Category: Student Aid

Happy 50th, CSLP (II): The Road not Taken

The Progressive Conservative Party under John Diefenbaker won a crushing majority in 1958, and his platform hadn’t contained anything with respect to education or universities.  Though he was known for his “Vision for Canada”, universities weren’t really a part of that vision.  He retained the Saint Laurent policy of paying money directly (via the AUCC) to individual universities on a more-or-less per capita basis.  The only change he made was to agree to a deal with the Duplessis government (which

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Happy 50th Birthday, Canada Student Loans Program

The Canada Student Loans Program, which over the years has helped upwards of 3 million Canadians obtain a post-secondary education, turns 50 this year.  And since the Government of Canada seems to be either too shy or too partisan (it was a Liberal creation after all) to celebrate this anniversary, I thought I’d do it here, by spending a few days giving you a bit of history about how the program came about. (Why now?  Why not August 1st, the

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The Canadian Way of Higher Education Subsidies

One of the biggest arguments in student assistance is about who to subsidize and why.  Unfortunately, because we are rarely explicit in the way we talk about subsidies, discussions tend to be a dialogue of the deaf. One school of thought says we should subsidize students based on their parental income.  Students from poor families need more help to succeed than students from wealthier families, and so the former should pay less, and so we should pay them grants to

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How ICRs can Become Graduate Taxes: The Case of England

As noted yesterday, graduate taxes and income-contingent loans have many similar features.  They both defer payments until after graduation, and they are usually payable as a percentage of marginal income above a given threshold.  In England right now, the payment scheme on ICR loans is that students pay 9% of whatever income they earn over £21,000 (roughly C$38,000).  The difference between the two is that with a loan you have a set amount to pay, and when it’s paid you’re

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Oregon’s “Pay It Forward” Scheme and the ICR vs. Graduate Tax Problem

You may have heard some rumblings from south of the border over the past few months with respect to a program called Pay It Forward (PIF).  The brainchild of a student group called Students for Educational Debt Reform, this idea was picked up by the Oregon assembly last summer; within a few months, over a dozen state governments were examining similar draft legislation. The basics of the program are these: instead of paying tuition, students agree to pay a percentage

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