In the province of Saskatchewan, a single student currently attaining a four year undergraduate degree will incur an estimated combined federal and provincial student loan debt load of $52,000. This figure includes both principle and accrued interest calculated at 12% for the maximum repayment period of 114 months or 9.5 years. The minimum combined student loan monthly payment is $767. Individuals who are involved in a common-law or marital relationship in which both persons have student loans to repay face double student loan payments; that is, $1534 per month for 9.5 years. Further, single parent students, who are most likely to be women, will incur higher student loan debts as these students must borrow monies to pay for the living expenses of their dependents as well as for themselves. A Saskatchewan single parent student currently attaining an undergraduate degree will incur an estimated combined federal and provincial student loan debt load of $63,500 which must be repaid within 9.5 years. The minimum combined student loan monthly payment is $936.

The familial income must first provide for the family's most basic needs - food, shelter, clothing, and childcare-before the repayment of the student loan can even be attempted. Though student loan debt loads have increased to the amount of a house mortgage, the repayment regulations for both the federal and provincial student loan programs have not changed, including the maximum repayment period of 114 months. The result has been a substantial increase in the number of personal bankruptcies that include student loan debts. Individual student loan debtors are literally being forced to file for personal bankruptcy, specifically because of the repayment policies and regulations of both the federal and provincial student loans programs. The student loan debtor has to pay the total principle and accrued interest on combined student loans in less than ten years.

Ironically, the federal government cabinet is currently considering a proposal to amend the federal Bankruptcy Insolvency Act. A time limit of five to ten years would be implemented on student loan debts prior to filing for bankruptcy and student loan debts would not be dischargeable other than for hardship cases as determined by the courts. Such an amendment could be challenged and deemed prejudicial in that no other public nor private creditor has such a legal safeguard on its capital loaned. Even more importantly, the student loan debtor would be seriously at risk. For the five to ten years prior to filing for bankruptcy there would be absolutely no security against creditors' actions, such as the garnishee of wages.

Moreover, Honorable Lloyd Axworthy, Minister of Human Resources Development, has proposed eliminating federal cash transfer payments to the provinces. The payment of monies equating $2.6 billion per year are federal grants issued to the provinces to operate post-secondary education institutions. To recover this gross loss of revenues, these institutions will charge exorbitant tuition fees. The Minister has therefore proposed the introduction of an income contingent loan and payment scheme so students can pay the exorbitant fees through repayable student loans. The federal government is decreasing its financial expenditures of post-secondary education through the elimination of the federal cash transfer and at the same time dramatically increasing the costs of post-secondary education to students. The implementation of repayable income contingent loan means that students will bear the loss of revenue previously provided by federal grants.

Antonia Lancaster

Students who do not have the independent financial means to finance their post-secondary education, many of whom are women, will be forced to incur an estimated $48,000 income contingent loan principle over and above the current massive student loan debt loads. The difference is that the repayment of the income contingent loans will be based on the individual's annual income with a maximum repayment period of 30 years.