6 Ways to Save for Your Child’s Education (1/7)

With scholarships and student aid only going so far, figuring out a way to save for your child's education is essential. Check out these steps to calculating the costs of university and college, and the best way to repay debt once your student is out of school.

Managing Student Debt

Managing Student Debt

Each year, thousands of Canadian students turn to government loans to help pay the cost of post secondary education. According to the Canadian Federation of Students, by the time they graduate, many of those same students are faced with a debt load well in excess of $20,000.

Today, likely one in every five students who graduated last June with a student loan, are unable to pay their loan installments and are now in default. Most student loan programs offer a grace period of six to nine months after post secondary studies before repayments begin. However, the Office of the Superintendent of Financial Institutions reports that some 20% of money lent to students goes into default.

Further, a recent Statistics Canada study showed that student borrowers between the ages of 20 – 45 were less likely to have savings or investments compared to non-borrowers. Similarly, the likelihood of owning a home was lower for borrowers compared to non-borrowers. Here are some useful tools and resources to help Canadian students and their parents to manage post secondary education costs before overwhelming debt and default take hold:

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The Investor Education Fund offers unbiased financial information to the general public via GetSmarterAboutMoney.ca. The not-for-profit organization was established by the Ontario Securities Commission (OSC), and is funded through OSC enforcement settlements.

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