Helping students helping alberta


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Helping students helping alberta

  1. 1. Helping Students Helping Alberta Presentation to the Student Finance Board, March 11
  2. 2. Quick Facts <ul><li>The Alberta economy sees a 3:1 return on investment for post-secondary education in the short-term and upwards of $28.00 over the long-term </li></ul><ul><li>Average Net Debt levels: </li></ul><ul><ul><li>University (undergrad): $19,182 </li></ul></ul><ul><ul><li>College : $12,718 </li></ul></ul><ul><ul><li>T.I.: $10,773 </li></ul></ul><ul><li> (AE&T Fact Sheet 2009 ) </li></ul><ul><li>Alberta Student loan limits increased in Budget 2010 </li></ul>
  3. 3. Long-tail effects of student loan debt <ul><li>Reliable longitudinal data is only emerging now </li></ul><ul><li>After graduation, student loan borrowers are 10% less likely to have investments than their peers without loans. </li></ul><ul><li>Student loan debts restrict or delay some on the positive return on investment an educated person brings to Alberta </li></ul><ul><li>Even though career prospects are the same for post-secondary graduates, student loan borrowers are far less likely to own a home, or have savings than those who graduated without student debt. </li></ul><ul><li>(STATSCan Study: The financial impact of student loans) </li></ul><ul><li>Costs may not deter most students from obtaining a post-secondary education, but the debts accrued may have substantial side effects. </li></ul>
  4. 4. Bettering Ourselves <ul><li>Another driver of the social economy? Volunteering. </li></ul><ul><li>46% Percent of the population of Canada (ages 15+) volunteered in 2007 </li></ul><ul><li>The highest rates of volunteering were found among Canadians 35-44, those with higher levels of formal education and household income </li></ul><ul><li>Volunteers also identified a number of benefits that they received from their activities </li></ul><ul><li>The majority of both volunteers and non-volunteers identified the lack of time as a barrier </li></ul><ul><li>(STATSCAN Report: Caring Canadians; Involved Canadians) </li></ul><ul><li>Canadians volunteered 2.1 billion hours in 2007 </li></ul>
  5. 5. Bettering Ourselves <ul><li>Volunteer contributions encompass the entire range of tasks that organizations require including: </li></ul><ul><li>serving on boards and committees, </li></ul><ul><li>canvassing for funds, </li></ul><ul><li>providing counseling services or making friendly visits to seniors, </li></ul><ul><li>delivering food, </li></ul><ul><li>helping build facilities, </li></ul><ul><li>serving as volunteer drivers, </li></ul><ul><li>helping to protect the environment and wildlife, advocating for social causes and coaching children & youth </li></ul>
  6. 6. Benefits of Volunteering <ul><li>Volunteering provides the opportunity to learn new skills: </li></ul><ul><li>Two thirds (66%) of volunteers reported that their volunteering had provided them with interpersonal skills, such as understanding and motivating people or being better able to handle difficult situations. </li></ul><ul><li>Almost half (45%) indicated that they acquired communication skills, </li></ul><ul><li>39% obtained organizational or managerial skills, </li></ul><ul><li>34% reported increased knowledge about specific subjects like health, women’s or political issues, criminal justice, or the environment. </li></ul><ul><li>32% acquired fundraising skills </li></ul><ul><li>25% obtained technical or office skills (e.g., first aid, coaching, computer skills, and bookkeeping). </li></ul>
  7. 7. What’s the connection? <ul><li>Investment in post-secondary education and volunteering provide direct benefit to the social economy. However: </li></ul><ul><li>Albertans aged 35-44 years old are most likely to volunteer, while citizens65 years and older volunteer the most number of hours </li></ul><ul><li>Nearly 60% of students surveyed in the Canadian Student Survey reported given the chance they would have worked more hours to have more money to pay their education </li></ul><ul><li>Rising average debt levels means students and graduates have less time to spend contributing to their community and gaining skills through volunteering </li></ul><ul><li>Why deny the positive returns for students who want to volunteer? </li></ul>
  8. 8. The Solution <ul><li>ASEC is proposing the creation of a student loan remission program, whereby a portion of a current student or recent graduate’s student loan is remitted, based on community involvement </li></ul>
  9. 9. How would it work? <ul><li>Eligibility </li></ul><ul><li>Registry and matching system similar to the Student Temporary Employment (STEP) Program </li></ul><ul><li>Organization and students would apply to be a part of the program </li></ul><ul><li>Not-for-profits; statutory organizations & registered charities </li></ul>
  10. 10. How would it work? cont’d <ul><li>Doing the math: what counts? </li></ul><ul><li>The Government could prioritize key areas with the greatest need& greatest benefit </li></ul><ul><li>It could also be possible to rank the “value” of volunteer work </li></ul><ul><li>Time-bound opportunity for recent graduates & current students </li></ul><ul><li>Minimum threshold of volunteer hours </li></ul>
  11. 11. How would it work? cont’d <ul><li>Credit where credit’s due </li></ul><ul><li>Option A: portion of the student loan would be directly remitted based on hours served </li></ul><ul><li>Option B: participants receive tax receipt based on hours served </li></ul><ul><ul><li>Volunteer Alberta is exploring the feasibility of a tax-credit for volunteer hours </li></ul></ul><ul><ul><li>Tax credit system for NS volunteer firefighters </li></ul></ul><ul><li>Option C: end-of-program bursary </li></ul><ul><ul><li>Northern Alberta Development Council </li></ul></ul>
  12. 12. What do you think? <ul><li>Send feedback to: </li></ul><ul><li>[email_address] </li></ul>