The federal government's strategy to improve accessibility to post-secondary education has been less than beneficial to students.

In recent years the Liberal's have: cut $3 billion from transfer payments to the provinces; established a flashy scholarship fund that leaves recipients financially disadvantaged; relinquished all responsibility over the Student Loan Program; empowered the financial institutions to dictate public policy; forgotten all promises to create jobs for graduates; and, neglected all poverty reduction measures. Not surprisingly, this plan has not improved access to college or university.

But it has delivered a hurtful combination of high tuition fees, high interest rates, high unemployment rates, and high debt loads. In a final coup, the federal government has prohibited bankruptcy protection to those most disadvantaged by their policies -- the recipients of a Canada Student Loan.

Students with limited financial resources acquire student loans to pay for the high cost of education. These students are now graduating with average debt loads of $25,000. With an interest rate of prime plus 2.5 per cent, and unable to find employment, many students experience difficulties making loan payments.

In 1995, the student loan default rate was 7 per cent, and 5 per cent of loan holders were forced to declare bankruptcy. Neither the default rate nor the bankruptcy rate rose between 1990 and 1995. Unfortunately, accurate figures for loans issued after Aug.1, 1995 are being withheld by the financial institutions under the pretense of proprietary information.

In September 1997 the Bankruptcy and Insolvency Act was amended to make student loans non-dischargeable for two years after the end of full or part-time studies. Barely six months later, in the 1998 federal budget, the two-year prohibition was increased to 10 years.

In response to the federal government's punitive policies, the Canadian Federation of Students advanced a test case under this legislation in March 1999. At that time, a student with more than $60,000 in government and private student loan debt sought bankruptcy protection. On Dec. 6, 1999, her private student loans, held by the Royal Bank, were discharged, yet her Canada Student Loan and her Ontario Student Loan remain untouched. Citing discrimination, the Federation will be launching a constitutional challenge this month.

CFS is not advocating that students declare bankruptcy. But, students should be treated equally under Canadian law as are all other Canadians. Bankruptcy is a legal tool which affords the an individual a chance at financial rehabilitation. The decision of whether or not a person is eligible for bankruptcy protection should rest with the courts and not with the financial institutions or with the federal government.

The removal of bankruptcy prohibition is just one vital step the federal government must take in order to ensure access to higher education for all Canadians. Bankruptcy protection is an aid in breaking the cycle of poverty, especially for students with families, people with disabilities and those historically under-represented in post-secondary education.

Education should provide for a broadening of opportunity and should not remove students' rights to attain their full potential.

CFS is calling upon the federal government to establish a national system of grants and a loan forgiveness program, and to increase transfer payments to the provinces to allow for a tuition fee freeze.

Denise Doherty-Delorme is a researcher with the Canadian Federation of Students.
Information on the CFS bankruptcy case is available at the Canadian Federation of Students web site www.cfs-fcee.ca.