No jobs mean big loans for students
September 5, 2009
Noor Javed
STAFF REPORTER
Siva Vimal spent his entire summer trying to get a head start.
Determined to pay his own tuition at York University, like he had in previous years, the third-year political science student began applying for jobs early in the summer.
He filled out application after application for a job as a waiter or bus boy, work he found easily last year. But he never heard back. Even the Tim Hortons in his neighbourhood didn't reply.
Eventually, Vimal's uncle gave him a few hours of work a week at his restaurant so the 20-year-old could pay his bills.
Vimal starts school next week with almost no savings, a huge loan on his shoulders, and concerns about how he will be able to get through the year.
"There is no way I can pay for tuition this year," Vimal said.
"My parents both work in factories, and I hate asking them for money. Usually I help them pay the bills," he said. "This year, I hate to think about it, but I might have to borrow from them."
He isn't the only one returning to school empty-handed.
According to Statistics Canada, unemployment for students between the ages of 15 and 24 was at 16.4 per cent in August, the worst rate on record.
The rest of the summer wasn't any better. The unemployment rate for the summer was at 19.2 per cent, with most of the young people working only 23.4 hours per week.
The concerns can be seen on campuses across the city.
The University of Toronto has seen a 12 per cent increase in financial aid applications for the year, according to its financial aid office. Ryerson University has seen applications jump 10 per cent. And applications to the Ontario Student Assistance Program were about 5 per cent higher for colleges and universities for next year.
"This means so many more students are having to borrow money just to get through school, which means a higher debt load at the end," said Katherine Giroux-Bougard, head of the Canadian Federation of Students, which has been fielding calls from concerned students all summer.
"Or some students are making drastic decisions of not attending university to save money, or returning to live at home."
Realizing the potential effect of the economy on students, Ryerson University said it will hire more students as teaching and research assistants and for other part-time positions, and offer more bursaries, scholarships and awards.
It's little comfort to Vimal, who will borrow more than $5,000 to pay for his full course load next year – on top of the $11,000 he already owes. The thought of the hefty debt load, and increasing tuition costs, has started to put a damper on his future education plans.
"My dream is to do international law, but at the moment it is feeling more and more unrealistic," he said.
Toronto Star