EDITORIAL
     
     
      An
      arm
      and
      a
      leg
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      Student
      loans
      to
      be
      privatized?
     
    
   
   
    
     
      dough,
      right?
      When
      we're
      not
      relaxing
     
    

    
     
      in
      our
      hot
      tubs
      and
      lighting
      our
      Cuban
     
     
      cigars
      with
      hundred
      dollar
      bills,
      we’re
      probably
     
     
      out
      trying
      to
      pick
      just
      the
      right
      colour
      ferrarito
     
     
      complement
      our
      designer
      clothing.
      It’s
      all
      one
     
     
      madcap,
      whirlwind
      ride
      of
      academic
      gaiety,
     
     
      right?
     
    

    
     
      If
      you
      aren’t
      appreciative
      of
      the
      caustic
     
     
      sarcasm
      behind
      the
      above
      statements,
      you've
     
     
      been
      living
      on
      another
      planet.
      Students
      are
     
     
      among
      the
      most
      financially
      challenged
      people
      in
     
     
      this
      or
      any
      country,
      usually
      struggling
      to
      balance
     
     
      their
      studies
      with
      some
      means
      of
      paying
      for
     
     
      their
      schooling,
      like
      a
      part-time
      job.
      Whether
     
     
      employed
      or
      not,
      students
      are
      still
      extremely
     
     
      hard-pressed
      in
      their
      efforts
      to
      pay
      for
      their
     
     
      education.
      This
      is
      not
      surprising,
      in
      light
      of
     
     
      governmental
      policies
      regarding
      education
      fund-
     
     
      ing.
      Since
      1986,
      federaltransfer
      payments
      to
      the
     
     
      provinces
      (which
      include
      funds
      to
      sustain
      post-
     
     
      secondary
      institutions)
      have
      not
      increased
      with
     
     
      inflation
      but
      have
      instead
      been
      cut
      by
      over
      6.8
     
     
      billion
      dollars.
      With
      universities’
      main
      source
      of
     
     
      financial
      support
      dwindling
      away,
      and
      operating
     
     
      costs
      steadily
      climbing,
      universities
      have
      been
     
     
      forced
      to
      raise
      tuition
      fees
      and
      admit
      fewer
     
     
      applicants,
      making
      education
      steadily
      less
      acces-
     
     
      sible
      to
      the
      non-wealthy.
      One
      of
      the
      few
     
     
      options
      open
      to
      disadvantaged
      students
      up
      to
     
     
      this
      point
      has
      been
      the
      Canada
      Student
      Loans
     
     
      program
      (CSL).
      This
      may
      soon
      no
      longer
      be
      the
     
     
      case,
      though,
      as
      the
      federal
      government
      has
     
     
      announced
      revisions
      to
      the
      program
      which
     
     
      some
      fear
      will
      mean
      the
      eventual
      privatization
      of
     
     
      student
      loans,
      leaving
      them
      in
      the
      hands
      of
      the
     
     
      banks
      rather
      than
      government.
      What
      this
     
     
      means
      is
      that
      the
      government
      is
      giving
      fewer,
      if
     
     
      any,
      guarantees
      of
      the
      future
      of
      accessible
     
     
      higher
      education
      in
      Canada.
     
    

    
     
      The
      CSL
      program
      aided
      qualified
      students
      by
     
     
      having
      the
      government
      accept
      the
      risk
      for
      their
     
     
      loans
      should
      they
      be
      unable
      to
      pay
      them
      back,
     
     
      leaving
      students
      indebted
      to
      the
      government
     
     
      and
      not
      to
      the
      banks.
      It
      involved
      less
      red
      tape
     
     
      than
      a
      conventional
      loan,
      and
      among
      other
     
     
      things
      provideda
      six-month,
      interest-free
      grace
     
     
      period
      following
      the
      completion
      of
      schooling.
     
     
      Like
      most
      of
      Canada’s
      social
      programs,
      the
      CSL
     
     
      has
      in
      recent
      years
      come
      under
      scrutiny
      as
      yet
     
     
      another
      burdensome
      expense
      to
      the
      taxpayers,
     
     
      and
      like
      many
      other
      programs
      it
      has
      been
     
    
   
   
    
     
      E
      veryone
      knows
      students
      are
      rolling
      in
     
    
   
   
    
     
      steadily
      eroded.
      There
      has
      not
      been
      an
      infla-
     
     
      tion-comparable
      increase
      in
      loan-funding,
      and
     
     
      this
      past
      Spring
      the
      government
      eliminated
      the
     
     
      six-month
      grace
      period
      on
      loan
      repayment,
     
     
      despite
      intense
      public
      outcry
      by
      students
      and
      a
     
     
      near-revolt
      in
      the
      Tory
      caucus.
      Even
      more
     
    
   
   
    
     
      (in
      March,
      only
      CIBC
      and
      the
      Royal
      Bank
      were
     
     
      stillin
      the
      running).
      The
      prospect
      of
      one
      or
      two
     
     
      banks
      running
      the
      CSL
      program
      has
      a
      number
      of
     
     
      inherent
      dangers:
      the
      possibility
      of
      a
      monopoly
     
     
      of
      the
      student
      banking
      market;
      a
      greatly
      reduced
     
     
      number
      of
      banks
      able
      to
      process
      CSL-type
      loans
     
    
   
   
    
     
       
     
    
   
   
    
     
      troubling
      are
      some
      of
      the
     
     
      proposed
      additional
      re-
     
     
      forms
      that
      the
      Tories
      have
     
     
      laid
      out
      in
      recent
      weeks.
     
     
      Some
      proposals,
      such
      as
     
     
      the
      standardization
      of
      stu-
     
     
      dent
      financialassistanceand
     
     
      a
      slight
      increase
      in
      the
      maxi-
     
     
      mum
      weekly
      payment
      avail-
     
     
      able
      (the
      first
      in
      nine
      years
     
     
      despite
      93-360%
      increases
     
     
      in
      tuition),
      are
      promising;
     
     
      others,
      such
      as
      further
      re-
     
    
   
   
    
     
      "It
      is
      our
      responsibility
      as
     
     
      students
      and
      as
      voters
     
     
      to
      examine
      the
     
     
      education
      policies
      of
      the
     
     
      .
      Tories
      and
      their
      rivals
     
    

    
     
      during
      this
      federal
      -
     
     
      election
      campaign..."
     
    
   
   
    
     
      for
      students;
      the
      possible
     
     
      refusal
      of
      loans
      for
      stu-
     
     
      dents
      deemed
      ‘credit
     
     
      risks”
      (as-yet
      undefined)
     
     
      by
      the
      banks,
      as
      detailed
      in
     
     
      a
      clause
      of
      the
      govern-
     
     
      ment’s
      proposal;
      and
      open-
     
     
      ing
      the
      door
      to
      increased
     
     
      (and
      perhaps,
      eventually,
     
     
      total)
      private
      control
      over
     
     
      student
      loans.
      It
      all
      adds
     
     
      up
      to
      more
      uncertainty
     
     
      regarding
      the
      extent
      to
     
    
   
   
    
     
       
     
    
   
   
    
     
      strictions
      on
      eligibility,
      and
     
     
      especially
      the
      proposed
      “risk-sharing”
      of
      stu-
     
     
      dent
      loans
      by
      the
      banks,
      are
      somewhat
      disturb-
     
     
      ing.
      This
      proposed
      “risk-sharing”
      means
      that
      the
     
     
      banks
      will
      be
      asked
      to
      share
      in
      the
      responsibility
     
     
      of
      guaranteeing
      student
      loans,
      splitting
      the
      finan-
     
     
      cial
      risks
      between
      the
      government
      and
      the
     
     
      private
      sector.
      This
      will
      take
      some
      financial
      heat
     
     
      off
      the
      government,
      but
      banks
      will
      probably
      be
     
     
      none-too-thrilled
      with
      the
      possibility
      of
      student
     
     
      “deadbeats”
      defaulting
      on
      their
      loans,
      since
     
     
      banks
      are,
      after
      all,
      institutions
      devoted
      to
      the
     
     
      pursuit
      of
      profit.
      With
      the
      expanded
      role
      of
      the
     
     
      banks,
      loans
      may
      become
      harder
      to
      obtain
      and
     
     
      harder
      to
      pay
      off
      if
      the
      financial
      institutions
      have
     
     
      anything
      to
      say
      about
      it.
     
    

    
     
      The
      fears
      of
      privatization
      have
      been
      fuelled
     
     
      in
      part
      by
      the
      government’s
      December
      1992
     
     
      proposal
      to
      turn
      the
      administration
      of
      the
      CSL
     
     
      over
      to
      commercial
      institutions,
      inviting
      bids
     
     
      from
      banks,
      trust
      companies,
      and
      credit
      unions
     
    
   
   
    
     
       
     
    
   
   
    
     
      which
      governmentwill
      sub-
     
     
      sidize
      higher
      education
      in
      the
      future.
     
    

    
     
      It
      is
      our
      responsibility
      as
      students
      and
      as
     
     
      voters
      to
      examine
      the
      education
      policies
      of
      the
     
     
      Tories
      and
      their
      rivals
      during
      this
      federal
      elec-
     
     
      tion
      campaign,
      and
      to
      lobby
      our
      would-be
     
     
      leaders
      for
      recognition
      of
      and
      decisive
      re-
     
     
      sponses
      to
      our
      concerns,
      such
      as
      student
      loan.
     
     
      guarantees
      andincreased
      transfer
      payment
      funds.
     
     
      Students
      should
      then
      take
      this
      into
      account
      in
     
     
      their
      voting.
      It’s
      our
      future
      on
      the
      line,
      and
      we
     
     
      won't
      get
      another
      chance
      like
      this
      to
      shape
      it
      for
     
     
      at
      least
      another
      four
      years.
      If
      we
      ignore
     
     
      shrinking
      (and
      dangerously
      variable)
      govern-
     
     
      ment
      funding
      for
      education
      and
      stand
      by
      while
     
     
      the
      private
      sector
      makes
      bids
      on
      the
      future
      of
     
     
      student
      loans,
      where
      will
      accessible
      higher
      edu-
     
     
      cation
      be?
      Going...going...gone.
      :
     
     
      Sean
      McQuaid
     
    

    
     
      Editor-in-Chief
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      Death
      threats?
      Praise?
      Story
      ideas?
     
     
      Call
      us
      and
      speak
      your
      mind:
     
    
   
   
    
     
      eT
      el
      EI
      Vay
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
       
     
    
   
   
    
     
      October
      7,
      1993/X-Press/3