Students relying less on mom and dad and taking on more debt

Financial Post | Business

The good news is that Canadian students are relying less on the “Bank of Mom and Dad.” But the bad news is that they’re also less likely to be depending on their own savings and more dependent on borrowed money to pay for university.

A new BMO survey suggests that 44% of students this year were relying on parental support for school, down from 52% in 2012. Instead, 55% are depending on loans, as compared to 49% last year.

Janet Peddigrew, a vice-president at BMO, said she was surprised by the statistics, and said young adults are more knowledgeable about their options, more independent and more comfortable with debt.

“Culturally, it has become more acceptable [to have debt].”

Students expect to graduate with $26,297 in debt and anticipate paying it off in 6.4 years. Those in B.C. expect the most debt ($34,886) and are the most stressed about their finances…

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