By Warren S. Hersch
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.
|Student debt expectation||$26,297||$30,725||$13,180||$29,520||$28,296||$27,334||$34,886
|Student debt expectation||$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%
Originally published on LifeHealthPro.com