Canada Student Loan debt tops $13B, figures show

Recent graduates have always faced an uphill climb, but with the current recession many students are worried that their debt will loom over them for much longer.

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CTV.ca News Staff

Date: Wed. Jan. 21 2009 11:47 AM ET

Canadians who have pursued post-secondary studies now owe the federal government $13 billion in outstanding loans, according to new figures from the Canadian Federation of Students.

The CFS says Canada Student Loan debt increases by $1.2 million per day and will cross the $13 billion mark on Wednesday.

A debt clock featured on the CFS webpage shows the Canada Student Loan debt inching toward the $13 billion mark in real time.

CFS national chairperson Katherine Giroux-Bougard told CTV.ca Wednesday said the government must do more to help stem the growing levels of Canadian student debt.

"What the priority of the government should be is really to make post-secondary education affordable," she said.

Being saddled with such debt, she said, leaves Canadian students making choices they shouldn't have to make.

Studies have shown that "student loan applications reduce the ability of new graduates to start families, work in public service careers, invest in other assets, volunteer, or even just take a lower paying job in their own field to get a foot in the door," Giroux-Bougard said.

"So, it changes peoples' life choices and career choices," she added.

Her organization advocates having the federal government provide more money to the students through the Canada Social Transfer, rather than the Canada Student Loans Program. This would allow the government to work with the provinces to reduce university tuition fees and claw back overall student debt, she said.

The CFS says the $13-billion figure does not include $5 billion students owe to provinces, nor does it include any debt they owe to banks, credit companies and their parents.

According to the Human Resources and Social Development Canada website, the federal government's Canada Student Loans Program has offered $28.1 billion in loans to more than 3.8 million students since the program was founded in 1964.

Comments are now closed for this story

Robert D
said

The reform of student debt needs to come if anything in the interest they charge 2.5 plus prime..9% if you want to lock it in. Thats crazy especially on huge debts...thats why the government wanted to take the loans its big business. But hey who are we only the citzens...ohya if you work for the federal government post secondary is paid for you...??????

island girl
said

I know too many students who assume debt taking degrees that do not translate in to job skills. Once graduated, they go on to Masters assuming more debt hoping then they will be employable. Not. Society does not owe you a job nor does it owe you an education past grade 12. If people buoycotted universities the tuition would come down. They are businesses after all, supply and demand apply. Unfortunately people will be once again flocking to them with the current bad economy...and once trained, even less jobs.

D in TO
said

OK, the day the feds decide to clear the student debt is the day I will leave this glorious country of mine.

I earned every cent that went into my education. I did not have a car, not did I drink like fish. I lived acording to my means. I did not have my family to support me. Quite the opposite, I supported my mother for more than two years, while in university. I had plenty of "mates" who got insane loans, and used them to either party like rock-stars, or invested them in the stock market, because it was "free money".

So if someone can actually tell me why in the world should I be paying for the lifestyle of lazy individuals who were too self important to get a job and/or live more sensibly?

Sofa King Hot
said

Yeah I'm kinda worried cuz im going to post-secondary this fall.

Payed my own way
said

Intersesting how the people complaining about student debt mostly say the're current employment has nothing to do with your educations. Why is that anybody's fault but your own. Nobody forced you to take a particular course in school and nobody forced you to get that so called useless degree. These decisions were made by you and only you. Same goes for student loans. Nobody forced you to take the money. I agree that post-secondary education needs to be less expensive and more accessible but nobody forced you to apply and accept student loans. You know those long forms with lots of words on them that you had to sign before you get your loan money? Well, they say you have to repay the loan. Why is this a surprise for some people? Suck it up! You took the money. You spent the money. Now you have to pay back the money!
This is not a defense of any elitist univeristy educated social class. This is simply a plea for people to take responsability for your own actions. Life is tough for lots of people. Deal with it and take responsability for your own actions.

Adam
said

to: Budget-concious in Alberta

yes its true thats a good average price for most average degrees. But it is not the cost of studying medicine or law degrees that are essential parts of life. those degrees do cost that much annually (30 000+/year). Rent in some cities though is not the same and lets face it some universities have a better reputation than others, which comes with higher tuition and living costs.

Ian-AB
said

know what I find odd here. what's the difference really. I pay on my loans I don't complain about it... I borrowed it I can pay it back. I do agree with some that the banks making money off of Canadians education while we as tax payers bail them out is a little bit ridiculous. See lowered prime rate for lending between banks and the banks not dropping the rate to help consumers. We are bailing them out because they made bad investments and have little free cash.

So really whats the difference? We kick in 2 billion (alberta tax payers) for oil companies and CCS... we kick in 4 billion approx. for low skilled auto workers and their greedy bosses. We give useless politicians silly raises. Indigenous Canadians get billions per year in subsidies. Afghanistan billions per year spent on infrastructure just so Americans can blow it up. Really what is the difference here?

Maybe I think soldiers made a choice to go and fight overseas. They should have to pay for their equipment and weapons on their own through loans. Why should I pay for their choices... Afghanistan has never attacked me?

Shanny
said

I have zero sympathy for anyone whining about student loans and how much debt they are carrying. I graduated with my bachelors degree 6 years ago and had 50K in debt. Some of the debt was legit and some of it was due to partying and mismanagement. I have paid all my student loans back with out the assistance of rich parents or any help from the government. This was done by smartening up and tightening up the boot straps and creating a solid budget and sticking to it.

At the end of the day my education was worth going into debt for.

I don't think the government should pay out the approx. $13B of student loans. I think if you choose to get the loans then you have to deal with the consequence of those actions.

Mallory
said

A couple of years and it's paid off? Ya right?! I am a student at the University of Toronto and let me tell you, that tuition fees, residence fees and general living expenses are ridiculous! Most students I know expect to be in AT LEAST 25,000 in debt at the end of their schooling. The cost of education is too high and the article is right, many students make decisions that they just should not have to make. For example, it's not uncommon to know of girls who actually become exotic dancers to pay for school, or guys who decide to deal drugs just for some cash.

Awile
said

I went to school for 5 years. That included the Co-operative Education Program for which you go out and find yourself a "real" job for a semester and still have to pay the university for what they deem "administrative and paperwork" fees. During my time at University I also had a child. I can rest your weary minds that not once did I spend my funds on Booze or Spring Break trips. Not only did I have $30,000 in Student Loan debt, I had $10,000 in credit card debt to make up for what the government told me I wasn't entitled to. I worked every summer, break, and semester. I graduated in '04. I still have 10 years left to go on my loans, paying the bare minimum as it's all I can afford. I'm just thankful that I was able to claim those tuition amounts and interest paid on loans on my income tax, and so far get damn near all income tax paid back each year. I don't blow that amount either in case you're wondering, it goes directly onto the Credit Card debt (higher interest)

If I could go back... I'd have gone to community college and still would have acheived the same results in my job find, but with a lot less to pay back at the end of the day.

JB/BC
said

Those who qualify for government loans for education should have to qualify based on their academic standing.
The GPA requirement should be met and maintained throughout the course of their education as a condition of qualifying to recieve funding.
This would help to ensure that those who tend to go to post secondary institutions to "Party up" will have to party less or not at all to maintain their standings.
The Universities and other post secondary institutions also have a responsibility to keep the cost of education affordable. Very expensive text books are being reviewed and replaced annually by these institutions...at times as result of minor wording changes as opposed to major context and/or technological advancement changes, etc.

What the average citizen wants their tax loaned dollars to achieve for these students is "funding for those who are serious about an education". Fortunately it appears that those who are serious about their education seem to succeed despite the flaws of the current system.
AS always.....the Doers Do and the Whiners continue to Whine.

Devil is in the details
said

I graded in '96 10 grand in debt. Made every payment on time for 7 years, then decided to return to school to expand my possibilities. When I graded in '07 I learned that the majority of the money I paid out for those 7 years was basically a waste since you pay your calculated interest up-front prior to paying down the principal. So now I'm over 30 grand in debt. Pricey lesson. I now live as close to poverty I can stand and make balloon payments as often as possible. I know that the banks have a right to the interest, but seriously?...does the gov't not have some sense that there is something wrong here?

LTD, Ottawa
said

In 2000, I decided to leave my $7/hour job to go back to school and upgrade my tech skills to get back into IT full time. I didn't qualify for any support programs since, in the government's words, I was already working and if I had a problem with my employer, they would send someone to speak with my boss. The point that by upgrading my skills, I would earn more and by default, pay more taxes seemed lost.

I got a small student loan that barely covered my tuition, then sold everything and maxed out my credit just to cover living expenses. After graduation, I immediately began to pay back the loan in 2001 and will clear it this year, finally. Over the last few years, I came up late a few times and got many threatening phone calls from their tough-guy collectors but in the end, always paid within a few days. The concept of interest on Stuident loans strikes me as another case of taking advantage of the more vulnerable.

In the end, I got back into IT and have been working steady for years, now paying more than three times the taxes what my salary was in 2000. The government didn't really help much, but they sure got the benefit of my paying more tax now, and interest on my loans all along.

I really sympathize with anyone buried under debt. The politicians only seem to care when their jobs are on the line (election time) and never when ours are in jeopardy.

Found you $33B to stimulate the economy
said

Don't pay there debts $13B and get out of that bloody war $20B, now that's $33B to invest in the economy!

Northern Girl
said

This is SO true.

I just retrained as a teacher. I had to take out debt on my credit card, four years worth. I now have to leave my husband to go north to teach... we can't start a family for another two years, I'm 31 now.

We need to pay for our house. We have not enough for food on our tables, because of my student loans.

I'll be at least 42 before my loans are paid off.

Let's do the math people. No kids for us, thanks to my choice of better education.

I'd have been off never going to post-secondary at all and working at Tim Horton's.

Don't diss the Tim Horton's and McD jobs. Those are truly the smart people!

George in Toronto
said

I hate to say this, but complaining about debt, and how debt affects your life choices, etc ... sounds pretty normal to me.
Students shouldn't be exempted or sheltered from this reality ... I wasn't when I was paying off my student loans in the 80's.

OUC, OC and UBC-O grad
said

Simple solution, this country needs to stop hiring foreigners. We need to hire those that went through our post secondary system first and foremost.

I myself have incurred a debt if $27k in loans after obtaining two diplomas and a degree. After graduating in 2007, I didn�t find employment until the spring of 2008. Unfortunately, due to the economic situation down south, I was laid-off just 7 weeks after I started. I hoped to have had started paying off my loans last year. I still haven�t found work. During my search I have encountered many situations where foreigners were being hired for opportunities that should�ve gone to our own citizens; individuals that went through the post-secondary system on our home soil.

So I say to the governments, both provincial and federal: if you could help us out, we could help you out. Be patient, you will get your money back, just hire domestically yourselves and urge other businesses and organizations to do the same.

BrianD
said

Reading most of these comments, most people figure its the gov. that should pay for college, university or trade schooling once you graduate high school. You are nuts. I pay enough taxes as it is and I dont need to pay for someones masters degree ontop of it. Not fare to all who went through this, paid their way. Cost of living is up folks, should the gov. be paying my morgage at the expense of the rest of you tax payers? I think not. If you can not afford it, dont take it. Seems everyone wants something for free and thinks the gov has an endless supply of money. Time to wake up..I am tired of paying everyones way, and I am sure theres many out there feel the same.

Jay
said

I graduated with 45000 in debt. I worked every summer during my time in university but actually saved very little. I needed the money just to survive on my own through the summer. In many areas of the Country jobs were/are scarce and low paying. It's easy to simply say "get a job" but for most the cost of education is so high that incurring debt is inevitable. I'm not looking for anybody to pay my loan back, it was my decision to go to university. However, I will say that there are many people like me who have decent jobs but are delaying major life purchases due to this burden of debt. With a number like 13 billion it doesn't take a genius to figure out that this is having a negative impact on our economy. Education is key for a competitive country, we need investment in this area, why pass on this system built on debt to future generations? IF the government is going to incur deficits and invest in infrastructure we should make sure they put money into our universities, colleges and schools. Lower tuition, upgrade outdated buildings and technology, proper staffing levels, etc...

Educated
said

For all of you who take these stupid university degrees like the arts, Its those people on here who are in debt, Get a education for todays world, Do your masters online after graduating, Its 10% of the cost, choose education that pays. If i here one more story about how there education was a waste, its cuz bachlor degress and arts degrees do nothing for u, Take engineering, business management, In fact dont go to universities, go to a technical school, almost 100% Placement and well paying careers, Quit borrowing money to get educations that help you only at trivial pursuit boardgames.

Jess in AB
said

Post secondary institutions are charging WAY too much! Also, in Alberta anyway, there has been an insane increase in rent, food, and general cost of living in the last two years and student loans dont even cover the basics, leaving a lot of students to try to figure out how to get by on their own while trying to juggle a sometimes very hectic schedule. Its not fun being a student and school work often has to suffer in order to maintain some sort of income and balance.

Tom from Belleville
said

So yeah my loan is owed to a bank cause here is the funny thing I couldn't get a loan through the gov't. Oh and for those who say oh you shouldn't go party in Florida or drink like a fish. Umm most of us that had loans weren't. Those peole down there partying were doing it on mommy's and daddy's dime. I wanted a break I went home to my parents. That was my vacation so please lets not go there.

So as for why I coudln't get a gov't loan. Oh my dad worked for Nortel that was in the process of laying off half of it's workforce at the time and they included his severance in with their calculations and I couldn't get anything well actually they offered me a $1.

The funny thing is according to the bank insurance my parents were paying for 20 years I shouldn't even have needed that as they were paying into an education fund that was supposed to pay for five years of education. Yeah what a joke that was. The Banks and Gov's ripped off the generation from 1975-1990 and their parents with the promise of education. Tuition has increased I think they said over 100% since the 90's and then you have to pay for dorm and food through the university which is more expensive in university part of town. Rent in university part is way more then the other parts of the cities. University students get hit over and over again. Then you come out ready to work and you find out the greatest joke of all. Your education in the big scheme of things is a pretty piece of paper

DJ
said

I'm sick and tired of hearing about how students complain about the cost of education. I too came from a working family and although my parents both professionals they DID NOT pay for my schooling, but rather helped me understand how to budget. I came out of school with $45,000 owing to government & other banks, however I realized that as far as I was concerned, that was part of the deal. I kept my living expenses reasonable and didn�t blow it on spring break vacations like so many friends. I too am out of debt but I REALLY had to work at it. Its all about sacrifices�you nailed it perfectly individuals must grow up and realize �you can�t have it all right now�.

I do wish however schooling better prepared me for the harsh realities of what an employer will actually pay me vs. what I think I should be paid, it was an extremely rude awakening!

I express this to any student, the cost of schooling is expensive, however think twice before spending �future earnings�.

2 degrees, 2 years experience, and a secretary
said

I never feel comfortable complaining and I completely hear the comments around "if you can't handle the debt, then don't take it."

I come from a stable 2 parent home, received top grades in high school and was told the best way to get a further education was to go to university. Unfortunately, my parents could not afford to pay my way so the only option was a student loan (my father is still embarrassed he could not pay my way).

I was not a partier, did not take any vacations down south, budgeted my finances wisely, saved everything from summer jobs. However, in order to live at home during the summers where it was rent free, it meant trouble finding a job period as I'm from a small town with a lot of student competition over the few jobs available.

I completed my 2 degrees with high marks, worked 2 years on a full-time contract position. My contract was done so I decided to move to a larger place with "more opportunities and better wages." I'm educated, with experience, and the only call back I got from over 50 applications was for a secretary. I now have $55,000 of debt (which I willing acknowledge I will pay), a crummy apt that's all I can afford, and an entry level position that a high school education can get.

I volunteer as much as I can not only to give back to organizations who can't afford employees, but also to network. I don't just live paycheque to paycheque, I can't afford to eat healthy.

Lane
said

In response to those who say I must have come from a rich family in order to graduate without any debt, let me clarify... My father was a career soldier (enlisted, not an officer), and my mother stayed home to look after us four kids. I paid every dime of my university tuition, books, etc by myself. I didn't party, and I worked like a dog. But I graduated with zero debt as a result. And now I'm expected to pay someone else's way because they signed for a loan they could not afford to repay? No thanks!

chris
said

Join the army and don't worry about student loans! Pick any trade in the army get your course and education paid for then GET OUT

BrokeStudent
said

13 Billion is all it would take to eliminate all student loans! What is the government waiting for.. wipe out student debt and help the economy!

Oh wait you would rather spend over 20 billion killing people overseas than helping your children here at home!

No way James! you are deadly wrong!
said

Let them pay their own debt, they have token the decision to invest in themself and they will get the reward at sometine in the futur.

I don't want to pay for someone else to study, I did study at night for 10 years and I paid 100% of the cost!

It's a lot harder to work during the day and study at night and weekend! Different choice but I did not ask someone else to pay for my study!

Bottom line, there debts is their to pay not mine!

Mark
said

Thanks to Ctv for running a story on post-secondary education and student poverty.

In Vancouver this topic is VERY well-timed, as the BC provincial government just AXED funding to the major universities here TO PAY FOR THE $4BILLION OLYMPIC SCANDAL at a time when there is already record student poverty and a severe housing crisis.

We have students who go to the foodbank and live WAY below the poverty line. Some of them support families. THEIR FUNDING JUST GOT AXED. Everyone they turn to for help is just being COLD & COY. I know a young man who was told by a university official that he might consider living in the woods adjacent to the university, as he knew another young man who used that "solution" to "work around" the absence of affordable housing.

People are getting viciously CLOBBERED with a BIG hammer. The repercussions will be resonating through our society for DECADES. It is foolhardy to not realize the complexity of this crisis. We need to get a handle on these "OVERSIMPLETON" policies that have been in fashion for too many consecutive years - that attempt to deny that the trees form a forest.

Tim from Calgary
said

If you go to school to educate yourself in order to get a better job with higher pay, then you should pay for it. Plain and simple! The first thing I did after graduating was pay off my student loan. Instead many new graduates buy new cars or go on expensive vacations rather than pay off their loans and then end up crying about the loans to the media. Give me a break!

Julius
said

The thing about student loans is that while you don't have to pay while in school, you end up having to pay once you leave, regardless of whether you find a job or not. While there is no interest while you're in school, the interest rate once you leave is huge. The government should have a student loan program where you don't need to repay anything for 5 years after graduating. The best option for students isn't student loans, it's a line of credit from a bank.

Budget-concious in Alberta
said

I don't understand how it costs $30000/yr to go to university. Both of my kids are in university. Tuition and fees are $5600/year. Residence with meals is $5000/year. Books at $1500/year. Cell phones, restaurant meals, clothes, haircuts - add $500/month for 8 months = $4000/year. This adds up to a total of $16100. Presumeably the four summer months are used to earn money to offset some of these costs.
Students should be taking student loans to afford to get through school, not to maintain an elevated standard of living.

Todd
said

I am a recent university graduate and have only a few thousand dollars worth of debt (about 7k). I worked 55+ hour weeks in the summers and saved my money, it paid for plenty of my education. I have friends who didn't work long hours or blew through their money on their lifestyles and whatnot, and are now in debt and complain about it. If you are willing to take on the loans then don't complain about it afterwards. If it costs too much take a year off to earn money, the university will not disappear.

Richard, Halifax
said

As someone who has a figure contributing to that $13B overall student loan debt, may I just say that I take great umbrage at the broad brushstroke used by some to say that students blow their loan money on booze, drugs, etc.? Let me tell you something, bub, when I was earning my M.A. at Dalhousie there were some severe lifestyle restrictions in place. Very few beers during hockey season, precious few dinners out and nights on the town, little to no heat on during the winter, and an awful lot of Kraft Dinner. I'm sure that there are plenty of students who do fritter away that loan money, but don't lump us all in the same boat because for the majority of hard-working, honest, and dedicated students it's a very different experience than what you describe.

Mandosa in Sarnia, Ontario
said

agree 100% with Frank Buchan. The majority of time spent in post secondary education is a pure waste of time, with little of it ever retained. andplease don't tell me 'ya, but they're learning to learn'. what were they doing with the first 18 years of their life then. How come private colleges can offer programs in a fraction of the time as the government funded colleges and far cheaper (yes, cheaper, in case you forgot that the $2000 tuition is only a small fraction that doesn't include the government contribution) Its really quite simple: government controlled education. For two reasons. 1. it breeds inefficiency, and 2. breeds the sense of entitlement clearly seen here. ie. my education, your responsibility to pay for it.

GTK
said

The figures don't specify 1st, 2nd, 3rd, or 4th degrees. Student loans should be for the initial program only. If you include professional students in that number then the numbers are meaningless.
As for not being able to get a job with a degree...thats just absurd. Unless you have a B of A in fine arts or another unemployable degree...suckers!

Peter
said

I went to university and got my honours BA. Then went to the UK to study Law. According to the student loan agency, the university I attended in the UK didn't exist despite being 16 years older than the Dominion of Canada with a student population of over 100,000.

You see, they did not have a Canada Student Loan Institution Code, therefore they did not exist.

Long story short, repayment kicked in after my second month and between tuition and student loan payments I couldn't afford to continue after my first year. My parents both worked minimum wage jobs and couldn't afford to help me.

Bureaucracy at it's finest!

Z
said

I have finally paid off my large student loan from 1997 to 2008 (using interest relief at one point).

Education is never a bad investment (depending on your program). Had I not had an option to borrow money from the Federal and Ontario governments, I would never have been able to attend University.

Taking on post secondary education is a choice and privilege and I am glad to see that everyone is given the option in this Country. Even though it causes financial hardship (having to make a car payment for 10+ years), in the long run I know that it has paid off�

sarah
said

I agree with Raurie. How is it fair that the Interest Relief program bases whether you qualify or not, on your gross income?? A few years ago I made about $150 more than I was allowed to in order to qualify. However, if they would have gone off of my net income, I would actually have made probably $300-$400 less. I think it's great there are steps being taken to make education more affordable for students now. But I do think there is a need for more programs to help people that are repaying their loans. It's so frustrating to be 5 years out of University and still living like a student. Pay cheque to pay cheque. I'm not saying I want the government to pay for my loans. I want to pay for them myself. I just think they could make the repayment process make more sensible. I could go on for hours...

Jay-TO
said

Gerry from NL

I agree in principle what you are saying but the solution to the problem that occurred in NFLD with regard to the cod industry collapse. The problem though was that the province ended up with the highest per capita number of hairdressers and child care givers in the country and no one needed those skills. These programs are effective but should be limited to training we need. I received no assistance because I went to university and went on to contribute tax to the national coffers. I am still up to my eyes in debt. Many of those who got the free education back in the day contributed very little and actually drained more from the government coffers than they will ever contribute with a trade that no one needs.

Denis
said

Private vs public cost and benefit! How much taxpayers should pay depend on the public benefit. Otherwise, private cost in full.

I graduated with ZERO student loan - Ontario
said

You bleeding hearst sicken me. I spent 4 years in University and graduated last year with NO DEBT. Yes thats right. And no my parents gave me no money and yes I took almost 12k a year in loans. And yes there were many in my program that graduated with near 50k is student loan debt. The difference you ask????? I WORKED 3 JOBS during my time at school. I worked Full time during the summer. I did not drink like a fish every weekend on the governments dime and I did not go to Florida for reading Week.
I did save my money, I did live cheaply, I did eat alot of kraft dinner. So for those students who think they have the right to live for free for 4 or 5 years give me a break. 3/4 of their student loans are for living expenses NOT for their education. My advise stop being spoiled children take responsibility for your actions. I came from Small town ontario and I did it.......why cant they?

Andrew
said

The National Student Loan program should not be a "for profit" business for the government. How about 0% interest on student loans? I attended post secondary education - a university degree followed by 2 years of college - and required student loans to pay for this. Now I have been in the workforce for 3 years, have a job which I make around 75k a year, but still live paycheck to paycheck - and that's making interest only payments on 1 of my loans.... To me this doesn't make sense... I have no problem paying back the debts I have incurred, but let's make it a little easier on our young professionals trying to get on solid ground. The government should not be making money from charging high interest rates on student loans. Charge 0% interest, and maybe these debts will be paid back easier and in a more timely fashion!

Doug BC
said

Hunny.Even hilarious.THis is not about how much an education costs.Those costs are determined by the cost of building,books,workers in the system,professors,etc.It is nealy impossible to lower those costs.People working need to be paid.
This is about "who pays" for the services.By making the government,which has no money of it's own",pay for this,it's taxpayers who foot the bill.Even now,with the students paying a lot,the taxpayer is still paying the lions share of the real cost of those educations.
"There is no free".Just someone else paying for things you want.In the real world,if you can't pay,you can't ride.No one else should go hungry so you can eat higher on the hog.
In order for students to borrow that money,someone else had to lend it.I know "James" has this idea about "forgiving debt".I really want to be at the bank when someone with savings is told by the bank,that their money is gone because we "forgave all debt".If that ever did happen,no one with money would ever lend money to anyone,ever again.
Live within your means,and pay as you go.Paying for a higher education is like investing in a business.If you do it right,you will succeed.If you get it wrong you have to pay the piper.It is an investment,and you need to be responsible for managing the risk.
It's beyond arrogance to expect someone who has to pay a toll to cross a bridge,on his/her way to work at some meanial,low paying job,to also pay to educate someone else.It's just as pathetic as subsidizing failing corporations.
Borrowed anything,MUST be returned.

Vote NDP in the next federal or provincial electio
said

Canada student loans should write-off these loans. Also it should stop charging interest which will help Canada's economy.

Jason in Gatineau
said

Jeff I agree with your comment...

I went to Ottawa U, have no debts and now work for the Federal Government. While I was at OU, I worked 2 jobs, volunteered and had a girlfriend (wife now).

I had to sacrifice the many nights going out drinking and the trips during March Break.

So for all those students that are paying back their loans, work work work and work some more and get them paid.

And fof the students in school the same goes to you, work work and work some more so you don't have to take any loans.

Enough said!

Sick of Crybabies
said

It isn't the government�s fault your up to your ass in debt. It's yours. I graduated from college and got a job. My student loans were paid back in full in less then three years. Then I bought a house and car. Instead of sitting around and whining about your amounting debt shut up, get a job and start living within your means.

Zhimmy
said

Although I am all for reducing the debts of the next generation. I AM REALLY GLAD that people are talking about the last generation. Most people are 40 years old and still paying off student loans! How sickening is that!!!

Jason
said

BAILOUT!

Give the students a BAILOUT!

Tammy Kuhn
said

I went back to college at age 36 and was on welfare, but still opted for Student loans rather than having welfare foot the bill. Now, at 50 years old, I still owe almost $20,000 in student loans and will probably be paying them with my old age pension.

P
said

I wonder if they would put me in that bracket as well...I was declined osap because I lived with extended family members...with a single mother, because I lived with an extended family, they considered it a "household" income rather then taking in my mom's single income. I was then forced to charge everything on credit card, which of course i'm still paying off 4 years later....with car payments,etc, its hard to pay off quickly. Am I a part of the 13 Billion??

UNB Graduate
said

Interesting some folks like Lane probably went to school 10+ years ago when tuition was much more affordible. From 2001 to 2006 my tuition rose a total of 38% because the university (University of New Brunswick) was struggling to make ends meet (as many universitys are). Then they capped on an extra $500 per student a year just for engineering students to redo the labs.... Our Engineering departments actually bring in a fortune of money (which should go into our labs) yet they ask the students to pay for new equipment that hasnt been replaced since the 60s.

Then you have the engineering co-op Program that they want us to get into. It cost me $2500 in fees to do a 16 month work term! What kind of scheme is this? $2500 for a damn job interiew is what it worked out to be. there was no input from that point on from the co-op office. there were only 2 women who worked for the co-op program (they were great and hard working people) but to charge that much so the universiy can pocket more money is cruel.

I luckily came out of university with no debt thanks to my folks who invested in an education fund that have enough cash for me to go through 3 years of university. The rest I made working duiring the summer and with the work terms I had.

My wife on the other hand came from a family on welfare and she ended up about $45,000 in the hole when she was done which we are working hard as can be to pay off.

Brian
said

What I can't understand is why an intelligent person would go to university to complete a degree that qualifies them to salt french fries at McDonalds. Is it because they have been told all their lives that without a degree they won't amount to anything. I have a degree but this thinking is a load of crap. There is a severe shortage of skilled trades people in this country and it will only get worse. Why aren't we encouraging our young people to be carpenters, plumbers, or masons. Is it because it is not glamourous or there is hard work involved? My boys are adults now, and they were encouraged to do what made them happy. One chose university the other chose a trade. The point is there are options that can be explored that don't require accumulating a large amount of debt and you can still lead a happy productive life.

fed up with scratching to make a living
said

The Canadian Government must make schooling affordable for all. How else can we move forward and have the educated people to fill the upcoming and current job vacanies.
The way of figuring out who can get student loans, how much they must pay back and when, etc. are not realistic.
I have children who have student loans and can't make the interest payments because of other fiancial obligations such as food, rent, medical, taxes, etc. and must make the tough choices as to who gets paid and who must wait. Some of these are moving back home with their families to try to meet all their obligations and to try to get a good paying job so they can meet all obligations.
I myself am unable to get a loan to go to school and have been unable to find employment to suit my disabilty to stand or sit for long periods of time and must look for a new type of work.
If small european countries can make sure all get and education why can't a country like canada??????

Jeff
said

Do you know why students are poor?

They go on vacation during the school year to Cuba and blow it on booze during the year.

I've been a post-secondary student for 6 years through the system and I saw this time and time again

Kevin
said

This figure is in no way accurate. I currently have $55k in student debt, but half of it is owed to a bank which charges interest on it every month even though im still in school. This is because I apparently did not qualify for government loans until I was 22. I won't get any forgiven because I have only gotten them for 3 years from the government. Despite working part time during school and having full time good paying jobs during the summer, this is my situation. But I would never ever advocate that the Government forgive my loans at taxpayer's expense. They have allowed me to get a career in which I'll be able to pay back the loans in 3-4 years and this is MY responsibility, no one else's.

Al
said

Just go anywhere in Florida, Mexico, and the Dominican Republic and you will see first hand why these students owe so much money. Vacation when you are finished your education and you won't sink yourself so far into the money pool.

Jim in Ottawa
said

More has to be done by the federal government to collect these owed monies from students--especially during this economic downturn when federal government resources are thin. I simply do not buy the arguement that students should be forgiven their debt. Debt is a fact of life--from mortgages, to credit cards, to lines of credit--and students need to learn how to manage it like grown-ups. Where better to learn how to manage debt than in university when your intellectual prowess is at its peak?

We simply cannot allow students to enter their adult years believing that it is government's responsibility to handle their debtloads. They need to enter their adulthoods fully understanding how to handle debt.

Shelley
said

I was the first person in my family to go to university; my parents didn't finish high-school. The only way I could afford to go was with student loans. I just paid them off last year and I think it means something that I had to work for my education. I don't think everything should be easy or handed to the younger generation.

AK47, ON
said

Don't borrow the money if you're afraid of debt! Guess what? Count yourself lucky to even get an education in this world. However, with our blind, Canadian sense of entitlement, we just feel that everything should be handed to us without any real exertion of effort. We deserve things just because we want them? Why should it be free? One winds up better off, more times than not, with a University education. You also get tax credits (though many are too lazy or obtuse to even try to understand that advantage) and you get educated (now isn't that worth something in itself?) Don't go to school if you can't bear the costs (and the true cost of attendance in Canada is minimal for the education)

Four degrees and no job.
said

And a huge student loan.

I intend to repay none of it unless I get a good-paying job.

Where are the jobs supposedly requiring educated workers?

Mr Chillz
said

In 1976, Canada signed a UN covenant that states all post-secondary must be FREE!!!!

Why is this government continuing to milk it's citizens for "money", when it knows it has to pay?

Student Comments
said

Yes, I believe the loans should be paid back in full by the students but what I don't believe in is the Government charging intrest on those loans....the Government is making money off of Students bettering themselves to be a big player in the Economic growth so why should they make money off of us too?

Frank Buchan (Vauxhall, Alberta by way of Ontario)
said

The problem with student loan debts isn't the debt, its the value-for-money equation. Too many debt-producing educational adventures produce nothing. It is a bad investment of public money (almost every school in this country is heavily subsidised), when we invest (loan or otherwise) and cannot hold educators accountable for results. Witness strikes in Onatrio schools, which are revolving; if this is a public-funded (even partially) enterprise, it needs to be held to a better standard. If we can't do that (or won't), then we need to set some laws in place to protect the students from debts that incur no retunr on investment at all. And I don't mean protect the lazy here, just give some method for students to be sure the money they are spending has some inherent value.

Andy
said

I graduated at the top of my class in 2000. I graduated with a degree in International Relations. I studied full time for 3 years to finish early and worked 3 jobs. I still have a debt of $68,000 of which I have been paying. Don't give me the excuse that if you don't have the money don't go... Sorry no job prior to University would have given me the thousands needed. The government should remove interest from all loans and rather than profiting from future tax payers, give us the chance to pay our loans.

Seamus Berube
said

Stop handing out paydays is the first answer. Seriously. You can't expect a 17+ year old CHILD with zero world experience to do the right thing when you hand them a lump sum of cash. They spend it on booze, drugs and crap. I see it all the time at Georgian College. Set up a weekly deposit after figuring out the students needs. Second, chop the wacked out interest rate. Lower it from that 15-19% and you'd have students paying it back instead of defaulting on the loans. Third, cut funding to college's and make it more available to universities. I've seen colleges waste so much cash on VP's and presidents redecorating their offices and expanding their properties and little if any real cash going towards fostering better students. The programs that most colleges offer are ludicrous. Cut out the programs that are really university programs. Make the colleges more fiscally responsible.

Jason
said

Interest on student loans should not be Prime +2.5% or +5$ if you lock it, its robbery. The government should not be making money off these loans. At best it should be interest free loans, at worst it should be tied to the Prime rate.

Ian-AB
said

you know I think the answer here isn't more money. I have a solution that will cost nothing but will help the students and provide incentive for education at the same time.

regulate all professional occupations so as to require certification based off of academic credentials. I went to school for a high tech career. Got a job (a good one) but also found out that I was working alongside people who only had high school. why? because its cheaper for the employer. Mind you these folks need to be babysat 24/7.

well make all professional careers require certification. it will give the grads the best chances at jobs. if people want to do a certain profession they will have to go to school and the people with high school can start their own businesses, work in the oil patch.. whatever. I think its disgraceful when people with tech backgrounds end up working at Wal Mart when the high school grads/dropouts work their jobs because of who they know and not what they know.

Get the skills or get out. Simple solution to a problem... and a cheap solution at that.

Ryan in SJ
said

I recently graduated with a B. Sc in Bio/Psyc and applied to Chiropractic School. I was accepted. I called the bank asking if I could get a Professional Line of Credit because I was going to school to be a Chiropractic Doctor. They said yes. But when I went in I could only get $30 000 for four years. I asked why, and they said BECAUSE I ALREADY HAD STUDENT DEBT AND THEY COULDN'T RISK GIVING ME THE FULL $80 000!!! So I had to decline my offer and now I'm working. So MUCH FOR CHASING DREAMS. Of course I have student debt, I just did a 4 year degree. It's not fair. I would need approx $30000 PER YEAR just to go to the school for 4 years. So much for the government wanting doctors. They aren't helping us out. It's not fair!!

OSAP 100K - Not a Retirement Plan LOL
said

Haha my student loan debt is part of that 13B! I came out of university after six years with an honours degree as well as a master's degree and 100K in debt. I CHOSE this and I also choose to repay my loans, living paycheque to paycheque like everyone else. I have one more year of payments on what I qualify as the "most expensive gift from me to ME" ever!

Nelly
said

Lane-I respectfully disagree with you. Without student loans, I wouldn't have been able to go to university. I was raised by a single mom, who struggled financially (we lived in low cost housing etc, no car, etc) I had to pay for costs of living as well as tuition/books. No part-time (or full time) job would have allowed me to do this. Please remember, not everyone comes from nice stable 2 parent households. Then factor in the cost of going further with your education (ie. doctors/veterinarians, etc)

Its ridiculous that now years later I have kids of my own, and am still trying to pay off these loans. I like what James had to say--education should be free if we choose to further our education through university. Our country is struggling to keep professionals in it (doctors, nurses, etc)--so why not realise the importance of making education more feasible for some students.

I am on interest relief at the moment (and have been for a long time), due to financial hardships--so basically the government is paying the interest on my student loans....now does that make sense? Why not just get rid of the debt outright?

Kevin D
said

An post secondary education is a privelege not a right. There are numerous scholarships out there that go unused because people don't apply for them. When I went to university, I went full time, full course load, I also worked 20 hours a week during school and worked summers. The only holidays I took were the winter break and spring break. Any student that believes that the entire 4 months of summers is a holiday then complains about their debt load needs to take economics 101.

Eric
said

I love hearing the comments from those who graduated from university when tuition was low enough that a person could save up over the summer to pay for it. I also love hearing from the rich snobs who couldn't care less about those "below" them. My favourite comments, though, come from those who dropped out of school, can barely support themselves and who end up having their healthcare, social services and possibly welfare paid for them by those of us who are paying tens of thousands (if not more) of dollars for our education.

nc
said

Education is expensive for everyone who is willing to attend university.
Some comments refer to more govt. help. What else to they want? The old adage invensting in your education is the best choice a young person can make, is gospel.
Yes these students have debt. It's up to them to pay it back. How ever long it takes. We all suffer the burden of debt. This is reality.

Ted
said

It's an interesting debate. I went to University and got a degree in 3 years. In 2001, $13,000 was believed to be a lot of debt for school. I couldn't wait to be done school. I worked part time throughout. I didn't get a job in my field so I went into sales and never looked back. I paid off my debt quickly and am doing considerably well financially now. Not in part because of my education, but because of an overwhelming desire to succeed.

I have a brother who went to college, didn't know what he wanted to do, went to university because he didn't know what he wanted to do and didn't work part-time, spent his all of his OSAP and graduated with $65,000 of debt. He got a job in his chosen field but for entry-level income and the corporate ladder climb. I expect he'll finish paying his OSAP debt in 10-15 years. This is what we are teaching our kids, go to school, get an entry level job and climb that corporate ladder forever.

I just wish we could teach our kids that these institutions are businesses as well and teach academia, which is great, but they do not teach you about what real life is about. That's simply left as a cold hard lesson in that year after graduation.

James
said

Forgive all debt!

Personally, I believe that all education up until a person gets their first degree should be free. In this day and age, your first degree is the bare basic that one needs to secure employment. If somebody wants to get a second degree, then they need to get a student loan. Anybody trying for their first degree must maintain a "C" average. Anything below that would lead to a probationary period and possible loss of free education. If a person wishes to continue at this point they would need to get a student loan, which could be difficult due to a student's academic marks.

With the debt load a student has once they graduate and low paying starter jobs, it is easy to see how they default on their loans. Show some compassion to our replacements and forgive all debts.

Cathy
said

Not a surprise for me...I never had a text book that was under $180...and that was almost a decade ago. The price of a full term course...well that is a shame how much it rose...the quality has NOT risen.

Not everyone has both parents to help them out, not everyone can work enough to pay for school and go to school and earn good grades, not everyone is made of money to pay the insane cost for an education.

It is time that education is availalbe to all who want it not just the elite. Our society stresses so much for students to stay in school, get an education and use it to help our country prosper...the price is way too high for that.

Crazy Jim
said

I agree with Lane, 100%

Raurie
said

So Lane. "No one forces students to assume this debt. If you can't afford to pay back the money, don't borrow it. " So, only the rich should get an education. Yep, that seems fair. Don't tell me. You come from a well set family. Well, my family was on social assistance and I wanted to break the chain. I thought if I got a good education, I COULD afford to pay it back. Little did I know. I didn't even need my education to get my job. My education did me squat. IT IS NOT WHAT YOU KNOW, IT IS WHO YOU KNOW OR WHO YOU ARE RELATED TO.

Roger T
said

And exactly how is the Gov't expecting students to spend while everyone is in debt. Who wants a bigger debt load while the followings are at its highest peeks:

-Cost of living up
-high food prices
-high gas prices
-high interest rate (credit card companies, car loans with ridiculous payment terms)
-transit cost spike
-high gas cost
-high hydro cost

And everything else that might be missed on the list.

Saving comes before the economy!

Until than RECESSION it it!

Gerry from NL
said

Think back when the Newfoundland cod event was on the go. Fisher's across the province had all their training and education courses paid for and they owed nothing back. Babysitting, gas, meals, lodgeing if they needed it etc. all paid for by the taxpayer. Why can't the government do something for the honest students trying to better themselves and pay back to the general revenue.

Amanda, NB
said

Our school systems are to blame for this. From the time we are young we are all told that without post secondary education we will be poor and will never amount to anything. What they don't tell you is that education does not = experience. I have a great career making great money and I did it WITH NO POST SECONDARY. I am young (graduated High School in 2005) and I have my own office and my own home etc. I worked from the bottom up and it has paid off. I am not trying to brag, my point is that I know so many college/university grads that come out and have these huge loans to pay and have to start out in the same place that I did... the bottom. Most of them can't even get jobs in the field that they studied for! Grads expect to be able to start in the middle/top (as they are told they will). Instead they are asked when they get to the workplace, "well your diploma looks real pretty, but how will you deal in the real world?" How is it fair to advertise education as the be all and the end all when hard work and determination also pay off!?! I think that our education system needs some serious help. Can anyone say REFORM?

Lane
said

No one forces students to assume this debt. If you can't afford to pay back the money, don't borrow it. When I finished high school, I worked two jobs for two years to save money for university. I also worked part-time throughout every academic year, and worked two jobs every summer. I graduated debt-free. Most students have it pretty good, but don't manage their time and money responsibly. Having said that, I think there should be full government scholarships for deserving students - ie. those who achieve high enough grades in high school. If someone wants to go to university but hasn't shown the skills, discipline and maturity needed to achieve sufficient grades to get public funding, then they should pay their own way.

Angry and ripped off in Saskatoon
said

Did you know that if you are supposed to pay back student loans, and your child (over the age of 18) is going to school, they make you pay for their schooling and don't allow you to add that as a cost or even stay in interest relief; you still have to pay your debt down. The government gets their cake and eats it to. I am a single parent with no assistance from my daughters father ever (I'll not go into that!) and even though I barely have enough to pay my own bills, I'm expected to pay my daughters as well while she's attending University/College and pay back about $800 per month to student loans (CDA and SK). If she goes to school in another province I'm not expected to pay her living expenses. Even though I've not been able to pay my debt back it stays with you forever and you cannot declare bankruptcy on it like other normal debts. It has forever ruined my credit and I wish I'd never gone for my education. All the promises of great jobs in my field when I was done and nothing came of it but a huge debt!!! And I took very useful classes - the government just changed priorities during my education and left me and many others high and dry and ruined an industry as well.

not a sheeple
said

I dropped out of school in grade 10. I have no dept. I have no credit (not good or bad) and I still can't get a credit card. Had I gone to college, borrowed thousands of dollars in loans they would have given me a credit card. ..Go figure!

New reality but sound investment!
said

Well this is the new reality,
at least they have their education and should be able to put it to use in a decent job.

Everything is expensive these days but this is the best investment they can make for their futur. A couple years at work and they will be all paid up.

But don't ask us to pay for their decision, we have plenty on our plate right now.

Trent
said

This tells me that post secondary institutions are charging students too much!! The government is in sense, just handing universities and colleges $13 billion and getting the students to pay for it. It is time to envoke a cap on costs for studies.

B. Whitty
said

I finished my post secondary education in 2000 with about $50K in student loan debt. I've been paying back all these years, with still more to go. I have a great career making great money, but am living pay cheque to pay cheque. It's a hard pill to swallow. Where's the help for those who are diligent to pay? Even if it's means making sacrifices and incurring other debt?

Raurie
said

Here is my comment. Do you know that when you are having trouble paying your loan, and you apply for Interest Relief, they take your gross income into consideration, not your net. So, if you are having trouble making ends meet, you make 1500, and only bring home 1100 after taxes and EI/CPP. You are turned down. Where is that fair!!!!!! It should be established on your actual bring home income. But don't forget, you don't have to pay at all if you are on social assistance. Nice. You work, get nothing, you sit on assistance and get your loan paid for you.

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