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New Brunswick getting rid of interest on provincial student loans

Click to play video: 'Money-Saving Tips for Students During the Pandemic'
Money-Saving Tips for Students During the Pandemic
Recent graduate, Madison Munroe, shows new grads and young professionals how they can be savvy with their saving and prepare to pay back their student loans come October 1st. – Sep 17, 2020

New Brunswick is eliminating the provincial portion of its student loans as of Tuesday.

Interest accrued before that date, however, still needs to be paid.

The switch will benefit 65,000 existing borrowers, as well as future post-secondary students in the province, according to the province.

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“Eliminating the interest on student loans is something student representatives have asked for, and it has always been our intention to do so,” said Post-Secondary Education, Training and Labour Minister Trevor Holder, in a release.

“In 2020, we began helping students by lowering the interest rate. Now I am proud to say that we are at a point where we can completely eliminate it.”

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The province estimates a borrower repaying a $15,000 loan over 10 years will save about $4,500, based on the latest interest rates set by the Bank of Canada.

Students who want more information on financial support can apply online. With one application, they will be considered for all programs offered by the provincial and federal governments.

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