Helping Students Helping Alberta

Presentation to the Student Finance Board, March 11

Quick Facts• 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

• Average Net Debt levels:– University (undergrad): $19,182– College : $12,718– T.I.: $10,773

(AE&T Fact Sheet 2009)

• Alberta Student loan limits increased in Budget 2010

Long-tail effects of student loan debt

• Reliable longitudinal data is only emerging now• After graduation, student loan borrowers are 10% less likely

to have investments than their peers without loans. Student loan debts restrict or delay some on the positive return on investment an educated person brings to Alberta

• 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.

• (STATSCan Study: The financial impact of student loans)

Costs may not deter most students from obtaining a post-secondary education, but the debts accrued may have

substantial side effects.

Bettering OurselvesAnother driver of the social economy? Volunteering.• 46% Percent of the population of Canada (ages 15+)

volunteered in 2007• The highest rates of volunteering were found among

Canadians 35-44, those with higher levels of formal education and household income

• Volunteers also identified a number of benefits that they received from their activities

• The majority of both volunteers and non-volunteers identified the lack of time as a barrier

(STATSCAN Report: Caring Canadians; Involved Canadians)

Canadians volunteered 2.1 billion hours in 2007

Bettering Ourselves

Volunteer contributions encompass the entire range of tasks that organizations require including:

• serving on boards and committees, • canvassing for funds, • providing counseling services or making friendly visits to

seniors, • delivering food, • helping build facilities, • serving as volunteer drivers, • helping to protect the environment and wildlife, advocating

for social causes and coaching children & youth

Benefits of VolunteeringVolunteering provides the opportunity to learn new skills: • 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.

• Almost half (45%) indicated that they acquired communication skills, • 39% obtained organizational or managerial skills, • 34% reported increased knowledge about specific subjects like health,

women’s or political issues, criminal justice, or the environment. • 32% acquired fundraising skills• 25% obtained technical or office skills (e.g., first aid, coaching,

computer skills, and bookkeeping).

What’s the connection?Investment in post-secondary education and volunteering provide

direct benefit to the social economy. However:• Albertans aged 35-44 years old are most likely to volunteer,

while citizens65 years and older volunteer the most number of hours

• 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

• Rising average debt levels means students and graduates have less time to spend contributing to their community and gaining skills through volunteering

Why deny the positive returns for students who want to volunteer?

The Solution

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

How would it work?

Eligibility • Registry and matching system similar to the

Student Temporary Employment (STEP) Program

• Organization and students would apply to be a part of the program

• Not-for-profits; statutory organizations & registered charities

How would it work? cont’dDoing the math: what counts?• The Government could prioritize key areas

with the greatest need& greatest benefit• It could also be possible to rank the “value”

of volunteer work• Time-bound opportunity for recent

graduates & current students• Minimum threshold of volunteer hours

How would it work? cont’dCredit where credit’s due• Option A: portion of the student loan would be

directly remitted based on hours served• Option B: participants receive tax receipt based

on hours served– Volunteer Alberta is exploring the feasibility of a tax-

credit for volunteer hours – Tax credit system for NS volunteer firefighters

• Option C: end-of-program bursary– Northern Alberta Development Council

What do you think?

Send feedback to:

ed@albertastudents.ca