How to Help With School, When Your Debt Load Says NoJul 31, 2018
It can be a challenge for parents to realise when their adult children are becoming a financial drain, and this could affect their ability to reduce their debt load. Or as a parent, you may know your adult child(ren) are a financial strain, but just are not sure how to break off the financial support; especially when it comes to paying for post-secondary tuition.
In this podcast, our Licensed Insolvency Trustees (LIT’s) came together to give their tips and advice on how parents can support their child’s education without footing their student bills and postponing financial goals. In the podcast, you will hear our LIT’s discuss:
- When parents should say “no” to paying for all or part of university or college tuition.
- How parents can provide support to a post-secondary bound child that doesn’t involve financial assistance.
- What parents should know about student lines-of-credit and bank loans.
- And what parents can do to ensure their child is financially prepared to deal with everything they will face as they go to university or college.
For a parent who may not be able to or may not want to pay for a child’s tuition, what financial assistance advice can they give to help make sure their child can still pay for school?
Let’s look at the available options and a few things they should know about each:
Option 1: Government Student Loans from BC Student Aid
- The interest and repayment doesn’t start until after a student has graduated.
- You need to qualify for these and a parent(s) income may affect eligibility.
- There are good repayment assistance options available.
Option 2: Line-of-Credit
- You only have to pay back what is borrowed and interest on what is borrowed.
- You may have a lower interest rate than a government student loan.
- Your payments will be due on what is borrowed even if the person is still a student.
Option 3: Non-Government Student Loans
- This is not available at all banks or financial institutions.
- The interest accrues right away and monthly payments begin immediately on the entire amount owing.
- The repayment assistance is difficult to get.
Make sure to listen to our podcast for all the tips and advice from our LIT’s on how to help your kid get through school, even when your debt load says no.