Graduates struggle with record high levels of student debt

OTTAWA, Sept. 22 /CNW/ - Canada's record high levels of student debt discourage students from starting a family or buying a home, and distort career choice to the public's detriment, according to a report released today by the Canadian Council on Learning.

"Record high tuition fees have caused student debt to surpass $15 billion," said David Molenhuis, National Chairperson of the Canadian Federation of Students. "Soaring levels of student debt threaten to undermine Canada's economy and social equality."

Both the number of students graduating with debt and the level of individual debt have grown substantially over the past two decades, according to the report entitled Tallying the Costs of Post-secondary Education: The Challenge of Managing Student Debt and Loan Repayment in Canada. The report finds that student debt has significant and often harsh effects on graduates. Of those still repaying their debt two years after graduation, nearly one-third report suffering hardships as a result.

Average Canadian tuition fees surpassed $5,000 for the first time this year, increasing by 4% for undergraduate, and 6.6% for graduate students. This fall the Ministry of Human Resources and Skills Development expects the total value of outstanding federal student loans to surpass the $15 billion mark.

"Students should not have to bury themselves in debt just to get an education," added Molenhuis. "Reducing tuition fees and increasing non-repayable grants will ensure that education is a right for all Canadians."

The Canadian Federation of Students is Canada's largest student organisation, uniting more that one-half million students in all ten provinces. The Canadian Federation of Students and its predecessor organisations have represented students in Canada since 1927. 

For further information:

David Molenhuis, National Chairperson, 613-232-7394