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Record-level student debt contributing to Canada's debt crisis: report

The Canadian Federation of Students released a new report entitled "The Political Economy of Student Debt" on Wednesday.
The Canadian Federation of Students released a new report entitled "The Political Economy of Student Debt" on Wednesday.

Massive student debt is having major negative repercussions on Canada’s economy, according to a new report released by the Canadian Federation of Students (CFS) on Wednesday.

The document, entitled “The Political Economy of Student Debt,” reveals that government underfunding of post-secondary education is driving the household debt crisis in this country.

The report shows that student debt today is a significant proportion of Canadian families' household debt, which has reached 171 per cent of disposable income and exceeded the size of the Canadian economy at $1.6 trillion.

"Saddling students, graduates and their families with massive amounts of debt is slowing down the economy," national CFS chairman Bilan Arte said in a news release.

"Young people are being forced to delay life milestones and saving for their families' future in order to make payments on their student loans."

According to the report, a student who takes out a $30,000 loan today from the Canada Student Loans Program will pay another $10,318 in interest over 10 years.

Canadian Federation of Students report "The Political Economy of Student Debt"

Students from low-income families continue to be disproportionately affected and ultimately pay more for their education than those who have greater financial means.

As well, the results show a clear majority of Canada Student Loans recipients and users of the Repayment Assistance Program are women.

You can download the full report here.

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