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Canadian students relying less on family to finance higher ed

According to the Canada Student Loan Program, most students take nearly 10 years to pay off their loans, with some taking the maximum 14.5 years.
According to the Canada Student Loan Program, most students take nearly 10 years to pay off their loans, with some taking the maximum 14.5 years.

Canadian students expect, on average, to graduate with $26,297 in debt and expect to pay it off in 6.4 years, a new report from BMO Financial Group shows.

The “2013 BMO Student Survey” conducted by Pollara, and based on online interviews with 602 students enrolled at a post-secondary institution this fall shows that students are relying less on their parents to finance higher education.

According to the Canada Student Loan Program, most students take nearly 10 years to pay off their loans, with some taking the maximum 14.5 years.

 

Total

ATL

QC

ON

MB/SK

AB

BC

MEM

WOMEN

Student debt expectation

$26,297

$30,725

$13,180

$29,520

$28,296

$27,334

$34,886

$22,465

$30,210

Those in British Columbia anticipate accumulating the most debt ($34,886); and students in Atlantic Canada expect to take the longest to pay down their loans (7.6 years). They are less likely to depend on their own savings (58 percent versus 62 percent) and more likely to rely on loans (55 percent versus 49). Compared to last year, students are relying less on the 'Bank of Mom and Dad' than in 2012 — down eight percent (44 percent versus 52 percent). The annual survey also reveals:

  • Women believe they will accumulate more debt than men ($30,210 versus $22,465) and predict it will take longer to pay it off (6.9 versus 5.9 years)

The survey also ranks the top sources of stress among post-secondary students:

  • Finances (28 percent) continue to be the number one stressor, followed closely by achieving academic success (24 percent) or finding a job after graduation (24 percent)
  • Students in B.C. say they are the most stressed about their financial situation, while students in Quebec are the least (36 percent versus 15 percent)
  • Female students are more likely to report being stressed than their male counterparts in all of the top stress categories.

Source of stress

Total 2013

Total 2012

ATL

QC

ON

MB/SK

AB

BC

MEN

WOMEN

Paying for school

28%

27%

32%

15%

34%

20%

28%

36%

21%

35%

Achieving academic success

24%

22%

18%

12%

27%

28%

32%

28%

18%

29%

Finding a job after graduation

24%

20%

28%

12%

34%

12%

28%

19%

20%

28%

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