# General Advice
In theory, paying off debts is very simple. However, in reality, many people experience varying difficulties paying off their student loans. Just search current consumer and student debt numbers to see what we mean. Here are some practical advices that can help you better manage student debt: Don’t require an OSAP loan. What does this mean? Start saving early! For some, they are fortunate enough to have an education savings plan. By the time they reach post-secondary education, they have enough money saved up to pay for their education without requiring any external financial assistance. If you are in this group, consider yourself very fortunate and make the most of this blessing. Many of us, however, do not have an education savings plan that can fully or even partially cover our expenses. Fortunately, there are still things we can do to afford post secondary education without OSAP.
# Precautionary Advice
You may choose to start off your post secondary education as a part-time student i.e. you are enrolled in 20-59% of your program’s full-time course load. As you read in the policies section, if you start off as a full-time student, it may feel like you're trapped in your post-secondary education since you can't take a long period of time off to work. So some students opt for part-time studies for various reasons such as being able to better manage their studies or so that they can have more time to work. All of the above mentioned policies will still apply to you, except there is one important difference: if you want to apply for continuation of interest-free status during your part-time studies, you will have to fill out the schedule-2 form to confirm your enrolment in part-time studies. Note: Interest will accrue on your account every month. However, it will be removed from your account at the end of each month as long as you are still enrolled in part-time studies. Call NSLSC for more information.
# Before post secondary
# Start working and saving early!
Many teenagers pick up part time work during high-school. Make a decent resume and apply to your local businesses, ask your network of adults if they can help you get a job, and be creative. If you don’t like working a part-time job, start your own side-business or consider freelancing after school and on the weekends. You can turn a hobby or interest of yours into money. If you don’t have any ideas, google side business ideas for teens. Pick something you’ll like and stick to it, whether it's a job or business, just start working! Make a budget to start saving a portion of your earnings towards your post-secondary education. Look into halal investment options where you can let your education fund grow over time.
# Begin looking into scholarships
There are millions of dollars in unclaimed scholarships every year. Make a schedule where you can slowly, but consistently apply to as many scholarships as you can. Research online the best resources and techniques to help you with your applications. It’s going to be tough work, but the rewards are great! Imagine getting hundreds of dollars by only putting in 1 hour of work a day! Don’t be lazy like most people; take action!
# During post secondary
# Apply for OSAP grants only
Did you know that you can apply for OSAP grants without taking any loans? Make sure to apply for the grant portion of OSAP. This is money provided by the government to fund your education, and it does not need to be paid back! Try to avoid taking the loan if you can. Keep applying to scholarships
Many students stop applying once they get accepted and end up missing out on potentially thousands of dollars in financial assistance. Apply for bursaries and other grants. Research what grants and bursaries your school offers. Always apply! The worst case scenario is that you will not receive grants, but you will have spent some time practicing application skills (which will help when applying for jobs, schools, grants later on in life), and the best case is that you will get a lot of money to pay for your education. Remember to make a consistent application schedule. Dedicating just 1 hour everyday can really go a long way!
# Work part-time during school and in the summers
This may not be a viable option for everyone, especially if you have a heavy course load. However, many students do manage to pull this off and scrape in some extra-income to help pay off their expenses. Many schools have work-study programs where they offer jobs on and around campus for students looking to work while they study. Make sure to make the most of your summers. Start applying to summer jobs a few months before the spring/summer semester begins. Not only does this make you money, but also gives you valuable experience to get a head-start on your career after graduation.
# Do Co-op!
If you are in a registered Co-op program, make use of your school’s job board and research company websites to find summer postings. Co-op jobs traditionally pay higher than regular summer jobs and usually provide you with valuable experience related to your field. Take a year off for an approved internship. If you are in a registered Co-op program, apply for a 12-16 month internship or dedicate a whole year for 3-4 different 4 month Co-ops (this gives you more diversified experience). This step is highly recommended, especially if you are in a professional degree (engineering, business etc.). You can make a good sum of money to pay off your expenses and enter into your career after graduation with a year of professional experience, giving you a great advantage over your peers. Try to do multiple Co-ops/internships. Don’t wait until 3rd/4th year. If your program only offers one internship, consider doing multiple. If your program doesn’t offer Co-ops/internships consider applying yourself. Network, make a LinkedIn, message recruiters, and build your resume to secure your own job. Don’t wait for permission to get hired.
Often, to pay off large tuition fees (like in engineering programs) one Co-op term is not enough. You will need to do several. One “hack” is to delay your graduation date and work more Co-op terms. While graduating later may be distasteful to some, on practical terms no full-time employer really cares how long it took you to complete your program. Also you will get the added benefit of having more experience and skills on your resume when you’re applying to full-time jobs. Several students have delayed their graduation date to work extra Co-op terms. This has helped them generate the extra income needed to graduate debt free. A bonus tip is to find a Co-op/internship in the U.S. This has several benefits. The first is that you’ll be earning in USD. Thus when you transfer funds to your Canadian Bank account, you’ll actually have made 30% more (depending on the exchange rate). For example, if you earned $10,000 over the course of a 4 month internship in the US, when you transfer that money to your account in Canada, it will result in $13,000. Secondly, several top employers, especially those in Silicon Valley, give their students a stipend for rent. Since rent is usually the largest living expense, this means you will have more net income you can use to pay off your loans and graduate debt free. If working in the U.S or at top employers seems unattainable you should know that students who managed to work at these places started with the zero work experience in first year. Experience and opportunities are built through projects, volunteering, research, networking and more. It’s all attainable if you have a plan.
Note: It is important not to put all your trust in the ability to get a long term internship. Make backup plans in case you are unable to find an internship.
# End of post secondary and beyond
Congratulations on successfully completing your formal education! If you have made it this far without taking any loans, you are indeed very successful today, and have an incredible head start in life. If you required OSAP loans to pay your tuition and other fees, you should arrange to pay it all off before or while finishing up your final exams to avoid any interest charges. Remember that the term finishes at the end of the month; be diligent so as not to pay a single day’s worth of interest. This will only be possible if you took the necessary steps to work hard before and during University to make enough money to pay off your loan. If you manage to pay off your OSAP loan before finishing your finals with your own hard-earned money, congratulations, you are also ahead of the game. If you are unable to fully pay off your loan by the end of your exams, you still may have some hope. Try to get interest-free loans to pay off the OSAP loan. Make a solid career and repayment plan and take it to any family/friends that may be willing to loan you cash. You can ask multiple people to help with small amounts. Make sure to provide a concrete plan and timeline to repay their loan. Hopefully, you can gather enough money to pay off all of your OSAP loan before graduation. Keep an accurate record of how much you owe people and when and where you returned some or all of their money. Remember that these are your closest relationships, and wrongdoings involving money can jeopardize or irreparably harm your relationships. So do everything in your power to pay these loans off as soon as possible. Do not go and buy an expensive car with your first check if you still owe people money! Debts and the preservation of your ties of kinship should be your first priority as soon as your start making money. If friends/family is not an option for you, look into organizations that provide interest free loans (Beneficent, Iana Financial). If you are absolutely unable to gather enough funds to pay off your OSAP loan, you have no choice but to go through the traditional method of paying it off yourself over time while accruing interest. Your first priority should be paying off this student loan as soon as possible. This means finding any source of halal-income right away, even if it’s not your dream job. A budget should be made to put as much of your income as possible towards paying off the loan. The earlier you pay off the loan, the less interest you need to pay. It will be very difficult, but you will be very happy you did it when you’re debt free. If we find ourselves in this situation, we should repent for indulging in the paying of interest and make a sincere intention to never put ourselves in such an interest-bearing situation again. Indeed, Allah is the most merciful, so ask for His forgiveness and protection from dealing with interest.