{"id":483779,"date":"2022-08-11T14:31:46","date_gmt":"2022-08-11T11:31:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-to-know-about-student-debt\/"},"modified":"2022-08-11T14:31:46","modified_gmt":"2022-08-11T11:31:46","slug":"what-to-know-about-student-debt","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-to-know-about-student-debt\/","title":{"rendered":"#What to know about student debt"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ddd01ad8b2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ddd01ad8b2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-to-know-about-student-debt\/#%E2%80%9CWhat_to_know_about_student_debt%E2%80%9D\" >&#8220;What to know about student debt&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CWhat_to_know_about_student_debt%E2%80%9D\"><\/span>&#8220;What to know about student debt&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n                            The government boosted loans and grants during the pandemic. It should cancel existing student debts altogether.\n                        <\/div>\n<div>\n<div id=\"attachment_1238572\" style=\"width: 410px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" data-sizes=\"auto\" class=\"wp-image-1238572 lazyload\" src=\"https:\/\/www.macleans.ca\/wp-content\/uploads\/2022\/07\/ErikaShaker.jpg\" alt=\"\" width=\"400\" height=\"301\"\/><\/p>\n<p class=\"wp-caption-text\">Erika Shaker is the director of the national office of the Canadian Centre for Policy Alternatives<\/p>\n<\/div>\n<p class=\"p1\">W<span class=\"s1\">hen new grads<\/span> <span class=\"s3\">aren\u2019t able to land good jobs in their fields, they often end up in unrelated low-wage work. They serve tables or work in retail to make ends meet and pay down their student debt. And these are exactly the types of jobs that vanished when restaurants and shops were shut down two years ago. School-age Canadians between the ages of 15 and 24 were also among the first to lose their jobs during the initial COVID lockdowns. Many young Canadians couldn\u2019t get rehired and resume paying off their debts until employment returned to pre-COVID levels, which wasn\u2019t until last fall.<\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">The pandemic, and now record-high inflation, provided us with a necessary reckoning\u2013\u2014one that highlights just how unsustainable Can-ada\u2019s funding model for post-secondary education really is. The total amount of student loans owed to the federal government reached $22.3 billion in 2020. This figure is alarming, but it doesn\u2019t even include provincial and personal loans, lines of credit and education-related credit-card debt. In Canada, the average student loan debt is now $28,000 for a bachelor\u2019s degree and $15,300 for college grads. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> drag of that collective debt load is wide-reaching.<span class=\"Apple-converted-space\">\u00a0<\/span><\/span><\/p>\n<p class=\"p3\"><span class=\"s4\">Borrowers using the federal Canada Student Financial Assistance program typically take between nine and 15 years to pay off their debts. The longer the cycle continues, the more challenging it is for young people to get out of it. Inevitably, major life experiences\u2014like marriage, starting a family or buying a home\u2014can be delayed for years. Regular debt payments also mean that less disposable income is going back into local communities.<\/span><\/p>\n<p class=\"p3\">To help students cope during the pandemic, the federal government temporarily paused student loan repayments and interest. Despite this freeze, the feds have still collected $169 million in interest from students since 2020. It will be years before we see the full financial and psychological ramifications of COVID-worsened job precarity, coupled with debt anxiety. The provincial and federal governments have boosted grants (which are helpful) and loans (which postpone the problem). Neither are comprehensive solutions.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\">A better idea would be to cancel existing debts and eliminate tuition fees entirely. According to the Parliamentary Budget Office, this move would cost $16 billion during the first year, then roughly $10 billion annually. Spending that money runs counter to the last three decades of entrenched neoliberalism within our federal and provincial governments, which have typically emphasized belt-tightening and cutting taxes that fund public services. But the cost of eliminating student debt isn\u2019t the boogeyman fiscally conservative critics make it out to be.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p3\"><span class=\"s3\">The Canadian Centre for Policy Alternatives has found that a small federal wealth tax\u2014between one and three per cent\u2014on the very richest Canadians could net $28 billion in year one and $363 billion over a decade. That\u2019s enough to erase the country\u2019s backlog of student debt and create a new publicly funded university system in Canada. Money from the wealth tax could also be put toward enhancing educational offerings at schools, like more classes, better facilities and expanded research capabilities.<span class=\"Apple-converted-space\">\u00a0<\/span><\/span><\/p>\n<p class=\"p3\"><span class=\"s3\">Some have argued that cancelling debt will mostly benefit wealthier students, because they\u2019re more likely to attend university to begin with. Publicly funded post-secondary education would remove the financial barriers that disproportionately affect low-income and marginalized students. With Canada facing a potential recession, this debt cycle threatens to trap more and more new grads. Ultimately, a wealth tax is a small price to pay when you consider the tremendous returns of affordable access to higher education.\u00a0<\/span><\/p>\n<hr\/>\n<p><em>This is part of the Maclean\u2019s Guide to the Economy, which <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared in the September 2022 issue. Read the rest of the package, order your\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/canadianmags.ca\/products\/macleans-september-2022\">copy of the issue<\/a>, and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/secure.macleans.ca\/\">subscribe to the magazine<\/a>.\u00a0<\/em><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/canadianmags.ca\/products\/macleans-september-2022\"><img loading=\"lazy\" decoding=\"async\" data-sizes=\"auto\" class=\"aligncenter wp-image-1238850 lazyload\" src=\"https:\/\/www.macleans.ca\/wp-content\/uploads\/2022\/08\/SeptemberCover-1.jpg\" alt=\"\" width=\"287\" height=\"391\"\/><\/a><\/p><\/div>\n<p><script async defer crossorigin=\"anonymous\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.macleans.ca\/economy\/canadian-economy-guide-2022-student-debt\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;What to know about student debt&#8221; The government boosted loans and grants during the pandemic. It should cancel existing student debts altogether. Erika Shaker is the director of the national office of the Canadian Centre for Policy Alternatives When new grads aren\u2019t able to land good jobs in their fields, they often end up in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":483780,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/www.macleans.ca\/wp-content\/uploads\/2022\/07\/ErikaShaker-766x431.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[132264],"class_list":["post-483779","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-guide-to-the-economy-2022"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/483779","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=483779"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/483779\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/483780"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=483779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=483779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=483779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}