Congratulations, you’ve worked very hard to get to where you are today. You spent countless hours toiling over college books and sitting exams to get your degree and ultimately, hopefully, the career of your dreams, too.
There’s just one snag. As you enter the workforce, your college debt still hangs over your head like the Grim Reaper on Halloween.
Wouldn’t a Powerball jackpot win be great? Just imagine clearing all that debt in one swift swoop. You might even have a little left over to create a nest egg, because, let’s face it, you’ve no plans to get into debt again once it’s all cleared, have you?
We thought not.
It’s Getting Easier to Pay Off College Debt
Under a rule that came into effect in 2016, the hundreds of thousands of Canadian students with debt don’t have to repay their loan until they begin earning a minimum of CA$25,000 a year.
According to one poll, nearly 67% of Canadians are reportedly in debt when they graduate, with an average sum of $22,084 owed.
Experts pinpoint the cost of living along with poor credit choices as reasons students leave school with large amounts of debt.
But that’s not all. Higher education is just plain expensive. According to Statistics Canada, a full-time undergraduate degree costs an average of $6,571 per year.
Let’s put that figure into context.
The average undergraduate tuition has increased around 3.1% this year, rising at double the speed of wages. As well as that, students today face ever-increasing compulsory fees that cover the cost of things like student associations, health services and sports. That’s an extra $880 per year per student, and a 3.8% increase since last year.
What You Study Plays a Role in What You Could Owe
How much a student pays for their undergraduate degree has a great deal to do with their particular field of study.
For example, if you picked dentistry, you’re going to be shelling out up to $22,297 per year. This is reportedly the highest average college fee in the country, followed by:
- Medicine - $14,444
- Law - $13,642
- Pharmacy - $10,279
On the other hand, if you decide to pursue a degree in education, it will cost you a little under $4,500 per year.
While just 3% of our nation is enrolled in the most expensive programs, student debt remains a contentious issue.
Where You Go to School Also Matters
It’s not just about the program you choose, it’s also about the school you attend.
For instance, the average full-time tuition fee for social and behavioural sciences can range from as little as $2,500 in Labrador and Newfoundland to as much as $7,000 in Nova Scotia. Yet, a year of business studies will cost more than $10,000 in Ontario, but just a fraction of that at $2,700 in Quebec.
Let’s take a business studies degree in Ontario as an example. At $10,000 per year and an average of four years’ study towards a degree, you’re spending $40,000 for your business degree at a minimum. We’re not even taking into account expenses like accommodation, the cost of living while in Ontario (if you’re from out of town, for example), entertainment, healthcare and so on.
That’s a ton of money.
A Lottery Win Is Exactly What You Need, Isn’t It?
In March this year, one lucky Canadian teenager hit a lottery jackpot after she purchased her first ever ticket to celebrate her 18th birthday.
The Quebec teen was offered two choices: a lump sum of $1 million or continued payouts of $1,000 per week—not just for a year or 10, but for the rest of her life. The winner opted for the weekly allowance since it isn’t taxed.
Without taxes, her win is equivalent to a salary of over $100,000 per year; it’s the perfect start for any student!
Just imagine if that was you. Even with weekly allowances, you could clear your college debt and have plenty left over for a rather comfortable lifestyle when you’re just starting out in life.
Better yet, you could put your siblings through college, too—debt-free.
Would You Pay Off All Your Debt?
If you hit the jackpot, would you pay off all your debt in one swoop or would you continue paying it off slowly while living the high life?