Student debt is a serious issue in this country. There is a total disconnect between the student loan system and the student. Students don’t think about the consequences of borrowing money. They only know that a student loan (if they qualify) will pay for their education.
The Canadian Federation of Students estimates student debt at $27,000; however many students don’t realize the consequences of owing so much money or how difficult paying off their student loans would be. They live in a fantasy world where they will graduate from university, get a good job, pay off their loans, get married, buy a house, have a family…. But, the reality is very different.
- In January 2014, the youth unemployment rate in the country was 13.9%, according to Statistics Canada, leaving many graduates struggling to find even part time work to make ends meet.
- Over the past few years about 14% of people with federal student loans have defaulted within three years of leaving school, according to the CIBC Centre for Human Capital and Productivity at Western University.
- In 2010-11, 165,000 borrowers entered the CSLP’s repayment assistance program.
- Between 2012 and 2013, more than 400,000 students borrowed money to help pay for more schooling, claims the Canadian Federation of Students.
With this kind of uncertain future facing them, how will our kids achieve their goals in life with student loans strangling them? When will they be able to get married, buy a house and have children of their own? Their student loans will delay their dreams.
With early planning, this type of situation could be avoided. Student loans are not the only way to pay for education. Insurance for Children has created Child Plan Education Achiever so that parents can help their children follow their dreams and achieve their goals in life. Contact us today and find out how our Child Plan Education Achiever Can be used to pay for any education program throughout the world; not only those approved by the government of Canada. And it can be used even if your child doesn’t pursue post secondary education – for the purchase of a home, start their own business, as an additional source of income when they have their own family, or even for retirement.