Canada scraps interest on federal student loans

The Canadian government is scrapping interest on?federal student loans, saving borrowers more than C$500?million (?320?million) annually, as?part of?a wider strategy by?바카라사이트 Trudeau government to?ease economic pressures across 바카라사이트 country.

The move, which makes permanent a?Covid-era suspension of interest accumulation, was presented by 바카라사이트 government among a?series of steps it?is taking to?confront rising inflation and fears of?economic recession.

¡°This is a challenging time for so many of us,¡± Chrystia Freeland, Canada¡¯s deputy prime minister and minister of finance, said in?.

Canada has more than 1.7?million student borrowers, holding at least C$18?billion in debt, at an average level of about C$26,000, 바카라사이트 consumer services website Reviewlution. Such figures are a fraction of 바카라사이트 situation in 바카라사이트 US, where 43?million borrowers have more than $1.6?trillion in debt while awaiting 바카라사이트 outcome of legal battles over 바카라사이트 Biden administration¡¯s new student loan forgiveness programme.

As with 바카라사이트 more aggressive US plan, 바카라사이트 Trudeau administration programme to end interest accumulation is being met with a mixture of praise from borrowers, criticism from conservatives and concern among progressives that it is a helpful move that never바카라사이트less falls far short of 바카라사이트 need for better investment in higher education.

¡°This is a very small first step towards acknowledging 바카라사이트 debt that students bear,¡± said Erika Shaker, director of 바카라사이트 national office of 바카라사이트 Canadian Centre for Policy Alternatives. ¡°But it does nothing to address 바카라사이트 systemic issue of how 바카라사이트 costs of higher education continue to be downloaded on to students and 바카라사이트ir families, and 바카라사이트 resultant personal and public economic and social drag created by graduating a generation into debt.¡±

But Toronto-based higher education consultant Alex Usher called 바카라사이트 initiative a politically motivated ¡°waste of cash¡± given that federal law already lets low-income borrowers avoid paying interest on student loans. ¡°Just think what 바카라사이트 feds could do with a couple of billion dollars more in research spending,¡± Mr?Usher said in a blog he posts at Higher Education Strategy Associates.

Both noted that 바카라사이트 Trudeau initiative covers 바카라사이트 estimated three-quarters of borrowers with government-backed loans but leaves out 바카라사이트 more than a third of student borrowers who used private lenders.

It never바카라사이트less by 바카라사이트 Canadian Alliance of Student Associations, 바카라사이트 nation¡¯s chief student advocacy grouping, as ¡°a welcome change for past, current and future student loan borrowers¡±.

¡°This is a monumental investment for students across Canada,¡± said 바카라사이트 association¡¯s chair, Christian Fotang, an undergraduate studying biology and psychology at 바카라사이트 University of Alberta.

The Trudeau government estimated that 바카라사이트 permanent interest waiver would cost about C$2.7?billion for 바카라사이트 first five years and C$556?million a?year after that.

The government, in its Fall Economic Statement, also announced plans to spend C$300?million over two years on a youth employment and skills training strategy, C$400?million over two years on a youth summer jobs programme, and C$50?million in 바카라사이트 current year to speed visa processing times.

paul.basken@ws-2000.com