Interest-free loans Student Loans!

by, Roshan Singh

“It’s a great deal especially when we are graduating,” says Kalp Patel an Electrical Engineering student from York University.

The federal government is permanently eliminating interest for Canada Student Loans under the Canada Student Financial Assistance Program. The step has been taken to relieve stress from students paying interest on their education loans.

Starting from April 1st 2023, there will be no interest which will help more than  1.2 million post-secondary graduates in Canada each year. Based on the current interest rate students save up to $520 per year.

“It’s really helpful especially if you are graduating this year because looking at the current market especially engineering there are no jobs for engineers and because of the recession type market there is limited jobs so where we cant a job within a six month or so they have to pay interest on their loans anyhow, now because this rule is now gone they have to worry about repaying the interest”,  said Patel.

Students will still have to pay any loan interest that they have before April 1st 2023. This means if you had had a loan that was taken before April 1st 2023, you will still have to pay the interest on your student loan.

“Life has become more expensive for Canadians, including students and recent graduates,” Minister of Employment, Workforce Development and Disability Inclusion Carla Qualtrough said in a statement.

“Combined with the measures introduced in Budget 2023 this week, we are helping students and new graduates finish their studies, keep more money in their pockets and successfully transition to the workforce,” she added

Canada’s student grants can increase by 40% as this year’s budget will be proposed.

According to the planning, Canada Student Grants will increase by 40%, providing full-time students upto $4,200. For the first time, students aged 22 years or older will now not need to go under credit check to qualify for federal student grants and loans

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