Mr. Speaker, I am very pleased to have the opportunity today to speak to Bill C-28 dealing with the federal government's plan to reform its program of student assistance.
In my role as Secretary of State for Asia-Pacific, I am well aware of the importance of post-secondary education to Canada's economic and social development in the global economy.
As a member of Parliament I am aware of the crucial role that the Canada student loans program has played in ensuring accessibility to post-secondary education. At the same time, as a parent I recognize the need to modernize and improve the federal government's effort in this area.
As we consider this bill we must learn from the flaws in the current system, for there are flaws. However, we must leave in tact and strengthen the four key principles which have provided the framework for the Canada student loans program over the years; namely, access to assistance for all students in financial need, emphasis on the responsibility of individual students to progress in their studies and to contribute to the cost of their education if they have the means, a balance between public and private sector roles in financing student aid, and a client centred approach to the delivery of student assistance programs based on federal-provincial collaboration.
I would like to suggest a fifth principle, the need for flexibility to adjust to the dynamic learning environment and changing economic circumstances. As we have learned from past experience, change is inevitable.
The student assistance program must be able to adapt to new realities. Therefore the bill has been drafted to allow flexibility to respond to the challenges of the future.
Provinces are aware of the need for greater flexibility and have suggested how the federal and provincial programs may work together more efficiently by further streamlining the financing and administration of our activities.
Far from being an intrusion into an area of provincial jurisdiction, the Canada student loans program is a model of federal and provincial co-operation. Under this program the federal government has worked closely with provinces for almost 30 years to help equalize access to post-secondary education and training for students in need.
I would also note that the Canada student financial assistance bill continues to provide for provinces to opt out of the federal program and receive compensation. While Quebec and the Northwest Territories have withdrawn from the program, other provinces have not.
In fact, participating provinces have encouraged the federal government to continue to occupy this field and to expand its efforts in the area of student assistance.
Enhanced assistance for needy students is the main reason for this bill. The maximum level of aid has been frozen for 10 years while costs have gone up by 57 per cent. We are acting now to restore a viable and efficient student aid program. Loan limits will be increased to the level they would have been without the 10-year freeze. The full time loan limit will rise from $105 to $165 per week, and the part time limit will be increased from $2,500 to $4,000.
Debt load will be controlled through the introduction of deferred grants. Interest relief will be expanded to include low income borrowers, and special opportunity grants will be established.
Under the new financing arrangements, all eligible students will have access to loans and income sensitive terms in repayment. In total, the amount of aid to be provided over the next five years will be $2.5 billion more than over the last five years.
Individual Canadians are willing to take responsibilities for their own futures by investing the time and money in post-secondary education and training to equip themselves with the knowledge and skills for success. This is apparent from the fact that Canadians are attending Canada's universities, community colleges and private schools in record numbers.
The question that the government asked itself when considering how to reform the student assistance program was how can we help Canadians undertake the post-secondary studies they need.
The answer came back from the students. Give them the right tools, they said. That is why we are proposing fundamental changes to the student loans program to provide more aid to students and to introduce new forms of non-repayable assistance.
The flaws in the existing student aid programs have become increasingly evident in recent years. Every member of Parliament in this House has encountered students and former students who have had problems obtaining enough resources to study, or who have had difficulties in repaying their loans.
The proposed legislation would address both of these problems by increasing aid to students and introducing measures to ease the repayment burden on graduates. The reform of the student assistance program will increase educational opportunities and accessibilities for young people and for mature students returning to school, including single parents on income support and unemployed older workers who require training. Unless we can meet the needs of all of these people we are denying them opportunities and we are denying Canada the benefit of their skills and energies.
I would like to stress that the proposed act works for students with disabilities whose numbers in colleges and universities do not come close to reflecting the numbers in Canadian society. Students with disabilities confront many obstacles to full participation in Canada's economic mainstream. Learning should not be one of them. It is believed that fewer than 3 per cent of Canada's full time university and college students are persons with disabilities. This bill will deal effectively with those situations in which a barrier to post-secondary studies has been a lack of resources.
In addition to the increased loans, under the new legislation students with permanent disabilities may qualify for special opportunity grants of up to $3,000 per year to help cover costs relating to special transportation, interpretation services and technical aids. As well, we will allow flexibility for students who because of their disability must take fewer courses and who require more time to complete their studies.
This legislation will enable Canadians with disabilities to obtain the financing they need for the exceptional costs which they must incur to undertake their studies. Many of the challenges they face can be overcome with their ingenuity and perseverance and a little financial help from government.
Similarly, this legislation will address the special needs of women who wish to pursue doctoral studies in non-traditional fields. Special opportunity grants of up to $3,000 per year will be available to help women who are taking doctoral degrees in fields of study such as the applied and physical sciences, mathematics and engineering. There will also be special opportunity grants of up to $1,200 annually for high need, part time students to assist them in pursuing their studies.
The student financial assistance bill is an important step in our social security reform process. We are moving quickly in this area because the need is so great.
To summarize, let me put the reforms provided for in this bill in human terms.
Let us think about the students who are considering post-secondary studies who come into our constituency offices. What would the reform mean to them?
First, because of the new need assessment process, the financial need will be determined based on up to date objective national data which will reflect cost variations across the country.
Second, the maximum loans that they can expect to receive will be increased by 57 per cent to reflect current education costs.
Third, there will be non-repayable grants assistance for students with disabilities, high need, part time students and women in certain doctoral studies.
Fourth, students may be eligible for a deferred grant to help maintain manageable debt loads after graduation.
Fifth, when the time comes to pay back their student loans, they will be dealing with a lending institution which views them not as problems but as long term customers. Lenders will have an incentive to keep student loans in good standing by providing better service and income sensitive repayment. Both the lender and the borrower will view the student loan as the first transaction a long and mutually beneficial business relationship.
This is what the reforms provided for in the bill will mean to students. We are working to improve aspects of the social safety net but this legislation will help steer thousands of Canadians away from the safety net altogether.
Canada must look to its people for growth and prosperity in the years ahead. The new Canada student financial assistance program addresses that reality in a creative and fair minded way.
It will help individual Canadians meet the challenges ahead and build their futures in an atmosphere that encourages and supports their aspirations.
Let me conclude by saying that I am proud to be able to support this bill and I hope it will receive early passage so that we will be able to get on with the job at hand of helping Canadian students look toward their futures.