Matt Corker

Upon graduating, I had accumulated a total of $36,898 in student debt through the Ontario Student Assistance Program (OSAP). Now, 19 months later, I have paid off my entire student loan and am enthusiastically typing this blog post DEBT FREE! After announcing my excitement on Facebook and Twitter, the response of congratulations from friends and family was overwhelming. So, as my thank you for all the high-fives and digital congrats, I wanted to tell you all how I did it. It was not rocket science (no finance or accounting major here), so I hope you can pick up some tips for yourself. (And yes I had a very exciting student life and no I didn’t need to go to the UN… was that too cheeky?)

1. I knew what I was getting in to. I worked throughout high school to save money for University, but come the first year fees (moving out west, residence, tuition, etc) that money was pretty much gone. So I did my research about the types of loans I was eligible for and their repayment options right from the get go. I understood that I wouldn’t accumulate any interest on the loan I received until I graduated, but then it would accumulate fast. That was the part I wasn’t looking forward to, so I had to create a plan of attack on how I was going to have money after graduating.
2. I tracked my money down to the penny. This is probably where I saved the most money as it helped me live within my means. I started with a simple Excel spreadsheet that recorded my transactions through my accounts (Chequing, Savings, and VISA) as well as the money I had in my wallet. Below is a snapshot of what that looked like.
   Budget Category was used to define broad areas of spending (Food, Attractions, Transportation) where Type was used to define common areas of spending within a certain category (Food – Groceries, Eating Out; Attractions – Theatre/Movie, Bar Cover; Transportation – Car/Taxi, Air). I could then sort by category or type to see how much money was going in and out of my hands in each area. Then online banking added new functionality and banking software became affordable (aka free), so I moved onto more robust personal banking methods. I was using FinanceToGo in my senior years and now currently use Quicken Online. The key to tracking your spending (and income) is to be able to see how much you are spending on a monthly basis, so you can adjust accordingly for the next month.



3. I worked to ensure I wasn’t solely relying on my loan for income. I worked as a Residence Advisor, I coached newbie rowers in the now non-existent ‘Learn to Row’ program, I got jobs through the Work Study program, and even did a couple of those Pysch studies. They were willing to give me $20 if I answered 10 questions about my sleep patterns! How do you say no!?! I also made sure I spent my summers (and sometimes winter breaks) working so I was ready for that wave of new expenses each September. Essentially, while managing my expenses, I made sure I had some form(s) of income.
4. I bought some GICs with some money I set aside from my summer jobs. I’m no stock market guru, so I asked my bank for help. They said these were pretty easy investments to make, but they only earned me maybe $300 in total. Not a lot in comparison to my debt size, but it was $300 I didn’t have before which took minimal effort on my end to earn. Mo’ money either way.
5. I paid off my VISA bill completely every month. Freeing myself from student debt also meant managing my credit card “debt.” I made sure all my large payments (e.g. tuition) were either done through my debit card or through direct deposit. This also helped me track my money better as I could see the money being spent when the service/good was being provided.
6. I started my full-time job in April (cause I had no exams in my final year), so had a month’s worth of salary ready to be put directly towards my loan when I needed to start paying it in May. I realize this isn’t always the case for everyone, but ensuring you have employment post graduation is key.
7. When repaying my loan, I paid it off in large chunks. In May, I cashed out my GICs, withdrew my entire first pay cheque, and dipped into the savings I had been putting aside each year and immediately reduced my loan by about $3000. Furthermore, instead of paying the $330/month my plan told me to, I would pay about $500-1500 a month. On top of that, when I received money for birthdays, holidays or just friends reimbursing me for something, I put that money right into paying off my loan. (You can see where these personal banking tools come in handy eh). By paying my loan off in larger chucks, I was able to reduce the amount of interest I paid.
8. The shocker of this all is that I also gave a lot of money away. Instead of spending a lot of money on things, I decided to spend it on people and the organizations I support. I regularly donated to charities and invested money in doing things with my friends and family – the best investments in life. Someone once told me that “In order to get more love, give more love away. So if you want to get more money, give more money away.” And it stuck. The more room I made in my bank account, the more money it began to see. I don’t understand how it worked, but it worked for me.

By tracking my expenses, earning constant income, and making wise investments (both financially and socially), I am now proud to be debt free. As liberating as it is, I am looking ahead towards a Masters program so find myself back at square one – saving my pennies for my next round of learning.

Round 2 of student debt? Bring it on! … just not anytime in the immediate future. I’d like to enjoy this a little longer.

Pick of the post: John Mayer (ft Taylor Swift) – Half of My Heart

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1. Free Hug Anniversary
2. Dear Graduating Student Leaders,
3. The Highlights of 2009