About half of college and university students in Canada (51%) have to borrow to pay for their educations, says a new CIBC poll.
It adds the majority (73%) expect to graduate with debt loads of more than $10,000. And though more than half (66%) are optimistic they’ll be able to repay their debts within five years of graduating, the remaining 34% concede it may take up to 10 years.
Read: Target creating dorm-outfitting registry
Since many students have to borrow to cover school costs, “it’s important for them to take the time to review their finances and build a manageable debt repayment plan,” says Christina Kramer, executive vice president of Retail and Business Banking at CIBC.
“While their [repayment] intentions are admirable, they may not be realistic,” she notes. “As students graduate and start their careers, they will likely be moving out on their own, [as well as] saving for cars or down payments on homes and even starting families.”
Read: Help clients’ kids find scholarship money
What’s more, most students who have summer jobs (73%) don’t make enough money to pay for their college or university costs, finds a separate CIBC poll released earlier this month. Since most only earn between $1,001 and $5,000 (53%), hey have to work during the school year to cover expenses.
Advisors can offer help to clients’ kids by giving budgeting and spending tips.
For more, read:
Parents in the dark when it comes to kids’ spending
Why you should target Gen Y clients
What business school really teaches you