The BC Government announced in their 2017 budget that they are reducing student loan interest rate from 2.5% above prime to prime. The interest rate for student loans in BC will now drop from the highest in the country to the national average.
"This has been a major ask of ours for a number of years and we're very happy to see that the government has listened," said Alex McGowan, Chair of the Alliance of BC Students, "the national trend is to move towards 0% interest rates, and we're looking forward to working with the government towards that goal."
When students are charged interest on loans, they have to pay more for their education than those that don't have to. The Alliance of BC Students believes that interest rates on loans make education more expensive for those without the means to attend.
A British Columbian who takes on student loans now will only pay an average of $1,500 more for their education than someone who can afford to pay upfront. The ABCS is excited to see the government recognizing the burden placed on student loan holders and taking steps to mitigate these negative effects.
"This is an excellent first step towards making education more affordable" continued McGowan, “we will continue working to make education more affordable and accessible in British Columbia.”