We live in a society today where an undergraduate degree or college diploma is a necessity for finding a job. Heading off for post-secondary school after graduation has become a societal norm before entering the work force.While this is not a big deal for some people, the decision to go to post-secondary school is actually very worrisome to most students. With the cost of living constantly rising, and minimum wage barely increasing, those of us who have to pay our way through school lean towards the idea of applying for a student loan.
These loans issued by the Government of Canada are to be repaid post-graduation with varying levels of interests. On average, upon graduation of an undergraduate degree, students will have built $26,000 (Statistics Canada) in debt from attending university. Everyone deserves the opportunity to receive post-secondary education, but unfortunately, it’s seen as a luxury and not as a right. Post-secondary institutions are becoming increasingly expensive, meaning those who don’t have an easy means to money, have to work twice as heard to receive their education. We shouldn’t be penalised for taking out government loans with the looming stressor of interest upon graduation. This is what NDP leader Jagmeet Singh believes.
“Young people in our province deserve to graduate with hope for a better future. They shouldn’t be trapped in a cycle where they’re working hard and not getting by. I have heard from graduates that they have put off starting their own family because of student debt. That isn’t good enough. Eliminating the federal interest on student loans is a simple way to make it easier for young people to build a good life.”
-NDP candidate Jack Harris (St. John’s East End).
In Singh’s election platform, he claims the party’s vision is “for every Canadian to have access to quality post-secondary education, regardless of income” (NDP). His means by which to make this possible is by working with provinces and territories to make university tuition more affordable by reducing and putting a cap on school fees. In the long-term, Singh wants to ensure post-secondary education be just as accessible as the Canadian public education system. Although these changes won’t happen overnight, Singh says he intends to replace loans with accessible non-repayable grants and at the very least have provinces commit to eliminating student interest loans.
According to a press release sent out by NDP, this plan hopes to bring about the following changes:
- The NDP’s plan would immediately drop the interest rate on Canada Student Loans to 0%. This would apply to outstanding loans as well as new ones.
- Under the NDP’s plan, a graduate with a debt of $13,500 (average federal student debt) will save $3,400 over the lifetime of the loan.
- A graduate with a debt of $20,000 will save $5,000.
- 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.
Whether these plans will turn into fruition, only time and an election will tell.
Cited:
– “Making Life More Affordable for Everyday People.” Canada’s NDP, https://www.ndp.ca/affordability.
– Statistics Canada. “Section 4 Student Loans and Debts.” Section 4: Student Loans and Debts, 27 Nov. 2015, https://www150.statcan.gc.ca/n1/pub/81-595-m/2014101/section04-eng.htm.