Set up a budget and spending plan before you start school and again before your payments begin – and revise it whenever your situation changes.
Some expenses can be difficult to predict, but if you create a spending plan that includes money for unexpected costs you will be able to manage your money better – and this will definitely save you lots of stress!
Remember to review and revise your budget whenever needed. Plan on doing this at least a couple of times a year so that you can stay on track. Managing your money can be easy – it just takes on-going awareness of where you are at and a little organization.
Understanding your student loan while in school and before you finish your studies can help you manage your student loan now and down the road. Go to the Alberta Student Aid website for answers to the following questions or watch the government student loans and grants video:
You are in school
Interest free period.
No payments required. However, you are able to make payments at any time to pay your loan off faster.
The 6-month period after you finish school
Begins the first day of the next month, after your period of study end date. No payments required. However, you can make payments while you are In Grace to pay your loans off faster.
Begins the 1st day of the 7th month after your loan is In Grace
Interest accrues daily and is calculated monthly.
A monthly payment schedule is set up for you automatically. You can change the frequency of payments from monthly to biweekly or weekly, by calling the Alberta Student Aid Service Centre and the National Student Loan Service Centre.
There are many consequences if you miss even one payment on your provincial or federal student loan:
Your credit rating is immediately affected.
A credit rating is an evaluation of the history of your loan repayment. Having a good credit rating will maximize your opportunities to qualify for credit cards or future loans (perhaps for a new car or house), or even to be able to rent an apartment.
Student loans are just like any other loan. They must be paid back. When you receive your first Alberta and Canada student loans, these are reported to the credit bureau.
You build a positive credit rating by making payments towards your student loans on time, each month. When you do not make your loan payments on time, you will create a negative credit rating.
A credit bureau report includes information about the amount of your outstanding debt and the amount of credit available to you.
This report registers your new debt. When your student loans enter repayment, your payment history is reported each month and will become part of you credit history.