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Tag: Student Debt

Canada’s Income-Contingent Loan System

I see that yet another group has called for Canada to have an income-contingent Loan Program to help students fund their higher education studies.  Great idea.  In fact, it’s so great that the country adopted an income-contingent system five years ago. It’s just that nobody noticed. Many people think that income-contingency requires that loan repayments be a fixed percentage of individual income, or that loan recovery be handled through the tax system.  While it’s true that some of the world’s

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January 20, 2014 3 Comments

Income-Contingent Loan Problems

Everyone who’s ever given thought to the matter thinks that income-contingent loans are superior to mortgage-style loans.  At any given level of debt, it’s always preferable for low-income borrowers in repayment to have the option to suspend payments, and make them up at a later time.  Pretty much all the objections to income-contingency – especially here in Canada – are about matters extraneous to the actual method of loan repayment (e.g. fees would rise, interest is too high, etc.). The

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December 5, 2013 No Comments

Parents, Transfers, and Debt

A few weeks ago, CBC ran a story about parents taking on debt so that their kids didn’t have to.  It’s a story worth parsing carefully, because it’s a great example of how economically irrational people can be when it comes to debt. One family in this story recounts shelling out $200,000 for their three kids to go to university.  They even went into debt themselves to do it.  But they wanted to do this, apparently, because they wanted their

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October 31, 2013 No Comments

The Cultural Determinants of Student Debt Policy

With the school year now back in full swing, one of the things you’ve undoubtedly heard, and will continue to hear, is the question of student debt, and how it has become “out of control”.  And in that spirit, I wanted to relay a little anecdote. A few months ago, as part of a student loans-related project that I was working on in a Southeast-Asian country, I led a session for government and bank officials looking at possible loan parameters,

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October 30, 2013 2 Comments

How Student Debt Became a Big Deal in Canada

If you go back to debates in the 1993 election, or Lloyd Axworthy’s famous Social Security “Green Paper”,  most of what you see in the discourse about PSE would be pretty familiar today: “higher tuition = less access”, etc.  But what you wouldn’t find was any discussion of student debt.  It just wasn’t something anyone talked about. Partly, this was because there wasn’t a lot of student debt at the time.  Although federal and provincial loans programs were undergoing a

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October 29, 2013 1 Comment

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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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