By
      Chris
      Bodnar
     
    
   
   
    
     
      Ottawa
      Bureau
      Chief
     
    
   
   
    
     
       
     
    
   
   
    
     
      OTTAWA
      (CUP)
      -
     
     
      Student
      leaders
      say
      the
     
     
      Ontario
      government
     
     
      is
      unfairly
      demonizing
     
     
      students
      as
      cheaters
     
     
      trying
      to
      bilk
      the
     
     
      student
      loan
      system,
     
     
      and
      they
      add
      that
      the
     
     
      government's
      own
     
     
      numbers
      prove
      that
     
     
      portrayal
      is
      wrong.
     
    

    
     
      Figures
     
     
      released
      on
      Monday
     
     
      by
      Ontario’s
      Minister
     
     
      of
      Training,
      Colleges
     
     
      and
      Universities
     
     
      indicate
      the
      province’s
     
     
      overall
      student
      loan
     
     
      default
      rate
      has
     
     
      decreased
      by
      almost
     
     
      four
      per
      cent
      in
      1999
     
     
      to
      18.2
      per
      cent.
     
    

    
     
      But
      student
     
     
      leaders
      say
      the
      Ontario
     
     
      government's
     
     
      announcement
      is
     
     
      unfair
      to
      students
      and
     
     
      diverts
      attention
      from
     
     
      larger
      issues
      regarding
     
     
      core
      funding
      to
      post-
     
     
      secondary
      education
     
     
      in
      Canada.
     
    

    
     
      “The
      Ontario
     
     
      government
      is
      using
      a
     
     
      crime
      and
      punishment
     
     
      model
      on_
      student
     
     
      loans,”
      said
      Elizabeth
     
     
      Carlyle,
      the
      deputy
     
     
      chairperson
      for
      the
     
     
      Canadian
      Federation
     
     
      of
      Students.
      “They’re
     
     
      portraying
      students
     
     
      like
      people
      trying
      to
     
     
      cheat
      the
      system.
      But
     
     
      the
      proof
      is
      to
      the
     
     
      opposite.
      Students
      are
     
    
   
   
    
     
      concerned
      about
     
     
      dealing
      with
      public
     
     
      money.”
     
    
   
   
    
     
      aT
      h
      e
     
    
   
   
    
     
      «
      Students
      portrayed
      as
     
     
      «
      loan
      cheats,
      despite
     
     
      w
      falling
      default
      numbers
     
    
   
   
    
     
      announcement
     
     
      follows
      a
      revelation
     
     
      that
      the
      federal
     
     
      government
      is
     
     
      considering
      giving
     
     
      $100-million
      in
     
     
      retroactive
      risk
     
     
      premiums
      to
      the
      three
     
     
      Canadian
      _
      banks
     
     
      administering
      student
     
     
      loans.
      Government
     
     
      officials
      are
      calling
      the
     
     
      proposal
      the
      “best
     
     
      deal”
      available
      in
      order
     
     
      to
      keep
      the
      banks
     
     
      interested
      in
      the
     
     
      student
      loan
      business.
     
     
      Hw
      mam
     
     
      R.e:s
      O°
      £c
      €:s
     
     
      Development
      Canada
     
     
      handed
      over
      ‘the
     
     
      administration
      of
      the
     
     
      Canada
      Student
      Loan
     
     
      Program
      to
      the
      banks
     
     
      in
      1995,
      saying
      the
     
     
      program
      was
      too
      large
     
     
      to
      administer
      alone.
     
     
      And
      the
     
     
      announcement
      of
     
     
      Ontario’s
      declining
     
     
      default
      rates
      comes
      on
     
     
      the
      heels
      of
      harsh
      new
     
     
      policies
      on
      handling
     
     
      student
      loans
      by
      the
     
     
      province
      -s
     
     
      government.
      Students
     
     
      are
      now
      subject
      to
     
     
      credit
      checks
      prior
      to
     
     
      being
      approved
      for
      a
     
     
      student
      loan.
      The
     
     
      government
      ~
      also
     
     
      began
      deducting
      loan
     
     
      repayments
     
     
      student
      tax
      returns,
     
     
      and
     
     
      universities
      to
      share
     
     
      default
      costs.
     
     
      Seria:
     
     
      Ontario’s
      Minister
      of
     
     
      Training,
      Colleges
      and
     
    
   
   
    
     
      Universities
      Diane
     
    
   
   
    
     
      Cunningham
      says
      the
      -
     
    
   
   
    
     
      from.
     
    
   
   
    
     
      forcing
     
    
   
   
    
     
      most
      recent
      results
     
     
      aren't
      good
      enough.
     
     
      “Sh
      See
     
     
      encouraging
      that
      more
     
     
      students
      are
      paying
     
     
      back
      their
      loans,
      but
     
     
      default
      rates
      are
      still
     
     
      too
      high.
      More
      can
     
     
      and
      must
      be
      done,”
     
    
   
   
    
     
      she
      said.
     
    
   
   
    
     
      In
      the
      midst:
     
    
   
   
    
     
      of
      Ontario’s
     
     
      announcement,
      and
     
     
      the
      revelation
      that
      the
     
     
      banks
      may
      be
      getting
      a
     
     
      hefty
      bail-out,
      Carlyle
     
     
      said
      Ottawa’s
     
     
      justification
      that
      the
     
     
      student
      loan
      portfolio
     
     
      is
      getting
      too
      large
      to
     
     
      handle
      alone
      is
     
     
      misleading.
      She
      added
     
     
      that
      the
      Ontario
     
     
      government
      is
      being
     
     
      allowed
      to
      get
      away
     
     
      with
      unjustly
      cracking
     
     
      down
      on
      its
      own
      loan
     
     
      system.
     
    

    
     
      “The
      federal
     
     
      government
      says
      on
     
     
      one
      hand
      the
      portfolio
     
    
   
   
    
     
      is
      so
      large
      they
      need
     
    
   
   
    
     
      the
      help
      of
      the
      banks,”
     
     
      said
      Carlyle.
      “Why
      is
     
     
      the
      portfolio
      so
      large?
     
     
      It’s
      because
      they
      cut
     
     
      education.
      The
     
     
      provinces
      had
      to
      pass
     
     
      this
      on
      through
     
     
      increased
      tuition
      fees.
     
     
      Now
      students
      need
     
     
      more
      loans
      to
      go
      to
     
     
      school.”
     
    

    
     
      According
      to
     
     
      the
      CFS,
      there
      are
     
     
      numerous
      definitions
     
     
      of
      what
      a
      student
      loan
     
     
      default
      is.
      The
      model
     
     
      the
      banks
      and
     
     
      governments
      use
      is
      to
     
     
      declare
      a
      loan
      in
     
    
   
   
    
     
      default
      whenever
      a
     
    
   
   
    
     
      student
      misses
      three
     
     
      loan
      _—
      payments.
     
     
      Nonetheless,
      banks
     
     
      can
      still
      hold
      loans
      and
     
     
      eventually
      collect
      after
     
    
   
   
    
     
      they’ve
      been
      declared
     
    
   
   
    
     
      as
      default.
     
    

    
     
      And
      Ontario
     
     
      government
      figures
     
     
      show
      university
      loan
     
    
   
   
    
     
      defaults
      at
      only
      8.4
      per
     
    
   
   
    
     
      cent
      in
      1999.
      The
     
    
   
   
    
     
      overall
      number
      of
     
     
      default
      rates
      is
     
     
      increased,
      however,
     
     
      when
      loans
      to
      students
     
    
   
   
    
     
       
     
    
   
   
    
     
      at
      private
      institutions
     
     
      are
      included.
      These
     
     
      default
      rates
      are
      over
      30
     
     
      per
      cent
      for
      private
     
     
      vocational
      schools.