Ottawa’s Student Loan Program Uses Up $15 Billion Fund
September 7, 2010 0 Comments
Ottawa, Ontario, Canada (AHN) – The recession has caused Ottawa’s student loan program to use up its entire $15 billion fund. The federal government had to amend its loan limits to ensure there would be enough money to lend students in time for the resumption of school in the fall.
About 50,000 students could not return to school without getting $300 million more in loans, according to government estimates. The weak economy is being pointed to as the culprit behind the unexpected 10 percent rise in demand for student loans, partly because students could not find employment.
Under the program, Ottawa will provide 60 percent of the assessed need and a maximum $210 loan weekly, with the remaining 40 percent to be shouldered by provincial student loans. Since the program was established in 1964, about $32 billion in loans have been extended to 4.3 million Canadian students.
The program placed a $15 billion cap on total outstanding loans based on an actuarial report in 2008 that the ceiling would be breached by 2014 or 2015. However, a recent review indicated the cap would be hit this month, prompting Ottawa to redefine how the total loan amount is computed, which added $1.9 billion to the total amount available for lending.
Tags: amount > Loan > ottawa ontario canada > provincial student loans > Student > student loan program
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