These days, getting an undergraduate degree is as basic as getting a high school diploma. However, paying for post-secondary education is a whole other issue. It is expected that in Canada, tuition fees will rise 2.5 percent above inflation each year for the next 25 years. This means that in 2035 tuition will be sitting close to $20,000. With student debt currently averaging just above $25,000 for Canadians, it is clear it is only going to get worse before it gets better.
My goal is to reach high-school students before they enter university so that they can take the necessary (and often unknown) steps to avoid this kind of debt completely. In the meantime, I know there are many current university students who are already sitting in huge debt. I currently work with many students who already have $50,000+ in student loan debt. I even work with some adults in their 30’s and 40’s who are still working to pay down student debt.
Why is student debt a major issue for graduates and for the Canadian economy?
How is the government trying to help?
Although the government has some solutions available for student debt in Canada, student debt still sits at over $15 Billion.
What can graduates do to get out of such debt?
The student debt problem isn’t going away anytime soon in Canada. In fact, it is only going to get worse. Debt will continue to rise as tuition and housing costs increase and we will continue to see the negative impact on the economy. That isn't to stay that student loans are always a bad thing. If students take out loans and use them in a smart and responsible way, there can be many benefits to having a loan.
This is why it is critical that high-school students are educated on their financial options before entering post-secondary. Post-secondary student’s should create a carefully designed budget and access all scholarship and awards in order to avoid having loans run your life!