Canada Student Loans worried Student Loans are at risk

OTTAWA, Oct. 17, 2011 /CNW/ - Student debt in Canada has nearly reached a legislated ceiling of $15 billion and the government, without taking action, will legally not be allowed to loan any more money to students. This is according to figures in the recent report released by Canada Student Loans Program (CSLP).
“With mounting costs and a lack of a federal vision for post-secondary education, Canada risks bankrupting a generation,” said Roxanne Dubois, National Chairperson of the Canadian Federation of Students. “If the government allows this breach to occur, student loans will either dry up, or the federal government will violate what is effectively the law. The only way forward is for the government to respect the cap and start to convert some student loans to non-repayable grants.”
The 2010-11 CSLP Actuarial Report, released by the Federal Government, shows that federal student loan debt in Canada will reach and surpass its legal limit in January 2013. The federal government currently only provides approximately one dollar in non-repayable student financial assistance for every four that it loans out. While tuition fees continue to drive student borrowing towards the legislated limit, funding for post-secondary education still falls well short of federal transfers in the early 1990s.
Students will be in Ottawa from October 24 to 28 to meet with parliamentarians to demand action on the pending economic crisis facing the country’s youth. “The federal government must address mounting tuition fees and student debt through the conversion of loans to grants,” said Dubois. “Time is running out for the federal government to listen to students and get serious about rising student debt.”
The Canadian Federation of Students is Canada’s largest student organization, uniting more that one-half million students in all ten provinces. The Canadian Federation of Students and its predecessor organizations have represented students in Canada since 1927