Students underestimate how much they will owe at graduation - Macleans.ca
 

Students underestimate how much they will owe at graduation

Two-thirds think they’ll pay off debt in five years


 

Nearly half of Canadian students say they will have either have no debt or owe less than $10,000 upon graduation, according to a new study from BMO Financial Group. In fact, the average owed by all students is $18,800, according to Statistics Canada. On top of that, nearly two-thirds  (63 per cent) think they will be able to pay off their student debt within five years of graduation. The default repayment period for government loans is nine-and-a-half years. The study included 625 college and university students and was conducted by Leger Marketing.


 

Students underestimate how much they will owe at graduation

  1. It is certainly mathematically possible for half of students to owe nothing or less than $10K and still have an $18K average. Your first sentence makes it sound like it’s impossible.