As part of its fall fiscal update tabled Thursday, the federal government outlined plans to permanently eliminate interest on all federal student loans and apprentice loans including loans currently being repaid.While this move is helpful for students graduating, said Rebekah Young, director of fiscal and provincial economics at Scotiabank, it is ultimately relief for interest payments on debt rather than money toward tuition or other post-secondary school expenses.
The Liberal government suspended the accumulation of interest on student loans in 2021 due to the effects of the pandemic on graduating students as they entered a unique job market. The measure was set to expire in March.An average student loan borrower will save $410 per year as a result of their loan being interest-free, the government said in the fiscal update.
Young said some may fear the decision could stoke inflation, but that it isn't be a particularly strong argument as the measure is a relatively small, contained one.
Please specify this is only for people making less than $40,000 a year. It's hardly special. cdnpoli
TrudeauMustGo
dumb idea. This will just cause tuition to rise.
Haha, eliminate students paying the interest but all the rest of us taxpayers will now have to pay it for them. Banks still want their interest and we will be the ones paying it for the govt...another trudeau scam for student votes!! Wake up Canadians- nothing is free in life!!
Yes not paying interest, that promotes financial discipline.
Awesome, that’ll help my daughter in university…oh wait…she didn’t qualify for a loan. Targeted relief. Once again the middle class pay.
And Seniors and Veterans can't get a raise.
here's the reason behind of lowering the age to vote... they want to secure their place again and the same about their immigration target of 500k ppl
Canada will be bankrupt before this cult is voted out.
Then who’s paying the interest? Oh ya, the taxpayer.
What about those in trades? Should they charge any liberal ndp quadruple?
How did they “eliminate” it? Who’s paying for it now?
And the inmates are running the asylum. TrudeauLiberalsHaveGotToGo
Yay! We can finally repay our very useful Gender Studies degrees interest free! Stop complaining about inflation, climate change deniers!
America you can do this but gop statehouse attorney generals have file lawsuit to stop this student loans forgiveness
How to get elected in 2022