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Dealing with student debt

(Canwest News Service) The Canadian Federation of Students reported Jan. 21 that Canadian student debt hit $13 billion, a record high for our nation. Roughly 360,000 students have taken out loans through the federal government and Canada Student Loans Program this year, and this figure does not include loans taken from the provincial government or personal credit debt. The CFS estimates graduates will leave university with a total debt load of about $25,000 to $28,000. Making education affordable is more crucial now that ever, in helping Canada shift to a "knowledge based economy," says Katherine Giroux-Bougard, Canadian Federation of Students national chairwoman.

The CFS lobbied the federal government for four reforms, which included increased funding for student summer jobs, increased support of at least $200 million to aboriginal students and $1 million more in funding to graduate students. The CFS also hopes to increase the Canada Social Transfer to provinces to $1.2 billion, which would reduce student debt and tuition fees.

1.

Rising tuition costs a myth, reports say

Macleans
The real cost of education has fallen in most provinces, according to a recent report from the Educational Policy Institute, which is a non-profit organization studying of issues related to the expansion of quality educational opportunities. When inflation, federal and provincial tax breaks are taken into account, a degree now is cheaper than it was around 10 years ago, says Alex Usher, the study's co-author. In fact, the study concludes that the real cost of tuition has fallen more than 100 per cent in Manitoba.  Following this logic students are actually being paid around $50 to go to university when rebates and federal and provincial tax credits are taken into account each year. Another report,"Beyond the Sticker Shock 2008: A Closer Look at Canadian Tuition, also holds that the cost of tuition does not represent the real cost of university, as student rebates have reportedly increased in the last eight years, cancelling out rising tuition rates.

2.

Students should look at high tuition fees as an “investment,” official says

Northern Life
The director of advocacy for College Student Alliance, an advocacy and student leadership organization in Ontario, thinks the Canadian Federation of Students should stop asking for cuts to tuition fees. Tyler Charlebois said students ought to look at investments in tuition as investments in their futures, adding that graduates at Canadian community colleges get a 15 per cent return on this investment on average. Charlebois also critiqued students for their methods of dissent. "The approach we take to getting things done is to get to the table with the premier and the minister. Demonstrations don't always get you to the table."

3.

Students protest debt with soup kitchen

Canwest News Services
Students at British Columbia's North Island College hosted a soup kitchen on campus last Monday to protest rising student debt loads. Student debt across Canada is increasing by $20 per second, reports Canwest News. Some students lobbied their local MP, James Lunney, to find out what he planned to do about raising debt loads. Many also planned to take advantage of the free meal. "It's hard to live on a student's income," says Shaunna Downey, chairperson of the North Island Student's Union. "This will be a nice free meal, which is what people need when they're trying to survive on a student's budget."

4.

Tips for eliminating credit card debt

Readers Digest
While students may be sinking up to their teeth in credit card debt, this Reader's Digest article lists ways to fight back. 1) Make paying down the high-interest-rate debt your first priority. 2) Take advantage of free debt counseling. 3) Call the numbers on the backs of your credit cards and beg credit card companies to lower the amount owing, reduce interest or at least renegotiate your monthly payments. 4) Splitting your monthly payment into a bi-monthly payment will cut the interest ever so slightly. 5)Pay bills immediately. 6) Say no to pre-approved credit card offers of companies trying to snag new customers. 7) Understand that Zero per cent introductory rates often rise up to 18 per cent or more after six months. 8) Write legibly, as credit card companies often stall payments they cannot read for up to five days. 9) Credit card companies can also stall payments when you include written notes in them, so don't. 10) Ask to have the annual credit card fee waived and threaten to switch cards. This may work.

5.

Universities sell students’ names to money lender

New York Times
Resisting the lure of credit card companies when deep in student debt is even harder for many US students, whose universities sell their information to credit card companies. The Bank of America has a US$8.4-million seven-year contract with Michigan state University, and the university benefits financially when students take out the bank's credit cards. In return, the university gives the bank access to the personal information of students, including their names and addresses. Hundreds of other higher education institutions in the United States have similar contracts with money lenders. Lenders have even offered universities financial incentives in some cases to advertise for them on campus. Student groups in the U.S. have been fighting back. This appears to be an American trend, but it's not unfeasible that it could cross the border.