With the end of August drawing near, the beginning of a new school season will soon be upon us. For many students who are heading back to the classroom, it is an exciting time of the year. For many other students, the first day of school is the most dreaded date on the calendar. For all students, however, going back to school means increased debt.
At least this is the case, according to a QMI Agency report released earlier today on the website of The Toronto Sun. The report details a new poll conducted by TD Canada Trust which found that most Canadian students believe that they will be in debt when they graduate. Most are unsure of how they will make enough money to pay it off.
As QMI reveals, the “Education and Finances Survey found 69% of students expect to graduate with debt, with 17% saying they will likely owe in excess of $25,000. Twenty-one per cent of students say they are continually worried about how to pay for expenses and 36% are anxious, but say they should be able to manage.”
In addition, the poll also concluded that just 27% of students can count on getting money from a registered education savings plan. 44% of those polled say that they will require student loans or lines of credit to make payments towards tuition. Needless to say, paying for school is neither an easy nor stress-free task.
Said Carrie Russell, the senior vice-president of TD Canada Trust: “Amassing enough money for post-secondary education can be a challenge, but it is much more economical to save ahead than to borrow at the last minute.” Of course, not everyone is an expert at saving money, especially students who have a variety of expenses to consider.
The TD poll also found that about 60% of students believe that their parents will cover at least 25% of their post-graduate expenses. Meanwhile, just 10% of those who were polled said that they will get 75% or more covered by their folks. TD advises that parents assist their children with saving money as early as possible.
As QMI explains: “The TD Canada Trust Education and Finances Survey is a national survey of 1,001 adults aged 18-24 who are currently enrolled, plan to be enrolled or were previously enrolled in the past two years in post-secondary education. Data was collected by Environics Research between July 13-23.”
The QMI article also notes that the cost of an undergraduate degree is estimated at about $80,000. Evidently, saving for school tuition is something that should not be taken lightly. It’s too bad there is no such thing as a student cash advance…not that we know of, anyway!