TORONTO, ONTARIO--(Marketwired - Aug 13, 2013) - According to the 2013 BMO Student Survey, Canadian students expect, on average, to graduate with $26,297 in debt and expect to pay it off in 6.4 years. Furthermore, the survey showed that students are relying less on their parents to finance their education.
According to the Canada Student Loan Program, most students take nearly 10 years to pay off their loans - with some taking the maximum 14.5 years.
| TOTAL | ATL | QC | ON | MB/SK | AB | BC | MEN | WOMEN | ||||||||||
| Student debt expectation | $ | 26,297 | $ | 30,725 | $ | 13,180 | $ | 29,520 | $ | 28,296 | $ | 27,334 | $ | 34,886 | $ | 22,465 | $ | 30,210 |
The annual survey, conducted by Pollara, also revealed:
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Compared to last year, students are relying less on the 'Bank of Mom and Dad' than in 2012 - down eight per cent (44 per cent versus 52 per cent)
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They are less likely to depend on their own savings (58 per cent versus 62 per cent) and more likely to rely on loans (55 per cent versus 49)
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Those in B.C. anticipate accumulating the most debt ($34,886) and students in Atlantic Canada expect to take the longest to pay down their loans (7.6 years)
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Women believe they will accumulate more debt than men ($30,210 versus $22,465) and predict it will take longer to pay it off (6.9 versus 5.9 years)
"It's prudent to think about your repayment plan before you graduate, as it can be easy to underestimate the amount of debt you will accumulate or how long it will take to pay it off," said Janet Peddigrew, Vice President, BMO Bank of Montreal. "Consider sitting down with a financial professional who can help assess your current debt situation, provide you with a clear understanding of how it affects your overall financial picture and help you start building a detailed plan for paying it off after graduation."
Feeling the Pinch
The survey ranked the top sources of stress among post-secondary students:
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Finances (28 per cent) continue to be the number one stressor, followed closely by achieving academic success (24 per cent) or finding a job after graduation (24 per cent)
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Students in B.C. say they are the most stressed about their financial situation, while students in Quebec are the least (36 per cent versus 15 per cent)
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Female students are more likely to report being stressed than their male counterparts in all of the top stress categories
| TOTAL | ||||||||||||||||||||
| Sources of stress | 2013 | 2012 | ATL | QC | ON | MB/SK | AB | BC | MEN | WOMEN | ||||||||||
| Paying for school | 28 | % | 27 | % | 32 | % | 15 | % | 34 | % | 20 | % | 28 | % | 36 | % | 21 | % | 35 | % |
| Achieving academic success | 24 | % | 22 | % | 18 | % | 12 | % | 27 | % | 28 | % | 32 | % | 28 | % | 18 | % | 29 | % |
| Finding a job after graduation | 24 | % | 20 | % | 28 | % | 12 | % | 34 | % | 12 | % | 28 | % | 19 | % | 20 | % | 28 | % |
BMO offers the following tips to help make student life more affordable:
Take advantage of "student status": Seek out discounts and promotions available to students. For instance, the no-fee BMO SPC credit card provides discounts at hundreds of retailers and restaurants across Canada and offers a choice of CashBack or AIR MILES reward miles.