We have a debt crisis on our hands. With students owing $28 billion to all levels of government, we need bold action, including the elimination of tuition fees, to fix this.
Instead of easing the burden placed on students, the federal government is using interest rates on student loans as a valuable source of revenue. This year, the government of Canada is projected to generate $862.6 million in revenue from the Canada Student Loans Program (CSLP).
This isn’t right. It’s time for the federal government to eliminate interest rates on CSLP loans.
The rate charged on Canada Student Loans – prime+2.5% for a floating rate, is higher than many mortgage products and means that those who can’t afford to pay for their education up front end up paying thousands more than those who can.
It doesn’t have to be this way. If the federal government can issue interest-free loans to Bombardier, they can also give them to students.
Four provinces have already eliminated interest rates on the provincial portion of their student loans, while a fifth (B.C.) is following suit soon. By closing tax loopholes that benefit the wealthy and well-connected in our society, the federal government can easily fund eliminating interest rates.
But it’s not going to happen without your help. Join our campaign here and tell the federal government to make CSLP loans interest-free.