1 out of 6 bankruptcies involves student debt

Student-debt-min

Bankruptcies involves student debt  – Student debt contributes to 1 in 6 (17.6%) insolvencies, a record rate according to a study conducted by Licensed Insolvency Trustees Hoyes, Michalos & Associates Inc.

“Nine years ago, student debt insolvencies were just under 13% of all insolvencies we filed,” says Ted Michalos. “Today, 18% of the clients we see are struggling with student debt. It’s an epidemic.”

Bankruptcies involves student debt

The average insolvent debtor with student loans still owes $14,729 in student loans representing 32% of their unsecured debt, years after getting out of school. In Canada, government-guaranteed student loan debt is automatically discharged in a bankruptcy or consumer proposal if the debtor has been out of school for a minimum of seven years. Private student loan debt has no waiting period.

“The people we see coming into our offices struggling with student loans are getting younger each year,” adds Doug Hoyes. “Today, 31% of student debt insolvencies are filed by young people under the age of 29. This rate was just 21% in 2011.”

There are a lot of reasons for the increase – tuition and residence costs have risen pressuring students to borrow more. After completing their studies, graduates are often working in part-time positions and minimum-wage or low paying jobs. Many are not finding employment in their field of study that pays enough to repay their student loans.

“We believe it’s time to eliminate the waiting period to have government student debt discharged through a bankruptcy or consumer proposal,” says Doug Hoyes. “There is no such waiting period for private student loans, and there is no difference in how students use either government borrowing or private borrowing. It is inequitable to penalize a student just because they used government student loans when another student using private debt can get relief immediately.”

Other articles:

West Island could soon have largest municipal park in Canada

Ville Marie and Viger tunnel work to last 3 years

Facebook
Twitter
LinkedIn
Email
Is it possible to get an A for a 5-paragraph essay assignment in 1 hour? We can safely say yes, a student can get an A+ mark if he turns to EduJungles


staycation

The ultimate guide to planning a long family staycation in Canada

To guarantee that everyone has an amazing time, careful planning is necessary when organizing a lengthy staycation. Here’s the ultimate guide to planning your family staycation in Canada. Canada, with its vast landscapes, diverse cities, and rich cultural heritage, offers endless possibilities for a memorable family staycation. Whether you’re exploring the stunning natural beauty of

Meal kits

Cost vs. Convenience: Analyzing meal kits and traditional cooking

In this modern world and modern times, convenience often takes priority over cost, especially when it comes to food. Meal kits and traditional cooking represent two different approaches to home dining, and each of them has advantages and disadvantages. Analyzing these methods through the lens of cost and convenience provides insight into why individuals might

Condo renovations

Condo renovations Dos and Don’ts: Expert Tips for a Successful Project

Embarking on a condo renovations journey can be both exhilarating and daunting. Imagine transforming your living space into a stylish haven that reflects your personality and meets your needs. While exciting, the process can be full of challenges and unforeseen hiccups. That’s why we’ve gathered some condo renovation dos and don’ts from the experts to

Terrific Hair

Terrific Hair Means Tamanu – Earth to Body

Curly, straight, thick, thin, kinky or silky, tamanu loves and makes terrific Hair.  And scalps. Nutritionally dense yet gentle, tamanu is an effective and versatile nut oil. It stimulates, helps promote growth. prevents hair loss, reduces scalp itch and irritations and adds a natural sheen! Make tamanu a part of your hair and scalp care

Understanding the 4 legal process after a DUI Crash

A single mistake can have serious consequences, especially when driving under the influence. The aftermath of a DUI crash extends beyond physical harm and property damage. It involves a complex legal process that may feel overwhelming. As a responsible citizen, it’s vital to grasp the legal system and your rights in such situations. This blog

personal injury lawyer

Pedestrian accident: How a personal injury lawyer can help you

Accidents involving pedestrians can be life-altering. You could be walking down the street or crossing a street. A vehicle’s sudden impact can change everything right away. If you’ve found yourself in such a situation, you might be wondering how to move forward. This is where a personal injury lawyer steps in, offering crucial help and

Mtltimes Subscription

The latest on what’s moving Montreal and the world – delivered straight to your inbox