A recent study released by the Bank of Montreal says that BC students can expect to graduate with more debt than those in any other province.
The federal government estimated the total cost of a post-secondary education in Canada at $14,500 a year. This means that with tuition, school supplies, housing and other expenses, students are paying nearly $60,000 in total for a four-year degree.
According to the 2013 BMO Student Survey, which was conducted by Pollara, BC students graduate university with an average of $34,886 in debt. Compare this number to the national average — $26,297 — and the gap becomes all the more chasmal.
Manoj Bhakthan, SFU director of Financial Aid and Awards, attributed this differentiation to the high cost of living in BC, and Vancouver especially.
“I think that part of it is the fact that Vancouver is considered one of the most expensive cities to live in and that an increase in expenses may be related to living costs such as rent, food . . . These would probably be more expensive in BC than in other parts of the country, so from that perspective I could see students perhaps taking on more associated expenses,” said Bhakthan. “For SFU, there has been a 2% increase in tuition fees for 2013/2014 for domestic students. Since 2005, government policy has limited it to this annually.”
On average, SFU students’ loan debt is a little bit over $24,000 when they graduate.
From 2000 to 2010, SFU tuition fees were raised from $2,310 to $4,815 for domestic undergraduate students and from $6,930 to $15,816 for international undergraduate students.
Although tuition costs are increasing, the percentage of Canadian students who receive money from their parents for school has dropped in the last year from 52 per cent to 44 per cent. To cope, 55 per cent of students are relying on loans, up 6 per cent from last year.
Having amassed such large quantities of debt, students can expect to pay off their debt within an average of 10 to 14.5 years after graduating — much longer than the 6.4 years they anticipate, says the study.
Still, Bhakthan has reason to hope that SFU students will not find themselves in such dire straits.
“As much as possible, what we’re trying to do is empower students by providing them knowledge about what’s available, and I think that’s one of the keys to ensuring the financial success of students.”said Bhakthan. “The more information the student has up front, the more proactive they can be about these opportunities.”
The Financial Aid and Awards Office’s services include bursaries, scholarships, awards, work study, and government student loans, in addition to one-on-one advising appointments with students and various workshops to provide students with information about Financial Aid and Award Office programs.
Bhakthan spoke to the importance of the work study program in particular: “This is a part-time on-campus opportunity for students to earn a supplemental income while gaining experience at SFU, so that could be anything from working with professors on research projects to supporting the CJSF radio station. This is a needs-based program, and those eligible can potentially earn an income to supplement their studies while adding something to their resume and hopefully putting them a step ahead in terms of their career path.”
On average, SFU students’ loan debt is a little bit over $24,000 when they graduate, according to a June 2012 survey. This is dramatically lower than the BC average of $34,886.
For students struggling with money woes, Bhakthan suggested some simple tips and tricks to ease the financial burden. These include living at home instead of renting, purchasing used textbooks or even electronic versions, and evaluating wants versus needs. If these aren’t enough for the overburdened, Financial Aid and Awards is always there to help.
“I’m hoping that students come in and see us if they have questions,” said Bhakthan. “Spend a little bit of time doing research using our financial aid and awards website, and if you have further questions, we’re here to support you.”
