G&M article on student debt

http://www.theglobeandmail.com/globe-investor/personal-finance/household-finances/staggering-debt-lessons-for-young-and-old/article2109256/

Between 1995 and 2005, the proportion of graduating students in debt increased from 49 per cent to 57 per cent, a 2010 Statistics Canada report said. Undergraduate tuition fees rose by an average of almost 10 per cent a year between 1990 and 1999. The rate of increase has since slowed to 5.3 per cent.

D - yup, and I started university at that 1990 mark. They got rid of grants then too.
Note that "only" 5.3% is still way above the inflation rate, or the rate of wage increase. The law of 72 says that'll still double tuition in c. 15 years.


According to Statistics Canada, the average debt for student loans increased from $15,200 to $18,800. But after adjusting for inflation, debt has not increased at all, said Craig Alexander, chief economist at TD Canada.

“I found that really surprising, given how tuition costs have increased over the years,” Mr. Alexander said.

“I think the only way to reconcile that is either students are contributing more to paying for their financial education, or their parents are, and I suspect it’s more likely the latter … Canadians are starting to save for retirement later in life, and partly, I think this is because more and more parents are helping out students with paying the tuition fees.”

The Statistics Canada report also noted that in 2005, “Canada not only had more individuals graduating with student loans, but also an increasing proportion graduating with larger debt loads than in the past.” The proportion of student loan borrowers that owed $25,000 or more at graduation increased from 17 per cent in 1995 to 27 per cent in 2005. The proportion owing $50,000 or more tripled from 2 per cent to 6 per cent in the same decade.

Collectively, students in Canada owe the federal government more than $15-billion, said Roxanne Dubois, chairperson of the Canadian Federation of Students.

D - aside. I live in a university town. University of Waterloo is within a block of my residence. Laurier is a 5 minute bike ride away. Plus we have Conestoga College.
Waterloo is apparently *the* most intelligent community.
I've met and chatted with Fotini at the Perimeter Institute- one of the top 10 minds to solve Grand Unified Theory or whatever passes for it now.
Walking up the scenic Father David Bauer Drive to the cafe, I just might encounter Stephan Hawking cruising in his wheelchair while on a visit.
A university town thrives on recessions. No work? Not enough to pay off a student loan? Add gasoline to the fire. Go and hide in school some more.
That is exactly what I did. The amount of student housing - major projects - going up around here is huge.
Interestingly, once the recession properly ends, and boom times return, this will result in surplus of student housing, thereby driving down their renting costs.