The political parties of the Canadian government are attempting to stop Canadians from taking on so much debt. The Liberal government has proposed some changes that will effectively safeguard Canadians from unscrupulous debt settlement companies. Now Tim Hudak’s Progressive Conservative government has a plan to alleviate student debt with his plan for higher education.
Ontario has more and more students graduating with deep debt as university tuition fees continue to escalate. Too many students who go to university are “back on mom and dad’s couch with no job to go to,” Hudak said last week.
Financial aid for students should be tied to how well they do in their courses as a way of instilling “market discipline” and incentives to succeed, said Hudak’s supporter, Tory MPP Rob Leone. Basically, student loans should be “rewarded” to students with “merit” versus “mediocrity”. Leone is looking for a return on investment when it comes to loaning money for education.
“Ontario has strong colleges and universities,” Hudak said. “But too many graduates can’t find work in the areas for which they’ve prepared. At the same time, we face a shortage of skilled workers in the coming decades,” he added, noting a 2012 Auditor General’s finding that only 65 per cent had found jobs related to what they studied in university.
In Hudak’s white paper, he suggests students should be encouraged to attend applied learning programs at community colleges rather than going to the universities with much higher tuition fees. In exchange, Hudak also encourages community colleges to offer more three-year applied training degrees in different fields, giving students more choices.
Higher Learning for Better Jobs calls for:
- Allowing colleges to offer three year applied degrees, such as a Bachelor of Applied Technology Degree, designed to teach leadership roles in the construction industry
- Expanding the “dual credit” program, so more high school students consider college, in which students can earn credit toward their high school diploma and their college education, and
- Encouraging regional relationships between colleges and universities and linking future growth in universities to creating paths for transferring college students
Hudak believes his strategy “will ease the pressure on universities, and ensure students who choose university are properly prepared and receive the best quality education.”
Both universities and colleges play key roles in educating and preparing students to be successful contributors to our economy. Bridging links between universities and colleges will provide more choice to students.
However, the proposed monitoring of student loan grants would limit a great number of students who need loans but for some reason don’t “make the grade” to qualify. What if a student had a terrible year because of a personal tragedy and because of a lower grade is not granted the loan to continue schooling? Does this plan have any flexibility for struggling students? Presumably, the students who do not need student loans don’t have to worry about “making the grade” to be approved for a higher education.
Understandably student debt needs to be managed but is Hudak’s plan for higher education the way to handle it? What do you think?
If you are having a hard time keeping up with student loan payments because of unmanageable unsecured debt from credit cards or lines of credit, it’s time to get some professional help. Call OCCA Consumer Debt Relief for a free financial assessment toll free 1-855-873-622 or visit us online at www.occa.ca. We can help!.
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