National Adult Literacy Database

This discussion paper, prepared by the Canadian Council on Learning (CCL), looks at the Canada Student Loans Program (CSLP) as a vehicle for promoting equitable access to post-secondary education, particularly for students from lower-income families. Specifically, it brings to light various methods through which student loan repayment can be managed, and evaluates current program approaches.

Most student loan repayment mechanisms in Canada can be described as mortgage-style repayment (MSR) schemes, which work well for those borrowers who do not experience any difficulty in repayment, as measured by their debt-to-income ratios. However, a number of income contingent repayment (ICR) measures have been put in place to ensure that student debt does not become crippling for new graduates who run into problems repaying their loans.

The authors note that to be successful, the CSLP must find ways to assure potential students that their fears about unmanageable student debt can be addressed and should not deter them from post-secondary education.