Forgiving Student Loans

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. 

forgiving student loans

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

Pierre Poilievre for Prime Minister

Pierre Poilievre

Since Pierre Poilievre won the Conservative leadership race last year, he is proving he would make a great Prime Minister here in Canada. Actually, long before he won the leadership race. For five years prior, Poilievre served within the Conservative government (opposition) as the shadow minister for finance. In this role, he quickly became known for his bulldog-like perseverance in attempting to get answers. I loved (still do) listening to him grill, talk, argue, and explain things to voters, especially regarding wrong-doings featuring the Liberal government and our current Prime Minister Justin Trudeau.

No Longer an Affluent Country

Unless you are a high-paid member of the Liberal party, whose spending habits defy reason and transparency, it could be argued that Canada is no longer an affluent country. Perhaps compared to other countries around the world we appear to be but things have changed. Yes, we have our share of millionaires and a few billionaires in our midst, but the average family or citizen is penny-pinching, even struggling to make ends meet. High interest, mortgage, inflation rates, and taxes mean our earned dollars don’t go as far as they used to. Pension plans are not adjusted for inflation and investments have tanked, so many seniors who thought they could retire comfortably are now scratching their heads. More money is going out than is coming in; a basic accounting issue that continues to plague us. Couples are choosing to have fewer if any, children because of the astronomical cost of living.

These are just a few of the headlines:

  • In Q3 of last year, the Bank of Canada lost money for the first time in its history. Those losses are set to continue.
  • According to a new report, the Bank of Canada is set to lose up to $8.8 billion over the next 2-3 years.
  • Trudeau Campaigning Against Alberta Demonstrates His Unfitness For National Leadership
  • ‘World Stage Trudeau’ Bears No Resemblance To The Trudeau Who Governs Canada
  • More Canadians Leaving Big Cities As Affordability Crisis Continues
  • Bank of Canada has to pay interest too on bonds held resulting in shortfall
  • Growing spending on consultants by ballooning public service is the real scandal

Many are putting their hopes in Pierre Poilievre to change this.

The following recent video shows Poilievre talking about the dire straits many Canadians are facing. He then gets into grilling Trudeau for numerous inappropriate contracts awarded to global consulting firm McKinsey over the years:

Support from Stephen Harper

Stephen Harper, former Canadian Prime Minister and leader of the Conservative party supports Poilievre too and would like to see Trudeau ousted from his position.

I have watched with great concern as the Trudeau Liberals – in partnership with their NDP allies –  have weakened our country through rampant inflation, slow growth, billions in new debt, lost job opportunities, an out-of-control housing market, and refusing to fix the institutions that have been failing Canadian families

I’ve seen Pierre in action. He served as my Parliamentary Secretary and was a strong Minister in my government. In recent years, he has been our Party’s most vocal and effective critic of the Trudeau Liberals.

Pierre is winning the support of Canadians because he’s talking about the issues – especially the economic issues – that matter to Canadian families. He is proposing sound, Conservative ideas, but ones adapted for the challenges of today. And, critically, he’s bringing a new generation of Canadians into our Party.

THAT is how we win the next election.

But, in the days and weeks to come, we can expect Pierre to face a barrage of attacks and criticisms from the Trudeau Liberals, the NDP, hostile voices in the news media, and left-wing special interests determined to derail his positive message of hope and freedom

Stephen Harper, former PM

Rex Murphy on the Conservatives of the Past

In the National Post, columnist Rex Murphy wonders whether Harper is doing Pierre Poilievre a favour by endorsing him or alienating and scaring off on-the-fence voters. This is due to Harper’s unpopularity when he was voted out. I for one like(d), respect(ed), and most importantly, trust(ed) the average-looking, non-flashy, down-to-earth, intelligent, qualified-for-the-job Stephen Harper and the fact that (in the words of Murphy) “he thinks, thinks well and deeply before he acts.” What a concept!

Unfortunately, things have changed drastically since Harper and the Conservatives were voted out:

Protests took place that didn’t bring down the Emergencies Act. When trying to stamp out bigotry, it was the custom not to fund bigots in the fight against it. The administration and distribution of public money in amounts close to a billion dollars to charity-entrepreneurs was not known, and finally, perhaps most extraordinary, Alberta’s oil industry was regarded as a national benefit.
Rex Murphy

Immigration Policies

Harper though had several policies that sunk him, especially his hard stance on immigration, a point Liberals were quick to capitalize on. Liberals plan to increase the arrival of immigrants to 500,000 per year by 2025. Does anyone else feel this is super-excessive, especially in such turbulent times? Poilievre recognizes Harper’s prior unpopularity in immigrant-rich communities like Toronto, so has adopted a promise:

We will maintain the same engagements and commitment for continuous discussions around immigration [including] immigration that is based on family reunification, the recognition of foreign certificates, the scrapping of the English test, as well as the removal of bottlenecks to improving the immigration process,” 

current Conservative agenda

The problem is, as I see it anyway, that increased immigration and an economic crisis don’t meld well together. Higher cost of living, inflation rate, and housing costs are a nightmare for current citizens, how will immigrants fare? Canadian cities are already packed to the hilt. Although we do have lots of jobs available that immigrants might be more willing to fill than unemployed Canadians.

World Economic Forum (WEF) in Davos, Switzerland

The WEF is happening right now. Don’t know about the WEF? Check out this information for specifics. Members of the Canadian Liberals love to attend, Conservatives not so much. That’s because of the controversy WEF is tainted with:

It began when an opinion article published in 2016 on the WEF’s website — entitled “Welcome to 2030. I own nothing, have no privacy, and life has never been better” and intended, its author says, as “a discussion about some of the pros and cons of the current technological development” — started getting attention in 2020, after WEF founder and chairman Klaus Schwab wrote his own opinion piece arguing for something he called “the great reset.”…..The “great reset” has since morphed into a conspiracy theory claiming that a cabal of global elites is planning to remake society to eliminate private property and impose an authoritarian global government…..Last week, Conservative leadership candidate Pierre Poilievre told a crowd of applauding supporters that, as prime minister, he would ban cabinet ministers from attending “that big fancy conference of billionaires with the World Economic Forum” and vowed to remove them from cabinet should they attend.

CBC

Notable Canadians attending WEF in 2023 include Finance Minister Chrystia Freeland, International Trade Minister Mary Ng, and former Bank of Canada and Bank of England Governor Mark Carney.

Tipping the Scale

The problem with politics and politicians is that no one party or member can possibly tick all the boxes for voters, although Poilievre comes close. The current dismal economic state of our country, as well as repeated scandals from Liberals, with Justin Trudeau leading the way, are weighing him down.

My scales are tipped, and heavy is not good.

Nour Kadri for Ottawa’s Mayor

The more I read about him, the more I’m liking Nour Kadri for Ottawa’s Mayor as an alternative to front runners Catherine McKenney or Mark Sutcliffe.

Voter’s Prioroties

CTV has polled voters to determine their priorities in this election. Public transit efficiency, local economy, possible tax hikes, and affordable housing for all residents top the list.

Dog parks, tourism, and millions of dollars for new bike lanes are (understandably) lower.

Catherine McKenney

From what I’ve heard so far in this mayoral race, McKenney seems financially irresponsible, non credible, almost delusional. Accounting basics and common sense dictate you should take the budget into consideration when spending.

For example, does promising free bus fare to anyone make sense when our public transit system is already millions in debt? It sure won’t increase efficiency!

Mark Sutcliffe

While I prefer Sutcliffe’s “look for inefficiencies” approach to McKenney’s “spend, spend, spend” one, he appears too complacent to me. Perhaps that’s just his personality, but he gives the impression his heart is not in the mayoral race.

I do like the fact that Sutcliffe is new to politics, so offers a credible alternative to “more of the same” rhetoric and irresponsible/frivolous spending.

Nour Kadri The Alternative Candidate?

If you haven’t yet heard of him, take a moment to learn. Nour Kadri ticks all the boxes for Ottawa’s mayor in my opinion:

  • Intelligent
  • Well and diversely educated
  • Years of relatable (but not political) experience
  • Great speaker, well versed
  • Financially literate, with budget expertise
Nour Kadri

Unfortunately, Kadri was not invited to debate the front runners. He would have blown them out of the water. This tweet confirms that!

Conclusions

These are just my opinions of course. Do your own research before you exercise your right to vote. You’ve only got 11 more days to decide until the 24th of October election date!