Student Loans, Student Financial Aid and Post-secondary Education in Canada

This paper begins by briefly describing Canada's student loan system, including the typical costs of a year of post-secondary schooling and the levels of financial support available. It then reports the results of an empirical analysis that shows that borrowing remains at reasonable levels and repayment difficulties are still relatively uncommon. Various reforms are then suggested, including higher borrowing limits, wider eligibility, and more assistance for those facing difficulty in repayment. A proposal for revitalizing the cash-strapped Canadian post-secondary education system with shared contributions from governments and students, the latter facilitated by the proposed changes to the loan system, is then offered. The paper should be of interest to those concerned with these issues not only in Canada, but also in other countries that face similar questions regarding access to post-secondary education and the financing of the post-secondary system.