Student Loans

Other than entering into an instalment arrangement with the Inland Revenue, ideally with a proportion of your debt written off, there are only two ways that you can clear student loans, one is by going bankrupt and two, is by getting agreement of your creditors to enter into a Creditors Proposal.  All other forms of insolvency exclude student loans debt.

Minimising your student loan debt

Studying is expensive and what students don’t think about when they start borrowing for either course fees or living expenses, is that the debt has to be repaid at some future date.  That extra beer or wine with your friends may not appear to be causing harm to you, but $10 spent now, might in reality cost you $20 to pay back years down the line.

Caution about taking on debt in any situation is a pre-requisite but the pressures of modern living make it very difficult to not have that new iPhone, or to skip out on that desert island escape.  But even if you are somewhat frivolous during your student years, you can plan your way out of the debt burden if you start as soon as you enter the workforce, and most importantly if you have headed off overseas, when the interest really starts to bite.  Ideally defer leaving the country until after you have paid off your loan.  A few years of hard work early could save you thousands of dollars in interest.