Do you feel burdened by student debt? You’re certainly not alone! Let’s dive into the average student debt in Canada and what you can do about it.
Average Student Debt in Canada
The average student debt in Canada is \$28,000, according to a recent report by the Canadian Federation of Students. That’s a substantial sum of money! But don’t worry; in this article, we’ll go over the basics of student debt and offer some advice on how to manage it.
Let us begin by defining student debt and how it accumulates. When students borrow money to pay for school, they get student debt, which they have to pay back with interest. Tuition, textbooks, living expenses, and other associated costs can all be included. Students may find themselves taking out more loans as they progress through their academic careers.
The rising cost of tuition is one of the main reasons why so many students end up with a lot of debt. Over the last decade, tuition in Canada has risen by an average of 3.3% per year. With the cost of living on the rise, it’s no surprise that students are struggling to make ends meet. It’s important to remember, though, that there are ways to help students deal with their debt.
How Students can get out of Debt: 5 Ways
- Develop and adhere to a budget. This entails keeping track of your income and expenses and devising a strategy for allocating your funds accordingly. You can avoid overspending and stay on top of your debt by being mindful of your spending habits.
- Look into financial assistance. Scholarships, grants, and bursaries are frequently available to students who demonstrate financial need or academic merit. You can also look into government programmes like the Canada Student Loans Program, which provides financial aid to qualified students.
- If you are already burdened by student debt, there are still options to help you manage it. Consolidating your loans, which means combining all of your debts into one payment plan, is one option. This can assist you in lowering your interest rates and simplifying the repayment process.
- Consult with a credit counsellor. They can assist you in developing a debt repayment strategy, negotiating with lenders on your behalf, and providing you with debt relief services and valuable financial advice.
- It’s also important to remember that paying off student debt takes time. It may take years, if not decades, to pay off your loans completely. However, by taking proactive debt management steps, you can ensure that you stay on track and avoid financial hardship.
How Students can manage their debt?
So, what are some enjoyable ways to manage student debt? One option is to start a side business. Having a second source of income, whether it’s selling homemade crafts or offering freelance services, can help you pay off your debt faster.
Another entertaining idea is to throw a “debt-free” party with your friends. Invite your friends to a potluck dinner and encourage them to bring their own tips and tricks for managing debt. Make it a contest to see who can come up with the most creative debt-reduction strategy!
Undergraduate students in Canada owe an average of $28,000.
Equifax estimates that the average debt for 18-25 years old in Canada is around \$8,200.
In Canada, the average student loan debt for a four-year program is around \$28,000. Remember that this varies depending on the program, school, and financial aid.
The average Canadian takes about 9 years to do so.