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New West student unions join call for elimination of student loan interest

Douglas College, JIBC students join Knock Out Interest campaign asking Prime Minister Justin Trudeau to permanently eliminate interest on Canada Student Loans
Student Loans Getty
The Douglas Students' Union and the Justice Institute Students' Union are adding their voices to a federal campaign asking Prime Minister Justin Trudeau to eliminate interest on Canada Student Loans. They say the move would help with post-pandemic recovery in the face of COVID-19.

The student unions at two New Westminster post-secondary institutions are adding their voices to a call for the federal government to ease the burden of student loan debt.

The Knock Out Interest campaign asks the federal government to permanently eliminate interest on student loans. It has been endorsed by 40 students’ unions representing more than 750,000 students across Canada.

Among them are the Douglas Students’ Union, which represents more than 17,000 full- and part-time students at Douglas College, and the Justice Institute Students’ Union, which represents 700 students at the Justice Institute of B.C.

The students want Prime Minister Justin Trudeau to take action now, particularly in light of the ongoing COVID-19 crisis.

“Life in Canada is increasingly unaffordable, and interest charged on student loans is just another way young Canadians are being knocked down,” said Caitlin Spreeuw, director of external relations for the Douglas Students' Union, in a press release. “Eliminating interest on student loans relieves some of the pressures faced by those who have to borrow to access education, especially in this time of an economic slowdown and high youth unemployment.” 

The students’ campaign points out that, over the past 20 years, tuition fees across Canada have more than doubled and education-related expenses have increased dramatically. Over the same time period, student debt has increased by 78%, reaching nearly $35,000 for a four-year bachelor's degree. Over a 10-year repayment period, this results in a loan holder paying more than $4,000 in interest.

MORE GOVERNMENT ACTION NEEDED: STUDENTS

Governments have already taken some action to address the issue.

The press release notes that five provincial governments have decided to eliminate interest on the provincial portion of student loans. The federal government has also reduced student loan interest rates and frozen interest accrual on student loans for the 2021/22 school year.

The release also acknowledged the federal government’s moratorium on student loan payments, issued at the beginning of the pandemic.

Students say the elimination of interest on student loans would help not just post-secondary students but the Canadian economy as a whole. Their campaign notes that post-secondary education will be a powerful driver of post-pandemic stability in Canada and eliminating interest on student loans would help ensure those who need to return to school for retraining to help restart the economy are not penalized for doing so.

“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.” said Spreeuw. “Today, we are sending an open letter to Prime Minister Justin Trudeau to kick off a Canada-wide week of action urging him to eliminate interest on Canada Student Loans."

Follow Julie MacLellan on Twitter @juliemaclellan.
Email Julie, jmaclellan@newwestrecord.ca.