Student Loans – 4 Pillars Case Study

The average Canadian graduate’s post-secondary school with $25,000-$30,000 in student debt. That’s already a significant debt load to start your adult life with. This level of debt is above the average Canadian debt load. More and more we are seeing clients still struggling to tackle this debt later into life. In this case study, you’ll see how a 4 Pillars client was able to use a consumer proposal to reduce their debt from $54,000, which included $34,000 in student loans, to a mere $16,200 with an affordable monthly payment.


Student Loans - 4 Pillars Case Study 1

When the client contacted 4 Pillars, they had a total of $54,000 in consumer debt. The largest share of this was a student loan of $34,000. The rest was a combination of several credit cards with very high-interest rates. The client had been making payments of $200 per month for 8 years towards the student loans but was still years away from paying it off. Meanwhile, the balance on their credit cards kept growing. Making the minimum payments of approximately $100 a month on each card was doing nothing to reduce the principal balance.

As the client had a long-term goal of purchasing a home in the future, we knew they would be better to avoid the long-lasting credit impacts that bankruptcy brings. Providing a plan for credit rebuilding would also be critical.


Debt can be a symptom of any number of problems and life circumstances. However, it is important to understand that YOU ARE NOT YOUR DEBT.

At 4 Pillars Halifax, we'd love to discuss how we can help you become debt free.

Our Plan

When meeting with the client to get a clear idea of their situation, we reviewed all available options and were able to come up with a plan for reducing their debt. Together, we determined their best option would likely be a consumer proposal. A consumer proposal would serve to reduce their debt but has less severe credit impacts than a bankruptcy. After some time spent collecting documents, verifying information, and helping them structure a proposal in their best interests, we connected them with a Licensed Insolvency Trustee, to administer the proposal. We walked the client through the whole process start-to-finish to make sure they were always clear about what their options were and what they could expect.


Fortunately, we were able to assist the client in structuring a proposal that was accepted by their creditors. This left them paying back $16,200 over a period of 60 months with a monthly payment of $270. This was much more agreeable than paying back $54,000 with no end in sight. This left them more room in their monthly budget to set aside an emergency fund, save for a down payment and they no longer had to use credit cards for unplanned expenses. Because they were able to avoid bankruptcy, they could begin looking at purchasing a home two years after paying off their proposal.

While participating in the 4 Pillars credit rebuilding process, they were able to ensure all errors on their credit report were corrected, they got the education they needed on how the credit system works and obtained carefully selected credit rebuilding products to begin repairing their damaged credit. They also had the opportunity to learn money management skills that would help guard against future insolvencies.


It can be hard to believe that education can be a poor investment, but student loans can become burdens that weigh you down for decades. If you’re struggling with student loans or any other kind of debt, reach out to Halifax 4 Pillars. A consultation is free, and we’d be happy to take a look at your options with you.

Our process first starts with a free consultation to understand your options. To schedule one, please fill out the form below and someone will be in touch as soon as possible.

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Debt Relief SpecialistThis article was written by David Moffatt. A Senior Debt Relief Specialist with 4 Pillars Halifax. 4 Pillars has assisted in creating plans that have helped save Canadians over $1 Billion dollars of consumer and tax debt since 2002. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring plans can help you cut your debt by up to 80% with less than 3% of our clients ever getting into deep financial difficulties again. If you are struggling with debt please reach out. It hurts to continue to suffer financially.

4 Pillars Halifax services Halifax, Dartmouth, Bedford, Sackville and the entirety of HRM.