Federal student loans could be wiped out in 15 years: report

OTTAWA, March 25, 2015 /CNW/ - By shifting funding from inefficient tax credits and savings schemes to upfront grants, the federal government could eliminate all federal student loans within 15 years, says a report released today by the Canadian Federation of Students. The first of its kind, this report reviews all current federal student financial assistance programs for cost, efficiency, and impact.

"By simply better organizing Canada's student aid programs, the government could offer immediate relief to hundreds of thousands of students each year," said Jessica McCormick, National Chairperson of the Canadian Federation of Students. "The report finds that we have the ability to wipe out all federal student loans in the next 10 to 15 years without spending an extra dime. The crisis of mounting personal debt can be easily solved by a government willing to make the necessary changes."

By the government's own assessment, the costs of current programs will continue to rise despite projections of shrinking post-secondary enrollment.  The Canadian Federation of Students has been advocating for responsible alternatives to these programs that will save taxpayers money and improve the quality and accessibility of our public post-secondary education system.

"Canadians deserve public programs that are efficient, effective, and will help them get an education," said McCormick. "In an election year, we need to look to federal parties and ask who is willing to make the necessary changes to eliminate student debt and improve the quality of Canada's colleges and universities."

The paper, titled Student Financial Assistance in Canada: Complicated, Inefficient and Ineffective, is available for download at http://bit.ly/studentfinancialassistance

The Canadian Federation of Students is Canada's largest student organisation, uniting more than one-half million students across Canada. The Canadian Federation of Students and its predecessor organisations have represented students in Canada since 1927.

SOURCE Canadian Federation of Students

Sarah McCue, Communications Coordinator at 613-232-7394 or [email protected]