The following is the letter to the Premier. It will (hopefully) be delivered tomorrow, Nov. 10, 2006. This is a crucial step in our goal, and I urge you all to contact your MHA to let them know about our cause.:
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Newfoundlanders and Labradorians Against Student Debt (NLASD)
Request for the elimination of interest on NL student loans
Letter to Premier Williams, and the appropriate ministers.
Prepared and presented by: Travis George Parsons
To:
Premier Williams and the appropriate ministers
Subject: Eliminating interest on Newfoundland and Labrador student loans.
November 10, 2006
Newfoundlanders and Labradorians Against Student Debt (NLASD) wishes to inform the government of Newfoundland and Labrador about our campaign to eliminate the interest on Newfoundland and Labrador student loans.
A short while ago we began an online campaign, and a petition to government (that will be submitted six months before the next election) outlining why we believe the interest on student loans should be eliminated. Within twenty-four hours of the initial campaign, our leader Travis Parsons was interviewed on VOCM’s Night Line, and the Premier, in the following interview, promised to hear our position and pass it along to the appropriate ministers. We wish to thank the Premier for offering his interest in this issue, and we have prepared the following request.
We request that the government of Newfoundland and Labrador do everything within its power to eliminate the interest students have to pay on their Newfoundland and Labrador student loans. We strongly feel that the elimination of such interest would be a vital first step in stemming the out-migration of our young educated individuals, and that the economic and social benefits received from students who choose to live here interest free would far outweigh the benefits from the interest the government receives.
Throughout the weeks prior to this letter, we have offered the many individuals touched by this issue to voice their concerns, and the response was overwhelming. Some key points people made were that they had no choice but to move out of the province to find work, and many also stated that they had begun their families and were contributing the economy of Alberta, Ontario, and British Columbia etc…
Some personal examples of how the interest on loans makes it extremely difficult for people to stay in this province would be my own situation. I graduated from Memorial University, and have luckily found work in my hometown of Grand Bank until December 8, 2006. I want nothing more than to stay in my home province and contribute to my community and the local economy, but the student loan situation is almost too much to handle. A $40,000 student loan will become approximately $90,000 by the time interest is added to it. Now I respectfully ask you, what is worth more to this province? Keeping our young and educated people, and allowing them to pay taxes, buy a home, start a family, and spend their earnings in their own province, or to allow these people to move away in order to pay off their interest laden loans and not be that force that drives the economy?
It is evident by simply looking at the population pyramid of Newfoundland and Labrador that our province as a whole is becoming much more older while a huge amount of young people move away. We feel that this is a disaster waiting to happen as within the next twenty years, the population will be very much unbalanced. The large majority of the people touched with student debt are those between the ages of 18 and 35, and there is no question that this age group is both the future of our province, as well as the group that is leaving in larger numbers than ever. We need to stop this now before the problem becomes worse.
Student debt is a very serious issue in our province, and although we have low tuition compared to most other areas of Canada, we also have lower wages, less job opportunities, and sadly, less people each and every year. We are not asking for a free ride in having our loans paid back, as we are more than willing to pay on our principle for as much as needed. However, we strongly disagree with having to pay interest on our education. Paying interest may enable the government to gain more money, but this comes at the expense of the most important part of our province, our future.
We ask the government to make this issue a top priority. It is very important as it impacts finance, education, rural development, industry, and more. The future of our province and the out-migration that is seeing our future leave in huge numbers is perhaps the most important issue facing our province. If we can stop the exodus of our citizens, we can start to build our province into a financial success. The government may subsidize Memorial University by approx. 80%, but how good of a return on investment is it when the people the province is helping put through school have to leave in large part due to interest and allow other parts of the country to benefit from their skills and taxes? It is obvious that this issue is an important one, and the solutions may not be easy. Perhaps creating incentives where graduates who remain in the province remain interest free would be a starting point.
To conclude, we ask you again to please take this initiative seriously as we feel strongly that the elimination of interest on these loans will only benefit the province as a whole. We are committed in fighting for the cause of the thousands affected, because we are committed in fighting for the cause of the province we love so much. Please make this issue a key one in the upcoming weeks.
Thank you very much for your time, and please review the attached sheets to gain a greater perspective of the support we have from those with loans, as well as the Newfoundland and Labrador Defense League.
Travis Parsons, BA
Newfoundlanders and Labradorians Against Student Debt
http://nlstudentdebt.blogspot.com
Selected Experiences Relating to NL Student Loan Interest
Having to pay $478.32 monthly for the next 9 YEARS is unacceptable. As a 24 year old young women, it's hard to even think that I might be able to start living somewhat of a life as student loans have me in a choke hold position. Eliminating the interest charges would be a very big help. My goal is to get out of Western Canada and return to good old Newfoundland. Maybe this will help! - Alicia Roul
I graduated from MUN Nursing in 2003 and moved to Nunavut in 2004. I've paid off all my student debt but only because I packed up and left Newfoundland! Had I been able to make some headway with the payments or qualified for loan remission, I might have stuck around! – Amy Harty
I am currently employed in St. John's NL permanently with luck. At least half of my classmates have moved to pay off student loans. We all know that with the simple elimination of interest, loan payments terms could go from 11 years down to a mere 5 -7 even with the same payment. The province would definitely benefit from more educated people staying in Newfoundland to pay taxes. They would probably make more money that way anyways. On a final note, I make $10 less an hour then some classmates on the mainland, yet I clear more money and have a less stressful and peaceful life here in Newfoundland. - Myles Russell
The government is making an investment by providing student loans to those in need. The return on the investment should be based purely on the success and increased earning potential of the graduates (Taxes anyone?). The return should not be based on monetary interest from the loan itself. If you think about it, those two ways are really quite contradictory. Why is the government investing in allowing Canadian to get a better education and more money (again..taxes) if they're just going to take it back with interest payments? How about having that interest money spent on buying more products which would eventually lead to more money in the pockets of both the government and its citizens? – Jon Llewellyn
I understand where you are coming from, my student loan was for around 19,000 and I have to pay back over 40,000. – Stephanie Greene
Interest is causing professional people to continue to live like students for years after they finish school. It is unbelievable that it would cost my husband and I about $12 in interest every day we went to work. How can we get ahead? $800 + a month for student loans in our household is crippling. It puts house plans on hold and forced us to move from our province in order to find jobs paying high enough to accommodate it. Why should we be penalized for wanting a good education? Eliminate the interest...give us a chance to get ahead...and more importantly, give us a chance to stay in our home province! – Jennifer
Newfoundland and Labrador Defense League (NLDL)
NLDL is dedicated to the planning, development and promotion of initiatives for the empowerment of the Newfoundland and Labrador people.
www.nldl.org
To:
The government of Newfoundland and Labrador
Subject: Dispensing with Interest Charges on Student Loans.
November 3, 2006
The Newfoundland and Labrador Defense League (NLDL) wishes to inform the government of Newfoundland and Labrador that it fully supports initiatives to lessen the burden of student debt currently being experienced by our youth.
It is clear that the debt incurred by the students of this province in combination with the interest charged on that debt has a crippling effect on graduates at a time when they are preparing for their futures. This reality has resulted in many of our best and brightest relocating outside the province in an effort to increase their earning capacity and meet their student loan obligations.
The membership of the NLDL believes that the removal of interest charges from student loans will serve to entice more graduates to remain inside the province and help ensure that the cycle of out-migration is curtailed.
When older workers who are forced to leave the province often return, our youth rarely do. We must do everything possible to ensure that our educated youth are given every opportunity to utilize their knowledge and skills right here at home, for their benefit and for ours.
Respectfully yours,
The Newfoundland and Labrador Defense League (NLDL)
Leadership Team:
Stephen Penney, Myles Higgins, Greg Byrne, Darren Fancey, Paul Smith and John Feltham
nldl_nl@yahoo.ca
The NLDL is a non-profit advocacy organization made up of Newfoundlanders and Labradorians from across Canada and around the world. The NLDL is dedicated to the planning, development and promotion of initiatives for the empowerment of the Newfoundland and Labrador people. The NLDL is not affiliated with, or funded by, any political party.
