Experts share effective ways to tackle student debt

Canadians who have taken out student loans and are in repayment can benefit from payment plan options, debt repayment strategies and an in-depth understanding of their loans, experts say.

Student loans in the 2021 academic year totalled $4 billion and were administered to 576,000 students, according to the latest data from Canada Student Loans.

Paying down student debt is often regarded as less of a financial priority due to the low interest rate often attached to these particular loans, but young graduates should still be diligent and organized in making these payments, Natasha Macmillan, director of everyday banking ratehub.ca, said in an interview. 

“If consumers have a lingering student loan on their credit history, it can make it more challenging to secure other loans such as a mortgage or favourable rates with credit cards,” she cautioned.