How Canada’s new student loans could affect your mortgage interest rate
One of the main issues that comes up when people think of student loans is whether or not they’ll be able to repay them.
For some, it’s not the upfront cost that’s the issue, but the amount of money they’ve borrowed from the government over the course of their education.
The number of Canadians who say they’ve taken out student loans has been steadily increasing.
But it wasn’t always this way.
The federal government only took in about $20 billion in student loans in the last five years, according to Statistics Canada, and only $1.8 billion of that was for graduate or post-graduate degrees.
While there were a few high-profile cases of students being saddled with massive debts during this time, they didn’t come as a surprise.
It’s only recently that Canadians have had to worry about their future.
As Canada’s unemployment rate continues to climb, the amount that Canadians are borrowing is increasing.
Statistics Canada’s Student Loan Monitor shows that Canadians borrowed $14.9 billion between the first quarter of this year and the third quarter of 2018, up from $13.5 billion in the same period in 2017.
This is a trend that’s also seen across the world.
While the US has been doing a lot to ease its student loan crisis, Australia, Japan and New Zealand are the only countries where borrowers are borrowing more than they’re taking out.
And there’s a lot of pressure on the Canadian student loan industry to increase the amount they’re offering borrowers.
A recent report by the Canada Student Loans Association said that only 25 per cent of the loans that students have taken out in Canada have been repaid, and that they’ve been taking out about $50 billion more than the government is providing.
While the government isn’t currently making changes to the way it handles student loans to help students who’ve taken them out, the government has made some steps to try to address this.
For example, it announced last year that the student loan program would be rolled out to the entire country by 2019.
But that’s only if the government manages to achieve its target of having a loan-for-equity ratio of at least 80 per cent.
With the new federal government, it appears that we’re going to get that ratio.