Prince George student unions want to see the federal government eliminate interests on Canada Student Loans.
The College of New Caledonia Student Union (CNCSU) and the Northern Undergraduate Student Society (NUGSS) are supporting the Knock-Out Interest Campaign created by the BC Federation of Students to eliminate interest on federal student loans.
In February 2019, students across the province celebrated the announcement that provincial interest on student loans was no longer going to be applied for those studying in post-secondary education.
This latest push comes after recent victories such as the elimination of provincial interest and implementation of a needs-based grants program known as the BC Access Grant.
“Charging interest on student loans forces those who need student loans to pay more for their education than someone who could afford to pay tuition fees upfront. This is essentially a tax on low and middle-income students and families,” says the Knock Out Interest Campaign.
The campaign asks students to send a letter to Prime Minister Justin Trudeau asking him to eliminate interest charges on Canada student loans.
“Your Budget 2019 announced the reduction of student loan interest to prime or prime + 2%. This is a positive step to mitigate the ballooning of student loan debt; however, the prime interest rate continues to increase, meaning that the cost of student loan debt continues to rise regardless of your government’s action,” reads the letter.
“Eliminating interest charged on Canada student loans will help young Canadians afford to live in our country with ever-increasing living costs. It will help them to save up to buy a house, or to start a family, or to work in a much-needed field even if it pays less than other options.”
The campaign claims that every year, nearly 500,000 Canadian students turn to student loans to cover the cost of their education and those with student loans pay on average $5,000 in interest.
To learn more about the campaign, you can visit its website.
