Canada Student Loans Market Size (2024 - 2029)

The Canada Student Loans Market is projected to experience growth over the forecast period, driven by the increasing demand for financial assistance to cover rising tuition fees and living costs. The Canada Student Financial Assistance Program plays a crucial role in providing support to both full-time and part-time students, although many still resort to additional financial products to manage expenses. The market's expansion reflects the growing need for student loans as educational costs continue to escalate, impacting a significant number of Canadians.

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Market Size of Canada Student Loans Industry

Canada Student Loans Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 3.43 Billion
Market Size (2029) USD 4.29 Billion
CAGR (2024 - 2029) 3.80 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Canada Student Loans Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada Student Loans Market Analysis

The Canada Student Loans Market size is estimated at USD 3.43 billion in 2024, and is expected to reach USD 4.29 billion by 2029, growing at a CAGR of 3.80% during the forecast period (2024-2029).

In Canada, students can apply for grants and loans to help them pay for their post-secondary education through the Canada Student Financial Assistance Program. The support is available for both full-time and part-time students. The application is done through the student’s province or territory of residence. There is no need to pay back grants, and the loans become payable after finishing post-secondary education. There are huge variations in the cost of undergraduate tuition fees depending on the field of study, with degrees in the medical field being the most expensive. The highest tuition fees in 2021/22 were for dentistry, USD 22,731, medicine, USD 14,604, and veterinary medicine, USD 14,374. However, graduates from these programs are likely to have a higher median employment income two years after graduating compared to other fields of study.

In recent years, higher education tuition fees have been on the rise, and so has the amount of student debt in Canada. Even though Canadian students can receive grants and loans from the Canada Student Financial Assistance Program, many are forced to use student credit cards, student lines of credit, and personal bank loans to cover the rising cost of fees and living. Approximately 1.9 million Canadians owed the federal government a total of USD 23.5 billion in student loans as of July 2022, a number that only keeps growing further when including provincial loans and private debt. The tuition fees are now 13 times more than they were 50 years ago. Over 1.7 million Canadians have student loans.

Canada Student Loans Industry Segmentation

A student loan is a specific type of loan made for students to assist them in covering the costs of their post-secondary education and any related expenses, including tuition, books, supplies, and living costs. These are typically provided by government agencies, private financial institutions, or educational institutions themselves. These loans are designed to assist students who may not have the immediate financial means to cover the full cost of their education.

The Canadian education/student loans market is segmented by type, repayment plan, age group, and end-user. By type, the market is segmented into federal/government loans and private loans. By repayment plan, the market is segmented into the standard repayment plan, graduated repayment plan, revised pay as you earn (REPAYE), income-based, and other repayment plans. By age group, the market is segmented into 24 or younger, 25 to 34, and above 35. By end-user, the market is segmented into graduate students, high school students, and other end-users. The report offers market size and forecasts in value (USD) for all the above segments.

By Type
Federal/Government Loan
Private Loan
By Repayment Plan
Standard Repayment Plan
Graduated Repayment Plan
Repayment Plan, Revised Pay As You Earn (REPAYE)
Income Based
Other Repayment Loans
By Age Group
24 or Younger
25 to 34
Above 35
By End-User
Graduate Students
High School Student
Other End-Users
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Canada Student Loans Market Size Summary

The Canada Student Loans Market is a vital component of the country's educational financing system, supporting both domestic and international students in pursuing post-secondary education. Through the Canada Student Financial Assistance Program, students can access grants and loans to alleviate the financial burden of tuition fees, which have been steadily increasing over the years. This program is crucial as it covers a significant portion of a student's financial needs, with the federal government providing the majority of the funding. The market is characterized by a collaborative effort between federal and provincial governments, although some regions like Quebec, Nunavut, and the Northwest Territories have alternative arrangements. The rising cost of education has led to an increase in student debt, prompting many to seek additional financial resources such as credit cards and personal loans to cover expenses.

The market landscape is dominated by key players, including major banks and financial institutions, which offer a range of financial products to support students. The Government of Canada plays a central role in this market, with the Canada Student Loans Program being the primary source of funding for student loans. The presence of international students adds to the market's dynamics, as Canada remains an attractive destination for higher education due to its reputable universities and relatively lower tuition fees compared to other countries like the US and the UK. Recent developments, such as changes in lending rates by banks and strategic partnerships between financial institutions, indicate a responsive and evolving market structure aimed at enhancing financial accessibility and support for students.

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Canada Student Loans Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Higher Education Demand is Driving the Market

      2. 1.2.2 Government Initiatives are Driving the Market

    3. 1.3 Market Restraints

      1. 1.3.1 Risk of Default is Restraining the Market

    4. 1.4 Market Opportunities

      1. 1.4.1 Technology Integration is Providing Market Opportunities

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Suppliers

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Current Trends and Innovations in the Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Federal/Government Loan

      2. 2.1.2 Private Loan

    2. 2.2 By Repayment Plan

      1. 2.2.1 Standard Repayment Plan

      2. 2.2.2 Graduated Repayment Plan

      3. 2.2.3 Repayment Plan, Revised Pay As You Earn (REPAYE)

      4. 2.2.4 Income Based

      5. 2.2.5 Other Repayment Loans

    3. 2.3 By Age Group

      1. 2.3.1 24 or Younger

      2. 2.3.2 25 to 34

      3. 2.3.3 Above 35

    4. 2.4 By End-User

      1. 2.4.1 Graduate Students

      2. 2.4.2 High School Student

      3. 2.4.3 Other End-Users

Canada Student Loans Market Size FAQs

The Canada Education/Student Loans Market size is expected to reach USD 3.43 billion in 2024 and grow at a CAGR of 3.80% to reach USD 4.29 billion by 2029.

In 2024, the Canada Education/Student Loans Market size is expected to reach USD 3.43 billion.

Canada Student Loans Market Report Snapshots

Canada Student Loans Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)