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Tag: Student Loans

Does the Canada Student Loans Program Make Money?

Note: travel has limited writing time. In light of the NDP releasing their New Deal for People, it seemed a good time to re-run this post on the whether the federal government “profits” from the student loan program. Congrats and thanks to the NDP for releasing their platform early, but the claim that is “profiting from student debt” is highly suspect, especially since the 2019 budget reduced interest rates on the loans. You’ll remember a couple of weeks ago I

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June 17, 2019 No Comments

Income Share Agreements (Part 2)

Yesterday, I described Income Share Agreements (ISAs) as basically a version of Milton Friedman-like Human Capital Contracts, which are very much like privately administered graduate taxes.  The question we will answer today is: under what circumstances would a private ISA be preferable to a public student loan? Assuming both were equally available and equally subsidized, then in theory a student would be indifferent between the two.  But there are a few reasons why this is unlikely to be the case;

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March 5, 2019 No Comments

Income Share Agreements (Part 1)

Every once in awhile, someone comes up a “new” concept in student financing and people get very excited about it.  As in most other policy fields, the “newness” is a matter of perspective and debate: there’s only so many ways you can lend students money and many of the “new” ideas are just old ideas that got discarded for various reasons and resurrect either because circumstances have changed or because proponents aren’t aware of the history (or both).  The latest

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March 4, 2019 No Comments

Rationing Loans

While student loans are cheaper (and hence more commonly used) than grants, they still cost money, both in terms of interest subsidies and in terms of loan losses through loan defaults.  As a result, nowhere are they unlimited in scope.  Every government finds ways to ration loans.  Today, I thought I’d go through some of the ways governments do that and – in passing – help everyone understand in what ways North American loan systems are generous in comparison with

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February 8, 2019 1 Comment

Costing Loans

One of the weirder sub-fields of student loan policy concerns how loans are accounted for in national budgets and statistics.  This sounds like an abstract consideration, but in fact it has the potential to drive student aid and access policy in some very unexpected directions.  (I know, I know, this may be my wonkiest post ever, and I may get one or two things wrong because I’m not an accounting expert, so bear with me). For a really good primer

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February 7, 2019 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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