Student Loan Forgiveness Could It Work In Canada

Some student groups, as well as the federal NDP, have called on the federal government to do the same here in Canada, but experts are split on whether canceling student debt is the best way to help young Canadians. Figures from 2019 showed that nearly two million Canadian students owe the federal government a total of $20.5 billion, with the average loan balance exceeding $13,000 by the time school leaves — though those numbers don’t include debt to other sources, such as private student loans. Erika Shaker of the Canadian Center for Policy Alternatives says loan forgiveness would be “absolutely life-changing for students who qualify.” “I think we have to remember that there is a cost to graduating a generation in debt. The costs are borne by the students and their families, many of whom are far less able to shoulder those costs than the federal government,” he told the CTV’s Your Morning on Friday. Shaker pointed to the findings of a 2018 study in Ontario, which found that one in six bankruptcies in the province involved student loans. “So if you add that up across the rest of the country, we’re talking about 22,000 former students who filed for bankruptcy in 2018 alone, at least in part because of student debt,” Shaker said. A 2019 report by the Parliamentary Budget Officer found that to eliminate tuition and forgive debt for graduates earning less than $70,000, it would cost $16 billion in the first year, $13 billion in the second year and $10 billion annually subsequently. But Aaron Wudrick of the Macdonald-Laurier Institute says he’s not convinced sweeping student loan forgiveness is the best use of resources, noting that college graduates, especially those going into professional fields like law or medicine, typically have higher income from them. who do not go to university. “I think it’s fair to say that you have limited resources, you want to target the money to the group that needs it the most. I think there’s a strong argument that (university graduates) are not the neediest,” he told CTVNews.ca by phone. “People who don’t go to university and don’t go into professions or start a business — the question I think these people are asking fairly is… ‘Why am I forced to pay for other people’s decision to go to university?’ Woodrick added. Instead of loan forgiveness, Wudrick suggests other measures, such as reducing or forgiving interest costs, as well as making loan repayment dependent on income. Graduates can currently apply to have their government student loan payments deferred if their income falls below $25,000, although the Liberals campaigned last year to raise the limit to $50,000. The Liberal government has also waived student loan interest until March 2023. “I think there are other mechanisms you can do to reduce the burden and make it more manageable for people without just … wiping it out,” Wudrick said.

title: “Student Loan Forgiveness Could It Work In Canada Klmat” ShowToc: true date: “2022-10-26” author: “Willie Willis”

Some student groups, as well as the federal NDP, have called on the federal government to do the same here in Canada, but experts are split on whether canceling student debt is the best way to help young Canadians. Figures from 2019 showed that nearly two million Canadian students owe the federal government a total of $20.5 billion, with the average loan balance exceeding $13,000 by the time school leaves — though those numbers don’t include debt to other sources, such as private student loans. Erika Shaker of the Canadian Center for Policy Alternatives says loan forgiveness would be “absolutely life-changing for students who qualify.” “I think we have to remember that there is a cost to graduating a generation in debt. The costs are borne by the students and their families, many of whom are far less able to shoulder those costs than the federal government,” he told the CTV’s Your Morning on Friday. Shaker pointed to the findings of a 2018 study in Ontario, which found that one in six bankruptcies in the province involved student loans. “So if you add that up across the rest of the country, we’re talking about 22,000 former students who filed for bankruptcy in 2018 alone, at least in part because of student debt,” Shaker said. A 2019 report by the Parliamentary Budget Officer found that to eliminate tuition and forgive debt for graduates earning less than $70,000, it would cost $16 billion in the first year, $13 billion in the second year and $10 billion annually subsequently. But Aaron Wudrick of the Macdonald-Laurier Institute says he’s not convinced sweeping student loan forgiveness is the best use of resources, noting that college graduates, especially those going into professional fields like law or medicine, typically have higher income from them. who do not go to university. “I think it’s fair to say that you have limited resources, you want to target the money to the group that needs it the most. I think there’s a strong argument that (university graduates) are not the neediest,” he told CTVNews.ca by phone. “People who don’t go to university and don’t go into professions or start a business — the question I think these people are asking fairly is… ‘Why am I forced to pay for other people’s decision to go to university?’ Woodrick added. Instead of loan forgiveness, Wudrick suggests other measures, such as reducing or forgiving interest costs, as well as making loan repayment dependent on income. Graduates can currently apply to have their government student loan payments deferred if their income falls below $25,000, although the Liberals campaigned last year to raise the limit to $50,000. The Liberal government has also waived student loan interest until March 2023. “I think there are other mechanisms you can do to reduce the burden and make it more manageable for people without just … wiping it out,” Wudrick said.

title: “Student Loan Forgiveness Could It Work In Canada Klmat” ShowToc: true date: “2022-11-22” author: “Mark Willis”

Some student groups, as well as the federal NDP, have called on the federal government to do the same here in Canada, but experts are split on whether canceling student debt is the best way to help young Canadians. Figures from 2019 showed that nearly two million Canadian students owe the federal government a total of $20.5 billion, with the average loan balance exceeding $13,000 by the time school leaves — though those numbers don’t include debt to other sources, such as private student loans. Erika Shaker of the Canadian Center for Policy Alternatives says loan forgiveness would be “absolutely life-changing for students who qualify.” “I think we have to remember that there is a cost to graduating a generation in debt. The costs are borne by the students and their families, many of whom are far less able to shoulder those costs than the federal government,” he told the CTV’s Your Morning on Friday. Shaker pointed to the findings of a 2018 study in Ontario, which found that one in six bankruptcies in the province involved student loans. “So if you add that up across the rest of the country, we’re talking about 22,000 former students who filed for bankruptcy in 2018 alone, at least in part because of student debt,” Shaker said. A 2019 report by the Parliamentary Budget Officer found that to eliminate tuition and forgive debt for graduates earning less than $70,000, it would cost $16 billion in the first year, $13 billion in the second year and $10 billion annually subsequently. But Aaron Wudrick of the Macdonald-Laurier Institute says he’s not convinced sweeping student loan forgiveness is the best use of resources, noting that college graduates, especially those going into professional fields like law or medicine, typically have higher income from them. who do not go to university. “I think it’s fair to say that you have limited resources, you want to target the money to the group that needs it the most. I think there’s a strong argument that (university graduates) are not the neediest,” he told CTVNews.ca by phone. “People who don’t go to university and don’t go into professions or start a business — the question I think these people are asking fairly is… ‘Why am I forced to pay for other people’s decision to go to university?’ Woodrick added. Instead of loan forgiveness, Wudrick suggests other measures, such as reducing or forgiving interest costs, as well as making loan repayment dependent on income. Graduates can currently apply to have their government student loan payments deferred if their income falls below $25,000, although the Liberals campaigned last year to raise the limit to $50,000. The Liberal government has also waived student loan interest until March 2023. “I think there are other mechanisms you can do to reduce the burden and make it more manageable for people without just … wiping it out,” Wudrick said.

title: “Student Loan Forgiveness Could It Work In Canada Klmat” ShowToc: true date: “2022-12-18” author: “Gale Gravel”

Some student groups, as well as the federal NDP, have called on the federal government to do the same here in Canada, but experts are split on whether canceling student debt is the best way to help young Canadians. Figures from 2019 showed that nearly two million Canadian students owe the federal government a total of $20.5 billion, with the average loan balance exceeding $13,000 by the time school leaves — though those numbers don’t include debt to other sources, such as private student loans. Erika Shaker of the Canadian Center for Policy Alternatives says loan forgiveness would be “absolutely life-changing for students who qualify.” “I think we have to remember that there is a cost to graduating a generation in debt. The costs are borne by the students and their families, many of whom are far less able to shoulder those costs than the federal government,” he told the CTV’s Your Morning on Friday. Shaker pointed to the findings of a 2018 study in Ontario, which found that one in six bankruptcies in the province involved student loans. “So if you add that up across the rest of the country, we’re talking about 22,000 former students who filed for bankruptcy in 2018 alone, at least in part because of student debt,” Shaker said. A 2019 report by the Parliamentary Budget Officer found that to eliminate tuition and forgive debt for graduates earning less than $70,000, it would cost $16 billion in the first year, $13 billion in the second year and $10 billion annually subsequently. But Aaron Wudrick of the Macdonald-Laurier Institute says he’s not convinced sweeping student loan forgiveness is the best use of resources, noting that college graduates, especially those going into professional fields like law or medicine, typically have higher income from them. who do not go to university. “I think it’s fair to say that you have limited resources, you want to target the money to the group that needs it the most. I think there’s a strong argument that (university graduates) are not the neediest,” he told CTVNews.ca by phone. “People who don’t go to university and don’t go into professions or start a business — the question I think these people are asking fairly is… ‘Why am I forced to pay for other people’s decision to go to university?’ Woodrick added. Instead of loan forgiveness, Wudrick suggests other measures, such as reducing or forgiving interest costs, as well as making loan repayment dependent on income. Graduates can currently apply to have their government student loan payments deferred if their income falls below $25,000, although the Liberals campaigned last year to raise the limit to $50,000. The Liberal government has also waived student loan interest until March 2023. “I think there are other mechanisms you can do to reduce the burden and make it more manageable for people without just … wiping it out,” Wudrick said.