Student loan writeoffs estimated at $173M

By Michael Woods. Three-year total reaches $716 M. The federal government plans to write off $173 million in unpaid student loans in the coming fiscal year, which will bring its three-year writeoff total to $716 million.
Taxpayers were on the hook for $312 million in Canada Student Loan writeoffs in the 201112 fiscal year and $231 million in the current fiscal year (201213), although the loans in question span many years.
Most student finance experts say forgiving unpaid student debt is simply the cost of doing business, with the government taking on risk to help thousands of people get an education who otherwise couldn't afford it. They also say the federal student loans system is simpler and more forgiving than it was 10 or 15 years ago. Read more...