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Spike in bankruptcy claims linked to post-graduation life

An Insolvency Trustee with Hoyes, Michalos & Associates says student debt is leading to other forms of debt, and before grads know it, they're in over their heads

Student debt is playing a large role in more Canadian claims of bankruptcy.
According to Insolvency Trustee with Hoyes, Michalos & Associates Doug Hoyes, trouble finding work after graduation is partly to blame.

He said it starts with someone trying to pay off their student loans, but those loan payments after graduation leave many students in a tight spot.

"In order to pay all of your living expenses, you often have to resort to other forms of debt like loans or credit cards, so it becomes a compounding effect," Hoyes explained.

He told 1310 NEWS, the past few years have seen a big spike in the number of claimants who say job-related issues are why they've gone bankrupt.

"It's the people who graduate and aren't able to find suitable employment -- that's the ones where student loans cause huge problems."

Hoyes suggested that future students calculate the total cost of their degree or diploma before registering for school, make a debt estimate, and then assess whether they will be able to earn enough money in their industry-of-choice to pay it back.

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