What is Trending in Student Loan Debt?

I work in the post-secondary environment and have been doing so for the past 20 years. For most of this period, I have worked in the field of Student Services whereby I managed departments that looked after student loans, scholarships and awards, and student accounts.

I have worked at three institutions during this time. Each entity has it own unique identity. Capliano University is an undergraduate university located on the North Shore that caters to several specialized programs, as well as University Transfer options. Kwantlen Polytechnic University is also an undergraduate university located in the Fraser Valley offering many program such as Business, Nursing, University Transfer, as well as a trades school that offers programs such as plumbing, auto mechanics, carpentry, refrigeration maintenance and more. The University of British Columbia is a research-based institution that offers a wide variety of undergraduate programs such as Land and Forestry, Kinesiology, Business, Education, Medicine, Law, University Transfer, and an array of Continuing Studies, executive, and graduate programs as well.

My expertise in the area of student financial aid is somewhat fairly extensive. I have been in this practice for approximately eight+ years and worked in this field at three schools mentioned above. As part of my volunteer contribution to the financial aid community, I served on the Board of Directors for the Canadian Association of Student Financial Aid Administrators (CASFAA) for 6 years – was President for two years; sat on the Board of Directors of the BC Association of Student Awards Personnel (ASAP) for eight years – was President also for two years, as well as co-chair of the Federal Government’s National Advisory Group on Student Financial Aid (NAGSFA) providing recommendations and input on the administration of the Canada Student Loan Program (CSLP).

There are many trends that seem to come and go within many sectors, but for post-secondary a major trend that has been around for years and still will be for some time is the rising cost of student debt and the difficulties in trying to pay it off. As we encourage our country’s citizens to enrich their knowledge and upgrade their adult education – we have to be very mindful that for many they do not have the financial means to support this journey; hence, the option to turn to the student loan. Once students have completed their education they are required to begin to payback their loans six months after graduation. With many students transitioning to work that may not be in their particular area of study, we are seeing a lot of Canadians not being able to keep up and repay their loans, finding themselves struggling to pay for essentials such as rent, food, etc (as outlined in Maslow’s hierarch of needs) and getting into large sums of debt, which in turn is dramatically affecting their credit ratings. (As a side note – in my years of interviewing students - most students entering post-secondary are coming into the system with an average debt load of approx. $10,000 from credit card companies only too willing to provide their product – as many students are not yet financially literate).

After years of extensive lobbying from student advocate groups such as CASFAA (see above), the Canadian Federation of Students (CFS), the Canadian Student Alliance Association (CASA) and others concerned about the high cost of student debt, the Federal Government has just recently amended one of its keystone programs – The Repayment Assistance Plan to address the situation. The program provides financial relief for those student loan borrowers finding it financially difficult to make their regular student loan payments. This relief will allow borrowers to get back on financial track without jeopardizing themselves for acquiring future credit at a later date. The government has also recognized that the student of today is not the typical traditional student of years past. Many students going back to school are older and have family responsibilities. As such, the Canada Student Loans Program will increase its amount of upfront grant funding to those students needing this financial support. This is a trend that is most definitely going in the right direction. – and one that I hope continues in the future.

As an additional side- note – the Federal Government is also aware of the lack of financial literacy within the country. As a result, they have established the Financial Consumer Agency of Canada to education Canadian on financial literacy so that everyone can learn to manage their finances using valuable tips and tools offered. Another great step forward in trying to assist its citizens in managing and taking control of their personal debt.

http://news.gc.ca/web/article-en.do?nid=1144779

#studentloans #debt