The School Debt Dilemma: How Long Are Calgarians Paying Off Loans?

Calgarians grappling with student loan debt are facing a tough road ahead. Discussions among Albertans frequently highlight the financial squeeze post-graduation, especially as they navigate the repayment journey. This conversation is particularly relevant in Calgary, where the job market for recent graduates is proving challenging.

Alberta has seen a significant 32 percent hike in undergraduate tuition since 2020, the highest in the country. This adds to the financial burden before students even enter the workforce. Many young Calgarians struggle to secure entry-level positions, with employers increasingly demanding more experience. The youth unemployment rate in Alberta hit 15.1 percent in March, reflecting a difficult landscape.

So, how long does it take to shake off that student debt? Nationally, Canadians spend an average of 9.5 years paying off their student loans. The average student loan debt across Canada hovers around $28,000. While federal student loans became permanently interest-free as of April 1, 2023, provincial loans can still accrue interest, and existing accumulated interest must be paid. Alberta did extend its provincial loan grace period to 12 months in July 2023, offering a brief reprieve. Understanding these timelines and repayment realities is crucial for anyone planning their financial future in Calgary.