Summary from Academica Top Ten - Tuesday March 31, 2015
CFS report says student debt loads are slowing economic recovery
A new study from the Canadian Federation of Students argues that a high level of student debt is hindering economic recovery. According to the CFS, student debt prevents young Canadians from buying homes, making investments, and participating in the economy. The report, entitled The Impact of Student Debt, emphasizes that young Canadians accounted for 50% of net job losses in Canada during the Great Recession, and that un- and underemployment among Canadian youth in 2014 was at 27.7%. Underemployment or working outside one's own field, the report states, contributes to skill degradation, as well as leaving young people behind in terms of experience and networking opportunities. The authors say that those with student debt have a lower net worth, fewer assets, and are less likely than their debt-free peers to have savings or investments. Debt also makes saving for a down payment for a house more difficult, and many of those burdened by student debt lack the income and job security needed to purchase a home. The report contends that easing the debt loads of students would allow them to more immediately contribute to the economy, yielding social and economic benefits for all Canadians. CFS News Release | Full Report
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