Kootenay-Columbia MP Wayne Stetski speaks in the House. Black Press Media file photo.

Kootenay MP calls for elimination of federal student loan interest

Wayne Stetski 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

Golden delays adopting policy on commerical bottled water

The corporate policy has been in development since September 2019

School District 6 announces new superintendent

Karen Shipka will be taking on superintdent’s job this August

Golden Highway Update, Tuesday February 25

According to DriveBC, be wary of slippery sections along Highway 1 between… Continue reading

UPDATE: Two killed in collision, fire near Three Valley Gap

The Trans Canada Highway was closed for four hours

Kicking Horse conditions update, Tuesday February 25

Kicking Horse reports 1 cm of new snow in the last 24… Continue reading

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

Toffoli scores OT winner as Canucks beat Habs 4-3

Demko makes 37 saves for Vancouver

Private clinics would harm ‘ordinary’ people using public system in B.C.: lawyer

Health Minister Adrian Dix announced in 2018 that the government would begin to fine doctors $10,000

B.C. terminates contract with hospice society refusing assisted death

Delta Hospice Society loses hospital service fund of $1.5 million

Police ID man found dead in west Kootenays after probe leads to no arrests

Forty-seven-year-old Aaron Graham, of Vallican, has been identified as the man killed

Child in hospital following fatal crash that killed father, sibling on B.C. highway

The single vehicle crash occured near Kamloops on Highway 5A

‘Die!’: Vernon councillor mailed death threat

This story contains information that might be sensitive to some readers

Hidden message connects Castlegar homeowners decades apart

The Rodgers family was surprised when a message fell out of the walls as they were renovating

Most Read