Liberal leadership candidate Moira Stilwell eyes student-loan overhaul
B.C.’s student-loan model might be in for an overhaul if MLA Dr. Moira Stilwell becomes the province’s next premier.
As premier, Stilwell said she will reduce the interest rate for student loans to stimulate the economy and develop a skilled and educated labour force.
“At the current rate of prime plus 2.5 per cent, the student-loan interest rate is the highest in Canada,” she said Monday.
“I believe it should be reduced to no more than prime plus one per cent.”
Stilwell, a rookie MLA who has recently held the ministry of regional economic and skills development portfolio, said many students who take out loans to pay for their education will end up repaying debts in excess of $30,000.
“Being saddled with repayment for years after graduation is a disincentive to many people to further their education, which means B.C. could be losing out on the development of the skills we need to grow the economy.”
Stilwell said she will work with stakeholders to develop a student-loan model similar to other provinces.
She noted there will be a cost to government to reduce student-loan interest rates, but said the long-term benefits of a stronger and more skilled labour force will outweigh the cost.
The MLA for Vancouver-Langara was the first to throw her hat into the B.C. Liberal leadership race, which will be held Feb. 26, 2011.
Education minister George Abbott recently declared his intention to run for the position, and health minister Kevin Falcon is expected to formally announce his candidancy Tuesday.
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