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House Hansard - 107

44th Parl. 1st Sess.
October 4, 2022 10:00AM
Context: House Hansard - 107 - Oct/4/22
Mr. Kevin Vuong (Spadina—Fort York, Ind.)
  • Oct/4/22 7:49:31 p.m.
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Mr. Speaker, in 2021 the Liberals promised to permanently eliminate interest on federal student loans. Let us be clear. On page 17 of the Liberal Party's 2021 election platform document, entitled “Forward. For Everyone”, it states that a re-elected Liberal government will: Permanently eliminate the federal interest on Canada Student Loans and Canada Apprentice Loans to support young Canadians who choose to invest in post-secondary education. This will benefit over 1 million student loan borrowers and save an average borrower more than $3,000 over the lifetime of their loan. This promise seems fairly straightforward. However, it now seems that Forward. For Everyone” should read “Backward. For Students”. On February 17, I asked the minister responsible whether the re-elected governing party would keep its election campaign promise to students. Of course, amnesia had clearly set in, even though the government claimed to have the backs of Canada's students. Yes, it was roll out the smoke-and-mirrors approach again, and no pesky election promise was going to be allowed to get in the way. On September 17, an assistant deputy minister at the Department of Employment and Social Development gave notice in the Canada Gazette that the interest moratorium on Canada student loans and Canada apprentice loans would expire on March 31, 2023. Clearly, this must have been a mistake, so one week later, on September 23, I asked whether the Liberals would honour their promise. Again, the House was treated to obfuscation and platitudes. At a time when Canadians are struggling to make ends meet and students are taking on debt to afford an education, broken promises and empty platitudes will not cut it. The average federal student debt held by someone with a bachelor's degree is $23,000. I myself graduated with $25,000 in student debt. Moreover, to combat rampant inflation eating away at Canadians' paycheques, interest rates have nearly doubled to 4.7%. Are we to understand now that on April 1, 2023, the government will hand young Canadians and their parents a very cruel April fool's joke of a nearly $600 increase to student loan payments? Should that occur, I cannot fathom the backtracking on this campaign promise, because there are few better investments than to invest in education. On average, someone with a bachelor's degree will pay almost $15,000 a year in annual taxes, nearly double what someone with a high school diploma pays. This is annually, not just one time. It is a recurring benefit to our country, not only in the tax dollars that fund the services that Canadians rely on, but also in a more educated and upskilled workforce. The societal and fiscal benefits are clear. There is also, however, the honouring of a promise to students, along with the business case for investing in our country's next generation. In conclusion, can the government educate students and Canadians on what will happen on April 1? Can it shed light on the path forward for all by letting us know on what date interest rates will be permanently eliminated from Canada student and apprentice loans?
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Context: House Hansard - 107 - Oct/4/22
Mr. Irek Kusmierczyk (Parliamentary Secretary to the Minister of Employment, Workforce Development and Disability Inclusion, Lib.)
  • Oct/4/22 7:53:21 p.m.
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Mr. Speaker, as I have said in the House many times, young Canadians and students are the future of Canada. More than 673,000 students each year rely on federal grants and loans to help them cover the cost of their tuition, school supplies and living expenses. That is why we are making historic investments to ensure that students continue to have the supports and opportunities they need to build a better future for themselves and their families. With budget 2022, we are helping doctors and nurses in rural and remote communities who have student loans. We are investing $26 million over four years so that nurses in these communities will have up to $30,000 in loan forgiveness and doctors will have up to $60,000, respectively. We are also enhancing the repayment assistance plan as of November 1, and that means people with an income of $40,000 or less will not have to make payments on their students loans. This measure is expected to help an additional 121,000 Canadians each year who have student and apprentice loan debt. Additionally, the cap on what is considered the monthly affordable payment is being lowered from 20% to 10% of a borrower's household income. What is more is that these new thresholds will be indexed to inflation to ensure that people's eligibility for repayment assistance keeps pace with the cost of living. There is more. With budget 2021, we provided $4.5 billion in funding to support expanded access to post-secondary education. Thanks to the Canada student financial assistance program, students and recent graduates will have more access to direct financial support, making it easier for them to pay off their student debt. In the summer of 2021, we extended the doubling of Canada student grants for an additional two years. We also changed the requirement so that students can use their current income when applying for a grant. That means people in financial need will not have their previous workforce experience count against them. New measures under the Canada student financial assistance program ensure that post-secondary financial supports are more accessible. Through these remarkable initiatives, I hope it is clear that we are committed to supporting Canada's students and recent graduates, and that we are committed to building the workforce of tomorrow.
389 words
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