Saturday, 18 May 2013

Paying off Student Debt vs Investing: My situation

My situation:
6 years of post secondary education leaves me with $39,500 government student loans which just entered grace period May 1st.

For me, I have approx. $30,000 Canada loan and $9,500 Ontario loan, and I'm expecting about $3000 OSOG (Ontario Student Opportunity Grant) in the fall to help me with the latter. Now, my job offer from Calgary comes with a $13000 tuition reimbursement (non taxable income that I get right away) and relocation assistance (paid after the 3 month probation). 
Now, $2500 for first month's rent and security deposit, ~$3000 moving expenses (which will be reimbursed). I want to keep $1500 for some miscellaneous expenses. So that leaves me with $6000 that I want use to pay down OSAP.

Once I start receiving my paycheques, I want to use $500 biweekly to pay off my student loan. The next step is to look at my expenses for the first month and to work out a budget backwards.

There are 2 ways to have more money: cut back or make more money. I hope to live on a modest budget, then once I'm settled down and done with probation, I can pick up some extra Saturday shifts at work. Maybe I can also apply for some casual positions so I can increase my income. If I can, I also want to save about 10% of my income. I should come up with a 2013 goals page soon to keep me motivated. 


  1. I have yet to graduate myself, but will finish my undergrad with about $11k in student loan debt all through OSAP. Definitely work on getting a list of goals together and break down how you want to pay back your student loans. Personally I know that if I don't write down goals, they don't get done.

    1. $11k student debt? Congrats! You're ahead of most Canadian students.
      I'm the same way with goals, it's kind of why I started this blog. I feel more accountable when I publish my goals.
      I have a debt repayment timeline in my head, and it's rather ambitious! ; D

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