Question

Student debt has significantly increased over the last few years and it has become a major national debate in countries like the US, Canada and UK. I

1- Give a brief overview of the student debt in Canada.

2- What is the impact of student loans on: students (before college, during college and after college); the economy ; the society at large

3- What are some policies that Canada and other nations have implemented to mitigate student debt? What policies have been effective and why?

Answer 1

Students debt has largely been attributed to rising tuition fees, higher government spending on subsidies which has led this. Moreover, unemployment rates have risen causing delinquency and inability to relay the loans.

Impact of student loans largely are stress and fatigue, depression and excessive suicides. Moreover, it has affected the society's perception of debt and its negative implications. The economic impact is wirst of all as it leads to rising non performance assets for banks and bankruptcy which leads to cascading effects on economy like recession and deflation.

Canada and other nations have adopted flexibility in pay schedules, government grants, educating students on investment to repay laons, offering tax benefits on high income jobs, additional scholarships based on competitiveness, etc. Out of all education on investment is most effective as it helps students save money, and invest early to reap benefits of compounding and thus easily repay loans and clear off debts.

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