Random Writes

Education is the key to a country’s success.

If we want our country to succeed, we need to offer the best education possible. We also need to offer it at an affordable price. The following are some basic ideas of how Canada could offer post secondary education at a reasonable price and help stop the bleeding of the student loans program.  In 2015 the Government was writing off about $16 Billion in loans, that’s a huge loss not only to the Government, but also for students who find it hard to make payments and for those who can’t make payments.

 

The following is a basic list of things we could do to improve the system. This is not a fix all, but a way to start moving the ball towards a system that won’t break people who want to go to school and also will help those who can’t afford to go to school.

 

Student Loan Reform Program

  1. The Federal Government sets aside X $ and sets up a student loan system of its own.  100% of the grant system is to be used up every year. This Grant system will be funded by adding another deduction from tax payers and businesses. A payroll tax of 0.25% or $0.25 for every $100. and a business tax of 0.10%. All funds from the previous year must be used as grants and student forgiveness.
  2. Government must charge bank of Canada rates on student loans and no more.
  3. No interest accrues until the person makes an annual gross income of $25000.00, although payments are still made.
  4. As part of receiving a student loan, students must commit to having all wages garnished at a minimum of 1% , this will directly go to paying student loans. This would include any work done while going to school.
  5. Any parent, friend or family who chooses to help can also have a % of their pay directed to help reduce the burden of a specific student.
  6. For a period of 7 years, all student loan payment would be tax deductible, and would be treated the same as RRSP deductions.
  7. Student loans will be made payable via automatic deductions from work pay. Just like RRSP, CPP, Employment Insurance… Borrower will be able to increase payments by going to payroll and asking for increases in deductions.
  8. Goals will be set for loan forgiveness, students who reach a 90% grade will have  X $ of loan forgiven depending on total of funds available in the government program.
  9. All current loans would be transferred to this program.
  10. All loans would be accessible via one simple to use site.
  11. All loans payable by online banking/bill payment.
  12. Book fees need to be regulated. It seems that every year new books need to be bought at ridiculous prices. All books need to be available online, for download and price adjustments need to be made.

http://www.metronews.ca/news/canada/2015/11/02/a-by-the-numbers-look-at-what-the-federal-government-doles-out-in-student-loans.html

http://business.financialpost.com/personal-finance/young-money/what-happens-when-you-cant-pay-off-your-student-debts

http://globalnews.ca/news/2193843/canada-student-loans-program-to-ramp-up-collection-efforts-documents-show/

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