Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

The federal government is making hundreds of millions a year off interest fees on student loans -- getting an education costs way too much


An editorial by Mel Rothenburger.

MORE THAN $163 MILLION in outstanding student-loan payments were written off this week by the federal government. The money is owed by more than 31,000 students who can’t or won’t repay the money.

It’s the latest sorry commentary both on the federal-provincial student loan program, and on the fact we can’t provide our students with a university education unless -- they go deep into debt. 

It shouldn’t be that way.

Current debt under the Canada Student Loan Program totals a staggering $28 billion to all levels of government, according to one report. The B.C. Federation of Students says the average student loan debt at graduation in this province is more than $30,000. Many students spend as much as 15 years paying it back.

That is, those who do pay it back.

To be sure, a small amount of the problem involves fraud on the part of students who borrow the money and simply don’t try to repay it. But the bigger reason is that university tuition, books and living expenses are so steep that students simply can’t make enough through summer and part-time jobs to pay for their education.

According to the Canadian Federation of Students, the federal government is making hundreds of millions a year off interest fees on student loans.


Thompson Rivers University in Kamloops, BC
In short, getting an education costs way too much. Both the Canadian and B.C. student federations are demanding that interest rates be dropped entirely on student loans, and some provinces have already done that on the provincial component. B.C. is promising to be next but it needs to go further.

Student loan programs need to be simpler, less onerous and more consistent across the country, and non-repayable grants programs expanded.

And, those taxes we call interest payments eliminated.

I’m Mel Rothenburger,
The Armchair Mayor.


Mel Rothenburger is a former mayor of Kamloops and newspaper editor. He publishes the Armchair Mayor opinion website, and is a director on the Thompson-Nicola Regional District board. He can be reached at mrothenburger@armchairmayor.ca.

Labels:

Comments

Post a Comment

Popular posts from this blog

Abbotsford-Mission MLA Reann Gasper to step down for Conservative Leader Hon. Kerry-Lynne Findlay to run in a by-election

Deputy Whip and MLA Reann Gasper has informed the Speaker of the Legislative Assembly of British Columbia of her decision to step down as MLA for Abbotsford-Mission, creating an opportunity for Conservative Party of British Columbia Leader Hon. Kerry-Lynne Findlay to seek the seat in a forthcoming by-election. Gasper said the decision was made carefully and deliberately, with the future of British Columbia firmly in mind. Abbotsford-Mission MLA Reann Gasper “This is a decision I have made after a great deal of careful consideration, and I believe it is the right decision for me, for our Party, and for the work ahead,” said MLA Gasper. “It has been a privilege to represent the people of Abbotsford-Mission, and I am deeply grateful to everyone who placed their trust in me. I am also grateful for the opportunity to serve alongside my colleagues in the Conservative Caucus and to contribute to our leadership team.” “I have confidence in Kerry-Lynne, in her leadership, and in her ability to ...
Post a Comment
Read more

NDP Sits on $61 Million With No Start Date for Burnaby Hospital

Phase 2 of Burnaby Hospital redevelopment  was green lit to go ahead in September 2023 The NDP spent $45 million on the Burnaby Hospital redevelopment, cancelled the second phase, and now has another $61 million listed for the project in the province’s Public Accounts, with no start date for construction. If the NDP cancelled the project, what is happening to the $61 million set aside for it? The Phase 2 project was expected to cost between $1.7 billion and $1.8 billion and was intended to expand the hospital’s capacity. With Burnaby’s population growing and residents struggling to access healthcare, the government should be investing in healthcare capacity, not leaving millions of dollars tied up in limbo. “The NDP spent $45 million on this project before cancelling it, and now $61 million remains listed for it in the Public Accounts,” said MLA Misty Van Popta, Shadow Minister for Infrastructure. “If the government isn’t going to build the hospital expansion, it should explain whe...
Post a Comment
Read more

BC Conservatives Point to Warning Signs in BC’s Economy

While Canada posted modest job gains in July, warning lights are still flashing in British Columbia. Youth unemployment remains stubbornly high, leaving too many first-time jobseekers shut out of the workforce. BC also lost 3,400 public administration jobs in July, likely as temporary Census positions ended. “BC's jobs divide remains stark. Unemployment is far higher in business-driven communities like Kelowna (9.3%) and Abbotsford-Mission (8.3%) than in Victoria (5.0%). Government should be focused on creating the conditions for private-sector investment and job growth,” said Gavin Dew, MLA for Kelowna-Mission and Shadow Minister for Economic Development. “We need an economy where young people can find work, businesses can hire, and every region has the opportunity to prosper.” This comes as BC faces five straight quarters where more businesses are closing than opening, an NDP cabinet rift over job-creating projects like Tilbury LNG, and fresh signs that even the province's to...
Post a Comment
Read more

Labels

Show more