Madam Speaker, first, I want to congratulate the hon. member for Fundy—Royal for bringing forward this motion that gives us the opportunity to review the operations of the Canada student loan program and look at whether it still meets the very purpose for which it was created.
With his motion, the hon. member wants to eliminate the need for parents to contribute toward their children's studies, more specifically to eliminate the needs assessment process used to determine if a student is eligible for a Canada student loan.
The fact is I know that the Department of Human Resources Development is also considering the parental contribution, mainly its use in the needs assessment process. This process, based on a moderate standard of living, is used to assess the ability of a family to cover part of the cost of their child's postsecondary education. It also takes into consideration the cost of living in the various regions of our country and the size of the family.
We want to ensure that the Canada student loan program meets its primary goal, which is to give low income students access to postsecondary education.
We all know that in this knowledge-based economy, we must help all Canadians acquire the skills and knowledge to reach their full potential.
As elected representatives, we must determine how best to achieve that goal and, if choices must be made, we must ask ourselves if we are helping students by making it easier for them to get loans and thereby increase their debt load at such a crucial time in their lives?
As a society, we are responsible for encouraging families to contribute, particularly during this important part of their education.
As a government, we must work with our partners, the provinces, to ensure the viability, flexibility and accountability of this important social program.
These are important factors that the motion does not take into consideration.
First, we must not blow things out of proportion. Eliminating parental contributions from the needs assessment process, as this motion proposes, will not have a discernible effect on most students and families already entitled to assistance.
In Canada, the majority of students who receive student loans—roughly 54%—are not considered dependents of their parents. They are eligible for student loans based on their own financial resources and not on their parents'.
It is estimated that for roughly 70% of students who apply for student loans and who are considered dependents of their parents, the parents do not have to contribute any money. In other words, this motion is proposing a measure that is already being applied to most post-secondary students who receive loans under the Canada student loans program.
It is estimated that for 18% of students who apply for loans and are considered dependents of their parents, a parental contribution can be as high as $2,999. A contribution greater than $3,000 was reported for only 12% of students who are dependents of their parents.
The member for Fundy—Royal admits this contribution is calculated based on the parents' income, the number of dependent children, the cost of living and whether the family has any added financial barriers. Corrections are made to the amount of the parents' contribution when they have an unforeseen decrease in income or have any added expenses.
One basic component of the Canada student loan program that must not be forgotten is that parents who can afford it are expected to help pay for their children's postsecondary studies. This program was never intended to replace family assistance, but to complement it as required.
At the present time, the Canada student loan program provides $1.6 billion in loans to some 350,000 students.
If we implemented what the motion proposes and eliminated the parental contribution, this would mean that the parental contribution would be converted into part of the loan the student would have to take out.
The program at present is based on need and was created some 35 years ago to help low income families have greater access to postsecondary education, hitherto limited almost exclusively to the children of better-off families.
I therefore believe that we can certainly discuss the amount of the parental contribution and the pros and cons of various methods of calculation. If, however, the government were to eliminate the parental contribution standard, how could it assess each student's needs fairly? On what would it base that assessment? What would be the limits imposed on the program and the cost to be met by the taxpayers if each and every student could apply for assistance and receive the maximum amount regardless of parental income?
Finally, what would be the repercussions of this measure on student debt load later on? These questions need to be looked at very carefully before calling upon the government to examine elimination of this provision, because the Canada student loan program is one of the most productive programs we have implemented in this country.
Since its creation, it has served to support the educational objectives of millions of students. I am sure that a goodly number of the members of this House are among them. It is in part thanks to this program that Canadians are now considered among the best educated and most skilled people in the world. This is why we as a society need to guarantee access to postsecondary education to all Canadians, so that they may adapt to the new knowledge-based economy.
However, this does not mean that we cannot do better. Every year, the government implements a number of initiatives aimed at improving access to postsecondary education, while ensuring that the Canada student loan program continues to meet the needs of students.
The 2003 budget carries on in that direction and the government will invest an additional $60 million, over a two-year period, to strengthen and improve the program. This budget initiative will address the main concerns of stakeholders and of provincial and territorial governments.
Thanks to these measures, students will have more money available, since they will be able to keep a larger part of their income while they are getting an education. Moreover, the first $1,800 in scholarships that are awarded based on merit will be exempted.
The budget also improves access to interest relief measures and to the debt reduction repayment program, so as to help students who have borrowed money and who are experiencing financial difficulties. These measures include interest relief to help students manage their debts and debt reduction to help borrowers who are experiencing financial difficulties.
An extended repayment period is also provided for those who need it, and there is tax relief for interest on loans.
Finally, we will improve access to financial assistance, by making protected persons, including convention refugees, eligible for the Canada student loan program.
These improvements seek to ensure that the Canada student loan program continues to meet the needs of students. Together, these measures will open the door and increase accessibility to education, improve debt management and significantly strengthen the support provided to part-time students. They will definitely promote continuous learning.
Many of these initiatives are the outcome of the regular consultations that have been taking place between the Government of Canada, student representatives, the provinces and advisory groups.
The Government of Canada is constantly looking for solutions that will help the largest number of people. This is why we do not hesitate to discuss issues and options.
But, as I said, I do not think that rejecting one of the basic principles of the Canada student loan program is a good solution.
I will conclude by congratulating the hon. member once again for introducing this motion.