May 24, 1994 For Immediate Release
"END PRACTICE OF DISCRIMINATORY STUDENT LOANS"
Garry Breitkreuz, MP for Yorkton-Melville, addressed the Reform Party's concerns regarding the new Canada Student Financial Assistance Act (Bill C-28) in the House of Commons today. Breitkreuz called the current and proposed Canada Student Loans program as unfair and discriminatory. "This bill, as in the past, will require students and their families to take a means test. This means that students whose parents are not poor enough are ineligible for student loans even if the students receive little or no assistance from their parents," said Breitkreuz.
"Two thirds of the adult population who do not have a university education are helping to pay, through their taxes, the costs of a post-secondary education for the other third. This bill perpetuates a problem which has existed in the Canada Student Loan program since 1964 -the poor have been subsidizing the rich for their education," declared Breitkreuz.
He called for a reformed Student Assistance Plan with an automatic income-contingent repayment (ICR) provision. This reform would reduce costs to the taxpayer, provide greater flexibility and fairness for students, and, allow universities to maintain high quality educational services. "Under ICR, all students would be eligible for student loans. Means-tests would be eliminated. Repayment of student loans would be set as a percentage of income and would be paid through the income tax system. Under an income-contingent repayment plan a student who is unemployed or under-employed after graduation would have their loan payments deferred until their earnings improve," said Breitkreuz.
The Association for Universities and Colleges of Canada supports this type of repayment plan and so does the Reform Party of Canada. "During the election we said that the Reform Party was committed to maintain or increase funding for post-secondary education," reminded Breitkreuz. "We need to preserve health care funding, pensions for seniors and funding for education. The Government needs to establish priorities for government spending. If Canada is going to compete in the global market place and capitalize on free trade we need to exploit our advantages, and, one of our most important advantages is our young people and our universities," said Breitkreuz.
"Established Programs Financing for our universities should be completely replaced by a Voucher System which students could redeem at the university of their choice. Canada Student Loans should be available to everyone and subject to repayment on an income-contingent basis. Our university students do not need pilot projects - they need an income-contingent repayment plan now," concluded Breitkreuz.
For more information please call Garry Breitkreuz:
Ottawa:- (613) 992-4394