Denise Savoie
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SOLBERG MUST MUST FIX THE FAILED STUDENTS LOAN SYSTEM:NDP
OTTAWA – As Canadian students write their last exams of the spring semester, tens of thousands of them will soon graduate facing record levels of debt and a rigid regime of repayment and relief programs, said NDP Postsecondary Education Advocate Denise Savoie (Victoria).
“The Minister promised to review the loan system but students need fixes now,” said Savoie. “The overwhelming burden of student debt restricts graduates’ options just as they set out to begin their careers, and too many are pushed into unreasonable financial hardship.”
“For starters, sky-high interest rates unfairly force students – namely those who could not afford to pay the soaring tuition fees upfront – to pay back far more than their actual loan.”
Savoie noted that a number of easy fixes proposed by the NDP for months could be implemented quickly for immediate impact on those graduates facing the greatest difficulty. For example, the Cabinet could bring into force a bill passed in the last parliament that would reduce the discriminatory period during which students are denied access to bankruptcy protection from ten years to seven.
“I receive a steady stream of letters and e-mails from students and graduates who are struggling with a complicated and inflexible system,” said Savoie. “Many are single parents and many struggle with physical and mental barriers to work. Some are forced into legal action because their file was mishandled by their lender, and others report being bullied by collection agents. Token interest relief just doesn’t cut it for them.”
Savoie welcomed the commitment in the recent federal budget to review the student loan system, but was hesitant to get her hopes up after last summer’s federal consultations on postsecondary education were poorly timed and communicated.
“They waited until mid-August to consult the postsecondary community, and they forgot to contact major national student and teacher organizations,” said Savoie. “I trust that this time, we will have a more open and public discussion around making the student loan system more flexible, fair, and responsive to the needs of student borrowers.