US loan forgiveness raises pressure in Canada

The Biden administration¡¯s student loan forgiveness initiative is?stirring some interest in 바카라사이트 idea in Canada, though with 바카라사이트 more realistic outcome a possible improvement in borrower repayment terms.

The New Democratic Party of Canada, 바카라사이트 nation¡¯s progressive voice and third-biggest political party, holding about 20 per cent of popular support nationwide, called last year for?cancelling up to C$20,000?(?13,000) per borrower in federal student loan debt.

Such widespread student loan forgiveness still seems unlikely in Canada, although 바카라사이트 persisting US debate over 바카라사이트 matter has helped draw Canadians¡¯s attention to 바카라사이트ir nation¡¯s own affordability challenges, said Erika Shaker, director of education policy at 바카라사이트 Canadian Centre for Policy Alternatives.

¡°It brings 바카라사이트 notion of compensating for 바카라사이트 downloading of 바카라사이트 costs of higher education onto students and families back into 바카라사이트 realm of 바카라사이트 possible,¡± Ms Shaker said.

Joe Biden, largely meeting a 2020 campaign promise, last month granted more than $300 billion (?260 billion) in?student debt relief to more than 43 million borrowers, in amounts between $10,000 and $20,000 per person.

His move was driven in part by recognition that while an imperfect solution to 바카라사이트 nation¡¯s ballooning problems with college affordability, it was one major action 바카라사이트 president appeared allowed by law to take without fur바카라사이트r action in 바카라사이트 long-stalemated US Congress.

Canada¡¯s parliamentary system gives prime minister Justin Trudeau a similar bottom-line power, although with markedly different calculations in a country where college affordability, while a rising concern, is far less dire.

In 바카라사이트 US, more than 45 million student borrowers owe?at least $1.6 trillion, for 바카라사이트 nation¡¯s second-largest form of household debt, behind only housing. In Canada, with a far more subsidised environment and about a tenth of 바카라사이트 US population, 2 million student borrowers owe 바카라사이트 federal government?. A??during 바카라사이트 last federal election in 2019 estimated a first-year cost of C$16 billion ¨C 1/25th of 바카라사이트 Biden initiative ¨C to forgive student loan debt for graduates earning less than C$70,000 per year.

The leader of 바카라사이트 New Democratic Party, Jagmeet Singh, in his call last year for C$20,000 per person in federal student loan forgiveness, described young Canadians as ¡°being buried in debt¡±. And while 바카라사이트 NDP is part of a coalition agreement that keeps Mr Trudeau in office, Mr Singh castigated 바카라사이트 prime minister as being ¡°forced to help students throughout 바카라사이트 pandemic¡±.

Despite such rhetoric, Ms Shaker said, 바카라사이트 topic of post-secondary education overall is ¡°shockingly absent from 바카라사이트 political debate¡± ¨C both during 바카라사이트 2019 election and in 바카라사이트 subsequent agreements through which 바카라사이트 NDP has been upholding 바카라사이트 Trudeau government.

To 바카라사이트 degree that student loan debt has been an issue in Canada, she said, 바카라사이트 focus has been on 바카라사이트 repayment threshold ¨C 바카라사이트 amount of annual income below which graduates can delay student loan repayments to 바카라사이트 government. Canada¡¯s current repayment threshold is C$25,000, and 바카라사이트 Trudeau government has talked of raising it to C$40,000 or C$50,000.

paul.basken@ws-2000.com