Stetski calls for elimination of federal student loan interest

Kootenay-Columbia MP wants feds to follow in footsteps of provincial counterparts

Kootenay-Columbia MP Wayne Stetski is calling on the federal government to eliminate interest on federal student lonas in the 2019 budget.

Stetski’s call for action follows in the footsteps of the provincial government, which announced it is not collecting interest on provincil student loans last month.

He made the request in a letter to the federal finance and labour ministers.

Federal student lonas make up a larger portion of debt and carry relatively high interest rates, according to Stetski.

The MP says the interest formula for student loans hasn’t changed in nearly 20 years and that the federal government interest rate charges more than some banks do for student lines of credit, in some cases.

The interest rate is either variable at prime + 2.5% (currently 6.45%) or fixed at prime + 5% per cent (currently 8.95%).

The interest charges are “a penalty on low and middle-income students who cannot pay for their education outright,” said Stetski, in a press release.

MP Stetski says interest relief is needed at the federal level because young Canadians are graduating with record educational debt in a time of stagnant wages and soaring housing costs.

Removing the interest on federal student loans could help towards reaching other financial goals like home ownership or saving for their children’s education or retirement, he continued.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Avalanche take on Mariners in weekend PACWEST action

The College of the Rockies Avalanche took on the visiting Vancouver Island… Continue reading

Council to consider postponing public hearing for Innes Ave development

Cranbrook city council is eyeing a move to postpone a public hearing… Continue reading

Cranbrook Knights of Columbus donate funds to seven local organizations

City Councillor Wayne Price (centre) presents a $400 cheque to Brian Clifford… Continue reading

CBT grant helps local disc golf club improve youth access to sport

The Columbia Basin Trust (CBT) has announced it will be distributing a… Continue reading

Battle of youth vs experience at 2020 BC Championships in Cranbrook

Rebecca Connop Price The 2020 BC Championships in Cranbrook next week could… Continue reading

VIDEO: Music stars pay tribute to Kobe Bryant at Grammys award show

Music artists including Billy Ray Cyrus, Rick Ross and Kirk Franklin paid tribute to Bryant

Pregnant B.C. woman stuck in Wuhan, the epicentre of coronavirus outbreak

Woman is due to give birth in Wuhan, China unless she can get out

Victoria-area wolf tranquilized after being seen running around neighbourhood

Officials say wolf unharmed during its ‘arrest’

Ontario confirms second presumptive coronavirus case in wife of first patient

Both arrived on a China Southern Airlines flight after having been to Wuhan

Canada’s basketball community mourns Kobe Bryant after helicopter crash

Bryant was an 18-time NBA all-star who won five championships

‘Devastated’: Fans, celebrities remember Kobe Bryant after his death

Bryant played all of his 20-year career with the NBA with the Los Angeles Lakers

Investigation launched after six dead puppies dumped in Richmond hotel parking lot

RAPS reminds people they can always give up puppies they can’t take care of

Canadian Lunar New Year celebrations dampened by coronavirus worries

But Health Minister Patty Hajdu said today that the risk of infection is low

What’s On At The Cranbrook Public Library

Mike Selby Novelist and travel writer Paul Theroux describes his journey as… Continue reading

Most Read