Manitoba government drops interest rate on student loands by 1.5 per cent

WINNIPEG – The Manitoba government is dropping its interest rate on student loans.

Changes under the Student Aid Act have reduced the rate from prime plus 1.5 per cent to prime.

Advanced Education Minister Erin Selby says the move will make education more affordable.

Selby says there are already record enrolments in the province’s college and university programs this year.

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The new rates came into effect Sept. 1 and affect more than 12,000 student borrowers.

University of Manitoba president David Barnard welcomed the news, saying it will help students at a crucial point in their lives.

Selby also announced that students can now earn more money during the study period without it affecting their student loan eligibility.

Previously, students could earn up to $50 per week during the study period without their income affecting their eligibility for student aid. That amount has been raised to $100 per week.

“The Manitoba government has made significant investments in supports for university and college students to make post-secondary education within reach to more Manitobans,” said Selby. “We will continue to find innovative ways to help students access higher learning.”