Open AccessThe Canada Student Loans Program: Time for Revision
Author(s) -
Joseph Schaafsma
Publication year - 1990
Publication title -
canadian journal of higher education
Language(s) - English
Resource type - Journals
eISSN - 2293-6602
pISSN - 0316-1218
DOI - 10.47678/cjhe.v20i1.183664
Subject(s) - subsidy , equity (law) , government (linguistics) , economics , work (physics) , program design language , inflation (cosmology) , public economics , finance , actuarial science , political science , computer science , law , engineering , market economy , mechanical engineering , linguistics , philosophy , physics , software engineering , theoretical physics
This paper consists of a critical appraisal of a number of aspects of the Canada Student Loans (CSL) program. In the first part of the paper it is argued that the current CSL program lacks horizontal and vertical equity and creates a work-disincentive. Furthermore, it is shown that the program rules are badly in need of up-dating to take into account the effects of inflation and tax rate increases since 1982. In the second part of the paper it is argued that the government is controlling the cost of the CSL interest subsidy inefficiently. An alternative design fro the CSL program is proposed and it is argued that this new design benefits both students and parents at little or no additional cost to the government.