BC families are making extraordinary sacrifices to prepare themselves for an evolving workplace. Past government decisions at both the provincial and federal levels forced an entire generation of students to take on crippling education-related debt during a time when median earnings for the majority of families have been stagnant for the past twenty years.

From the government’s perspective, student loans are a means to increase access to post-secondary education for individuals from low and middle-income backgrounds. However, the current repayment system of provincial and federal loans punishes those with the least amount of financial resources. Students and families from low- and middle-income backgrounds have to borrow the most in order to pursue post-secondary studies. Graduating with higher debt loads, these students pay more in interest payments throughout the life of their loans. As a result of this grossly inequitable system, students in financial need who need to borrow pay substantially more than those who can afford the upfront costs.

Instead of allowing our post-secondary education system to act as a social equaliser, this punitive system of compound interest rates and the prospect of a mortgage-size debt are keeping many qualified British Columbians from entering college or university.

In addition, interest rates ultimately penalise already marginalised groups. It is well documented that women, most visible minorities and Aboriginal people earn less on average than white men, a reality that persists at all education levels. Thus, amongst student loan borrowers, those who experience inequity in the labour force will take longer to pay off their student loan and incur greater interest. In fact, on a $27,000 student loan, interest payments at current rates will tack on an additional $7,300 dollars in interest.