Government of Canada expects student loan debt to surpass $15 billion this month

The total value of student loans owed to the federal government will surpass $15 billion this September, according to a regulatory change filed by Diane Finley, the Minister of Human Resources and Skills Development (HRSDC).

"Student debt has reached epidemic proportions", said David Molenhuis, National Chairperson of the Canadian Federation of Students. "Instead of investing funds to make education more affordable and reduce the record levels of student debt, the government is attempting to quietly sweep it under the rug".

On August 20, the Governor General approved a request by the Minister of HRSDC to change the method of calculating the amount of outstanding student loans. To justify the issue the Minister wrote, "As currently calculated, the legislated ceiling of $15 billion in outstanding student loans, as specified in section 13 of the Canada Student Financial Assistance Act, is expected to be reached in September 2010".

"Record high tuition fees have left today's students graduating deeper into debt than any previous generation", added Molenhuis. "Addressing Canada's student debt crisis requires a national strategy to reduce tuition fees, not an administrative change to hide the level of student debt".

The Canadian Federation of Students is Canada's largest student organisation, uniting more that one-half million students in all ten provinces. The Canadian Federation of Students and its predecessor organisations have represented students in Canada since 1927.