Time for restrictions on how students spend loan money?

Lower the age limit for TFSA accounts so students canstart saving for tuitions,later in life.Make students who take out "student loans" sign a surety bond with the gov't that they WILL WORK IN CANADA,TO PAY OFF THE LOAN.These loans are courtesy of the TAXPAYERS not a GIFT.
My daughter went to University & DID NOT TAKE A DIME,AS A LOAN from the family or anyone else.

This is a loan which has to be paid back. The government has no right to tell someone how to spend their money.

Furthermore, mascaren it is not relevant that your daughter did not take out a loan. Also, the money is not the taxpayers as it is paid back from the students future earnings.

The money is very much taxpayers money. Federally subsidized loans are interest-free while you are a full-time student. Interest begins to accumulate once you cease to be a full-time student (i.e. during the summer when you're off school, if you switch to part-time or when you graduate). While the payments do come from future earnings, that 4, 5 or 6-year interest free period is heavily subsidized.

I see no reason why it should not be limited. I can not go get a loan for a car and take a vacation.

For the idiots who say that student loans are taxpayers' money. It is not and it's never been. Students take loans that are paid back with interest. The moronic Canadians government has no say in this. University education is free in many developed countries in the world. We pay huge taxes in this country. Education should be free or the tuition lower. But, well, the greedy University employees have to get hefty salaries, don't they?

This article is riddiculous and exaggerated...please write something that make sense!

I blame her parents for not instructing her actually not even that having brains on her own should be a priority going too univeristy and still going wreckless on spending it tells you that people arent mature yet ... or they are but they are stupid still ...

there will be a onset of insecurity in a person that overspends and depression ... when they come out of school and cant find a job with having alll those bill she will be looking for a sugar daddy you wait and see..lol

PEOPLE HAVE NO IDEA THAT THESE TUITIONS FROM THE GOVERNMENT MAKE UNIVERSITYS COST MORE THE HEADS OF THE SCHOOLS MEET WITH GOVERNMENT RAISE TUITION TOO PAY MORE THERE TEACHERS PERIOD LIKE PETER SCHIFF SAID IF WE GOT AWAY WITH GOVERNMENT EVERYONE WOULD HAVE ENOUGH TOO GO TOO UNIVERSITY IF THE GOVERNMENT STOP SUBSIDIZING TUITION HIKES

I DONT HAVE SCHOOLING AND I MADE IT ON MY OWN OFF THE STREETS I PULLED MYSELF OUT FROM UNDER I AM DOING BETTER THEN A UNIVERSITY EDUCATED INDIVIDUAL I HAVE A CAR A PLACE I RENT AND I DONT WORK FOR THE PAST 4 YRS NOW ALL DUE TOO A FRIEND I MADE WHEN I WAS DOWN AND OUT HE GAVE ME TWO PAGES IN JOT FORM OF WHAT TOO DO...HE WAS A MAJOR BANKER IN FINANCIAL OFFICE DOWNTOWN TORONTO

GOOGLE MY SITE OR CLICK ONTO MY NAME FOR IT OR JUST TYPE... GRANDIZERCASH ..

YOU WILL BE THANKING ME GET THE TWO PAGES MAILED TOO YOU NOW YOU WILL HAVE YOUR EYE BROWS POPPING WHEN YOU GET IT AND YOU WILL SEE WHY I USED A KOREAN VARIETY STORE FOR A MAILING ADDRESS AND HOW I DID IT AND USE OF LIBRARY AND FAX COMPUTERS

In Canada, the federal and provincial student loans belong to the Crown. Therefore, they are not taxpayers money, they are the Queen's money. If you miss payments on your student loans, a crown collection agency will be after you.

Thats why most of the normal rules and regulations regarding loans do not apply to federal and provincial student loans in Canada.

It doesnt matter anyways. I knew so many rich kids that got full loans and full funding, and I knew so many poor kids that got squat all (even though it was meant for them in the first place). So the entire system is a big scam.

I took a 40,000 student line of credit from the only bank in Canada that recognizes my course of study (nursing) as a professional program. Do I wish I could use that money to buy a car, jewelry, clothes? Of couse I do. It all goes to school related purchases ie tuition and textbooks. My mortgage and bills get paid through my earnings from my part time job. I wish I could not work, but I'm trying to keep the amount of debt I will be in when I graduate to as low as possible.

This article does NOT provide complete information regarding student loans. Our government has grossly misled students-the reason I say this is I have experienced this. When I took out a student loan, which I used for tuition, books and living expenses-I do not live lavishly, party and vacation all the time, the loan was administered through a BANK. When so many students previous to me continued to declare BANKRUPTCY on their student loans, the banks would no longer deal with student loans because of all the financial losses(bank have to make money you know). When the new entity-the National Student Loans Service Centre was created, this drastically added to the burden of student loans because now the student would not only be responsible for the federal and provincial loan from the bank, but the federal and provincial loan from the NSLSC all at the same time. In addition to a student line of credit, ALL of those loan payments totalled over $700/month!!!!!!!!! Unless there's something I don't understand, that is an exorbitant amount of money to pay for a young person just starting out in life. There were no programs through the government for consolidation unless you went to the bank and got a consolidation loan which required a credit check(most students wouldn't have much of a credit rating), had a higher interest rate, plus the student would not be able to write off the interest paid on the student loan on their income tax return if they took a consolidation loan. Very crooked indeed............... Granted, yes, there are students out their who blow the the money on frivolous things, but others do not. This article does not provide the whole story to be able to form a proper opinion!!!!!!

Simple solution, eliminate tuition and student loans !
Win - Win.
Unless however you're a crooked bank, university or textbook writing prof.
Then you'll have to negotiate your prices with someone with life experience who isn't forced into your usury funded pyramid scheme.

This is the most absurd article of its time! Student loans are a hoax! Education should be free! Why are we paying out 20 thousand a year on tuition. Ontop of that when i was younger I had NO choice but to go on OSAP! It really hurts the disadvantaged. Now im Disabled and cannot pay back my Interest on my Loan. And now the collection calls start. When will they get it through their thick heads that when something happens to a person to whom which paid pretty much most of their loan back and now having to pay the interest it hurts the poor. I barely get by as it is being disabled. Maybe write something that actually has some kind of value to the people before pointing fingers!!!

I am a single mother who raised a child alone with no support. My daughter graduated from University in 2010 with a Phd in Child Psychology. I, as a single mother could not afford this dream for her without Student Loans...She put every penny towards her education and today while she has a good job, most of it is going towards paying this off. She graduated with a $150,000 debt. When I read about the abuse of student loans and the govt not having a proper monitoring system to see how this loan is utilized, it really, really angers me. I worked in a bank for many years and I saw this abuse first hand. Each student who is given this loan should be held accountable in some way and there should be a way designed for students to prove to the Govt that this money loaned to them is for what is meant for it to be . Unless this is done, I am afraid the abuse will continue and good students who are honestly using the money will continue to be penalized....
such a shame!!!

To be honest, student loans in Canada is FAR too easy to obtain. I have friends who lives at home and parents have multiple properties get RIDICULOUS amount for student loans. Because there is a clause that each year you only have to pay back $7000, any extra loan amount DOES NOT have to REPAID.

FREE MONEY ANYONE?!?!?

Student Loans can go the other way also. Growing up, I did not have very much. I applied for OSAP and didn't even get enough vto pay for my tuition and living expenses. It is saddening to know there are so many people who abuse this privilege while there are so many people longing for it, and subsequently can not afford to go to post secondary...especially in today's world where it is next to impossible to land a decent job without an education....unless you go work in the oil industry.

These young people need to smarten up, and perhaps their parents / guardians should teach them the true value of a dollar.

But, seeing how this is a loan I do not believe the government has a right to tell students how to spend the money. Should simply make all education free, and maybe the prof's making 80k + a year can make a more modest sum of 60k a year.

20k a year off each prof's salary across the board would make for a lot cheaper schooling. These professor's do not require these huge salaries, especially since at least 50% of them have retired from their professions.

@DP: Here here!

I say the government should just make all education completely free. It enough already, and its getting ridiculous. I'd love to go to school, but why does it have to be a choice between either not going to school and surviving vs. being poor and going to school.

Education as a business, and money making model needs to end. The sooner it ends the better it will be for everyone. Otherwise the bubble of student debt vs. educational investment will continue to grow until it bursts then everything will crumble.

First of all, student dept is high because tuition is high. One year from a standard University is approximately $9000 (TRU), and the max student loan in BC is approximately $13000. That doesn't leave a lot of room for another things. Yes, you could get a job and most do, but when rent is at an all time high ($800) all money earn goes towards rent and food. Sure there is miss spending, but is usually a result of students who have parents that will help them out. I don't know a single student that buys a nice car with their loan and lives out of it or is homeless because they spent all their money going to Mexico! Not all parents have the money anymore to help their child go to University. It is a terrible truth when I can enroll in a German University for $3000/year (The course is in English!) or I could stay in Canada and pay triple the price for my education. Education should be less expensive or better yet free.

The best solution for me is what i did. DONT GO TO UNIVERSITY IT IS THE BIGGEST SCAM IN NORTH AMERICA. Take a trade. 50% of student loans do not get paid back. if you have the earning potention of 40 grand a year with your dream job. BUt youll go 150 grand in debt to get there. DO SOMETHING ELSE DON"T BE STUPID. Personally i think the government should look at every student like a real loan and DENY them the student loan if they have no plan and are going to university to "find themself".

@Brandon - Trades are not always the best way to go either. I went in debt for 46k and came out of college with a job STARTING at 40k a year with a lot of pay increases. There is a lot more room for potential salary (for the most part) if you have a post secondary education.

With going to trade school you essentially have a glass ceiling above your head, you will make almost the same salary for the rest of your career (plus inflation pay). You are capped with your salary much quicker without post secondary. Where as when you go to college or university you have endless opportunities. Where as if you go to school to be a mechanic, a mechanic you will be.

Also, with trade school, say you go through to be a mechanic, it is much harder to get a job with a company who offers benefits, as well as a pension.

I am on student loans right now, I get about 7200 a semester as I am a person with a disability. Why do you want government in people's business? Does every young person have to be as boring as the rest of you old bastards? Don't be silly. There is plenty of time for that in the future.

@andrew - I believe it is about half and half. ANd I am not an old bastard, 25 actually, slick. I don't think anyone would say you shouldn't have fun!! I know I sure as hell did. Best 4 years of my life. Hopefully the next generations just understand not to spend their money stupidly all the time. Hell, when I got my OSAP I bought a Martin Acoustic guitar.

But, there are a lot of kids who go and blow ALL of the money on partying, become thanksgiving grads and then work at McSh*ts forever.

The government needs to STFO, but kids need to learn as well. Two way street!!

Most of you people commenting on this article, and including the author of this article seem to have this grand illusion that students are getting a free ride - This is not the case, however. In fact, I do not know of any student who profits from mismanagement of funds, running themselves short during the course of there academic study.

It is ridiculous to hear individual views and opinions over how a student spends their limited, loaned money and this is not about free money or not being accountable. But, no one has any right to dictates how a student should spend this money; it is individual choice. Be it as it may; a student might not show financial responsibility but you have to understand. A lot of students who are given this loan money, receive disbursements cheques on a monthly schedule which limits when, where and how loaned moneys are spent.

Sure, students could take a trade but this defeats the purpose of post-secondary education at the university level which teaches; rather, provides the benefit of the doubt for each individual students abilities to see things outside the box, ie; skills attained at post-secondary institutes, not provided by trade/technical schools but have a practica hands on approach that lacks compared to a credible Bachelor Degrees education, in whatever was the students interest.

Student loans are provided to those in need; and although, there seems to be a lot of here say regarding loop holes individual students can exploit to attian loans fradulently; this is not the case for all students; in fact, very small minority of student loan borrowers.

One thing is for sure and that is the significant levels of debt undertaken over the course of post-secondary studies. Perhaps it is worthy to note the fac,t that, of the total 100% of student loans granted by the federal and provincial governments. Only 25% has been paid back to date. This clearly displays the ineffiencies within the current Student Loan scheme. I am not saying students should receive free education but upon successful completion of studies; perhaps the governments should forgive a significant portion of student loan debt to encourage economic growth, accountability and new found respect and admiration for the country that provided such resources to a deserving student.

Also, for the students who are so priviledged in not having to resort to student loans to fund their individual education, this is great and be thankful your family could afford you this luxury. But, for the rest of, who are becoming self-made (persons) men, we have sacrificed greatly to attain our educations and we should not be dictated how loaned funds are spent. This sort of dictation would do nothing but increase needless government bureacracy and certainly prevent any sought efficiencies within the governing institutions.

Let it be, to each their own. We all have to live and learn and we all learn through trial and error. Some of us are not priviledged enough to have family structure and recourses to receive, truly free education; but it does seem there is too much emphasis on the few students who lack financial restraint due to whatever has prevented this student from making better individual financial choices.

Students are poor as is, we do not go to school to get rich, in the hopes and expectations to find ourselves, flounder around or become fledglings within a very priviledged environment of Academia with no recoursefor our actions - this is simply not the case. Education is a priviledge and it is up to each individual to make their own choices; not anyone elses., including financial. I do not tell you to NOT drink, smoke, use drugs or gamble. I have no right to dictate how you spend your finances, whatsoever.

What is lacking here is toleration from the ones who have no idea, whatsoever, how the governing institutions run. Perhaps it is in your best interest to NOT speak, especially if you have no credible knowledge of the set institutions, programs and insight into the institutions you openly and freely critisize as if you know better.

@Mike.ab.ca - So true!!! Lengthy, but true!

Have to disagree with you Mike. Personally when I filled out the student loan form 13 years agi now I had an issue, there wasn't enough digits for my parents income.....

Needless to say I didn't qualify. My parents found this humerous and said well you better get out and earn. We didn't live anywhere near a school so I would be paying for living and school.

Guess what, I graduated 4 years later debt free. Between scholarships and hard work I could pay for school. "Work" started the day after my last exam and consisted of hard labour like most of you have never imagined (40 hours I wish, try averaging 70+ and peaking over 100 some weeks). It lasted until lunch the day before classes when I would actually leave. Throw in a part-time job during the year and I was financially set. Accommodation for my first 2 yeasr was a shared room in residence, after that I got my "own" 10 by 15 room in residence (apartment?, lol not even close).

The only thing that annoyed me was the kids on student loans lived a better lifestyle than I did. They had better living accomodations, had nice cell phones and generally had fun living it up (not an idle observation but one I cam to over 4 years of steady exposure). The 3-4 I talked to assured me that I was to be pitied as they were quite certain portions of their loans would be forgiven while I would never have that luxury.

The lessons I learned have greatly contributed to the finanical success I am now enjoying however to this day I consider student loans to be fairly soft on people.

Basically most people are soft and irresponsible. Student loans simply allows this to be perpetuated.

Western Guy, "you're my hero"
You are almost as smart as the typical 17 year old who 'knows everything'.
Golly, it's impressive that your parents income exceeded $1,000,000.00 per year
How do you find time to frequent these boards given your impressive work ethic?
Is it to get away from all the beautiful women that must be chasing you for time with your ego?
.
Education helps to achieve a better lifestyle. When others start to dictate how money should be used we might as well start dictating how much pensioners or employees spend on alcohol, or gasoline or heating for their home.... (we know what's best after all).

If you're spending your loan money on bar tabs at the campus pub, you either don't understand how to differentiate between needs and wants, or you just don't want to make those tough decisions. Either way, using your future to pay for the fleeting pleasures of today is poor money management. Forgo the shiny new Ikea furniture and lounge on thrift store castaways. Buy groceries, not takeout; budget for books, not booze. Using loan money to pay for an education that will be with you forever is good debt. Using loan money to buy the latest laptop or MP3 player that will be obsolete a decade before you're done paying for it is very bad debt.

Its a heated subject because everyone cares and wants the system that is broken to be fixed.

Its easy. Make all education in Canada completely free. From residence, to books, to tuition. All free.

It is eventually going to happen because the steady increase in prices of everything, and the stagnant wages of the citizens will make it so no one will be able to go to school, thus creating a education crash.

Lets just beat the rush and mess of this scenario by simply making education completely free. Its enough already. Its time to free the people to pick and choose their true paths in life without having money and debt be a burden and something holding them back.

I know many of you are complaining about the students that take out loans to pay for college and use it for partying and whatnot, but what about the students that don't have any help from parents? I moved out as soon as I graduated and started working and going to school full-time but was considered a "dependent" student, so when filling out my FAFSA, everything was based off of my parents. I thought of not even going to college, but I decided I wasn't going to work a minimum-wage-JOB for the rest of my life. I took out student loans to help pay for school. I'm just saying not everyone has parents that are going to pay for their college. If someone like me goes to school full-time and works full-time, how are they to still pay for school when they do not make very much? I'm not asking for a pity-party, but let's try and open our eyes before assuming EVERY college student takes out loans to go party. Some of us work harder than most and still have to take out loans as colleges continue to raise tuition.