PBO: NDP plan to help with student debt will benefit young people

OTTAWA – This morning, the Parliamentary Budget Officer (PBO), released his findings on the NDP’s plan to help with student debt, which was announced in March. The report finds the NDP plan is an affordable way to help young people by cutting student debt.

“Young people in Canada live with crushing debt for years, which keeps them from getting ahead in life because of the high cost of post-secondary education. And the COVID-19 pandemic only made matters worse,” said NDP Leader Jagmeet Singh. “I welcome today’s report from the PBO. It shows that there is a way to significantly help young people who are struggling, we just have to have the political will to do it. New Democrats will stand with young people and help them get ahead.”

58 per cent of youth have experienced an impact on their financial situation due to the pandemic. And 61 per cent have faced difficulties with employment including fewer hours, job loss or absence of seasonal work. Our economy won’t bounce back if young people are held back having to pay hundreds of dollars in loan payments every month, with thousands of dollars going to the federal government just in interest.

“I am very proud of the plan we have put forward and the fact that it has been recognized as a viable tool to help young people in Canada,” said the NDP’s Critic for Post Secondary Education, Lindsay Mathyssen. “Post secondary education should be accessible to everyone who wants it and should help Canada’s youth get ahead, not leave them further behind.”

The NDP reiterated its commitment to work with provinces and territories towards tuition free post-secondary education and to re-instate the moratorium on student loan payments – cancelled in September by the Liberals – until the pandemic is over. Finally, the NDP will permanently remove interest on all federal student loans so the federal government stops profiting off the backs of young people.