Student Debt is the Norm, But Many Canadians Don't Understand How it Works: RBC Poll

• More than half of students currently use or plan to use financial aid to help fund their
  post-secondary education, yet only 28% feel confident estimating how long it will take to pay off that debt.
• Only 30% of students report having a clear understanding of the differences between funding options including student loans, student lines of credit and credit cards.

TORONTO, June 16, 2026 /CNW/ - A new poll from Royal Bank of Canada (RBC) reveals a growing disconnect between how students are paying for post-secondary education and how prepared they feel to manage the financial realities that come with it. While 57% of students say they currently use or plan to use financial aid to help fund their education, 25% report low confidence in understanding how student loans work and just 28% feel very confident in estimating how long it will take to pay off their debt.

The findings underscore a clear gap: students are making major financing decisions without a practical understanding of what borrowing could mean for their day-to-day lives and long-term financial future.

The New Reality of Student Debt and Why So Few Feel Ready
"What we keep hearing from students is that the challenge isn't willingness -- it's awareness," said Lucianna Adragna, Vice President, Client Segments, Everyday Banking, RBC. "Many simply don't know what funding options are available to them, or which ones are actually the right fit for their life. Feeling confident about your path starts with understanding what's out there -- and that's exactly where we want to help."

Tuition is just part of the equation. Recent studies show that one year of post-secondary education can exceed $30,000 a year when tuition, rent, food, transportation and textbooks are factored in.

Student Loan vs. Line of Credit vs. Credit Card: What's the Difference?

• 62% of students say they rely on two or more sources to pay for school, including government loans, scholarships, family support, credit cards and student lines of credit.
• Yet only 30% say they understand the differences between options like student loans, lines of credit and credit cards.

"Borrowing for post-secondary education is often a practical step toward future opportunity and earning potential," said Sara Son-Hing, Vice President, Personal Lending, RBC. "When students understand how debt works and repay it responsibly, student borrowing can do more than help fund education – it can help build credit and support future financial goals."

Rather than treating borrowing as a single transactional decision, RBC recommends focusing on how it works in practice by identifying what a student is borrowing for, how borrowing costs change over time and how repayment terms may impact cash flow, long-term credit-building and financial goals.

How to Borrow for School: The 4 Cs of Smart Student Borrowing

• Clarity: Start the money conversation early. Students and parents often assume they're aligned on how costs will be covered, until they aren't. These conversations need to start well before tuition is due, with a clear agreement on total expected costs and how each element is being covered. If there's uncertainty about how to divide expenses or which funding options are available, an RBC Advisor can help families map out a plan.
• Composition: Know what you're actually borrowing for. Not all debt is the same. Money borrowed for tuition, textbooks or required academic expenses are generally tied to long-term earning potential. Short-term or discretionary spending can be harder to track and more difficult to repay over time.
• Cushion: Expect the unexpected. A school year rarely goes exactly as planned. Rent increases, job changes or unexpected expenses can shift budgets quickly. Build in flexibility and assume at least one unplanned cost per term to help avoid financial stress when things change.
• Consequence: Don't separate borrowing from repayment. With many students unsure of how interest affects what they'll owe after graduation, it helps to think about the implications of repayment terms at the same time as borrowing. Understanding how debt grows over time can make today's decisions easier to manage tomorrow.

RBC Tools to Help You Plan, Budget and Repay Student Debt
Navigating financial decisions can be tricky, but RBC has several practical tools to help:

• A Student Borrowing Guide. An overview on the differences between the various loan options, usage recommendations and repayment overview.
• A Student Budget Calculator. A tool to help you estimate school-related expenses.
• What's Your Money Mindset? A quiz to help uncover your money mindset, spending habits, and attitude toward debt to help build confidence in saving and planning.
• How To Check Your Credit Score. An in-app tool that lets you check your credit score in real time.

As more students rely on financial support to fund their post-secondary education, it is just as important that they understand how that support works. RBC is committed to helping students and families navigate the complexities of paying for post-secondary education, so they can focus less on financial uncertainty and more on their studies. To learn more about planning and paying for school with confidence, visit our guide to student lines of credit in Canada.

Survey Methodology
These findings are drawn from an online survey conducted by Prodege between May 15-29, 2026, on behalf of Craft Public Relations, commissioned by RBC. The survey included a total of n=1,600 Canadians aged 17-24 who are prospective or current post-secondary students. Respondents reflect the natural demographic distribution of members of Prodege's research panel; no demographic quotas or post-survey methodologies were applied. At a sample size of 1,600, the margin of error for the study is ± 2.4 percentage points at a 95% confidence level, though margins of error are higher among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage error and measurement error.

Disclaimer
This is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 101,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 19 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

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Media contact:
Matt Trocchi, Corporate Communications, RBC

SOURCE RBC