student debt bankruptcy Archives - Ira SmithTrustee & Receiver Inc.

Student debt bankruptcy inquiries on the rise

Student debt bankruptcy is a very serious issue in our country. We’ve looked at the problem from different angles in a series of blogs and like you, are left with more questions than answers.

Cases on the rise

Unfortunately, regardless of which government is in power, there’s been no solution or improvement regarding this kind of debt and student debt bankruptcy. In fact, university and college debt have now taken on epic proportions. According to the Canadian Federation of Students (the largest organization for post-secondary students in Canada), last year the number of student debt bankruptcy files of those who received student loans hit a 10-year high as more than 6,000 students declared bankruptcy in 2015, more than double the number in 2014.

We don’t have a level playing field nationally

The costs of post-secondary education have become prohibitive. Firstly, we don’t have a level playing field. The cost of tuition varies greatly from province to province, from city to city and from college to university (where the same program is offered). According to a study by the Canadian Centre for Policy Alternatives the cost of tuition alone (not including books, living expenses, transportation, entertainment, etc.) is:

$8,756 in Ontario
$6,969 in Nova Scotia
$2,655 in our easternmost province
$2,350 for the police foundations program at Georgian College
$4,466 for the police foundations program at Laurentian University in the same buildings with the same teachers as Georgian College

Some Provinces are coming up with a new secret tactic

Newfoundland and Labrador have replaced student loans with needs-based grants, essentially wiping out tuition costs. Prince Edward Island and Nova Scotia don’t charge interest on these loans but there are still too many people who are being crushed by a mountain of student debt. Recently, the Ontario Liberal government announced in its recent budget that it is combining existing programs to create an Ontario Student Grant, which would pay for average college or university tuition for students from families with incomes of $50,000 or less.

The Canadian Federation of Students has called on the federal government to make tuition at university and college free for all students but that’s not going to happen.

So the new secret tactic is free university tuition? It may be a nice idea but who’s going to pay for it?

What to do if you have too much debt

Unfortunately, we can’t solve the student debt issue where during studies, or after graduation, (former) students have debt they cannot afford to repay. However, we are experts in dealing with debt.

If you’re a student loan recipient who’s thinking of declaring bankruptcy or you’re being strangled by general financial obligations that you can’t meet, contact Ira Smith Trustee & Receiver Inc. Given immediate action and the right financial plan, we can have you on your way to a debt free life Starting Over, Starting Now. Watch for our blog next Tuesday when we’ll be discussing Student Loan Debt: Will Bankruptcy Eliminate It If You Are Not The Student?