Student loan debt increasingly overwhelming: report

15 years ago I graduated with $13,500 in debt. It has since been paid off. A house has been purchased. What's that old saying? Patience is a virtue. You will have everything you want in time. Assuming of course you put some effort in.

Many people in Canada say 'let them drown in their debt' they chose to be born in the wrong generation they can go without owning a home, saving for retirement or getting married. Their parents were smart, chose to be born sooner and thus have the highly paid education or Gov't jobs that are putting this generation in such crippling debt. Some graduates leave take their futures enriching other countries, some lose all ambition overwhelmed by their debt and a rare few are able to flourish creating companies like RIM. As a country we are choosing poorly how our future will unfold.

To get a good education and live away from school is super expensive.
My tuition right now + meals + lodging + transportation for a year is about $25,000 x that by 4 years .... I don't have that kind of money saved up, neither do my parents.
Maybe the solution should be to lower education costs? How could i be expected to save that kind of money out of high school?

I am a mature student who has been trying to complete my degree part time over the last few years in order to avoid student loan debt. This year I have decided that the benefits of getting through my degree in a more timely fashion outweigh the risk of the debt. I will say that it is stressful though, I have no one to help pay for my schooling and am going to be relying almost completely on student loans to pay my way through school (I will be working part time to help). The thought of the amount of debt that will be waiting for me when I complete my degree is overwhelming!

Whether to incur this much debt is a personal decision. As CL stated the debt scares he/she but says the benefits outweight the risk. Debt is scary but the reality is you have to weight the risks and benefits. In this day and age when a car can cost $30,000.00 it does not seem to me an average of $21,000.00 is not an unreasonable investment in your own future. It may delay the gratification of home ownership, marriage or childern but isnt that part of the risk? For education to be free or cheaper is downloading more onto an already tapped out public. The arguement is they will make money and pay taxes. So does Joe Public, with out the wages of a more highly educated person. They will eventually paytaxes but Tell that to the person struggling to make ends meet who had no opportunity to pursue higher education (and yes many are out there circumstances/lack of space.lack of marks to qualify....not everyone can do this) Many proffessionals look down there noses at the people with less money than them. ( dont say it is not so....you have seen it over and over if you read these boards) and I can see why they are not willing to struggle more to benefit another as the benefit for the person paying is not apprarent.
Maybe people should not be going to school straight out of high school. Maybe some life experience would allow them to bank a little cash and have a better idea of what thier education, if they choose to go on, will net them in the future. There is no hard and fast rule that says you have to go straight out of high school. If you choose to....deal with the debt. No one helps pay my bills.

The gov't has the power to lower the education cost. This is the first thing that should be done. 2ndlly, set up a lower interest rate for all the student loans, let's give these kids a break, specially those ones who are really trying hard to get an education. Many of these kids don't have rich parents to pay off the loans. I can relate to that, I am one of those parents that r working 2 jobs just to give them a helping hand.

I am a 30 year old professional. I went from Highschool straight to university, with a small 1500$ scholarship, 1000$ from a bond from my parents and 1600$ cash from the summer. I worked 30 hr a week on top of full semesters at an industrial jobs (construction) that paid about $9-10/hr. i managed to make it through with only $12K debt and a passing GPA of 2.72. But i met my wife there (43K debt), and we got married (6K debt) and we proceeded to pay off all those expenses living in the basement of a 4 plex, with a 1500$ 1989 honda, professional jobs and never taking a vacation. It took 8 years and a move to southern saskatchewan to actually afford to pay off teh debt to a point we can buy a house, a reliable car and consider having a family (married for 7 years now-FYI).
Youngin's reading this: go get a trade you will be making money while you get trained and be farther ahead than someone like me until you both hit 40, unless you invest well--then it will be 50. Sty away from the culture of excess if you work in the oil patch.
To the Boomers: Your education, housing, and wage-debt ratios, where all much cheaper. you don't see it becuase you have slack in your pockets-- when you are short by 100 bucks a month with already meger living conditions, no phone, no tv, short on gas and eating no name food--you tell me if the land lorrd cares you are short.
I have been employed sicne I was 16, I put myself through school, I was driven and successful in pursuing a professional career and i have lived like a hermit and moved to the lowest cost of living area in western Canada... and at 30 I am finally able to consider the life my parents had at 30 with no education and 4 kids...

Get a trade-- debt interest is gonig up, by a house to off set inflation, get paid to learn and still pay the same taxes at the guy who spent a house mortgage on learning how to run your hospitals, governments, services and businesses. Its the smarter move

I am a student nearly done a professional degree and I've worked like a dog to get myself as far as I have, waiting tables through the year and working long, hard labour hours in the summer. I've still taken student loans, and will finish owing around $25K, but I don't necessarily this is excessive and I certainly don't think throwing public money alone at this problem is the answer. As noted above, this is still less than a new car and will certainly be a better investment in the long run. One thing I believe not discussed enough is how much public money is wasted subsidizing useless general degrees that will never contribute to our economy. How many students go straight to arts or science from high school, just to say they're in university, until they get closer to graduation and find out that won't help them in the job market? I believe the money would be better used to encourage students to take more challenging degrees, even if this means raising entrance standards so only those truly dedicated can take advantage of government support.

EVERY STUDENTS SHOULD GET THE CHANCE TO FINISH THEIR COLLEGE OR UNIVERSITY...BUT HOW WITH THE TUITION SO HIGH. TEENAGERS ARE SOMETIMES SELLING THEIR BODIES JUST TO PAY THEIR TUITION. THIS IS REDICULOUS GOVERNMENT SHOULD LOWER THE TUITION FEE.

Student loans may be the best investment you make in your life, because a college degree increases your earnings potential by a large amount. However, walking out of school into an uncertain marketplace with a load of debt is certainly frightening. However, there are also a lot of things working in your favor: a low interest rate, tax-deductible interest, and the fact that you’re now holding a college degree are all big positives. If you don’t have a degree, but you think you’re capable of earning one, student loans are well worth it. As for consolidation, you should do this when the interest rates are low and you can lock in a rate; otherwise, it’s not worth it.

When my son phoned me late at night in his 3rd year at university, I could tell that he was extremely stressed. His concern was his student loans that seemed to be overwhelming. It was affecting his sleep, and consequently his ability to study. He was contemplating quitting and finding a job somewhere. My advice to him was to hang in there, and complete his studies. There was at that time a very large outcry about the high cost of a university education. Speaking as a father who was educated in a one room denominational school house with K - 8, in Newfoundland, I told him that if he thinks that getting an education is expensive, try living life without one. It doesn't matter how much it costs for an education, since you will still spend the same amount of money on other things, such as a 40,000.00 truck or a house, or a boat, or a.....whatever. You will still visit a bank for a loan, and an education will enable you to boost your earning potential for the things that matter in life. My main message to my son was that education gives you a higher perspective of life and living, and helps make you a better person. I told him that ignorance is also extremely expensive, and his decision would permanently alter his whole life. He is now a teacher, and is married to a teacher. They have a good life. I am retired now, and still scraping by on a small pension. He made the right decision......

I agree with Zwolf. There is a lot of hype given to students about what they can expect as far as a standard of living after graduating. They type of education you decide to invest in is extremley important. Even with the drgree some careers do not pay good money. Students need to research and find this out before they commit and accumulate large debts. The thing I have had mentioned to me by students is that there is a lot in their course loads that have no relation to what they are studying. I had one tell me they could have cut a year off their degree by getting rid of the "general courses" they were required to take. Maybe this could be part of the answer. If you could cut a year off that would mean 1/4 of the cost gone. It would also mean you could educate more people with the same amount of resources. Think this would help or was this student out to lunch. I also believe that anyone university educated should not be allowed to leave the country and practice their craft somewhere else without paying their loans in full. If the another country wants to take our Dr's, nurses and lawyers then they can pay and deduct the monies from thier new employee. That money could be put back into education.

The biggest question is, why does the government charge interest on student loans?

I know my daughter powered about 21,000 and is having a real problem with her debt as very little ends up on the principal is a real downer that is sure. What someone did twenty years ago dosen't apply now as the cost of living and borrowing is so high. While jobs to help payback are cheap, cheap, cheap leaving many former students up a creek.

Derek: see Christian comments. We as a society need to get over the word free. Health care is not free. Education is not free. Even the free TV from the brick has its costs bult into other things. Minimal interest goes a long way to ensuring payment of student debt is not always put on the back burner . Money is always tight and I know I would pay the people charging me interest first to avoid the debt growing and not the ones who are not charging me anything.

As a post secondary graduate who plans on having a family, I would recommend to all of you struggling with student debt but planning on having children look into getting into the government education plans. Much like an RRsp but for your childrens education, the government will match some of the money you put away. It will help alieviate the stress 20 years down the road. Instead of complaining about lowering tuition (which will probably never happen unless your born in quebec and stay there for post secondary) why not take a proactive approach. And to all those post secondary students that can't handle working while your in school (and you know there are alot of you out there) grow up! Make some money instead of shooting yourselves in the foot (dig up stupid). And you if don't like the way Canada works (taxes and all) take the next boat out, or apply to trade school instead of wasting your money on philsophy courses.

Hey everyone, I hear a lot of complaining about costs here in Canada, when we are actually extremely cheap for education. Young guys have no problem buying a $20,000 truck and paying it off over 5 years, so why is a $20,000 debt load so excessive? Look at what they pay for education in the states! It's a small price to pay for later when you're making the bigger bucks. And if you're going into the fine arts program and don't think you'll make a lot of money later, perhaps you should rethink your plan. Just because you enjoy doing something such as painting doesn't mean that you should get to do it for a way lower cost if the pay isn't as good later. I'm sure that 99% of people around the world do jobs that they don't like for the sake of putting food on the table for their families, so why should you feel entitled to getting an extremely low tuition in order to do your hobby?

Wages are lower in some jobs because the demand for that kind of talent isn't very high. Think about your career choice you make before you go to school for it and find out if your investment will pay off. I would prefer to be a singer but I chose engineering and am now stuck in front of a desk. We all have it very good if you live in Canada, so no complaints if you have to get a job or education you don't like as much, or that involves getting a little dirt under your fingernails.

Besides, if the government paid for our education, we would simply have to pay it back in taxes anyway, so don't be fooled into thinking that you won't pay for it - you definitely will somehow.

The problem is that interest rates for student loans is more than what most pay on credit cards! it's ridiculous, especially when society is the one tellin' us we need this freakin education to have a future! I didn't have to pay for high school cuz i supposededly needed to be educated, it's crap!And people not from from this country have an easier time gettin' help to help finance their schooling and that's even more dispicable!

Graduated from University 8 years ago -- 28,000 in student loans -- had to defer payments for 2 years while getting established. Was as smart and practical as I could have been, but $466/mo -- just can't do it anymore. I have a reasonable income, but with rent, car, basic living expenses -- I don't do the cell phone thing, don't have cable, basic land line... I need to save and have a retirement. I have decided to use my 2 Visa and 1 Master Card to transfer my Student Loan Balances to and file bankruptcy since the government does not allow you to bankrupt out of student debt. It’s on my record for 10 years, but credit will begin to recover w/in the first year.

There you go Had enough -- Wish i had heard of that route 8 years ago, it would ahve still taken my a decade to have a house and a family, but i would have at least been able to save for retirement!