Victoria – Members of the ‘Where’s the Funding?’ campaign at student societies across the province welcome the latest step in the deal between the provincial and federal governments to amalgamate the provincial and federal student loans programs. The amalgamation process provides a greatly simplified loan process for post-secondary students in British Columbia.
In a recent government announcement, amendments to the Financial Administration Act will eliminate non-sufficient fund (NSF) fees for student borrowers, consistent with Federal rules. This change will be a boon not only to the approximately 65,000 current and new students, but also to the over 84,000 British Columbian graduates currently repaying their student loans. A further amendment will also allow students who are minors to sign a loan agreement without a guarantor – eliminating a roadblock for many.
“While these reforms represent a big step forward in eliminating red tape, the core problem faced by students is the cost of education itself,” said UVic Students’ Society Chairperson Tara Paterson. “These reforms can and should pave the way for the adoption of the interest reduction and provincial grants programs being called for by the Where’s the Funding campaign.”
According to the Ministry of Finance, the amalgamation will mean significantly reduced costs for the student loan program – savings that should go back into the program. “For years, the government has stated that the high administrative costs of the program were the reason for the prime + 2.5% interest rate on student loans – the highest rate nationwide,” said Paterson. “The government has a responsibility to pass off these cost savings to students and lower the interest rate.”
Most critically, the province’s elimination of the provincial grants program in 2004 was partly prefaced on problems with the student loan contract at the time – problems the Federal government has since solved, and which will be part of the amalgamated contract. “This is a golden opportunity for the government to step up and re-institute the provincial grants program, the single most effective tool for providing financial assistance to lower-income students,” said Paterson.
Where’s The Funding?! (WTF?!) campaign is organised by the UVic Students’ Society (UVSS), UBC Alma Mater Society (UBC AMS), Simon Fraser Student Society (SFSS), Capilano Students’ Union (CSU), Langara Students’ Union (LSU), University of the Fraser Valley Student Union Society (UFVSUS, and Nothern Undergraduate Student Society (NUGSS). The WTF?! Campaign is the largest student-organised post-secondary campaign in B.C. representing over 121,000 students.