NEW BRUNSWICK – On the heels of the provincial 2022-23 budget estimates, the Department of Post-Secondary Education, Training and Labour announced Thursday, April 14 interest on all provincial student loans will be eliminated.
Post-Secondary Education, Training and Labour Minister Trevor Holder said in a press release the aim of the move was increasing affordability of post-secondary education.
The program will cost tax-payers approximately $5.5 million annually, and will help 65,000 current borrowers, along with all future New Brunswick post-secondary education students. The release states on average, someone who borrowed $15,000 over a decade will save $2,100, based on current Bank of Canada interest rates; a rate which was raised to 1 per cent last week in an effort to slow the blistering national inflation rate. It’s the highest rate increase in some 20 years.
The interest elimination will not be retroactive, and will only apply to loans received from the provincial government. Loan balances will be impacted as of the yet undecided implementation date, predicted to be “sometime this fall,” according to the statement.