Debates of March 16th, 1995

Canada Student Financial Assistance Act

[René Laurin, Bloc, Joliette, QC]

Is the amendment likely to be put to the House?

[The Acting Speaker (Mrs. Maheu)]

Yes.

[Maurizio Bevilacqua, Liberal, Parliamentary Secretary to Minister of Human Resources Development]

Madam Speaker, let me begin by saying that as a government member I am somewhat perplexed by the motion put forward by the leader of the Reform Party.

A clear look at the changes and amendments we made in the Canada Student Financial Assistance Act will show that we included the concept and notion of an income contingent loan repayment system. I would point out to members of the Reform Party that subsection 15.0 of the Canada Student Financial Assistance Act currently provides for the repayment of student loans by borrowers on an income contingent basis.

Having said this, the government would like to take this opportunity to remind the House that thousands of students require financial assistance right now. A number of measures have been taken to help them in this regard.

It is important to remind the House that with the passage of the new Canada Student Financial Assistance Act in June last year, the government introduced important reforms to the Canada student loans program intended to support post-secondary education within a responsible fiscal framework. A number of these reforms are being phased in during the 1994-95 school year. The remainder will come into effect once the new act has been proclaimed.

I believe it is appropriate to remind the leader of the Reform Party and all hon. members about these measures which the government has taken to help students complete their education and become contributing members of Canadian society.

The loans limits had been frozen for 10 years, but they have now been increased. The weekly loan limit for full time students has moved from $105 to $165, an increase of approximately 57 per cent. The increase gives students up to $5,610 per school year, rather than $3,570. We also raised the ceilings on loans for part time students from $2,500 to $4,000. Part time students will no longer be required to repay the principal of their loans while they are studying. The changes give both young and mature students greater opportunities to fulfil their education.

Through consultations with the provinces and student groups, special opportunities grants for students with disabilities are being phased in. The government has allocated approximately $5 million in 1994-95 for these grants which will also be available next year.

The government is also working with the provinces to explore ways that would help ensure that students who must borrow the most are not burdened with debt loads above what they can repay. In so doing, the government wishes to provide an incentive for success.

As well, low income borrowers may be eligible for interest relief up to 18 months following completion of their studies. This applies to workers who are not earning enough money to meet their monthly student loan payments. Such a provision is currently restricted to borrowers who are unemployed or temporarily disabled. We are working with the provinces to apply the Canada student loans program with greater consistency and fairness.

Levels of assistance are being addressed according to the individual student's needs. Changes are easing the financial burden on low to middle income families whose children deserve every opportunity to complete their education. Specifically in this regard, the parental contribution table has been revised to ease the burden on families.

Over the next five years, students will benefit from loans and grants in excess of $6 billion. That is an increase of $2.5 billion over the previous five years. This additional investment will give more than 1.45 million students access to post-secondary education during this same period which is an increase of approximately 200,000 students compared to the last five years.

These new arrangements will reduce defaults and give students greater flexibility to repay and lower the costs for Canadian taxpayers. Lenders will now have more incentive to provide better services and offer income sensitive terms for repayment.

A more equitable system must go hand in hand with measures to reduce and control defaults. To that end, the program's eligibility criteria is being revised to emphasize results. Simply put, we will link financial assistance more closely to the student's successful completion of his or her studies. This will help to ensure the students who require financial assistance receive it.

Another aspect is we are collaborating with the provinces to develop consistent criteria for the educational institutions participating in the Canada student loans program. This too will ensure that aid is targeted wisely and costs are controlled.

The government is also carrying out discussions with lenders on new financing arrangements. The goal is to set terms that are realistic so borrowers will be able to repay their student loans relative to their income. This will improve the situation with respect to loan defaults, thus saving Canadians hard earned tax dollars.

One of the important things as members of Parliament is to relate the changes we make in this House to the community level, to the real lives and the real challenges that Canadians face. So that the people watching this debate have a clearer understanding of the type of impact it will have on their families, on the children and the students, I would like to give some brief illustrations of the type of positive changes we have introduced via the legislation cited earlier.

Let us take for example the case of Danielle who is attending the Technical University of Nova Scotia in Halifax. Danielle comes from a family of four whose annual income is $44,000. Danielle's family cannot afford to contribute to her higher education but she has managed to work during the summer and save approximately $1,800.

Her total assessed educational need is $7,400. Under the old method of assessing need, Danielle would qualify for only $2,600 in maximum aid. Under the new provision of the Canada student loans program, Danielle is now eligible for 60 per cent of her assessed need which is $4,440. That is an increase of $1,840. As for the remaining 40 per cent of assessed need, Danielle can apply to the province for additional assistance.

Or let us take the case of Greg, a student with a disability who is attending the University of Guelph. Greg comes from the city of Vaughan, Ontario where his family earns an annual income of $60,000. Greg's summer job enables him to put $2,700 toward his education and his parents are able to contribute $3,000. That gives him total financial resources of $5,700 and a total assessed need of $4,200.

Under the old system, Greg would qualify for a meagre $500 in aid, but under the new system at 60 per cent of assessed need he would qualify for a maximum of $2,520. However, Greg's disability means he is also eligible for a special opportunity grant of up to $3,000.

These are positive changes that I am sure will improve the quality of life for many students throughout Canada.

[The Acting Speaker (Mrs. Maheu)]

It being 6.10 p.m. it is my duty to interrupt the proceedings and put all questions necessary to dispose of Motion M-291 now before the House.

[Ian McClelland, Reform, Edmonton Southwest, AB]

Madam Speaker, I rise on a point of order. I wonder if I might have the unanimous consent of the House to speak to the bill for just a few moments.

[The Acting Speaker (Mrs. Maheu)]

The House has heard the request. Does the hon. member have unanimous consent?

[Some hon. members]

Agreed.

[The Acting Speaker (Mrs. Maheu)]

The member has two minutes.

[Ian McClelland, Reform, Edmonton Southwest, AB]

Thank you very much, Madam Speaker, and colleagues in the House. I would like to address two items concerning this motion. I think it is of significant importance to get them on the books.

The first item is on the amendment to the motion. While it appears fairly innocuous and since virtually everyone in the House is onside on this, it is rather unseemly that it be introduced so late. It does not bind the government anyway because it is just a motion.

The other point I would like to raise concerns the income contingent loan repayment. Information today in the Globe and Mail says that Alberta, Ontario and New Brunswick have decided they are not able to participate as it is presently written. Therefore, whatever we do with the income contingent loan repayment, which is a very good idea, the important element we must bear in mind is to be flexible.

As my colleagues know, we are going into a very difficult time financially. The future of our country depends on the ability of our young generation to be educated so they can use that education as a springboard for opportunity. Therefore, it is important that we look at the income contingent loan repayment in a very flexible, malleable manner if we have to change it. For instance interest may not be chargeable and that might be something we would look at.

I ask hon. colleagues to consider this.

[The Acting Speaker (Mrs. Maheu)]

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker (Mrs. Maheu)]

The first question is on the amendment. Is it the pleasure of the House to adopt the amendment?

[Some hon. members]

Agreed.

[Some hon. members]

No.

[The Acting Speaker (Mrs. Maheu)]

All those in favour of the amendment will please say yea?

[Some hon. members]

Yea.

[The Acting Speaker (Mrs. Maheu)]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Acting Speaker (Mrs. Maheu)]

In my opinion the yeas have it.

And more than five members having risen:

[The Acting Speaker (Mrs. Maheu)]

Pursuant to order made earlier today, the recorded division stands deferred until Tuesday, March 21, 1995 at 5.30 p.m.

[The Acting Speaker (Mrs. Maheu)]

Pursuant to the order made earlier today, the sitting is suspended to the call of the Chair.

(The sitting of the House was suspended at 6.15 p.m.)

The House resumed at 9.14 p.m.

[The Acting Speaker (Mrs. Maheu)]

I have the honour to inform the House that a communication has been received as follows:

Rideau Hall Ottawa,

March 16, 1995

Madam Speaker,

I have the honour to inform you that the Hon. Beverley McLachlin, Puisne Judge of the Supreme Court of Canada, in her capacity as Deputy Governor General, will proceed to the Senate chamber today, the 16th day of March, 1995, at 9.10 p.m., for the purpose of giving Royal Assent to certain bills.

Yours sincerely,

Judith A. LaRocque Secretary to the Governor General

A message was delivered by the Gentleman Usher of the Black Rod as follows:

Madam Speaker, The Honourable the Deputy to the Governor General desires the immediate attendance of this honourable House in the chamber of the honourable the Senate.

Accordingly, the Speaker with the House went up to the Senate chamber.

And being returned:

[The Acting Speaker (Mrs. Maheu)]

I have the honour to inform the House that when the House went up to the Senate Chamber the Deputy Governor General was pleased to give, in Her Majesty's name, the Royal Assent to the following bills:

Bill C-46, an Act to establish the Department of Industry and to amend and repeal certain other Acts-Chapter 1.

Bill C-74, an Act respecting the supervision of longshoring and related operations at west coast ports-Chapter 2.

It being 9.30 p.m., pursuant to orders made earlier this day, the House stands adjourned until tomorrow at 10 a.m., pursuant to Standing Order 24(1).

(The House adjourned at 9.30 p.m.)