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Students Graduating Deeper in Debt

A new poll from the Bank of Montreal reports that a large majority of students are graduating with $20,000 or more in debt. These days, students are graduating from universities with a lot more than just a diploma.   According to a new survey released Friday from the Bank of Montreal, around 58 per cent of grads are leaving school with $20,000 in debt, and another 21 per cent expect to carry $40,000 or more as they leave university.  

By Lindsey Peacock /

Graduate debts | BCBusiness
Burgeoning debt loads have become a major stressor for recent university grads, especially as tuition rates continue to rise.

A new poll from the Bank of Montreal reports that a large majority of students are graduating with $20,000 or more in debt.

These days, students are graduating from universities with a lot more than just a diploma.
 
According to a new survey released Friday from the Bank of Montreal, around 58 per cent of grads are leaving school with $20,000 in debt, and another 21 per cent expect to carry $40,000 or more as they leave university.
 
The staggering debt loads of today’s grads obviously have a serious effect on their career choices. The same poll showed that 27 per cent of respondents were stressed about paying for school. That ever-increasing financial burden can deter graduates from pursuing more innovative, creative career paths. Instead of taking an entrepreneurial path and opening a new business, debt-ridden students are more likely to take on positions that don’t interest them just to make their payments on time.
 
While 44 per cent of those surveyed believe they’ll pay off their loans within five years after graduating, the Canadian Federation of Students says the actual timeline is more like 10 years to repay those pricey loans.
 
The poll obviously highlights the rapidly rising cost of higher education, and the burgeoning debt load on students begs the question: Is the benefit worth the cost?