Canadian postsecondary students will spend an average of $31,700 on tuition and other education-related costs this school year as student loan defaults continue to climb, according to new federal figures.The nation’s Chief Actuary estimates Canada Student Loans will average $8,285 per borrower this year, while an increasing number of students require more financial assistance than the program's loan limit provides.“More students have a need that exceeds the loan limit,” said the Actuarial Report On The Canada Student Financial Assistance Program As At July 31, 2025.The report said loan default rates increased from 6.7% to 7.1% year over year.Blacklock's Reporter said the federal student loan portfolio now totals $32.1 billion, including $3.6 billion in defaults. Outstanding loans are projected to reach $40 billion by 2029.About 765,000 borrowers received $6.2 billion in loans last year.Federal Access to Information records indicate a student's field of study can make a significant difference in their likelihood of repaying their debt.“Borrowers who had studied engineering or science were generally more likely to report having paid off their student loan (32%) than borrowers who studied health (15%) or any other field of study,” said the Post-Study Survey For The Evaluation Of The Canada Student Loans Program.Humanities and social sciences graduates were the most likely to report relying on repayment assistance at 21%, while trades graduates were the least likely at 9%.Students identified as being more likely to struggle with repayment included single parents, mature students over 30, those attending more expensive private colleges and students who self-identified as disabled or indigenous.The typical Canada Student Loan borrower finished school carrying $33,475 in combined debt.That included an average $23,216 owed to taxpayers through government student loans, with thousands more borrowed through credit cards, banks, family and friends.More than one-quarter of borrowers surveyed — 27% — owed more than $40,000.“Eighty-four % of respondents indicated they were concerned about taking on debt,” said the report..Other forms of borrowing were also widespread.Thirty-four percent of students reported carrying unpaid credit card balances, while 21% owed money on a bank line of credit and 28% had borrowed from family members.The federal research also found 17% of student borrowers did not complete their studies.College students, single parents, students under 20 and those who self-identified as indigenous or disabled were among those more likely to leave school without completing their programs.“The most common reason for non-completion was not having enough money to cover education and living costs,” said the report.When borrowers who dropped out were asked why they stopped attending school, 47% cited insufficient money, 40% cited personal reasons, 30% pointed to family responsibilities and 28% cited academic reasons.
