Post-secondary students and grads owing thousands of dollars in student loans now have a bit of reprieve, with the B.C. government eliminating interest charges, effective immediately.

Finance Minister Carole James announced $318 million during the latest budget this week, saying the province anticipates students relying on loans will save a total of $22 million in interest payments per year.

Jordan Sawchuk, a biology student at Okanagan College in 琉璃神社, said money otherwise used for the interest rate will make all the difference once he graduates.

鈥淚t鈥檚 going to be a lot less stress once I get out of school to rush into a job. If the market鈥檚 a little bit tough, it鈥檚 going to be a lot of pressure off of me,鈥� he said.

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鈥淭here鈥檚 absolutely more that can be done to ease the financial burden鈥� Textbook prices are already high, but it鈥檚 a step.鈥�

James Bahnke, a computer science student at the College, said it鈥檚 better than nothing.

鈥淛ust more money in your pocket down the road. You look at other countries and it鈥檚 terrible. I thought already it鈥檚 pretty good.鈥�

Provincial student loans had been charged at the prime interest rate, roughly 4.5 per cent. The government estimates the average student owes $11,200 in debt upon graduation, on top of $17,000 in federal loan debt.

Going forward, students will pay roughly $2,300 less in their overall debt, based on a 10-year repayment period.

鈥淩epaying student loans should not force people to put their lives on hold,鈥� said Noah Berson chair of the Alliance of B.C. Students, which lobbied for the change. 鈥淎fter graduation, the focus should [be on] starting your life, saving to buy a home and having children, not being chained to student loan payments.鈥�

ashley.wadhwani@bpdigital.ca
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