Managing student debt is a common reality that takes Canadians years to endure. This “first taste” of debt is recognized by many creditors as “good debt” because the debt was taken on as an investment to better one’s career. Whether or not this kind of debt is good or bad, the reality is it is sometimes too much to bear when the other costs in life like a mortgage, rent, car loan and other miscellaneous costs come into play.
The government of Ontario recently announced the introduction of new rules that will make it easier for students to pay their tuition and help ensure postsecondary education continues to be affordable.
Beginning in the 2014-15 academic year colleges and universities will begin rolling out the following changes:
- Tuition fees for a fall term will not be due before the beginning of August, restricting institutions from requiring tuition payments in June or July.
- Students who complete their Ontario Student Assistance Program (OSAP) applications by the beginning of August will not have to pay their tuition before receiving their financial aid.
- All students will be able to pay tuition in per-term instalments without paying deferral fees or interest charges.
- Colleges and universities may continue to charge a deposit on tuition, but the amount will be capped at $500 or 10 per cent of the tuition total, whichever is greater. Institutions must use the deposits to cover the student’s tuition fees.
Beginning in fall 2015, university students will be charged on a per-credit basis if they take less than a 70 per cent course load. Accordingly in 2016, that number is expected to rise to 80 per cent. By 2016, it is expected that university students taking a 70 per cent course load could save as much as $1,700 per year compared to the flat rate they may be paying currently. Students with a disability will only be charged tuition on a per-credit basis, regardless of their course load.
The costs of postsecondary education can sink a person into debt before they start a career. It is usually the catalyst for a lifetime of debt management. That is why we are particularly excited about the government stepping in to help lessen the burden.
Living with debt can be overwhelming but there is help available to those who need it. Debt counseling is acquired more and more these days as a means of getting out under the cloud of debt. There are many companies who offer assistance but do your research before signing any contracts. Ensure the company you hire is Canadian based and has the consumers’ best interests at heart. The sooner you get help the sooner you get out of debt..
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