LIBRARY RED RIVER COMMUNITY COLLEGE III IIIIN LIB182561 Red River College- Winnipeg, Manitoba - November 9, 1998 57 OSBORNE STREET "Fostering a free exchange of ideas." - 477-5566 www.pangea/caimoviev We're sending some guys to break your thumbs: Can't afford to pay your student loan? Well the feds are bankrupt there's no way out. No job? Get ready to be By Keith G. Hall Students facing severe hard- Lagartera also ship can apply to the Interest takes issue with Relief Program, wherein the Provincial roke may be federal government will pay Education Bbroke but don't the interest on their loan for Minister, Linda three month periods up to a Macintosh's try to tell the govern- maximum lifetime benefit of assessment of ment that if you're a up to 30 months. Manitoba as hav- student. Debt relief programs do not ing one of the allow a student to access their lowest tuition They've changed the benefits until after five years levels in the bankruptcy act effec- have passed — but most stu- country, as we tive last February to dents experience difficulties in also have one the first two years. of the lowest exclude student loans In order to access debt relief, minimum from bankruptcy the students loan repayment wages. claims. period is extended to fifteen That The changes have instituted years from ten years, decreas- would off- a ten-year waiting period — ing students monthly pay- set any meaning until it's ten years ments but increasing the benefits for after you've finished school amount the student must a person repay in the form of interest seeking you can't declare bankruptcy. As You The changes were made charges. to save fill out your Under the ten year prohibi- for an because the government forms just rememberstudent one loan thought too many students tion policy, students who educa- were looking at bankruptcy as declare bankruptcy before the tion. lot of things, but it's not freething. money, A student loan an easy way out. expiration of the ten year peri- is a It's a view University of od would be required to do so twice. Lagartera also Projector Winnipeg Student Union Photo - Joey Olafson A student would first seek wonders why Manitoba was cuts president Clarissa Lagartera to transfer payments, and discharge of their consumer the last province to implement loans doesn't share. the increase in student debt debts within the ten year peri- the federal government's should be available to those "It's very discriminatory to and bankruptcies. od, which automatically is interest relief period to it's students who need it the students," she said. Kozier says he doesn't retained at credit bureaus for maximum allowable limit, most, and not only to those She also says it's based on a believe that student's deci- seven years. when it enables students an graduates who have found a false impression. sions about future careers After the ten year prohibi- opportunity to find employ- higher paying job or have the "Of those who declare should be limited or deter- tion period has expired, the ment to pay off their student wealthy family connections to bankruptcy only about ten per mined by their socio-econom- student would then be eligible debts without penalization. pay off their student debt. cent are students," she said. ic background. to have their student debt con- Lagartera also says the fed- Kelly Friesen, Director of Historically that may be Kozier would like to see a ditionally or absolutely dis- eral and provincial govern- Public Relations for the true, but in the three years matched increase in student prior to the changes to the charged, depending upon the ments need to prioritize fund- University of Manitoba circumstances. ing to make a post-secondary aid with every increase in bankruptcy act student loan tuition, and would like for a Student's Union is concerned With the second declaration education accessible to the that the rising cost and unfor- bankruptcy claims had hit an post secondary education to of bankruptcy comes the con- young people who are our giving nature of student loans all time high of about 25 per be accessible to anyone with sequence of having it perma- future, as the funding mecha- could be scaring people away cent of all bankruptcies in the the ability to succeed. nently recorded at credit nisms now in place are just from school. country. Kozier said that many stu- bureaus. going to increase the likeli- "I think the concern with But it this because students dents will continue to pursue Lagartera claims there's a hood of more people falling 60% of jobs requiring a post- are taking the easy way out? the career they feel best suited correlation between increas- into the cycle of ever increas- secondary education (PSE) by Or is it a sign of the changing towards, but may go to the ing tuition rates and decreas- ing debt and bankruptcy. the year 2001, combined with times — the result of massive foreign markets that can guar- ing enrollment, that is made University of Manitoba high tuition and debt levels, cuts to education funding? antee them the jobs that offer up by increasing tuition Student's Union President, would be that only certain In the seven years from them the higher salaries that which ultimately increases the Christopher Kozier, is well students might feel that a 1993-2000, the federal govern- our economy can't. incidence of student bank- aware of the relationship post-seconday-education ment will have cut $3 Billion Kozier also says business in transfer payments to the ruptcies. between escalating tuitions, would be accessible to them." provinces for post-secondary edvication, and another $4 Billion from the unemploy- Reading Week ment insurance training bud- get. Federal grants for post- 10% secondary education were in DISCOUNT reduced and then eliminated, RED RIVER while the majority of provin- COMMUNITY COLLEGE cial grants were replaced with azatlan STUDENTS & STAFF student loans. WITH I.D. The federal government got Join students from across (ON ALL REGULARLY out of the student financing PRICED MERCHANDISE) system, and in 1995 imple- Western Canada in Mazatlan mented changes to the for a week of fun EVERYTHING FOR THE Canada Student Loan GREAT OUTDOORS Program, authorizing banks CAMPTRAILS & JACK WOLFSKIN to charge their posted prime BACKPACKS lending rate plus a maximum February 12-19 EUREKA & JACK WOLFSKIN TENTS of 5% for a student loan with a Grou%Depntture JANSPORT PACKS fixed rate of interest, or a max- mominmpeg from $ 769 rt UNITED COLUMBIA CLOTHING AND FOOTWEAR imum floating interest rate of Rates per person based on quad share room. ARMY KODIAK, HITEC & SOREL BOOTS prime plus 2 1/2 %. 7 nights. Taxes not included. Call for full details: Upon graduation, or when a SIERRA DESIGNS & BANFF GORETEX CLOTHING student ceases their studies, SURPLUS COLEMAN OUTDOOR PRODUCTS they are given a six month SALES BAUSCH AND LOMB BINOCULARS grace period in which to find a 1111.4 TRAVEL CUTS SONY ELECTRONICS job before the first payment of 460 Portage Ave. Yee 'crewel 6xper6 Across from The Bay 66ela4 'CANADA'S LARGEST their student loan becomes Ph. 786-5421 OUTDOOR STORE' due. 499 Portage Ave 783-5353 Open Seven Days A Week Owned and Operated by the Canadian Federation of Students Page 2 The Projector — Red River College — Winnipeg, Manitoba Nov. 9 / 98 gonna get tough on deadbeats students. Even if you're hounded by collection agencies for the next few years. said Friesen acquire a post-sec- "Those jobs aren't going to issue, as is being limited to levels of debt, high levels of Friesen said that ondary-education be long term jobs that they not being able to declare bankruptcy are just some- if that were so, because the can make careers out of," bankruptcy till after ten years. thing that would be expect- then jobs deterrents are Friesen said, "and I think "I think it's a matter of look- ed," Friesen said. "I think would be too great, or that's what accessibility is. ing at the level of student debt fighting the levels of debt that limited to the impedi- Especially with this being the and the high levels of tuition, students are having to incur is the upper ments are information age and a knowl- and what causes student debt. a lot better way of going strata of too great, edge based economy, that it is It's not just the educational about trying to avoid student people to that those all the more key that every costs coming directly from the bankruptcy than giving a whom a people will single person who aspires to institution, such as tuition, longer loan payback period. post-sec- be stuck with an education and has the but the concommanant costs This allows the student to ondary educa- the other 40% capability to pursue a PSE has for transportation and books become participatory in the tion is accessible. of the jobs that a means to do so." and those sorts of things. economy." Friesen said, and aren't going to be Friesen agreed personal When you have high educa- for those who can't good jobs. bankruptcies are an important tional costs that lead to high Bankruptcy Trustee: Student loan changes threw consultation out the window By Ed Anema The first thing that happens remedy must be exercised. be discharged for at least 10 ruptcy immediately after leav- is an assessment of the exist- The process, insofar as stu- years, after last attending ing school, without attempt- ing financial situation and the dent loans was concerned, school.