I graduated from University in 2005 and I am currently still paying off my student loans 5 years later. I know that some people do not like to take out student loans; they will live dirt poor through 4 years of university before they go into debt.  I chose not to do this.  I did work full time during my 4 years of university, and I still chose to take out student loans for 3 of my 4 years. 

I do not regret taking student loans to help fund my university education because my life would have been a lot harder without that extra money.  Working full time at a call center for a financial institution allowed me to pay for my basic monthly expenses such as rent, groceries, and transportation.  I was making about $28,000 per year during my studies which is approximately $14.35 an hour.  This doesn’t seem like a lot now, but it was a lot for a student. 

My student loans allowed me to pay for my tuition as well as any books and other school supplies, without having to worry about paying rent and buying groceries.  I went to school in the mornings and I worked from 2:30 pm to 11:00 pm at the call center.  I chose to work for a financial institution because they pay was good, the benefits were excellent, and I was studying Economics. 

I borrowed a total of $12,333.23 from the Federal Government for my student loans.  After my graduation in December 2005 I had a 6 month grace period before I had to start repaying my student loans.  My original student loan agreement was for 10 years. But I make more than the minimum payment each month; therefore my student loan term has been lowered to 100 months, which is just over 8 years.  Even $10 extra per month will help to significantly lower the term of a student loan.

The interest rate on a student loan is lower than a regular loan or line of credit from a financial institution.  This is great for student loan borrowers because the majority of our payments go towards the capital repayment, which helps pay off the student loan quicker.  The current interest rate on my student loan is prime rate plus 2.5%.

I currently have 41 months remaining on my student loan and $5846.91.  I am in no hurry to pay off my student loan because the interest is tax deductible on my annual income tax return.  My biweekly payments are debited directly from my checking account and therefore my student loan payments are helping to maintain my good credit score.

(Photo By Dimitry )

Tahnya Kristina

Tahnya Kristina

Tahnya is 30 years old and lives in Montreal Quebec. She graduated in 2005 from Concordia University, and she currently works for a major International Financial Institution. She recently launched http://www.mediamadam.ca/. You can follow her on Twitter @TahnyaP.