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By Troy Gillard/RDNewsNow

AS COSTS INCREASE AND DEBT PILES UP...

Students ask feds to Knock Out Interest on student loans

Feb 3, 2021 | 1:59 PM

Post-secondary students across Canada are renewing their call for the federal government to ease the burden of student loan debt.

The Knock Out Interest campaign calling for the elimination of interest on student loans has been endorsed by 39 students’ unions representing 725,000 students across Canada.

The Students’ Association of Red Deer College (SARDC) says tuition fees across Canada have more than doubled in the past 20 years and education-related expenses have “increased dramatically,” leading to a 78 per cent increase in student debt (nearly $35,000 for a four-year bachelor degree). Over a 10-year repayment period, SARDC says this results in borrowers paying over $4,000 in interest.

“Life in Canada is increasingly unaffordable, and interest charged on student loans is just another way young Canadians are being knocked down,” said Logan Beauchamp, SARDC Vice President External.

“Charging interest on student loans forces those who need student loans to pay more for their education than someone who could afford to pay tuition fees up front. This is essentially a tax on low and middle-income students and families.”

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Five provincial governments have eliminated interest on the provincial portion of student loans. There has also been a reduction in student loan interest rates at the federal level and the freezing of interest accrual on student loans for the 2021-2022 year.

Beauchamp suggests that when the federal government issued a moratorium on student loan payments and interest accrual at the beginning of the pandemic, they and supporting parties demonstrated a clear recognition of the heavy burden of student loan debt on recent graduates.

“Students and young people have been hit hardest by the COVID-19 pandemic. Economic recovery will take several years; to support recent and future graduates, the federal government should permanently eliminate interest charged on student loans.”

Borrowers typically take between nine and 15 years to fully pay off their loan, Beauchamp says, adding that interest fees on student loans are currently holding back those who are most eager to participate in the economy.

Beauchamp says post-secondary education will be a powerful driver that will bring post-pandemic stability to the country.

“Eliminating interest on student loans would help ensure those who need to return to school for retraining to restart our economy are not penalized for doing so.”

Students across the country are organizing a Knock Out Interest Week of Action from February 8-12 to bring attention to their call. The campaign has an online action tool through which supporters are encouraged to send an email with a personal message to both Prime Minister Justin Trudeau and their local Member of Parliament.