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As students in Canada’s post-secondary institutions settle into their new school year they do so under a cloud of debt. Statistics show that too many students are incurring record-high debt-loads that could jeopardize their future economic well-being. In 2009, the average debt for university graduates was $26,680, while the average for college graduates was $13,600; more than double the debt of the average graduate in 1990.
This rise in debt-loads coincides with recent news that the Canada’s Student Loans Program (CSLP) had for the first time reached its maximum level of $15 billion, requiring a further allocation of funds. CCL’s latest release in the Challenges in Canadian Post-secondary Education monograph series tackles this timely issue head on.
Monograph 3: Tallying the Costs of Post-secondary Education: the Challenge of Managing Student Debt and Loan Repayment in Canada
Background
As a starting point for a national dialogue, CCL published three annual reports on the state of post-secondary education in Canada over the last four years. These reports provided an overview of the Canadian PSE landscape while highlighting various issues common among education jurisdictions and institutions.
“Tallying the Costs of Post-secondary Education: the Challenge of Managing Student Debt and Loan Repayment in Canada” delves into the current state of the CSLP and examines the long-term impact it is having on college and university students after they graduate.
The paper also examines the practicality of the current CSLP and explores student loan schemes around the world and asks if there is something we can learn from them.
The monograph is organized into five parts:
Part 1: Background This section provides background context about student financial assistance and the various modes and ways it is offered across in Canada. It also explores the complexity of the CSLP system and the effect this may have on students, specifically those from low-income backgrounds. Part 2: Current Trends in Student Debt and Repayment This section reviews issues of student debt loads and repayment in Canada, drawing from research studies and anecdotal accounts. It explores rising debt-loads, rates of default and the hardship that graduates are having in repayment. Part 3: Different Program Approaches to Student Debt Repayment This section offers an overview of the most prevalent types of repayment systems (mortgage- style and income-contingent) and includes examinations of international examples, including Australia and the United States. Part 4: Repayment and the Canadian Student Loans Program—Recent Changes This section provides an in-depth look at repayment in the context of the CSLP, including recent changes and provincial variations. Part 5: Conclusions and Next Steps This section offers a critical review of the issues discussed in the monograph and recommends further steps that could be taken to ensure manageable student-debt repayment in Canada.
This section provides background context about student financial assistance and the various modes and ways it is offered across in Canada. It also explores the complexity of the CSLP system and the effect this may have on students, specifically those from low-income backgrounds.
This section reviews issues of student debt loads and repayment in Canada, drawing from research studies and anecdotal accounts. It explores rising debt-loads, rates of default and the hardship that graduates are having in repayment.
This section offers an overview of the most prevalent types of repayment systems (mortgage- style and income-contingent) and includes examinations of international examples, including Australia and the United States.
This section provides an in-depth look at repayment in the context of the CSLP, including recent changes and provincial variations.
This section offers a critical review of the issues discussed in the monograph and recommends further steps that could be taken to ensure manageable student-debt repayment in Canada.
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