On Feb. 19, the provincial government of British Columbia abolished interest payments on student loans. The move was a long-awaited campaign promise from the NDP administration.
The ruling was effective immediately, with interest payments eliminated after that date.
British Columbia is the latest province to abolish interest on student loans, following the lead of Manitoba, Newfoundland and Labrador, and Nova Scotia.
The province of British Columbia said the changes will alleviate $2,300 of repayment on a loan of $28,000—the typical average expected by the B.C. government—over the repayment period of 10 years.
Rodney Porter, a press secretary for the Ministry of Higher Education in British Columbia, commented on the new changes.
“The budget 2019 was all about making life better and more affordable for students. This not only applies just for students, but also repayers who have borrowed and are making or trying to make that transition to the workforce,” Porter said.
The province will pick up the tab for the money lost on interest, which will total about $28 million over the next 10 years.
Michael Oliver, a third-year cognitive science student at the University of British Columbia, took out a loan for $9,000 last year.
“I took it out because I needed to and I assumed interest would be a part of it that I would just have to accept,” he said. “I didn’t pay much attention to it.”
Oliver, who will be saving around $1,000 under the new legislation, said “it’s pretty amazing.”
As a student living in B.C. where the cost of living is high, Oliver said it’s very challenging.
“I am pretty lucky . . . my parents are able to spot me half of my rent so that helps a lot,” he said. “But, for most of my degree, I’ve worked two jobs at the same time being a lifeguard and also working in the restaurant.”
Oliver said he is currently able to get by with working one job only because of the loan he took out.
“It’s pretty tricky,” he said.
Graphic by Paloma Callo
