The Quebec Student Union (UEQ) is concerned about the level of debt university students have with banks. More than 40% of the total amount of loans for this population were taken out with private financial institutions, rather than through the student financial aid program (AFE), according to a survey including The duty obtained a copy and which is published this week.
In the fall of 2022, 12,000 students from 13 university establishments in Quebec, from different cycles and from different socio-demographic profiles, responded to a questionnaire on financing and debt developed by the Research Group in Applied Public Economics (GREPA) .
Among the data taken from this survey, we see that the average loan granted by banks to students is $22,892.
“We see that people will take on private debt instead of financial aid for studies, because it is less complicated, faster, they can have more liquidity more quickly,” comments Catherine Bibeau-Lorrain, president of the UEQ. We say that we need to make the program better known and make it more adapted to the student population, for example by lowering the debt ceiling. »
As students work more and more during their studies, Mme Bibeau-Lorrain also believes that they should be allowed to obtain more employment income without it reducing their loans and grants from the provincial government.
The report also gives an idea of the cost of living for students a year ago. For basic living expenses, including housing, food, clothing, health and transportation, students eligible for AFE — which generally excludes international students and those coming from other Canadian provinces — spend on average $19,925 per year, or $1,660 per month.
Mme Bibeau-Lorrain believes that the amounts given by the AFE do not cover these needs. The government program calculates for 2023-2024 that living expenses are $1,283 per month for a student who does not live with their parents.
Unsurprisingly, it is housing which ranks first in their total expenses, i.e. 28.9% of them. That equals $10,795 per year for a total of $31,566. Note that these data include people who still live with a parent. The average income is $31,899.
For the UEQ, these figures demonstrate that students spend too much money on accommodation.
“We already knew it, but this confirms the situation,” reports the president. Through the AFE, there would be a need for specific additional aid for the housing crisis. »
Furthermore, the UEQ is currently mobilizing to demand remuneration for all internships in the public and parapublic network.