Social Work 2510 	Assignment #2

	Wouldn’t it be nice if you could get out of high school and  want to further you education and go to a post Secondary school yet not worry about Student loan debt, yet this is only a dream for most of us.  But there are people out there who have parents that can afford to send there children to MUN or the College of The North Atlantic with out getting a student loan. But like most of us we rely on Student Loans.  So When deciding to go to school where ever it maybe we go and get a student loan and find out that we can not get a full one because our parents income. There are family’s across the country that have the problem that they really can’t afford to support themselves as well as support  there child  to go to school. Also there are some families out there that have a couple of children that are attending post secondary school so how are they supposed to support themselves and their children? Yet if you are a mature student over 22 yrs its doesn’t affect your loan at all. So in this paper I will be looking at many issues such as Historical background of the student loan program in Canada, some of the Values of the student loan program though its students, if there are any possible solutions to these programs and feasibility, and the Recommendations  that can be made to the student loan program.
	Most people don’t realize that the Canadian Student Loan Program has been 

around  for quite a while. It was put into place for students who could not afford to bay

the high cost to go to a post secondary institution. So the federal government put in a 

program that would give students the opportunity to pursue a degree program .

	The CSLP was created in 1964. Since its inception, the Program has 	supplemented the financial resources available to eligible students from other 	sources to assist in their pursuit of post-secondary education. Between 1964 and 	1995, loans were provided by financial institutions to post-secondary students 	who were approved to receive financial assistance. The financial institutions also 	administered the loan repayment process. In return, the Government of Canada 	guaranteed each Canada Student Loan that was issued, by reimbursing the 	financial institution the full amount of loans that went into default.( Government 	of Canada, Human Resource Skills development Canada )  	<http://www.hrsdc.gc.ca/asp/gateway.asp?hr=en/hip/cslp/About/01_ab_MissionPr	program.shtml&hs=cxp>

Even though this was very good the government then decided to change that program 

giving the institution  would assume responsibility for any risk of defaulted loans. Then 

after only 5 years the government decided that the would end the  risk- shared agreements

with the schools and the CSLP was soon become responsibility for  the National Student 

Loan Service Centre. 

	“In 1995, several important changes were made to the CSLP, reflecting the 	changing needs of the parties involved in the loan process. The Government of 	Canada developed a formalized "risk-shared" agreement with several financial 	institutions, whereby the institution would assume responsibility for the possible 	risk of defaulted loans in return for a fixed payment from the Government. During 	this period, the weekly federal loan amount was increased to a maximum of 	$165.On July 31, 2000, the risk-shared arrangement between the Government of 	Canada and participating financial institutions came to an end. The Government 	of Canada now directly finances all new loans issued on or after August 1, 2000. 	The administration of Canada Student Loans has become the responsibility of the 	National Student Loans Service Centre (NSLSC). There are two divisions of the 	NSLSC, one to manage loans for students attending public institutions and the 	other to administer loans for students attending private institutions” ( Government 	of Canada, Human Resource Skills Development Canada ).

As a student we have many things to worry about while we are attending school, such as getting good grades, living away from our parents, and having enough money to have an apartment and being able to eat as well as buy books. Students have enough trouble dealing with the school stress and they should have to deal with the Student Loan stress. When you apply for a student loan the money you receive is based on what amount of money that your parents are after making. I really don’t believe that it should be based on what your parents makes because your parents can not always be able to help you especially if you have another brother or sister they can’t live themselves if they have to pay big bucks to you to go to school. Once again this not only put stress on the student but also puts stress on the parents. As most people do they what to do what they can for their child to make sure they gets the best possible education that they can get so they will actually do with out just to make sure they gets an  education.  Now there are students who are speaking up against this, there are students though the country rallying to base student loans no the students income and leave the parents income out of to.  One such push is in Calgary where an Alberta students organization is asking the government to disregard family wealth when calculating student loans.
	“Students have to put parental income on loan applications. Parents are supposed 	to contribute a certain amount and the loan is meant to supplement it. The head of 	the Alberta College and Technical Institute Student Executive Council says some 	parents aren't paying. If parents aren't helping that's where students are getting 	into the poverty levels and they're barely making it through, says David Brooks, 	ACTISEC's provincial director.” ( CBC. Nov. 2001 Students want loans 	disconnected from parental finances) 	<http://calgary.cbc.ca/regional/servlet/View?filename=studloanca011128>

Most students try very hard to be independent on their own by getting summer jobs to make some money to go back to school. Yet the amount of money that students make over the summer at minimum wage is not very much. Take for an example a student who works on a federal grant for the summer. Usually these grants are around 30 - 40 hours a week, up to 8 weeks. So now lets try to add this up, 40 hours a week for 8 weeks equals  1920 dollars. Which may seem a lot but when you have to pay  tuition which is around 1500 dollars, you have to buy books, pay rent, bills etc, and you haven’t eaten yet? So the few dollars that students makes over the summer does not add up to what they will be loosing due to what their parents incomes are. 
	What I have to find very strange is that if you are over the age of 22 in this 	province then you are considered a mature student where you are at a big 	advantage. You don’t have to depend on your parents even though you have still 	be living with them. Being a mature student takes a bit of stress off you and your 	parents. For one you don’t have to rely on them for any money, so they don’t have 	to worry about having to put themselves in finical risk from having to give you 	money to attend school. With most students that little extra money will go a long 	way by you will not have to worry about buying books, food, and other items. The 	department of Education defines a Mature student as “ students who are 22 years 	of age or older and are applying for student loans for the first time” (Government 	of Newfoundland and Labrador. Education/Eligibility
 	.2004 ).< http://www.edu.gov.nf.ca/studentaidsystem/eligibility.htm> 
	Students are the next generation that will be our doctors, nurses, lawyers, social workers and so on, so why would we want to out them in a situation where people may not be able to attend school? We should give them all the advantages so they will want pursue a career with out having to worry about being feed. Right now in our province there is an out cry of doctors, nurses, etc, so shouldn’t this give us the hint that if we don’t soon do something it means that there will be many out ports that will have to go with out a doctor and that they are going to have to travel far distances to seek medical attention. 
	I believe that even if they do keep the student loan program like it is now that it 

should be equal to all students. Also some people think that we should have a system in 

place where you can go to school for free like that did in the 1960s when we  had free 

Tuition. The Government of Newfoundland and Labrador are a major leading when it 

comes to listening to students when they speak out about tuition . The government of 

Newfoundland and Labrador has also offering post-secondary students extra relief on 

their tuition debt. 

	 Even though the parents of  many students  may have a good income it shouldn’t 

affect the child to the point if he/she will make a decision  to go to school or not  . They 

student loan programs should make sure that all students are treated equally not matter 

how much the parents are making. I can remember my grand parents talking about when 

they where getting ready to go to university they said they went on “Joey“ , this was when 

the government paid for your education and there was no worry about having to pay back 

10s of thousands of dollars compared to when  there was free tuition.  The government 

over the last could of years has been very good when it comes to tuition because since 
 
2000. Mr.  Hedderson, Minister of Education  announced this year that they will be keeping the tuition free for the remained of the Williams government term. 
	“In the Blueprint, we made a commitment to our post-secondary students and today we have reaffirmed that commitment," said Premier Williams. "We must ensure that Newfoundlanders and Labradorians have access to high quality programming at an affordable cost to enhance the employment prospects of graduates and ensure that we are able to get the greatest benefit from our economic opportunities. In today’s global community, education is vital for success and our government is committed to accessibility and affordability, so that our students have the tools they require to be the leaders of tomorrow."( Government Of Newfoundland & Labrador. New Release. 2005.<http://www.releases.gov.nl.ca/releases/2005/exec/0315n03.htm>.

So its not like the government in this province in not trying to help us gain an education. 

they have also out in place programs to help students who have to got major loans that 

they have to pay back. They are help with programs such as, Canada Study Grants (CSG's) 

which is a  programs that  unlike interest free loans, does not have to be repaid.

Canada Millennium Bursaries is organization established by an Act of Parliament in 

1998 with an endowment of $2.5 billion to help Canadians meet the challenges of a 

rapidly changing economy and society by creating opportunities for them to pursue their 

post-secondary education.( Millennium Scholarships. 2004.)

< http://www.millenniumscholarships.ca/en/main.html >

Also we have the Debt Reduction Grants which as replaced by the loan remission in 

August of 2001  where if you receive up to the full amount of the 

provincial student loan you may be converted into a non-repayable grant; there is no 

application process - students will be contacted directly; debt reduction grants are earned 

on a semester basis, and students will be notified annually, and; special provisions to 

accommodate students who have extenuating circumstances. ( Government Of 

Newfoundland & Labrador. Education/Grants. 2004. < http://www.edu.gov.nf.ca/studentaid/grants.htm#dependents>).

Most people find it really hard to pay back there loans with they get them due to the fact 

that it is so high. There are ways to help people just can not afford to pay the 300 a month 

loans. This program that  I am talking about is the revision of terms on your student loan.

	“ If you can not afford your monthly payment amount, or you don’t qualify for Interest Relief, you may be able to revise the term of your loan. In this program you can decrease you monthly amount, either for a short term or long term period. This may mean you extend your term over a longer period, meaning you will pay back you loan over a longer time, but this may be just what you need so you can afford to start paying back you debt. The sooner you start, sooner you’ll be done. And remember if in the future you can afford to pay more each month, there are not penalties for increasing your payments again to start to pay it off faster” ( A Guide to Borrowing  Student Loans In Canada. EDULINX. 1999.pg 12) 

What people have to realize that it is very hard for us students to get a student loan and be willing to stay here to work. If when I finish school my amount of money I will have borrowed will be in the ranged of some think like 75 thousand dollars. If I decides to stay here in the province  I will have to get another full time job just to pay back my loan. This is why most people when they finish school and they have these outrageous amounts of money, they have to leave because they have no other choice but to. Most people go place such as Baffin Island where they can go up for 2 years and come home and live and have their student loans just about paid off and that’s in 2 years. If you decide to stay here then it would take something like 12 years. So what we have to realize is that governments should realize that if students are willing to get the money to go to school, willing to study there butts off then in turn for these people to stay here they should really offer the students some kind of freebie for them to stay. Do you think that I’m being to selfish? I don’t think that is very much to ask for. Here in Newfoundland we have a rep of being student people but I believe that we are the smartest people cause we have to deal with some many things its not that funny. Students are our future why don’t we do something now to show them that we want you to stay and in the words of Danny Williams ( 2005 ) “ We will some become a have province and not a have not province ”.