Some of my friends tell me that I’m lucky to have been in two car accidents. The money I received from my settlements helped pay for most of my schooling. They would prefer the physical hardships instead of their financial ones. That’s how bad things are for students. And it’s even worse for grads, like me, whose only source of income is working at a corporate coffee shop, with other graduates and students, hustling for minimum wage to pay off student loans.
After completing years of post-secondary education, the concept of which was sold to us under the pretense of a guaranteed job, all we get is a shoulder shrug, a pat on the back and a “times are hard”. Damn right they are. And now the Province is working to unleash ICBC on us like the repo man by threatening to take away the licenses of those who have outstanding student debt.
Bill 13, Finance Statutes Amendment Act, includes amendments to the Financial Administration Act that would expand the ability of ICBC to refuse:
- to issue a driver’s licence,
- vehicle licence,
- number plates to a person who has defaulted on debts owed to the government
The Times Colonist quotes the Finance Minister Michael de Jong defending this new legislation, “For folks that graduate, get a job and are working, and decide that they just don’t want to take their obligation to repay their student loan seriously, this would be a mechanism to remind them that they need to honor that obligation.”
In all fairness, according to Global News, there is $185 million in student loans that have not been paid. The finance minister says the new rules will help collect an extra $3 million each year. And they will give you a 30 day head-start before they release The Kraken. The official press release says, “For most debt, the direction not to issue licenses would be given once the account has been out of good standing for a year or more. Unpaid court fines would need to be overdue by 120 days or more before a refuse-to-issue direction is considered.”
It’s understandable that the government needs this $185 million financial hole repaired. But this legislation assumes immoral intent from all who can’t afford their payments. And yes, there are a few bad eggs out there who neglect their payments even though they earn a high income as a result of their education. But for a moment stop and consider where we live.
According to Ministry of Advanced Education, students with loans in B.C. pay a prime rate plus 2.5 per cent interest, the highest in the country. Statistics Canada says that in 2012, 478,737 students received a certificate, diploma or degree from a postsecondary institution. Stats Can research also shows that 41 to 50 per cent of graduates in 2009/2010, depending on the level of the degree, relied on government or non-government student loans to help finance their education. Most had a loan of, at least, $14,900. Those students with a Bachelors or a Masters owed just over $26,000 in loans and doctorate grads, $41,100.
By 2013, only one third of those students had managed to pay off their loans. “This proportion was lowest among bachelor graduates (34%), similar for college and doctorate graduates (36%) and highest for master’s graduates (44%).” This basically means that those with a bachelors, are the least likely to able to pay off their loan. This, most likely, is a result of being stuck in the limbo of being over-qualified to work in the basics yet under-educated to go into the big leagues.
According to an article published by The Globe And Mail, “Youth unemployment continues to hover stubbornly around 13 per cent, only 2 per cent lower than its peak during the recession and double the national average. And the unemployment rate doesn’t tell the whole story. According to a recent report published by the Canadian Labour Congress (CLC), the rate of those underemployed − people stuck in part-time or low income jobs, unable to secure full-time work related to their field − is double the unemployment rate.”
As for the rest of them, I can assure you, based on the numbers, these are not negligent people running away from their responsibilities. We live in the most expensive province and pay the most income tax on our student loans. We don’t have the financial flexibility to work for free just simply to gain experience or get our foot in the door, so we are forced to settle for something that will at least keep our stomachs full and our lights on. And now, to add on to the pressures of adult life, ICBC will be hunting us down to get the government their pound of flesh.
Written by: Sarine Gulerian
Photo Credit: Atlas Green
