Page
      14
      February
      2009
     
    
   
   
    
     
      PROVINCIAL/
      NATIONAL
     
    
   
   
    
     
      Student
      debt
      tops
      $13
      billion,
      student
      groups
      warn
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      By
      Taylor
      Bendig
     
     
      The
      Carillon
      (University
      of
     
     
      Regina)
     
    
   
   
    
     
      REGINA
      (CUP)
      —
      Canadian
     
     
      student
      lobby
      groups
      have
     
     
      announced
      the
      country’s
      stu-
     
     
      dent
      debt
      has
      climbed
      to
      well
     
     
      over
      $13
      billion.
     
    

    
     
      According
      to
      the
      Canadian
     
     
      Federation
      of
      Students,
      the
     
     
      amount
      of
      unpaid
      student
     
     
      loans
      owed
      to
      the
      govern-
     
     
      ment
      of
      Canada
      broke
      the
     
     
      $13
      billion
      mark
      on
      Jan.
      21.
     
     
      But,
      the
      true
      amount
      of
     
     
      student
      debt
      in
      the
      country
     
     
      is
      much
      higher,
      says
      Julian
     
     
      Benedict
      of
      the
      B.C.-based
     
     
      Coalition
      for
      Student
      Loan
     
     
      Fairness.
     
    

    
     
      “As
      far
      as
      we
      know,
      the
     
     
      number
      is
      much
      larger,
      be-
     
     
      cause
      that
      $13
      billion
      only
     
     
      includes
      the
      federal
      portion
     
     
      of
      these
      loans,”
      Benedict
     
     
      said.
     
    

    
     
      ‘Most
      debt-ridden
      students
     
     
      have
      provincial
      and
      federal
     
     
      loans,
      as
      well
      as
      credit
      cards
     
     
      and
      private
      student
      lines
      of
     
     
      credit.
      So
      people
      are
      grap-
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      pling
      with
      all
      different
      forms
     
     
      of
      debt,”
      he
      added.
     
    

    
     
      CFS
      estimates
      the
      amount
     
     
      of
      provincial
      debt
      alone
      at
      a
     
     
      further
      $5—8
      billion.
     
    

    
     
      “This
      is
      an
      unfortunate
     
     
      milestone
      in
      Canadian
      his-
     
     
      tory
      and
      in
      the
      history
      of
     
     
      post-secondary
      education,
     
     
      but
      it
      was
      inevitable
      when
     
     
      you
      take
      into
      account
      that
     
     
      student
      debt
      is
      increasing
      at
     
     
      arate
      of
      $1.2
      million
      a
      day,”
     
     
      said
      Kristy
      Fyfe,
      VP
      external
     
     
      relations
      for
      the
      University
     
     
      of
      Regina
      Students’
      Union.
     
    

    
     
      URSU,
      CFS,
      and
      the
      Co-
     
     
      alition
      all
      maintain
      that
      the
     
     
      massive
      and
      ever-growing
     
     
      debt
      is
      harming
      the
      future
      of
     
     
      both
      Canada’s
      youth
      and
      the
     
     
      country
      itself.
     
    

    
     
      “What
      we’re
      doing
      is
      dis-
     
     
      couraging
      people
      from
      going
     
     
      to
      school,
      because
      they
      know
     
     
      that
      they’re
      going
      to
      have
      a
     
     
      debt
      that
      can
      take
      them
      up
      to
     
     
      15
      years
      to
      pay
      back,”
      said
     
     
      Benedict.
     
    

    
     
      Of
      those
      who
      do
      attend
     
     
      post-secondary
      school,
      CFS
     
     
      reported
      that
      significant
     
     
      numbers
      leave
      their
      studies
     
    
   
   
    
     
      early
      to
      escape
      mounting
     
     
      debt.
      Many
      others
      see
      their
     
     
      grades
      and
      mental
      health
      de-
     
     
      teriorate,
      because
      of
      stress
     
     
      associated
      with
      debt
      levels
     
     
      and
      the
      employment
      neces-
     
     
      sary
      to
      minimize
      them.
     
     
      Benedict
      adds
      that
      because
     
     
      of
      the
      financial
      strain
      of
     
     
      debt
      repayment,
      students
      are
     
     
      avoiding
      degrees
      associated
     
     
      with
      important,
      but
      low-
     
     
      paying,
      public
      service
      jobs,
     
     
      such
      as
      social
      work.
      He
      also
     
     
      claims
      that
      repayment
      takes
     
     
      up
      what
      would
      otherwise
      be
     
     
      a
      graduate’s
      disposable
      in-
     
     
      come,
      preventing
      them
      from
     
     
      contributing
      to
      the
      national
     
     
      economy.
     
    

    
     
      Benedict
      says
      Canada
      falls
     
     
      behind
      countries
      such
      as
     
    
   
   
    
     
      ‘New
      Zealand
      in
      its
      efforts
      to
     
    
   
   
    
     
      reduce
      student
      debt,
      and
      that
     
     
      Saskatchewan
      is
      doing
      less
     
     
      to
      reduce
      the
      burden
      than
     
     
      other
      provinces.
     
     
      Saskatchewan’s
      provincial
     
     
      student
      loan
      program
      is
      inte-
     
     
      grated
      with
      the
      federal
      pro-
     
    
   
   
    
     
      gram,
      meaning
      that
      all
      who
      .
     
    
   
   
    
     
      apply
      automatically
      take
      out
     
     
      both
      a
      federal
      and
      a
      provin-
     
     
      cial
      loan
      —
      each
      at
      the
      federal
     
     
      interest
      rate
      of
      2.5
      per
      cent
     
     
      above
      prime.
      In
      provinces
     
     
      where
      the
      loan
      systems
      are
     
     
      independent,
      provincial
      in-
     
     
      terest
      rates
      —
      such
      as
      Ontar-
     
    
   
   
    
     
      io’s
      |
      per
      cent
      above
      prime.
     
    
   
   
    
     
      —
      can
      be
      substantially
      lower.
     
     
      “I
      would
      argue
      that
      the
     
     
      province
      has
      basically
      re-
     
     
      linquished
      an
      opportunity
     
     
      to
      offer
      their
      students
      lower
     
     
      rates,”
      said
      Benedict.
     
    

    
     
      Tammy
      Bloor-Cavers,
      ex-
     
     
      ecutive
      director
      of
      the
      pro-
     
     
      grams
      branch
      and
      training
     
     
      institutions
      branch
      for
      the
     
     
      Ministry
      of
      Advanced
      Edu-
     
    
   
   
    
     
       
     
     
       
     
    
   
   
    
     
      cation,
      says
      the
      integrated
     
     
      loan
      system
      makes
      the
      ap-
     
     
      plication
      process
      much
      less
     
     
      complicated
      for
      students,
     
     
      and
      the
      province
      is
      free
      to
     
     
      differ
      from
      federal
      policies
     
     
      if
      it
      feels
      the
      need.
     
    

    
     
      Bloor-Cavers
      also
      empha-
     
     
      sizes
      the
      variety
      of
      federal
     
     
      and
      provincial
      assistance
     
     
      available
      to
      indebted
      stu-
     
     
      dents.
     
    

    
     
      “In
      comparison
      to
      other
      ju-
     
     
      risdictions,
      our
      debt
      levels
     
     
      have
      remained
      fairly
      static
     
     
      and
      have
      only
      increased
     
     
      minimally
      over
      the
      last
      cou-
     
     
      ple
      years,
      and
      that’s
      largely
     
     
      tied
      to
      our
      loan
      assistance
     
     
      levels,”
      she
      said.
     
    

    
     
      Loan
      assistance
      for
      stu-
     
     
      dents
      can
      range
      from
      grants
     
     
      and
      bursaries,
      or
      suspension
     
    
   
   
    
     
       
     
    
   
   
    
     
      Atlantic
      Student
     
    
   
   
    
     
      For
      complete
      information,
     
     
      www
      .stu-sja.ca
     
    
   
   
    
     
      PANTHER
      POST
     
    
   
   
    
     
         
     
    
   
   
    
     
      of
      interest
      payments,
      to
      a
      full
     
    
   
   
    
     
      forgiveness
      of
      debt,
      depend-
     
    
   
   
    
     
      ing
      on
      the
      borrower’s
      cir-
     
     
      cumstances.
     
    

    
     
      Bloor
      Cavers
      also
      draws
     
     
      attention
      to
      Saskatchewan’s
     
     
      newly
      expanded
      Graduate
     
     
      Retention
      Program,
      which
     
     
      refunds
      up
      to
      $20,
      000
      worth
     
     
      of
      tuition
      as
      an
      income
      tax
     
     
      credit
      for
      graduates
      who
      stay
     
     
      to
      work
      in
      the
      province.
     
    

    
     
      She
      says
      the
      Ministry
      is
     
     
      always
      reviewing
      its
      own
     
     
      programs
      to
      make
      sure
      they
     
     
      are
      working
      as
      efficiently
     
     
      as
      possible,
      and
      while
      it’s
     
     
      not
      always
      possible
      to
      keep
     
     
      pace
      with
      the
      rising
      cost
      of
     
     
      education,
      every
      effort
      is
      be-
     
     
      ing
      made
      to
      see
      that
      the
      loan
     
     
      program
      is
      responsive
      to
      stu-
     
     
      dents’
      needs.
     
    
   
   
    
     
       
     
    
   
   
    
     
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