I am writing in support of the initiative that the Canadian Association of University Teachers and six other post-secondary education groups took in urging the federal government to adopt student aid measures to help students deal with rising debt loads.
I wanted to take this opportunity to let you know that I share your concern and, like your organization, believe that active measures, such as loan remission or deferred grant programs, are necessary to ensure that students are not saddled with educational debts which cannot be supported. Unfortunately, provincial measures alone are not enough. Although British Columbia spent over $60 million on debt reduction measures in 1996/97, students in this province, leaving university after four years of study, will still have an average of $15,000 in debt, over 75 per cent of it in the form of Canada Student Loans administered by the federal government.
Despite continued urging from your organization, other groups, and me, the federal government has not yet recognized its obligations to assist in debt relief or accepted its responsibility to accept its fair share of the costs of debt relief. Recently, I wrote to the Honourable Pierre Pettigrew, Minister of Human Resources Development Canada, to express my concern about the absence of any debt reduction measures in the federal budget. I have enclosed a copy of my letter for your reference.
I plan to continue to press the federal government to develop, with the cooperation of the provinces and other stakeholders, debt relief measures that are consistent with the needs of the various jurisdictions. I hope to work together with you and the others to lobby the federal government to bring real solutions to the mounting debt problem which students and graduates are experiencing.
Paul Ramsey
Minister, Education, Skills and Training, British Columbia
On March 21, Paul Ramsey wrote to The Honourable Pierre Pettigrew, Minister of Human Resources Development Canada, to express his concern about the increasing level of student debt and the lack of federal initiatives for debt reduction measures. As mentioned above, the text of that letter was copied to CAUT. It appears below:
I am writing to express my concern about the absence of any debt reduction measures for students in the recent federal budget.
Student debt levels are an increasing concern to students, their families, and the Province of British Columbia. The Province spends approximately $60 million annually through grant and loan remission programs to keep debt levels, which are caused by both your program and ours, at manageable levels. Recent studies indicate that because of these programs, 75 percent of the debt of graduates in British Columbia comes from the federal program. Given the federal role in creating student debt, it is time that the federal government started to carry a fair share of the cost of debt management in British Columbia.
Last fall, your officials identified several student debt reduction measures which received broad support from the provinces and stakeholders groups. It appears from the budget that these debt reduction options have been withdrawn in favour of an Income Contingent Repayment (ICR) Plan that, based on initial information, does nothing to deal with student debt. It also appears that the funding envelope available to support the debt reduction measures identified last fall will be used to support the changes to the Interest Relief Program, which also does not address student debt, and the ICR Plan and not to reduce student debt.
I am writing to encourage you to continue to develop, with the cooperation of the provinces, the debt reduction measures identified last fall. British Columbia is prepared to work in a very constructive way to bring real solutions to the debt problems which our students and graduates are experiencing.
Paul Ramsey
Minister, Education, Skills and Training, British Columbia