Canadian Council on Learning | Conseil Canadien sur l'Apprentissage

Question Scans

Question 9: At what point(s) do debt loads become a deterrent to the pursuit of post-secondary education?

Overview

The purpose of this question scan was to determine what levels of student debt are acceptable to different demographic groups, and at what point debt becomes a deterrent to the pursuit of post-secondary education.

Searches applying a broad range of applicable terms to four major databases initially yielded 199 relevant documents. Subsequent examination of article abstracts reduced this number to 118. A search of government and professional/sectoral organization websites yielded an additional 16 articles.

Most of the literature from Canada, the U.S. and elsewhere notes that the last two decades have seen dramatic rises in tuition, a corresponding expansion of loan programs, and a shift of the burden of payment for post-secondary education from “social resources to private resources” (Mortensen, 1994). These circumstances have resulted in increased borrowing and concerns about the impact of debt on students and society.

The literature does not appear to define conclusively what levels of student debt are acceptable and at which points they become deterrents. Different demographic groups seem to have different perceptions of debt and the value of post-secondary education. As a result, some families may be more debt-averse than necessary, while others may assume high debt levels disproportionate to their post-graduation income.

The literature does appear to provide valuable insight as to why debt levels have skyrocketed, and how students may be helped to identify debt levels appropriate to the value of their post-secondary education.

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