Students at colleges and universities in Newfoundland and Labrador are celebrating with the decision made by the provincial government to wipe out all student loan interest rates.
Daniel Smith, from the Canadian Federation of Students in Newfoundland and Labrador, said this was not a rash, surprising decision by the government and that talks have been in the works for a while.
“It was back on November 5 we launched a petition calling on the elimination of these interest rates and over the course of four months, we have 12,000 names on the petition,” Smith said.
Smith also spoke about dealing with the department of education. “We have a very open relationship with the department of education. We meet with the minister on a regular basis and all the students in Newfoundland and Labrador are members of the Canadian Federation of Students so we are 100 per cent united and our strength is in our numbers,” Smith said.
The student interest rate elimination plan, brought forward by the government in their annual budget, is scheduled to begin at the start of the 2009 fall semester.
“It’s going to happen in the first of August and it’s for anybody that has student loans, anyone who falls under the Newfoundland and Labrador student loans portfolio will have their student loan rates eliminated,” Smith said.
The response to this decision has been very optimistic, Smith said.
“The phone has been off the hook in our office. People have been phoning across the province and asking details, asking if it is actually true,” Smith said. “People were crying on the phone because this is what it means to them when they have to pay a $50,000 student loan.”
The 50,000 affected people with student loans in Newfoundland and Labrador are not the only ones benefiting, Smith said.
“Not just the individuals will be benefited but the families as well because student debt is a major burden on a lot of people and when the debt is placed on an individual, the family suffers as well,” Smith said.
Smith praised the department of education and the Newfoundland and Labrador government for getting this decision made.
“The government is listening to students and the concerns of students,” Smith said. “If the government can do this in the face of a deficit budget why can’t others do this when times are good?”
When asked about the longevity of this program and if it will be eliminated in coming budgets, Smith said he is optimistic that it will not and that it will be a mainstay in the province.
“This government has a long term vision for post-secondary education to do it one year then take it away the next year really doesn’t make sense,” Smith said.
The department of education of Newfoundland and Labrador could not be reached for comment.