Consolidating canadian student loans
This is usually people’s preferred option since mortgage interest rates are usually much lower than other loan interest rates, and mortgages can be amortized (paid) over 25 years.This means you can arrange much lower monthly payments than with another type of loan.
It is worth noting that when it comes to dealing with student loans, bankruptcy is not the only choice. You can also try a debt consolidation loan to consolidate your student loan debt with other debts like credit card debt.
There is a ‘hardship’ rule that says that a bankrupt with student loans may apply to court to have their student loan debt reduced or discharged after five years.
In general, your student loans will only be discharged in a personal bankruptcy in Canada if you have ceased to be a student (full or part time) for at least seven years.
By lowering your interest cost you may be able to manage your monthly payments and reduce your student loan debt sooner. If you do not qualify for a student loan debt consolidation loan, debt relief may be possible by filing a consumer proposal.
This strategy is particularly successful if you are working and have the ability to pay something, but not the full amount, and only need more time to pay off all of your debts.
This will reduce your monthly debt payments making repaying your student loan debt possible. Your last resort for relief from student loan debt is bankruptcy.