Loan interest

New Brunswick to eliminate interest on provincial student loans this week

The New Brunswick government announces that it will eliminate interest on the provincial portion of its student loans starting Tuesday.

Interest accrued before November 1 will still have to be paid.

The province says the initiative will affect 65,000 current borrowers, as well as future post-secondary students.

“I feel like it’s going to be a significant amount of stress for me when I start paying this back in the future, I wasn’t really worried about it at the moment because I’m a freshman, but that’s something that’s good to know for the future,” Cooper Hovey said.

Those paying off a $15,000 loan over 10 years will save about $4,500, according to the latest Bank of Canada interest rates.

“The elimination of interest on student loans is something that student representatives have called for, and we have always intended to do so,” said the Minister of Post-Secondary Education, Training and Labor, Trevor Holder, in a statement.

“In 2020, we started helping students by lowering the interest rate. Now, I’m proud to say we’re at a point where we can completely eliminate it. This will make post-secondary education more attractive by reducing borrowing costs for students,” he added.

The province says several supports are available to help students with the costs of their post-secondary education, including federal and provincial grants, scholarships, loans and the repayment assistance program.

Students in need of financial support can apply on line.