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B.C. budget: Student loan maximums doubled, repayment terms eased

Click to play video: 'B.C. unveils 2023 budget big on spending'
B.C. unveils 2023 budget big on spending
B.C is unveiling its 2023 budget and it involves a lot of spending on key priorities like health care and affordability measures. Richard Zussman has more on where the money will go and the reaction to the spending. Keith Baldrey has details of the huge capital spending plan that was announced Tuesday. – Feb 28, 2023

Post-secondary students in British Columbia will soon have access to a hefty increase in student loan funding.

The province’s 2023-2024 budget is doubling the maximum B.C. student loan payout from $110 to $220 per week for individuals and from $140 to $280 per week for students with dependents.

The changes are expected to take effect in June.

Click to play video: 'UBC students celebrate elimination of interests on loans'
UBC students celebrate elimination of interests on loans

Student loan recipients earning under $40,000 per year will also be exempt from repayments starting this year, up from a previous maximum of $25,000. The change will align B.C.’s student loan repayment schedule with that of the federal government.

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At the same time, the “affordable payment amount” loan recipients are required to pay back is being dropped from 20 per cent of annual family income to 10 per cent.

Both changes will take effect on Aug. 1.

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The provincial government moved to make B.C. student loans interest-free in 2019.

The changes to the student loan program are forecast to cost $151 million over three years.

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