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Canada’s student debt crisis is reaching unprecedented levels, leaving many graduates wondering if their education was even worth the financial burden.
According to a recent survey of over 3,300 people, over 60% of Canadians with student loans regret the debt they incurred for their education. As tuition fees rise and wages fail to keep pace, a growing number of young adults are struggling to make ends meet.
With Canada’s post-secondary education system producing some of the world’s best and brightest minds, why are so many graduates facing crippling financial hardship?
The burden of student debt in Canada
Currently, Canadian graduates owe billions in outstanding student loans, and for many, the path to financial stability seems out of reach. The average Canadian student loan debt sits at around $28,000, a number that doesn’t take into account interest rates and additional fees.
Graduates often spend decades paying off their loans while juggling other financial commitments like rent, groceries, and saving for the future.
Joshua Harris, BComm., MIB, CIRP, a licensed insolvency trustee from Harris & Partners, weighs in on the issue: “It’s heartbreaking to see so many young people financially trapped after doing everything society says they should—get an education, land a job, and work hard. The reality is that many graduates are facing significant financial stress, which impacts their mental health, career opportunities, and overall quality of life.”
The rising cost of education
Tuition fees increased by 2.91% in 2024 alone. While federal and provincial governments offer some relief through grants and loans, many feel these measures don’t address the root cause of the problem: the rising cost of post-secondary education.
According to the survey, nearly 85% of respondents believe the government should be doing more to address the student debt crisis. Canadians are calling for policy changes that provide meaningful relief, such as lowering tuition fees, offering better repayment terms, or even forgiving a portion of student debt.
“It’s clear that the current system isn’t working for many Canadians,” Harris adds. “We need to see a real commitment from policymakers to tackle student debt in a way that’s sustainable and fair.”
What needs to change?
The clear demand for better financial education highlights a major gap in how we prepare students for the financial realities of adulthood. Schools, governments, and financial institutions all have a role to play in closing that gap.
Was it worth it, and what needs to change?
Perhaps one of the most concerning findings from the survey is the number of Canadians who regret taking on student loans. More than 60% of respondents said that their education wasn’t worth the debt they accrued, a sentiment that should raise serious questions about the value of higher education in Canada.
The student debt crisis isn’t just a problem for individuals—it’s a societal issue that impacts the broader economy. As more young people delay major life milestones like buying a home or starting a family due to their debt, the ripple effects are felt across all sectors of the economy.
Joshua Harris suggests a multi-faceted approach: “To truly solve this problem, we need to look at both the cost of education and the terms of student loan repayment. More financial education, better loan terms, and government intervention are key. If we want a generation of educated, financially secure adults, we have to make education more affordable and debt more manageable.”
