Student debt delaying milestones, says financial expert
Average student debt is $28,000 for undergraduates, $100,000 for specialities like medicine
Student debt has become a regular part of post-secondary life for many young people across Saskatchewan.
But according to Craig Fryzuk, a licensed insolvency trustee with BDO Canada, loans are preventing many graduates from beginning their adult lives.
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"What we are finding is it's really delaying how quickly people hit those milestones now days.They are staying at home a lot longer, and delaying marriage and buying a home," Fryzuk said.
"The average amount that people are graduating with is about $28,000 coming from a post secondary program. Now that increases to $100,000 if they are coming from a speciality program."
In fact, 42 per cent of those between 20 and 29 years old live with their parents, causing them to delay retirement.
According to Fryzuk, parents of graduates with debt are stuck in the middle, where they are helping out their children financially and also their parents.
He said that to get out of debt, graduates and parents need to decide on a plan, and in many cases, change their lifestyle.
Tips for getting out of student debt
- Don't delay your payments:
For many loans, debt begins accumulating as soon as you graduate even if you're not expected to pay right away. Start paying your loans back immediately to avoid interest.
- Stick to a budget:
It's important to know what you can afford and live within your means in order to pay of your student loans as quickly as possible. Fryzuk recommends putting any leftover money towards debt.
- Do not miss payments:
If you cannot afford to pay your loan, Fryzuk recommends applying for repayment assistance, so that you do not hurt your credit.
With files from Saskatoon Morning