Posted July 14, 2018 12:10:31A recent study from the Canadian Federation of Students, which found that about 40 per cent of students in Ontario had at least one parent working part-time for a student loan.
The report was based on data collected by the Ontario Student Loan Association (OSLA), which collects student loan data from more than 7,500 Ontario students and their families and distributes it to schools.OSLA’s survey also included data from students who had loan repayments in the past year and those who had a loan forgiven.
In the first two years of their repayment, the students were asked to estimate how much they would be able to earn in the next five years.
About 41 per cent said they could earn as much as $70,000 a year by working part time.
That’s up from 34 per cent who estimated that they could make $65,000.
The second year of repayment was much more challenging.
Roughly 60 per cent estimated that if they were to continue working part, they would have a net income of just $50,000 in the second year.
In the first year, only 40 per, and only 32 per cent, of the students who did not work part-timed in the first years were able to make $50 a month or less.
The biggest takeaway, however, is that, by and large, students are working in the labour force.
“I think it’s very clear from the data that we know from our experience that students in their early 20s and early 30s are working part,” said Paul LeBlanc, president of the OSLA.
“So they’re not necessarily unemployed, but they’re probably working part and they’re doing it for the wrong reasons.”
He added that although the OSLAs data does not include people who are working full-time, they’re working full time.
For those students who were part- time, however.
the question of whether they could afford a loan came up in the survey.
“Students are finding that they don’t have a lot of money in the bank, they don of course have to pay back, but what is going on with their credit scores is a huge concern for them,” said LeBlac.
He added, “One of the things that I have noticed is that the more you go into debt, the more difficult it becomes to pay off the balance.”
This is especially true for students who are currently in a bad financial position and have already taken on student loans, LeBlanca said.
“What you’re seeing is people in their late 20s or early 30th who are struggling with that financial situation, they’ve already been out of work for two years and their credit has gone down to a point where they’re struggling to pay their bills.”
To better understand student loan repayment and student loan affordability, the National Post spoke with LeBlanche, who says it’s important to note that the survey only included people who had debt in the previous year, and did not include those who have not paid back their loans.
He added that the data from the OSLSA is representative of the entire population of Ontario, and it is not intended to suggest that all Ontario students should be eligible for a free meal.
The student loan issue is an important one for many young people, especially those who are entering the workforce.
According to the OSLCA, nearly two-thirds of Ontario students currently have a student debt of $50 or less, which means that for many students, the cost of a meal is a significant barrier to obtaining a degree.
“We have a problem with the affordability of the student loan,” said Tom McLean, the executive director of the Ontario Association of Students.
“If we were to take the average student loan balance of $30,000 and add the student debt that we’ve got, we’d have a total of $62,000 outstanding.
We’re really at a huge financial barrier for a lot people in our province.”
The Ontario Student Association is asking students to consider their financial situation in a couple of key ways.
First, it’s asking them to understand the impact of their debt on their ability to attend school.
Second, it is asking them about the affordability and the financial security of student loans.
“Student loans are extremely expensive and, in fact, more expensive than mortgages,” said McLean.
“Students are looking at the cost and the security of a student loans.”
He also said that students should make sure they understand how to negotiate student loans if they have any questions.
“It’s a little more complicated for students than mortgages, but students should understand how they can negotiate with the student lender,” said McLaughlin.
“In fact, if students have any concerns at all about how they are going to pay for their student loans they should ask for a letter from the student.”
McLean added that students can also help make their loan payments by paying down debt.
“Many of the people that are having