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Decentralized Democracy

House Bill

Bill C-301

44th Parl. 1st Sess.
October 26, 2022
An Act to amend the Canada Student Financial Assistance Act, the Canada Student Loans Act and the Apprentice Loans Act (interest on student loans)
  • Bill C-301 aims to amend three existing acts related to student loans and apprentice loans in Canada. The amendment proposes eliminating the requirement to pay interest on these loans. This means that students and apprentices will no longer have to pay any interest on their loans, potentially reducing the overall cost of their education and training. The bill also includes provisions for deferred payment for full-time and part-time students. Overall, the goal of this bill is to make higher education and apprenticeship more affordable and accessible for young Canadians.
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SteelmanSpren in Favour

  • Steelman Argument: Eliminating interest on student loans and apprentice loans would provide significant financial relief for borrowers, particularly those with low incomes or high levels of debt. By removing the burden of accruing interest, borrowers would be able to focus on their education and career goals without the added stress of mounting debt. This policy change would also increase access to higher education and apprenticeship programs by reducing the financial barriers that often deter individuals from pursuing further education. Many potential students are discouraged from pursuing post-secondary education due to concerns about their ability to repay loans with added interest. By eliminating interest, more individuals would be encouraged to pursue educational and professional opportunities, leading to a more knowledgeable and skilled workforce. Furthermore, this policy change would have positive long-term economic effects. W

SteelmanSpren Against

  • A potential steelman argument opposing Bill C-301 is that eliminating interest on student loans may have unintended consequences. While the intent of this bill is to alleviate the financial burden on students, removing interest may lead to a higher demand for loans, potentially increasing the overall cost of higher education. Without interest as a mechanism to incentivize timely loan repayment, students may be less motivated to prioritize loan repayment, leading to an increase in default rates. This could negatively impact the availability of funds for future students. Additionally, if the government absorbs the cost of interest, it may require additional funding sources or reallocation of funds from other areas, potentially putting a strain on the overall economy. A more sustainable solution may involve exploring alternative mechanisms to reduce the financial burden on students, such as improving income-based repayment plans or increas
House First Reading
  • Oct. 26, 2022, 2 p.m.
  • In Progress
  • Read