Posthaste: Canadian students giving up necessities, goals to pursue post-secondary education

financialpost.com:

Canadian students are giving up their short-term necessities and long-term goals to pursue post-secondary education in the current economic environment, according to new research by Embark Student Corp., an education savings and planning company.

The study, which interviewed 1,001 post-secondary students across Canada, found that 79 per cent of students believe the amount of debt they take on during school can be “debilitating.”

Half of those polled have taken on debt to pay for school. They believe, on average, that they would graduate with $26,773 of debt and take nearly four years to pay it off.

Three-quarters of students find it “very hard” to afford a post-secondary education, with 77 per cent struggling to pay for everything they need and 60 per cent cutting out necessities to make ends meet. Thirty per cent have even considered dropping out of school because of money.

“Many Canadians may not realize that the cost of education often outpaces the cost of living,” Embark chief executive Andrew Lo said in a press release. “Particularly with today’s economic realities, saving enough money can be a daunting task.”

Overall, 89 per cent of students believe that getting a post-secondary education is expensive and 53 per cent feel that graduating with debt is part of the student experience.

But the financial impact of student debt could have a lasting impact on their lives after graduation. Nearly half are worried the debt will hinder their future goals and 57 per cent feel it will make it harder to start their lives and become financially independent from their parents.

Almost two-thirds of students experience anxiety when looking at their bank accounts and as a result, 54 per cent avoid thinking about debt and money