Student Loans

Globe & Mail: Ottawa raises cap at eleventh hour to keep student loans flowing

“Without the last-minute boost for the cap on total student debt, the federal government estimated, 50,000 students would have been denied about $300-million worth of loans”

I will admit that I took a student loan but it was for the last year of my degree in Engineering however I do feel its high time that the government get out of the student loan business once and for all.  Do we really need more debt ridden liberal arts degree graduates that do not have jobs in their chosen field of education?  The mainstream post-secondary education system in Canada has no reason to cut costs and provide a cost effective alternative because it has a guaranteed revenue stream from student loans.  No student loans would mean less people enrolled (initially) but that would drive down costs as the schools compete for the students who either have saved to fund their own tuition, borrowed from family / friends  or qualified for a private loan.  These people will also be more likely to finish school and repay the loan as apposed to the government to whom default is an easy choice for most.

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