Ottawa plans to raise student debt ceiling to $19 billion

February 14, 2012

The federal government has announced plans to increase the legal limit for outstanding Canada student loans from $15 billion to $19 billion. The move follows an actuarial report on the loans program released in 2010 that predicted the limit would be reached by January 2013. Ottawa says the regulatory amendment is necessary to respond to projected increases in PSE enrolment rates, as well as to ensure students continue to have access to federal loans for another 10 years. Canadian Association of University Teachers executive director James Turk says "the government should look for ways to improve the level of non-repayable assistance available to students." CAUT recommends "that the levels of grants for students be increased sufficiently, so that the $15 billion loan cap need not be raised." CAUT Bulletin