Lowering student loan interest rates ‘not enough’
North Island College student union organizer James Bowen welcomes B.C. premier candidate Moira Stilwell’s position on easing the load for students. WAWMEESH G. HAMILTONAlberni Valley NewsBuy Alberni Valley News Photos Online
On Monday, B.C. Liberal leadership hopeful Moira Stilwell announced she wants to see student loan interest rates reduced from the current 2.5 per cent.
“At the current rate of prime plus 2.5 per cent, the student-loan interest rate is the highest in Canada,” Still noted on her Facebook page.
“I believe it should be reduced to no more than prime plus one per cent.
Students who take out loans to pay for their tuition graduate often more than $30,000 in debt.
“Being saddled with repayments for years after graduation is a disincentive to many people to further their education,” she noted.
Lowering interest rates would cost government, but would pay off in the long run by diversifying the province’s skill base and stimulating the economy.
Bowen was cautiously optimistic about the release, saying that the initiative should go further.
“Starting the discussion about reducing interest rates is a positive first step,” Bowen said.
“But we believe there should be no interest on student loans – period.
As an alternative, Bowen endorses the Canadian Federation of Students call for an up-front grant system, reduced tuition fees and increased core funding to educational institutions.
Students from NIC are no different from those in larger universities.
“More than 50 per cent of our students have student loans— that’s a substantially high number,” Bowen said.
Students with loans pay more for their education than students who are able to pay the full load up front.
“Those who can least afford to pay are forced to pay significantly more because of interest rates,” he said.
Bowen knows of where he speaks.
He graduated from Vancouver Island University recently with a student loan tab of $40,000.
The average college/university student likely isn’t concerned about how lower student loan interest rates would stimulate the economy.
“They’re more worried about how they’re going to pay their loan back and still make rent at the end of the month,” he said.
reporter@albernivalleynews.com
By Wawmeesh G. Hamilton - Alberni Valley News
Published: December 02, 2010 1:00 PM
Updated: December 02, 2010 4:49 PM
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