The following is a news release by the Canadian Federation of Students concerning student loan interest rates.  For those who don't know the history of student advocacy, this is a very significant press release because it signals a shift toward greater a discussion of the issues that impact student loan borrowers.

 

 

Jul 24, 2007 09:15 ET Student Loan Interest Rate Targeted By Students and Coalition Attention: Assignment Editor, Business/Financial Editor, Education Editor, News Editor, Government/Political Affairs Editor

 

 

OTTAWA--(Marketwire - July 24, 2007) - The interest rate charged to students on their Canada Student Loans should be reduced, according to the Canadian Federation of Students and a coalition of former students. "Student debt has skyrocketed in the last fifteen years, and compound interest is making matters worse for tens of thousands of graduates struggling to make loan payments," said Amanda Aziz, National Chairperson of the Canadian Federation of Students. "The federal government must take action to reduce interest rates on student loans and implement a system of need-based grants." A document released today by the Coalition for Student Loan Fairness reveals figures obtained under Access to Information legislation that show the extent to which interest payments are piling up. For example, the number of student loan borrowers extending the life of their loan nearly doubled between 2002 and 2006. This process reduces the monthly payment, but can add up to $5,000 in additional interest on the average loan. The federal government expects to take in over $550 million in student loan interest payments in 2007, more than double the cost to government of borrowing. The federal government is currently reviewing the Canada Student Loans Program and taking feedback from stakeholders about improvements to the 43-year old program. Interest rates and replacing the Millennium Scholarship with a system of need-based grants has been raised by the Canadian Federation of Students in recent meetings with the federal government. "Canada's most indebted students shouldn't be a cash cow for the federal government," said Aziz.