Manitoba will become the first province in western Canada to eliminate provincial interest on all Manitoba student loans, Premier Greg Selinger announced Monday.
Final decisions on the implementation date of the measure are to be announced along with the provincial budget this spring.
Education Minister Peter Bjornson said the move means a student graduating with about $10,000 in student loan debt will save some $1,500 in interest over the lifetime of the loan.
Dr. Annette Trimbee, president and vice-chancellor at the University of Winnipeg, said that for some students and their families, the thought of taking on debt to pursue post-secondary education can be scary.
While the province is eliminating only a portion of that debt, Trimbee lauded the NDP for “sending an important signal about the value of education by encouraging students to take the leap of investing in themselves and their futures.”
Bjornson also announced the Manitoba government will remove an eligibility requirement on the student loan application that previously saw students who own a vehicle worth over $10,000 ineligible for a student loan.
Vehicle ownership will be dropped as a consideration when students apply for a student loan.
“Many students, especially those who come from rural Manitoba, depend on their vehicle to get to class, work and then back to their home towns during session breaks,” Bjornson said. “The removal of this eligibility requirement will help more students access student loans and get a quality education.”
