Statement made on 14 May 2008 by Senator Yoine Goldstein (retired)
Hon. Yoine Goldstein:
Honourable senators, today I will ask leave to table a document that provides ample proof that Canada's student loans system must be improved. This document is the result of an online petition organized by the Coalition for Student Loan Fairness. The petition has received 1,442 online signatures. More importantly, it includes many heart-wrenching, first-hand descriptions of how shortcomings in the current loan system wreak havoc in the lives of young Canadians.
I have been aware for some time of the financial difficulties faced by many former students. This is why I introduced Bill S-205, which would change the way students loans are dealt with in bankruptcy proceedings.
Several borrowers described the student loan system as "onerous," "unfair," and "a nightmare." One former student describes his limited income, massive debt and efforts to raise two disabled children, writing, "I once thought going to school would improve my life. It did the opposite." Another says, "Student loans have ruined my life." Several others conclude that borrowing money for their education "was probably the worst mistake of my life." Others say their debts have become so debilitating they would never encourage young people, including their own children, to pursue post-secondary education if it required incurring students loans.
One terribly distressing entry, No. 1,233, describes how student debt and harassment from collection agencies led the writer's sister to commit suicide.
Another borrower in repayment simply says: "We need help."
Honourable senators, we must listen to Canadians. We must defend their interests. We must try to help where help is needed. Higher education is a value in and of itself but a skilled and educated workforce is also central to our country's prosperity and its well-being.
The current student loan system is difficult to navigate. It is discouraging many young Canadians from pursuing post-secondary education. High interest rates — the highest in the Western world — inadequate debt relief programs and vicious collections practices create a disincentive for those who must borrow money to attend college or university. This is wrong for both ethical and practical reasons. This is wrong and it must change.