WATCH ABOVE: Many post-secondary students turn to loans to help them get through, and as Vinesh Pratap reports, the debt is growing higher than ever.
EDMONTON – The Class of 2015 has celebrated its last day of post-secondary classes, but many students are far from finished paying for their education.
Accountant Zaki Alam believes this year’s class will be the most indebted students ever to graduate.
One study suggests Canadian students will carry more than $28,000 in debt, which is $7,000 more than the average Canadian’s consumer debt.
The Canadian Federation of Students reported over 200,000 people were unable to make payments on their student loans last year. That’s a 25 per cent increase from three years ago.
According to Alam, that debt is causing many people to delay major milestones, such as buying a house and starting a family.
“It’s going to be a fact of life now.”
Alam says many students aren’t equipped to handle the high debt.
“There needs to be more financial literacy… and financial wellness about individuals as they go through school.”
His advice for students is to look at their expenses, and examine what’s necessary versus luxury.
“The main thing is to try and pay down those debts with highest interest first.”
University of Alberta student James Shipley took out student loans for his first year, but says he doesn’t plan on doing it again. Instead, he plans on using his RESPs.
“If I get through med (school), then I’m good with my career prospects,” said Shipley. “But if I don’t make it in, maybe not so much.”
Things don’t look any easier for future generations, with the latest federal statistics showing tuition is set to increase by two-and-a-half per cent above inflation.
Shipley’s advice to fellow students?
“Take a year off and make some money, so you’re not completely under.”
With files from Vinesh Pratap, Global News.
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