About half of college and university students in Canada (51%) have to borrow to pay for their educations, says a new CIBC poll.
It adds the majority (73%) expect to graduate with debt loads of more than $10,000. And though more than half (66%) are optimistic they’ll be able to repay their debts within five years of graduating, the remaining 34% concede it may take up to 10 years.
Since many students have to borrow to cover school costs, “it’s important for them to take the time to review their finances and build a manageable debt repayment plan,” says Christina Kramer, executive vice president of Retail and Business Banking at CIBC.
“While their [repayment] intentions are admirable, they may not be realistic,” she notes. “As students graduate and start their careers, they will likely be moving out on their own, [as well as] saving for cars or down payments on homes and even starting families.”
What’s more, most students who have summer jobs (73%) don’t make enough money to pay for their college or university costs, finds a separate CIBC poll released earlier this month. Since most only earn between $1,001 and $5,000 (53%), hey have to work during the school year to cover expenses.
Advisors can offer help to clients’ kids by giving budgeting and spending tips.
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