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If Quebec students noisily protesting hikes in tuition-fee hikes feel mistreated, they should look south of the border.
Aggregate student debt in the United States posted a spectacular jump in 2011 and now stands at $1-trillion (U.S.), or about 7 per cent of GDP, according to the U.S. Consumer Financial Protection Bureau.
The average outstanding student loan balance in the third quarter of last year was $23,000, according to the New York Fed.
Using these and other stats, Pierre Lapointe of Brockhouse Cooper argues that this student-debt explosion will result in a lower home-ownership rate south of the border.
U.S. college tuition costs have ballooned by a cumulative 57 per cent between 2001 and now, whereas average weekly earnings for 25 to 34 year olds fell by 7 per cent, he says.
“If wages are barely growing in real terms, it is no wonder that 27 per cent of all student loans are currently delinquent,” he writes.
A feeble employment outlook and sky-high student loans for an entire segment of the population will translate into less money flowing into home-ownership, he says in a recent report.
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