Nearly one in seven insolvencies involves student debt, according to a seven-year statistical review conducted by Hoyes, Michael’s & Associates Inc.
The review found that in 2017, 15 per cent of people filing a bankruptcy or consumer proposal carried student debt. This is up from 13 per cent in 2011.
Rising tuition costs
"Rising tuition costs are certainly contributing to a financial crisis for graduates" says Doug Hoyes, an Ontario-based Licensed Insolvency Trustee. "The average student debt among those aged 18 to 29 filing insolvency increased by 20 per cent over the past seven years."
The average age of an insolvent debtor carrying student loans is 35-years-old. However, nearly three in ten student debt driven insolvencies are filed by those aged 18 to 29.
"Higher debt upon graduation is just not sustainable which is contributing to more young Canadians filing insolvency for student debt,” says Hoyes.
To learn more, consult the study here.
