Student debt is contributing to more insolvencies while the average insolvent student debtor gets younger
KITCHENER, ON, Sept. 5, 2018 /CNW/ - Almost 1 in 7 insolvencies involve student debt according to a 7-year review of student debt and bankruptcy statistics conducted by Hoyes, Michalos & Associates Inc. In 2017, 15.1% of people filing a bankruptcy or consumer proposal carried student debt, up from 12.9% in 2011.
"Rising tuition costs are certainly contributing to a financial crisis for graduates" says Doug Hoyes, Licensed Insolvency Trustee. "The average student debt among those aged 18 to 29 filing insolvency increased by 20% over the past seven years."
The average age of an insolvent student debtor is now just 35.1 years, after peaking at 36.1 years in 2012. While more likely to be in their 30s, almost 3 in 10 student debt driven insolvencies are now filed by those aged 18 to 29. "Higher debt upon graduation is just not sustainable which is contributing to more young Canadians filing insolvency for student debt", adds Mr. Hoyes.
For more information on the 7-year study, visit https://www.hoyes.com/press/joe-debtor/the-student-debtor/
About Hoyes, Michalos & Associates, Inc.
Hoyes, Michalos & Associates Inc., a Licensed Insolvency Trustee firm co-founded by Doug Hoyes and Ted Michalos in 1999, has established itself as the leading voice on personal debt issues in Ontario. Hoyes Michalos provides real debt management solutions to help Ontarian's climb out of debt, including consumer proposals and personal bankruptcy, with offices throughout Ontario. Hoyes Michalos is also proud to be a Living Wage Champion employer.
Further information is available at www.hoyes.com
SOURCE Hoyes, Michalos & Associates Inc.