Monday, September 9, 2019 ~ LANGFORD
~ West Shore Voice News
During this ramp-up period to the official federal election campaign, the west shore’s Alistair MacGregor, MP (Cowichan-Malahat-Langford) is pleased with the NDP’s plan to cancel the interest on all existing and future student loans.
“We need to make sure that cost is never a barrier to education,” says MacGregor. “Not only will our plan immediately drop the interest rate on Canada Student Loans to zero percent, we are also committed to moving from student loans to non-repayable grants, and to a future where post-secondary education is fully part of the public education system so our children can go from kindergarten to a career, without the barrier of cost.”
“Young people deserve to graduate with hope for a better future, not a crushing debt load,” said NDP Leader Jagmeet Singh at the announcement in Ottawa. “It’s wrong for the government to be profiting off the backs of students and grads. That’s why I will eliminate all interest on federal student loans — both outstanding loans, and going forward.”
Over the last four years, Trudeau’s Liberals have taken almost $3 billion from graduates in interest payments – profiting from skyrocketing student debt.
“I have heard from students and families who are struggling to get by,” said MacGregor. “Many students rely on the support of their families during their education and even once they have graduated to make ends meet, and those that don’t have support may never live out their dreams of post-secondary education.”
“Increasing access to higher education by eliminating the interest on student loans is a simple first step to making life better for Canadians,” stated MacGregor. “This is an investment in our young people, an investment in the future for a better Canada, and something I am very proud to support.”
The federal NDP say that a graduate with a debt of $20,000 will save $5,000 under the proposed changes. At present, total federal student debt is close to $17 billion dollars, while the federal government has collected nearly $3 billion in interest payments from students since 2015, it was stated in today’s NDP news release.
An internal government report called the student loan system “broken,” noting that the cost of education is growing faster than wages and higher costs of living are compounding the squeeze on young people.
The average student debt burden is $26,000, takes between nine and 15 years to pay off, and payments can take up to 13% of graduates’ wages.
The Parliamentary Budget Office estimates that nearly half of students will have financial needs at or above student loan limits while in school by 2021.
Five provinces have already eliminated their interest on their loans: British Columbia, Manitoba, Nova Scotia, and Prince Edward Island.
The NDP’s New Deal for People also commits to moving from student loans to non-repayable grants, and to a future where post-secondary education is fully part of the public education system so kids can go from kindergarten to a career, without the barrier of cost.