B.C. Federation of Students says more needs to be done to help students who are already struggling to get by

Documents show costs for post-secondary education increased at rates 'above wage growth and inflation' over last decade

B.C. Federation of Students says it's not surprised federal report suggests student loan program is broken, needs fixing

OTTAWA — Federal officials warned in a presentation earlier this year that the risk of student loan defaults and delays was on the rise, noting bleakly: the “system is broken.”

Federal student debt alone is approximately $17 billion and the federal government has to regularly write-off millions of dollars in loans it will never collect.

The documents, obtained by The Canadian Press, say the costs for post-secondary education have increased at rates “above wage growth and inflation” over the last decade, while the cost of living has also jumped, creating an affordability crunch for new and graduating students.

And yet, the documents acknowledge that post-secondary education is a must for many entering the job market.

Recommendations for how to address the problem were redacted from the documents, but student groups say they should include more non-repayable grants and waiving interest payments on student loans.

The Canadian Federation of Students and the Canadian Alliance of Student Associations are each readying to launch get-out-the-vote campaigns on campuses to get students to the polls during the fall federal election.

‘No surprise’

Meantime, those with the B.C. Federation of Students say they’re not surprised by the federal report suggesting the loan program is broken and in need of fixing.

“You know, we hear on the ground the struggles students are having, even paying for their education as they’re attending school,” Jenelle Davies with the federation says. “Those stories only multiply when people graduate and have to then start repaying back the loans they have taken.”

Davies says there really isn’t a choice about getting a post-secondary education.

“I know on average the federal student loan interest is about $5,000 for students, and when you’re already struggling and living in cities that become increasingly more unaffordable, it’s a real challenge to keep ahead of your repayment schedule,” she adds.

This problem isn’t just isolated to the big city, like Vancouver, she notes. Davies says places like Victoria, Nanaimo, Terrace, and Prince George are just some examples of cities that are becoming out of reach for students, who are also faced with “skyrocketing” education costs.

“But wages don’t go up to match that increase,” she explains. “When young people are graduating with a $30,000 student loan, it’s a real struggle of how you’re going to repay that. But there’s no other option for folks than getting a student loan, because the student loan program is a needs-based loan. You have to financially qualify for it.”

The B.C. Federation of Students has two main suggestions for the federal government to help: To eliminate interest on student loans and putting more money “up front” in a “needs-based grant system.”

Davies explains it’s important to note that the cost associated with education is “widely provincial.”