Joined: 09 Oct 2008
Posts: 1140 votes: 10
Location: Vaughan, ON
Posted: Tue Feb 10, 2009 10:36 am Post subject: Student Loans
Students in college and university are eligible to apply for Provincial and Federal student loans. However, many students (including myself) take for granted that this money isn't free. You have to pay it back. So a lot of students end up coming out of college or university with a lot of debt because they didn't work nearly as much as they should have (like me).
So I am wondering what your thoughts are on changing the way student loans are handed out. Should they be changed so that the students must earn the same amount as they are loaned?
Here's my idea. If a student is eligible for $5,000 in loans in their first year they have to earn $5,000 on the side working. If they only earn $4,000 then the next year their max limit is $4,000 - $1,000 differential so $3,000.
This would two positive things for students. First, reduce the amount of debt they accumulate. Second, provide them opportunities to transition from part-time to full-time after they graduate.
Should scholarship and bursary money be included in the amount the student earns?
I dissagree in the concept of having to work part time, depending on your situation.
I know that I have done 5 years of Engineering, with 1 year working full time at an internship, but during the class time I would have been difficult to work part time considering the ammount of work I was assigned. Granted I did work full time during the summer in Construction, but ultimately each person should take the responsibility that when they get a loan, it is an INVESTMENT of their future, and at the end of their education they will work hard to pay off that loan.
So ultimately everyone has a different situation, but loans must be available to all students.
When I was at university my the unemployment rate in my hometown was 21%. Hard to find a summer job in that situation. I recall being in competition with middle aged guys with families just to work at McDonalds.
What little money I did make went to a good use: feeding myself and helping my parents make rent.
Student loans will be paid back eventually, so I don't really see what this requirement is meant to achieve.
Personally, I think the fist 4 years of post-secondary should be free as an investment in the economy. This was part of the strategy which made Ireland a "Northern Tiger".
I agree that the cost of education should continue to be subsidized by the government, but at the same time I recognize that the taxpayer should NOT be on the hook for every program that a student gets educated in. So the government needs to reduce the cost of the education, while at the same time maintaining its high quality.
Remember the government(s) (or taxpayer) is already covering about 50% the cost of your education, you end up paying the other half. The solution that I have been advocating at my school has been through reducing the cost of delivery of the program. And there is a lot of waste at Universities that can be rid of.
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