Debt Management, Credit, and Borrowing

Student debt is typically incurred when a student uses loans to cover the cost of their education and other expenses during the time of their academic program. It is important to understand your debt repayment terms and responsibilities, and to find the tools to assist you in reaching your repayment goals.

Debt Management

Typically, student debt can be repaid once you are no longer a student, however, understanding and planning for debt repayment is essential to managing your money successfully and can help you balance your studies and finances. It is also important to note that some debt will require repayment before graduation, such as credit cards.

The Financial Consumer Agency of Canada provides several resources and tools to help you understand and plan for debt management:

• Managing Debt (Financial Consumers Agency of Canada)
• Financial Goal Calculator (Financial Consumer Agency of Canada)

Understanding Loans, Lines of Credit, and Interest

When you take out a loan or line of credit, make sure you understand the terms and conditions required to pay back the loan. Be sure to ask the lender questions on content you don’t understand. When you borrow money, you must agree to pay back the full amount, interest and any applicable fees. Interest rates can vary depending on your credit history, type of loan/line of credit or the type of lender. It is essential that you consider the total cost including interest, the monthly instalment amount and the length of time it will take to pay it back (term), before taking out a loan or line of credit. To find out more about loans, credit, and borrowing, review these resources below:

• Loans (Financial Consumer Agency of Canada)
• Understanding Credit (Canadian Bankers Association)
• Understanding Interest Rates (Financial Consumer Agency of Canada)
• Understanding Cash Advances (Financial Consumer Agency of Canada)

Understanding Cash Advances (Financial Consumer Agency of Canada)

Understanding Credit Reports and Credit Scores

A credit report shows how well you manage credit, and a credit score is calculated based on your credit history. The Financial Consumer Agency of Canada offers resources to help you understand what is included in your credit report and why your credit history matters.

Ontario Student Assistance Program (OSAP) Loan Repayment Calculator

OSAP offers a debt calculator, to assist with estimates of what your monthly loan payments will be, once you leave University:

Disclaimer: Please note that financial resources are provided for educational purposes only. Any information and resources provided do not substitute for professional advice.