburke Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 4:51am
Thanks for your reply.. I didn't know about this RAP program.. so are you saying that, while I look at this as taking the rest of my life to pay off.. they are only allowed to charge me for 15 years?

I sent a letter to my MP yesterday, to see what type of advice he can offer.. I don't expect anything useful back.. but, you never know.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote chriswtburke Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 5:11am
and does that time frame start from when I started repaying my loans (4.5 years ago) or, did it just start this year?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote polyhymnia61 Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 9:35am
This system works totally against older students with responsibilities trying to retrain. And whenever changes to the system and new programs are discussed, it's always in the context of "young" graduates...(not that they don't have their own problems, but the number of people posting here who went back to school or have families is really disproportionate)

It seems to be assumed that mature students, because they have been in the workforce, don't need to be taken into consideration when developing policies or programs. Unfortunately, how many have gone back to school specifically because they need to build a better life for their families?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dingo Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 9:45am
Wait, so if you make payments for 15 years any remaining balance is excused?  
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 9:48am
You need to check the Rap program info at Canlearn.ca  for this info.  And of course only applies if your loans are not in default.
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chriswtburke View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote chriswtburke Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 10:18am
my loan isnt in default, as I've always made my payments.. its just that making those payments means I cannot pay other bills..

it sounds to me like you're saying I wouldn't qualify for this, as I have been graduated for almost 5 years.

I'll have to give them a call.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 06/November/2009 at 3:53pm
actually, if your loans are NOT in default you may qualify, but it is income based.... give them a call and see or go to canlearn.ca they have a payment calculator there...
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