Financing Post-Secondary Education: It's a Family Affair
D+H Student Index reveals gap between student and parent expectations about covering the cost of school
TORONTO, June 25, 2014 /CNW/ - Having a conversation with mom and dad about the cost of post-secondary education is an eye-opening experience according to Canadian students. When talking to their parents about the cost of school, one in three students say the conversation revealed a gap between the cost of post-secondary education and the financial support their parents could offer. Only after talking to parents did students realize the need to line up other sources of financing. This is according to the D+H Student Index, which surveyed 752 Canadian high-school and post-secondary students about topics related to post-secondary education.
"To cover the cost of post-secondary education, many students require financing beyond their savings and parents' support. In order to prepare and line up financing such as student loans, students and parents need to be on the same page about the costs associated with school and the level of parental support that is realistic," said Ralph DeJong, Vice President, Head of Student Lending, D+H Canada, an industry leader in student loan and grant program administration in Canada.
Fortunately, it's not taboo for Canadian families to talk about money. Four in five students (80%) say they don't have any difficulty talking to their parents about money. For the majority of students (55%), the family discussion on how to finance post-secondary education happens in grade 11 or 12.
Reflecting on the conversation, Canadian students say if they could do it again, they would go in with a more realistic idea of the cost of post-secondary education (36%) and have the conversation earlier (26%).
According to Statistics Canada, on average, undergraduate students paid $5,772 in tuition fees in 2013-2014*. Over four years, that is more than $20,000 for tuition, before considering other expenses such as books and additional academic fees or any living expenses. Canadian students usually line up a variety of sources to cover the cost. Students say their top sources of financing, according to the D+H Student Index, include support from their parents (43%), their own savings (43%) and student loans (41%).
Three-quarters of students who took out student loans say they could not afford post-secondary education without one. Nine in ten (89%) say the loan helped them pursue their education and career goals.
"As the leader in student loan administration in Canada, serving more than 1.7 million students and administering a $21 billion customer portfolio, D+H has a unique vantage point on how students are using loans to fund their education," said Duncan Hannay, President, D+H Canada. "Our insights reveal an interesting and often overlooked aspect of post-secondary education: the dynamics between students and parents when it comes to funding."
Follow this link to view the complete D+H Student Index with more information on how Canadian students finance post-secondary education and the support they get from parents: http://dhltd.com/for-lenders/lending-and-leasing-program-management/student-index/.
About the D+H Student Index
The D+H Student Index is based on an electronic survey of 752 Canadian students (in high school who are intending to attend a post-secondary institution, currently attending a post-secondary institution, planning to attend post-secondary in the next two years or having attended a post-secondary institution within the past two years). Surveys were completed between April 30 – May 6, 2014. The poll has a margin of error of +/- 3.0% and was conducted by Environics Research Group.
About D+H Corporation
D+H is a leading provider of secure and reliable technology solutions to domestic and global financial institutions with a reputation for being a trusted partner that helps clients build deeper, more profitable relationships with their customers based on rich industry and market insight, and consumer knowledge. Today, approximately 7,000 banks, specialty lenders, community banks and credit unions rely on D+H to deliver solutions across three broad service areas: Banking Technology Solutions, Lending Solutions, and Payments Solutions. Our integrated, compliant technology solutions enable clients to grow, compete, and optimize their operations, while our forward looking approach helps them stay ahead of the market and anticipate changing consumer needs. D+H is one of the world's top FinTech companies as measured on the FinTech 100 list.
* Statistics Canada. 2013. University tuition fees 2013/1014. Component of Statistics Canada catalogue no. 11-001-X. Ottawa. daily-quotidien/130912/dq130912b-eng.pdf.
SOURCE DH Corporation
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