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"A Family Tradition for 132 Years" PORT PERRY STAR - Tuesday, March 10, 1998 - 3 Improved student loan policy still lacking: MPP By Chris Hall Port Perry Star ~The new federal budget has failed to impress Durham-East MPP John O'Toole, who says that post-secondary students will continue to agonize over loan pay- ments years after they graduate. Mr. O'Toole said the feds failed to move forward on their income-contingent loan repayment plan, a disappointment for the provincial Tories. Finance minister Paul Martin announced the Millennium Fund, which will begin granting scholar- ships in the year 2000. "The Liberal government said that they will start helping out students in the year 2000, but now is important," said Mr. O'Toole. The MPP argues that because of rising tuitions and other expenses associated with attending post-secondary institu- tions, more students are coming out of school in deep debt. That's making student loan defaults and bankruptcy claims more and more common, he said. In Ontario, college and university stu- dents apply for funds from both the Canada Student Loan (CSL) centre and the Ontario Student Assistance Program (OSAP). If they receive assistance, they are responsible for repaying it when they graduate. Loans are arranged to be dis- tributed, and repaid, to the bank of the student's choice. This, says Mr. O'Toole, 1s where the problems begin. "The Ontario government is asking lenders to make income-contingent repay- ment options available to students who ask for them. If a student files for bankruptcy or moves out of province or whatever, then the CSL is guaranteed by HH -~N ~ w | | a yo . | Lowest clearance Prices ever!!! GLa SB gle J SHAHHHE \ ' bh J --- ® J || (0 178 Queen St., Port Perry 985-8334 oy | BRZCKS the bank," he said. "If the OSAP is missed, that comes out of the province." Mr. O'Toole said 60 per cent of OSAP loans are not paid back, and that the province is looking for some way to help offset the cost of their losses. "Right now we want the banks to assume a portion of the liability," he said. "The province picks up any losses now, and we think that it is a reasonable request. If someone backs out of their (provincial) loan we're left with it but if a CSL loan is missed then the banks pick it up and the feds don't pay a cent." A call was made on Feb. 24 for banks to propose other options to make repay- ment of loans for students easier. Responses are due March 25. Some of the ideas being tossed around include: 0 Students whose earnings are low after graduation could make reduced payments initially, and higher ones in years to come; 0 Students could make payments of interest only, with no payment toward principle, for an additional 12 months; 0 Students could reduce their monthly payments by extending their repayment period to 15 years instead of the standard time of nine-and-a-half years; 0 And students with very low incomes could receive assistance from the govern- ment to meet their interest payments for up to 18 months. "I think that it should be a shared responsibility between the government and the banks," said Mr. O'Toole. "The banks should help us with this; look at all the profits they make each year." Appointment with a porker « bey - il il v a CHRIS HALL/PORT PERRY STAR Little Morgan Dallas of Nestleton, along with his father Darryl, were on hand at the Port Perry Baptist Church last Wednesday (March 4) evening. During the annual AWANA (Approved Workmen Are Not Ashamed) ceremony, Guards Director Cindy Borody kissed a piglet. Her group had raised the most money during a fundraiser for the local church. Here, two-year-old Morgan gets a closer look at the piglet after the program. Cvnryz ra WRC . LER) . | IY Te anu 9 Our Famous Semi-Annual |B) XS VN ISNT BD Sale opens Friday, March 13 at 9:00am to Sunday, March 22/98 We are making room for new spring fashions Downstairs so we are moving our fall & winter Fashions UPSTAIRS at the 74 4 Selected Footwear for men, women & Kids * Fashions for men, women, Kids, infants * Accessories and jewellery BR@C ICS 168 Queen St, Port Perry 985-2521 Service, Quality and Style Since 188] / \ Changerooms! HHH > ® Make sure you pick up a coupon "UPSTAIRS" to pay no PST or GST™* on new spring purchases made downstairs!! ~~ a= 13 Ld )\ All Sales Final *An equivalent discount will be deducted. \\ BEEOH ES Ng be BR@CK'S for K ToS 174 Queen St., Port Perry 985-8797 gd "FY By | HHT p -- pn-- a --