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Tag: interest rate

Canada’s New and Wasteful Student Loan Interest Policy

In the Fall Economic Statement last Thursday, Federal Finance Minister Chrystia Freeland announced that the government will eliminate student loan interest not just on loans going forward, but also retroactively. This was not out of the blue – the government promised this in the last election.  It remains, however, a disastrous idea.  Hundreds of millions of dollars a year for no real net benefit (at least in the field of education).  I have already laid out why this is a

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November 7, 2022 No Comments

Victory

Morning everyone.  Ready for another term of being trampled by a goddamn virus?  Me neither.  Still.  Onwards. Towards the middle of December, the Prime Minster’s Office released mandate letters for all cabinet ministers.  Yes, a mere three months after voting day, a meager 18 weeks after Parliament was dissolved for an incredibly urgent election, “the most consequential election of our lives”, the Prime Minster finally figured out what it was that he wanted his cabinet to do.   Better late than

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January 10, 2022 1 Comment

Designing Student Aid Programs from Scratch (2)

Now that we’ve decided on a loan system, we have to start thinking about how we are going to recover any money that we lend.  For decades, student loans only worked one way: on a regular amortization basis.  If you borrow, you repay on a regular monthly basis after graduation, just like one pays a regular amount each month on a mortgage.  Even within this framework, there are a lot of policy elements one can adjust.  The length of the

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December 3, 2019 No Comments

Student Loan Interest Rate Policy

One student aid policy debate that pops up periodically around the world – most recently in the United Kingdom – is the question of interest rates.  On the one hand, you have people who use a slightly medieval line of thought to claim that any interest on loans is a form of “profit” and hence verboten where students are concerned.  On the other side, you have people who note that loan interest subsidies by definition only help people who have already “made it” to

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November 6, 2017 1 Comment

The Ontario NDP’s Bad Student Loan Math

The Ontario NDP have started down the road to madness on student aid.  Someone needs to stop them. Here’s the issue: the NDP have decided to promise to make all Ontario student loans interest-free.  As a policy, this is pretty meh.  It’s not the kind of policy that increases participation because students don’t really pay attention to loan interest, and it’s not going to make loans a whole lot more affordable because Ontario forgives most loans anyway (as a consequence something

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September 29, 2016 No Comments

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One Thought to Start Your Day is our founder and CEO Alex Usher’s popular daily blog, brimming with up-to-the-minute insights and informed opinions on today’s higher education industry.

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