14% of our clients have student loan debt at the time of their insolvency and their average student loan debt is $14,370. Based on the Hoyes Michalos & Associates Inc. proprietary database of the individuals and families we have assisted during the period from January 1, 2009 to December 31, 2010, the “typical” debtor with student loan debt is female, 35 years old, single and has average unsecured debt of $50,334 of which $14,370 is student loans.
Statistics Canada found that the average student debt for the 2005 graduating class was $18,800 and 57% of those students borrowed money to finance their post-secondary education. Combine this with the recent recession and lower income earning potential, and student debt has a significant impact on an individual’s financial condition after graduating.
| Jane Student | |
|---|---|
| Personal Information | |
| Gender | Female |
| Average age | 35 |
| Marital status | Single |
| Average family size | 2 (including debtor) |
| Average monthly income | $2,124 net of deductions |
| Average month income for all Canadians | $2,4191 |
| Total unsecured debt | $50,334 |
| Likelihood they own a home | 14% (1 in 6 debtors) |
| Average mortgage value | $208,766 |
| Detailed Information on the amount of average unsecured debt: | |
| Bank loans | $9,715 |
| Credit cards | $15,087 |
| Taxes | $2,186 |
| Finance company loans | $3,743 |
| Student loans | $14,370 |
| Other | $5,233 |
1. Statistics Canada: Personal Disposable Income per capita
Personal Profile Details: Jane Student Debtor
58% of insolvent debtors with student loans are female, 42% are male.
| Age | Distribution |
| 18 – 29 | 27% |
| 30 – 39 | 48% |
| 40 – 49 | 18% |
| 50 – 59 | 6% |
| 60 – 69 | 1% |
| Over 70 | 0% |
The average age of insolvent debtors with student loans was 35, slightly younger than the typical insolvent debtor at 41. Three quarters (75%) of insolvent debtors with student loans were below the age of 39.
Jane Student Debtor is likely to be single. Of insolvent debtors with student loans, 41% were single and 38% were married or living common-law at the time of their filing. The lower likelihood of Jane Student Debtor to be married, divorced or separated is due in large part to the younger age distribution of this group of insolvent debtors.
| Marital Status | Student Debtor |
| Married or Common-law | 38% |
| Divorced | 7% |
| Separated | 13% |
| Widowed | 1% |
| Single | 41% |
The average household size for insolvent debtors with student loans was 2.34 persons. This may be a husband and wife, or commonly, a single parent and a dependant child.
Of insolvent debtors with student loans, 84% are employed. The average take home pay for Jane Student was $2,124, slightly below that of Joe Debtor, definitely below that of the average Canadian.
| Household Size | Distribution |
| 1 | 41% |
| 2 | 18% |
| 3 | 20% |
| 4 | 13% |
| 5 | 6% |
| 6 or more | 2% |
| Income | Debtor | Others |
| $NIL | 10% | 9% |
| $1 – $1,000 | 35% | 12% |
| $1,001 – $2,000 | 34% | 8% |
| $2,001 – $3,000 | 12% | 3% |
| $3,001 – $4,000 | 5% | 2% |
| $4,000 + | 4% | 66% |
