Forgiving Student Loans

February 28, 2023March 15, 2023 ~ Loreeebee ~ Leave a comment

Are you in favour of forgiving student loans? Joe Biden is trying to do just that in the USA. That means Justin Trudeau won’t be far behind if Biden gets his way, especially with federal elections looming (2024 for the US, 2025 in Canada). Is this move a bid to win votes?

The Advantages of Forgiving Student Loans

The advantages are somewhat obvious, especially to those eligible for the program. Paying off (or at least reducing) the massive debt owed by students will certainly boost their economic status.

The Disadvantages

A Divisive Move?

Some feel this move will be divisive, just what any country does not need right now. The students (or former students) whose decisions on what degree to aim for and where to go were based solely on their economic status.

I am one of those. I would have loved to go to university to pursue a career in accounting or teaching. I could not afford it, nor could my parents afford to help out. As the fifth of six children in our family, I was only eligible for a small student loan and no grant. Instead of following my dreams at an out-of-town university (there was not one in the small town I grew up in) I lived at home and went to our community college. I still barely managed to afford this choice, with a student loan to pay off as a graduation gift.

Did these facts make me work harder to achieve my diploma in medical laboratory technology? They sure did. Does that mean I don’t see the need to help some students deserving of forgiving student loans? No, but I would like to see lots of conditions so two steps forwards don’t result in four steps backward for the economy, inflation rate, healthcare, and so on.

Will the Rate of Inflation Rise More?

The Federal Reserve Bank of Richmond (in the US) believes it will:

There could also be some stimulating impact, as the debt cancellation could free up borrowers’ cash flow, and the additional spending may create more tax revenue.

However, at the same time, this is also likely to be inflationary.

A key concern about the debt forgiveness program is its inflationary impact in an environment where inflation has been persistently elevated for over a year.

Shifting the Burden to Taxpayers

The Conservative argument is that forgiving student loans would simply (and unfairly) shift the debt from the students to their federal government. And we all know taxpayers pay for government debt. Unfortunately, when money gets funneled into one program, other programs suffer. So, students like myself that struggled to pay for their own education will now pay taxes so others do not have to pay for theirs.

Biden’s Proposal for American Students

Biden’s proposal says borrowers with an annual income of up to $125,000 or households with a combined income of up to $250,000 are eligible to apply for $10,000 to reduce their current student debt. However, those currently with an outstanding debt of less than $10,000 will only get reimbursed for whatever their balance is. According to the Congressional Budget Office, up to 43 million applicants will qualify for at least partially forgiving student loans.

The Canadian Version

In Canada, the National Student Loans Service Center (NSLSC) implemented its own version for forgiving student loans. Sort of. They, from April 2021 to March 31, 2023, eliminated the interest accrued on student loans. However, any interest accumulated before that date is still owed. This interest elimination was recently extended permanently after April of 2023.

In November of 2022, some Canadian provinces lowered maximum payments to 10% of household income from 20% and changed their zero payment income thresholds. To apply for their Repayment Assistance Plan (RAP), log into your NSLSC account. So far, only students from New Brunswick, Newfoundland and Labrador, Manitoba, and Saskatchewan are eligible. Hopefully, other provinces will follow suit.

Conclusions

I believe, and I realize this may sound selfish, that the majority of our taxes should be for improving the core services our citizens rely on. Stuff like roads and infrastructure, garbage collection, snow removal, and especially our flailing healthcare system.

Since graduation years ago, we (hubby and I) paid lots of tax dollars to raise three now self-sufficient children in a comfortable lifestyle. We chose to have three children because we believed that if we worked hard we could afford to feed, clothe, protect, entertain, and yes, educate them.

Of course, like most other citizens, we continue to pay taxes too.

Now seniors, we have reached the age where affordable, efficient, and available healthcare is more of a priority to us than forgiving student loans.

photo credit

Support Workers Strike in Ontario

November 7, 2022November 10, 2022 ~ Loreeebee ~ 3 Comments

At the risk of offending all the teachers and educational support workers I know, I am wondering why they think they are so special. Although the current strike on the front page of the news here in Ontario is organized by support workers and not the teachers they assist, teachers are directly affected. Ontario schools were forced to close their doors for two days when CUPE (Canadian Union of Public Employees) workers walked off the job last Friday in response to the province’s decision to remove their right to challenge their contract or to strike.

What About Other Unions?

Everyone wants more money, especially with the cost of living rising and the economy tanking. The problem is just that, teachers and support staff are not unique. Other unions, such as those that healthcare, carpentry, and construction workers belong to, have been limited to minor increases in their recent requests for more money. Each of these unions represents essential workers. If you weren’t aware of their importance to society prior to the pandemic, hopefully you learned something since then. None of them could work from home. In fact, many worked extra hours and shifts to compensate for the extra stress in their respective workplaces.

CUPE was asking for 11.7%!! Tell that to the other unions. The government (last) offered 6%, unheard of these days.

It’s All About the Kids, Isn’t it?

Throughout the pandemic, most teachers and parents agreed that their children’s mental health was of utmost importance. Why, now that things have (somewhat) returned to normal and kids are back to in-person school, do these professionals think the time is right to strike? Do they think the students (especially the younger ones) know why their mental health is not being considered?

Teachers’ propensity to strike every few years can not help but affect their support workers. Perhaps both groups (teachers and support workers) should be included in the list of “essential services” and not permitted (or fined if they do) to strike.

Do Canadian Teachers Make More Money than Other Countries?

In Canada, education is governed by provincial politicians. That is why there is a variation between provinces in curriculum and salaries. For example, within provinces considered to be more affluent, salaries will be greater.

Canadian teachers in general are listed as number 4 in the world for their salaries. Compared to their American counterparts though, Canadian teachers and support workers pay more taxes, and most experience a more expensive cost of living.

Are Support Workers Underpaid?

Just because teachers in Ontario are paid well doesn’t mean their support workers are. Although often behind the scenes, they provide important services. In fact, without them schools often (as is the case here) find it necessary to shut down.

The Latest on Support Workers’ Strike

The latest news has Doug Ford, Ontario’s premier, promising to rescind the legislation, known as Bill 28, and the “notwithstanding clause” if the workers return to the job. What does that mean? Back to the negotiating table to find a compromise.

For the kids’ sake, let’s hope they do!

Acronyms: How Well do you Know Them?

January 8, 2022January 14, 2022 ~ Loreeebee ~ 5 Comments

How well versed are you on the acronyms that are so popular today in conversations via text, private message, or social media? If you have teenagers in your house, you are probably very knowledgeable about these.

If not, here is a quick lesson, LOL. That stands for Laugh out Loud by the way. Not Lots of Love as some (of us older) people think.

OMG is pretty obvious. I just put it on the list to ensure everyone knows at least one.
WTF too, although I did see a joke on Facebook that implied many people my age do not know what it stands for. In case you are one of them, it’s What The F**k.
BRB stands for Be Right Back, just in case you get interrupted in the middle of a text or PM (private message). That’s like asking “Can you hold on a minute?” in the old days when you were talking on the (landline) phone and the doorbell rang, or your oven timer went off or…NVM (never mind) you get the picture.
MYOB means Mind Your Own Business. Some people use an F before the B; you can probably guess what that stands for. I guess that is added when you are really annoyed at someone.
LMFAO means Laughing My F***ing Ass Off. (a fancier version of LOL) Again, you can add the F or remove it as you please, or as your vocabulary dictates. There is also ROFLMAO which is Rolling On the Floor Laughing My Ass Off.
AFAIKB3 means As Far As I Know Blah Blah Blah. In other words, I don’t care. Which also gets abbreviated to IDC, which should never be confused with IDK, which BTW (by the way) means I Don’t Know.
GTG means Got to Go and TTYL means Talk to You Later. I guess these depend on whether you have time to type 3 letters or 4.
IMO stands for In My Opinion and TBH is To be Honest.
TNTL means you’re Trying Not to Laugh and CSL means Cannot Stop Laughing.
SMH is Shaking my Head while YNK is You Never Know.
Nosy or suspicious parent ones include PAW (Parent Watching), PITR (Parent in the Room), POMS (Parent Over my Shoulder), or PAH (Parent at Home).
You might see HIFW (How I Feel When) on FB (Facebook) jokes/memes/ as well as other acronyms associated with feelings like MRW (My Reaction When), IFYP (I Feel Your Pain), MFW (My Face When).
and if someone slides into your DMs it only means they “direct messaged” you. Phew!

Tell the truth, how many of these acronyms did you know already? I admit I learned a few more today and tested my eyes at the same time. LOL.