Student debt drives rising need for credit counselling in N.L.

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Last Updated: Friday, December 29, 2006 | 11:04 AM NT

CBC News

The need for credit counselling is rising in Newfoundland and Labrador, with much of the increase stemming from student debt, says an organization that provides the service.

'In the past, you wouldn't see a 25-year-old with $40,000 worth of debt.'— Rick Fifield

The non-profit Credit Counselling Service of Newfoundland and Labrador opened an office in Grand Falls-Windsor in the fall and plans to open another on the Burin Peninsula. The organization already has offices in St. John's and Corner Brook.

CCS spokesman Rick Fifield said his organization is not only seeing more people in need of its services — its clientele is increasingly young.

"In the past, you wouldn't see a 25-year-old with $40,000 worth of debt, but it's not a bit unusual now," Fifield said.

"The vast majority of it is associated with their education."

No surprise to student group

Jessica Magalios, who represents the province in the Canadian Federation of Students, said she isn't surprised by the increased debt loads.

Newfoundland and Labrador has some of the highest student debts in the country, she said, attributing it in part to the province's geography.

"We have a large rural population and a lot of students have to spend a lot of money coming in from places outside of St. John's or Corner Brook to go to school," she said.

Magalios has called on the government to take a number of steps to bring student debt under control, including regulating tuition fees and giving out more student grants based on need.

Two Months...and not a word!!!

Well it has been two months since I have met with Mr. Peter Noel ( Principal Assistant to the Premier. Premier Williams told Linda Swain on VOCM's nightline that he would meet with me and accept my letter etc... When I got to his office, I met with his assistant as I was informed that the Premier was out of the office (despite the very polite secretary answering the phone and putting the person on the line to the Premier's phone while I was sitting in the lovely leather chairs in the office while admiring the very expensive artwork).

Since we have been two months without a response, it is time to kick things into gear again. Yesterday a supporter of our cause (MHA Judy Foote) mentioned in an article on www.vocm.com that 300 people have left the community of Burgeo since CHRISTMAS!! Surely this sort of out-migration must alarm the Premier and his caucus...

And lastly...wouldn't all of you borrowers like to know if the MHAs that have mismanaged their constituency allowances have to pay back their money WITH interest? I mean...I pay $8.40 every day in interest on money I APPLIED for and BORROWED in order to get an education and contribute to the economy of Newfoundland and Labrador...surely politicians who wrongly spend taxpayers dollars should not only have to pay back the money...but what about the INTEREST??

/rant