A tale of two college students

Mom and Daughter Graduation Day

There's a new video from Yahoo! Canada with some interesting opinions from current students about whether their student loans will cripple them financially in the future. You can watch it here:

http://ca.finance.yahoo.com/video/current-students-feel-rising-cost-040000335.html

These students could be giving parents a glimpse of their two year olds' futures. If you’re worried, you’re not alone; most parents are concerned about the increasing cost of higher education. Those worries may increase over the next few weeks when Statistics Canada releases the latest annual statistics on university tuition fees. In fact, one think-tank has already released a report on tuition fees in Canada today. The Canadian Centre for Policy Alternatives states that average fees, in current dollars, have increased from $1,464 in 1990-91 to $6,348 in 2012-13, and are expected to climb to $7,437 in 2016-17. This fall, they are predicted to be $6,610. You can read the full report here — warning it’s quite long: http://www.policyalternatives.ca/publications/reports/degrees-uncertainty

Most news organizations will be talking about this report and the one that is expected to follow and of course CST, along with all the banks, will make a comment about them as well. The numbers really come as no surprise as we were anticipating yet another increase greater than inflation to be reflected.

The benefits of investing in a CST RESP

(Full disclosure; all of these students had parents who invested in a CST RESP and are currently moving on to post-graduate studies this September.)

So depending on the decision a parent makes at the very early stages of their child’s financial future a student can either be swimming in student debt or moving on to a post-graduate degree or into their first job debt-free. That’s a lot of responsibility for parents. But then some would say it comes with the territory. And as a parent myself, I’d rather not have my son worrying about living in debt or - worse yet - asking me for money when I’m looking to retire to Hawaii 20 years from now!