Coalition editorial in University Affairs

Message Topic Search Topic Options Post Reply Create New Topic Printable Version Translate Topic

Here is a recently published Coalition Student Loan Fairness editorial....

http://www.universityaffairs.ca/issues/2008/february/letters_01.html

A benefit to society
Ms. Tamburri�s recent 
article on our bloated and bungling student loan system couldn�t come at a 
better time. As the federal government mulls over its options for loan reform in 
early 2008, struggling borrowers already in repayment are hoping they aren�t 
forgotten in the process. Ultimately, meaningful reform will only come about 
when the federal government starts viewing postsecondary financial aid as a 
benefit to society, and not simply to the individual who takes out a student 
loan. 
The government of Canada has spent millions building an impressive and 
increasingly imposing loan collection bureaucracy, while maintaining its 
sky-high interest rate regime � ensuring borrowers continue to marinate in 
financial purgatory for over a decade in some cases. Meanwhile, interest relief 
and debt reduction in repayment programs turn down thousands of borrowers for 
assistance each year.

Building a better financial aid system means reducing the cost of borrowing 
for students, as well as improving programs aimed at helping borrowers in 
financial distress. Given that the government is paying only about 4.5 percent 
interest on student loan funds, its current interest rate of 8.5 percent for 
loans in repayment is simply outrageous and out of step with most developed 
countries. It is time for the federal government to improve the system by 
building better and more flexible programs. We will know in just a few months 
whether Monte Solberg and company are truly listening to Canadians.
Julian Benedict
Mr. Benedict is co-founder 
of the Coalition for Student Loan Fairness.