Students applaud the federal government in their elimination of interest on student loans.
NANAIMO— Current and former students celebrated the Federal government’s announcement on Thursday, November 3 to permanently eliminate interest on student loans effective immediately. Generations of students have fought for meaningful relief from the increasing cost of accessing a post-secondary education and applaud the federal government in their announcement today.
Over one million Canadians have student loans from the federal government, collectively owing more than $11 billion. The elimination of interest on student loans will put hundreds of dollars each month in the pockets of recent graduates, many of whom are struggling with the increasingly high cost of living.
Education-related costs such as tuition fees, textbooks, and other expenses continue to increase rapidly, forcing half of all students to take on debt to access post-secondary education. Based on the current prime rate of 5.95% interest charged on a student loan, those with $25,000 of debt upon graduation could expect to pay an additional $9,200 in interest during a 10- year repayment. Those with $40,000 could expect to pay an additional $14,800 in interest.
Student debt in BC has risen 88% since 1999, and the average student loan balance upon graduation is over $30,000. Studies show that student debt holds young people back not only professionally, but also in other important ways: because of rising debt, recent graduates in Canada are delaying major life events like getting married, buying a home, or starting a family.
Canadians that cannot afford to pay up-front and must borrow to access post-secondary, no longer have to pay more for the same education,” said Cole Reinbold, Director of External Relations of the VIU Students’ Union “The elimination of interest on federal student loans in addition to the elimination of interest on provincial student loans since 2019 means education is more accessible and equitable for British Columbians. This will allow us to obtain the skills and re-training to enter the workforce after the challenges we’ve endured throughout the pandemic.”
The VIU Students’ Union in partnership with the BC Federation of Students, has advocated for the elimination on interest charged on federal student loans for years through their current campaign Knock Out Interest.
The BC Federation of Students represents over 170,000 students at 15 universities, colleges, and institutes in every region of BC. The VIU Students’ Union represents over 10,000 students at Vancouver Island University. Together, these students advocate for a well-funded system of post-secondary education in BC and Canada that is affordable and accessible for all students.
