Cord the a wilfrid INSIDE news y / December 2nd * yy&Mr /IN THE fi&6\ • : An opportunity to ask questions of the E3OP and OME3 iff MagicaCMatt os6orne NEWS OSAP system outdated increases. The second level ofOUSA's MARK HEASLEY Rick Martin, Liaison Officer proposed funding program is Cord News for University of Toronto's Part- subsidized Ontario and Canada In a paper written by the Ontario Time Undergraduate Students, said Student Loans. The majority of Undergraduate Student Alliance that OUSA's paper was tailored to students would fall under this (OUSA), the current Ontario Stu- influence Dave Cooke's (Minister category, where all students dent Assistance Program has been of Education and Training) would be considered independ- labelled "inadequate", "essentially upcoming announcement on tui- ent andtheamountof loan would outdated and inefficient", and a tion, expected some time within be based on the student's own system that is "inaccurate and the next 45 days. budget (Resources - Expenses). unfair". "This is a structured argument A student living at home Tim Crowder(WLU Students' what we know the minister is plan- would have to list parental sup- Union VP of External Affairs, and ning to do," Martin said "which is port (housing, food, etc.) among Laurier's representative to OUSA) increase tuition without a similar their resources, and economi- elaborated on this position with increase in provincial funds." cally disadvantaged students some figures that show the increas- OUSA's proposed student could apply as dependent stu- ing demand for student financial funding program is a "three-tiered dents and be assessed along with assistance in Ontario: system, with an income-contingent their family. -this year, 205 000 people applied repayment plan". That is, there are Repayments should not be forOSAP. Up 15% from last year, three different levels of funding made, the plan furthers, until a -loans averaged $5500 this year, (in order of need) and payments student has reached the Ontario up from last year's $3000 average, are made on the loan on the basis of median income level. As of fif- -student loans for this year alone the graduated student's ability to teen years after leaving school totalled $987 million in Ontario. pay. all outstanding loans should be Despite the fact that the aver- The first level consists of an forgiven. What you have... Pic: Anton Volcansek age loan amount has increased, the expanded Ontario Special Bursary The third proposed level of true picture of the state of student Program. Here, students whose student funding is open to stu- est would accumulate on the loans at all that quickly. "The provincial aid is grim. Part of the increased income falls below an as yet unde- dents who have historically been the normal government rate. government needs federal support loan money available came from termined level would have all the denied OSAP - students with Support for an income-contin- for the ICLRP program, since it the elimination of grants to stu- real direct costs of their education relatively high incomes. These gent loan repayment program will be based on federal tax dents, and in the past year, more covered (tuition, compulsory fees, students may have expenses that (ICLRP) has recently grown. Now, records," Tim Crowder voiced his student loans have defaulted than books). The report suggests that are justas high however, and the not only do student lobby groups concern, "and the federal govern- any time in the past 14 years. there should be a possibility of price tag of education beyond such as OUSA and the Council of ment hasn't moved on it yet". In defence of the 118 000 un- repayment on the bursary if the their means. Ontario Universities support it, but In the face of almost certain dergraduate students that it repre- student's income reaches a certain These students should have Ontario Premier Bob Rae has voiced tuition increases, OUSA offers an sents, OUSA has proposed a new level (say $50 000) after a speci- available to them student loans his support for such a program. alternative to shifting the burden student financial aid system that fied amount of time (say 5 years) that would cost the government Despite this support, this repay- ontostudentsby increasingtuition will help offset expected tuition has passed since graduation. little, OUSA says, where inter- ment program may not be instituted costs completely at their expense. How to default on OSAP JULIE BARKER to figure out a way to pay back you currently hold a major credit creditor, Lacasse explained. is a non-action. It is not meeting Canadian University Press their outrageous student loans. card, a student loan or even a car, According to the Bankruptcy and the conditions of your loan." OTTAWA — As incoming stu- Today repaying is more diffi- and you find yourself out of Insolvency Act, a first time consumer When default occurs, the gov- dents prepare to protest the pro- cult than ever to do. For some, the money you may consider bank- debtor has all their debts paid after ernment directly seeks collection posed 50 percent increase in tui- only way out is to declare bank- ruptcy. nine months. from the student. If this is deemed tion, graduating students are truing ruptcy or default on their loans. If "Approximately 4 500 stu- "During this time, the debtor has to be unsuccessful and the student dents file a bankruptcy claim to a legal obligation to state his or her remains uncooperative, he or she us each year," said Laurent financial situation (bankrupt)," said is referred to the Justice Depart- Marcoux, director of policy and a senior manager of one of Ottawa's ment and legal action is taken to programs for Canada Student leading bankruptcy firms. pursue the debtor. Loans. After this nine month process, "What graduates don't realize But this does not necessarily the debtor must still wait seven years is that there is flexibility when mean that each applicant has suc- before wiping the slate clean, in or- dealing with student loans," says cessfully defended their claim. der to begin rebuilding a credit rat- Marcoux. "They must repay the "Student loans will almost ing. loan within 10 years but they can always oppose a discharge,"said But when it boils down to deal- negotiate — forexample, start with Bob Lacasse a senior manager ing with yourstudent loan in particu- smaller payments at the beginning with Peat, Marwick,Thorne Inc, lar, there are other options you can and progressively increase the one of Ottawa's bankruptcy trus- consider. amount, thereby avoidingdefault." tees. "Otherwise, think of how "If you are out of work, you can Both bankruptcy and default much money they would lose," apply for an "interest release" every can have adverse effects on future Lacasse said. three months, from the government," credit for the debtor, both finan- The whole bankruptcy proc- said an official at the Student Loans cially and emotionally. ess is very long and operates on Department. "It is not as simple as people a case by case basis. In some "The government will cover the figure," said a student at the Uni- cases the judge has grants the interest on your loan to help prevent versity of Ottawa whose mother student absolute discharge. In bankruptcy." had to declare bankruptcy as a re- others, the discharge may be Another option is to default or a sult of student loans and other conditional, and there may be an non-payment of your loan. debts. "It keeps after you for the agreement about payment plans "Whereas bankruptcy is a posi- rest of your life. It haunts you What you need... P/ c; Anton Volcansek between the student and the tive action," says Marcoux. "default forever." 4 NEWS THE CORD Thursday, November 25, 1993 First years' have their say SCOTT McCORMICK issue of under-age drinking soon reached about this request, period to get people into the Tur- When residence phones came Cord News arose. The group asked the Stu- WLUSU will approach the Alco- ret. up it was explained that the Uni- On Sunday, Nov. 21, the Wilfrid dents' Union to look into opening hol on Campus Committee. They Two other issues that came up versity is looking at bringing the Laurier University Students' Un- up the Turret on Thursday nights are hoping that something can be were prices at the Turret and the system up to par within the next ion held an open forum in Wilf's. and Wilf's on Friday nights to un- done about this issue by next se- music being played. On the prices two years. It is clear that this is The purpose of this meeting was to der-age Laurier students. This will mester. issue, it was explained that the unacceptable. The fact that things discuss the services offered by the be discussed by both Tim Hranka The second issue that arose Turret currently does not have spe- such as diallingout at certain times Students' Union and how they re- and Dan Dawson as well as the was the publicity issue. Although cials - they just have a price set at is next to impossible (what hap- late to first year students. The BOD. Once a decision has been WLUSU advertises in the Cord, one level. Although other bars may pens in a 91 ] situation?) and that the students present felt that these have specials on some nights, their receiving calls is also difficult. ads have little effect, and that a regular prices are set higher. With Parents are not able to get in touch more directapproach is necessary. WLUSU, instead of paying the with their kids when they need to Such an approach would involve regular price of $3+ their price is and are spending a lot of money in contacting the first year students set at $2.75 to offer the best all the process.