The Fear Of Student Debt
Fear of debt should not stop you from continuing a promising academic program that interests you.
Many students are afraid of debt. According to a report, up to 7000 students, or 2.5%, could decide not to go to study in university rather than go into debt because of the rising tuition of $ 1 625 expected by 2017.
However, the report of the Advisory Committee on the Financial Accessibility of Education (ACFAE), shows that it is mostly students from low-income families who decide not to continue their studies because they are unfamiliar with the financial assistance programs which they are entitled.
According to the Council, the low-income families also tend to overestimate the costs associated with the university and to underestimate the benefits. Excessive caution could therefore encourage them to avoid debt engendered by the university.
A study produced by the Ontario Council of the Quality of Higher Education (OCQHE) reaches the same conclusions. According OCQHE, the number of young people from low-income families has remained the same in Ontario for years.
The main reason is that these families lack of financial knowledge that would enable them to appreciate the value of an university degree. OCQHE also suggested publicizing the programs educational assistance to these families and to show them that the studies are a worthwhile investment.
These findings are not surprising. Already in the 1980s, studies had revealed that young people in low-income families prefer short and inexpensive courses to long courses representing a significant financial investment.
This had the effect of confining them to low paying jobs and often unstable, but these young people seemed to prefer this to the debt needed to pursue long studies.
Of course, the academic career is certainly something. Several university programs among the highest paying also have important academic requirements, while these young people often face difficulties in school. Choose a Diploma of Vocation Studies (DVS) is more wise, especially since some DVS are high paying (crane driver, elevator mechanics, etc.)..
However, fear of debt should not discourage you to undertake university studies in a promising program that interests you and in which you meet the requirements. Remember, going to university studies is representing each year some extra several thousand dollars per year in comparison to what you could win without it.
In addition, it is very likely that the shortage of labor ahead will lead to a general wage increase. You will have the means to repay all your debts at school.