So in the first part of this video we're gonna discuss student loan FAQs I think everyone should know and in the second part of this video I'll go into my story and give you my personal description of what how student loans have impacted me in my life and where I'm currently at now also I'll be showing you how to use the student loan calculator at the very end so first fact that I would love for you to know is that student loan debt is a 26 billion dollar problem. That's right I said billion dollars it's a second fact that I want you to know is that the average Canadian student will graduate with $26,000 of student debt.
The third fact is that student debt has increased by 88% since 1999.
The fourth fact I would like to let you know is that on the current prime rate if a student has a $25,000 student loan they'll be paying an additional $8,000 in interest during a 10-year repayment plan.
Let's get into my story about student debt so let me tell you straight up I didn't know anything about scholarships when I was in high school and did my parents and that's not their faults, that's not my fault. I didn't go out there to seek scholarships because I thought that scholarships were for people who had a 95 per cent average and were super highly involved in their community constantly busy or I thought they were for athletes. I was very uneducated on, I was very uneducated about scholarships. Now knowing the things that I know now working for grant me um I'm definitely a great scholarship candidate, unfortunately, I've missed my opportunity and I wish there was a program out there I wish I had the knowledge that I did that I have now about scholarships in the past because I would have been able to almost fully fund my education so here's my story.
My parents wanted their daughter to receive post-secondary schooling they wanted me to go out and you know received a higher level of education and explore some of my passions that I had going into post-secondary school so I initially wanted to be a nurse and I ended up getting my degree in English literature so in my situation my parents did not have the money to send me to school whatsoever I worked at a farmers market since I was 14 years old and I saved up all the money that I could to help pay for my school and so although I accumulated about five thousand dollars to go to school for my first year obviously $5,000 is not enough you have the thing about your living expenses, your food, your books, so what my parents thought was the best idea was to go and get a student line of credit.
Not knowing anything about scholarships or the way that the system works they went straight to the only source that they knew of and that is student line of credits. My parents and I walked into the bank and we had a meeting with a lady and she signed me up for a student line of credit.
We thought that this is what everyone did so if you just can't afford to go to school and you don't have them in the bank you just sign up for a loan or line of credit so that's what we did, that's what I thought was normal, that's what my parents thought was normal, now knowing what I know now um
I would have been eligible for scholarships in my grade 12 year. I was highly involved in my school I was in musical theatre. I definitely took a wide range of academic courses because I had many interests.
I took the sciences arts dance any course that I could get my hands on.
I loved learning, I loved getting involved in grade 12.
I put on a grade 12 talent show for the grade twelves to perform and then have the ability to perform whatever they wanted so I ran that show I'd volunteered at the hospital because I wanted to go into the nursing program.
I volunteered for sports events which were one-day events I did multiple of them and it also worked a part-time job back then I thought I was too busy. However I was not busy enough to think about not investing in my future little did I know what the impact would be of being too busy and missing out on scholarship opportunities fast boring 5 years later after my first year of university because who can really do their degree in four years and now I have accumulated $36,000 in student debt and I've been out of school for about 2 years.
And I finally have landed a job where I can use my creativity my writing, however, working at grant me. I've come to realize the impact that my student loan has had on me and what the impact will be for other university students pursuing their dreams. So to break it down for you I pay 499 dollars a month on my student loan and line credit combined and after 10 years of making these payments when I'm 35 years old I will have paid $56,000 in student debt and that includes the interest within my original $36.000 debt.
Do you know what that means?
That means I will have paid $20,000 in interest over the next 10 years which is almost half of what I took out to go to school. Can you just let that sink in for a second? I could have used that money to put a down payment on a house not in Vancouver but maybe somewhere else? I could have used that money for my house one day, I could have travelled to Europe for a month probably about nine times in a row, I could have bought a Tesla 3 or 2 very nice cars with that amount of money, I could have had a just-in-case fund set aside for myself in case I ever ran into trouble and was in a financial need.
So now that I have kind of sharing my story with you and painted you my reality. I'm gonna show you what that looks like broken down on a graph that I have created so I had two forms of loans.
I had a student line of credit from TD Bank and then I had a student loan from student HSBC.
My amount owing on my TD loan right now is $22,235.23. I have 90 months to pay this back at an interest rate of 5.5 my monthly payments are $130 in interest and $224 for the payment and which means that I uh which will result in a grand total of $41,132.44.
Now my amount owing on my student loan from student HSBC was $10,653.80 and I have a 100 and 60 months left to pay this at an interest rate of 6.45. My monthly payments are $9.35 an interest and my monthly payment $135.65 total of 145 the month my total amount of months that I have left to pay this times the months left to have to pay equals 350 so currently my grand total that is remaining that I still have to pay is $54,182.44 so and that was when I started paying off my loan two years ago.
Originally it would have been two years ago it would have been $56,000 now that is my breakdown of what my current loans look like and now I'm gonna actually show you how to use the loan repayment calculator. Maybe your schooling is gonna cost you $40,000 you put $40,000 inside do it says to ask you not to put in a comma so just make four zeros either you have a fixed or a floating mine was a floating rate from my student HSBC, it was 6.5% no repayment period options do not take advantage of the no repayment period.
Start your to repay your loan immediately after the end of your studies. I'm just going to select you not take advantage of the repayment period so select the number of months you'll need to repay your loan you can compare it with another loan option you would just fill in here and then you can click calculate so this would tell you that okay you have $40,000 of debt. It's a floating interest at a rate of 6.45 non-repayment do not take advantage of non-repayments select a number of months you'll be you'll need to repay your loans 116 non-payment in period interest $0 toe amount of your loan to be reimbursed 40,000 each of your monthly payments will be $516 your total interest over the life of your loan will be 19,907.85.
Basically what you can kind of think is that if you take out a loan for $20,000. You can expect to pay just under half of that amount in interest which is ridiculous you go to school because you can't afford it and then all of a sudden you have to pay almost double. So what I want you to take away is that Student Loans and Student Lines of Credit should be your last resort you want to exert all your opportunity, all of your possibilities that you have in front of you and reach out on those before you choose student loans by investing in your financial education. Now that is gonna save you so much money in the future of thousands of dollars that you're going to be spending on interest on your student loans and I believe that if you put your motivation towards finding ways on how to win scholarships it will save you that financial burden of the loan and debt that may affect you for the next 20 years of your life.
I have missed out on opportunities because of my loan and that is why I'm here today is to educate you and let you know that you can avoid this and this is our mission here at Grant me $997 for a scholarship program does not seem as bad right now when you are gonna be paying possibly $56,000 in the future, so I want to encourage you to take a look at our videos on our youtube channel and watch our student success stories and see how they have come out of our program and what they've won and what you can do is just click the link below in our online webinar and you can be in you can register for our free online web that will educate you about our program so thank you so much for tuning in everyone I hope that you have learned something valuable from this video today and then I've helped you or educated you on something that you were maybe missing within this whole scholarship and education process um please let me know in the comments down below if you have ever struggled with this if you're in the same situation as me if you're going to school soon and are interested in scholarships please let me know I'd love to help you out in the comments down below have a wonderful day everyone thanks so much bye guys
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