Despite the House of Commons unanimously adopting an NDP motion to put a moratorium on student loans in late November, Canadians are still paying off their student debt.
The November 24th Unanimous Consent Motion was passed, calling for a moratorium from October 1st, 2020 to May 31st, 2021, but on November 28th, many with student loans found an email from the National Student Loans Service Centre (NSLSC) in their inbox telling them, “Despite recent media reports, November payments on your loan(s) are due as scheduled.”
Member of Parliament for Bruce-Grey-Owen Sound Alex Ruff says in order for that adopted moratorium to come into effect, the minority Liberal government has to put it into action. Ruff says, “The Liberals have yet to follow through on a number of motions that have been passed in the house.”
He notes, “The problem is, it’s just not binding. From what I understand it’s the government’s choice even though the House did it.”
Ruff explains the motion, “Allows the parties to hold the government to account, the opposition parties or any Canadian to hold the government to account when they fail to enact something that’s been passed in Parliament,”
He says, “They can pay a political price for it if Canadians say, ‘Hey, the House decided this. Why aren’t you doing what elected representatives told you to do?'”
To ease the financial burden brought on by the pandemic, back in March, the federal government announced a moratorium on loans and interest to be paid to Canada’s National Student Loans Service Centre (NSLSC) until September 30th, 2020.
October 2020 student loans were the first payments due back on the old schedule, and for those who use automatic bill payment, theirs was taken out by the NSLSC. (There are exceptions for those making less than $25,000 and others who qualify for the government’s Repayment Assistance Plan).
Bill C-14 to stop interest payments on student loans and apprentice loans for 2021 was tabled last week, (Dec 2) but is not yet passed. The Bill says it would be in place from April 1st 2021, to March 31st, 2022.
Meanwhile, Ruff says the minority Liberal government has yet to enact a number of motions that have already been passed. He gives the example of a 2018 House of Commons vote to designate the Iranian Revolutionary Guard Corps (IRGC) as a terrorist entity, “They have yet to enact that,” says Ruff. He points to a more recent motion that was passed to postpone audits on small businesses during the pandemic that hasn’t yet been enacted.
Ruff says, “I agree that lots of Canadians, especially students are facing a lot of stress and mental health challenges during this pandemic and family implications that COVID has put onto them,” adding, “Reducing the stress of having to pay back their loans or postpone that payment is definitely a tangible way to help.”
He says, the big question is, “Will the government actually deliver on it?”
By unanimous consent, the #HoC adopted a motion regarding the extension on the moratorium on repaying student loans from October 1, 2020 to May 31, 2021.
— In the Chamber (@HoCChamber) November 24, 2020