Tuesday December 27, 2011

Student News

Con-Ed Christmas Present

Students will save $350 per year and the interest clock starts ticking only after leaving school

Released by Robert Pearsall, PA to MP Mark Strahl

eginning January 1, 2012, education will be more affordable for part-time students when new and existing loans for those students will be interest-free during study, said Chilliwack-Fraser Canyon MP, Mark Strahl.

"This measure will help individuals looking to upgrade their skills while balancing work and family responsibilities by making post-secondary education more affordable." Strahl added, "The Canadian economy will benefit from a more skilled and better educated workforce."

Currently, an interest rate of prime plus 2.5 per cent applies to part-time student loans. By eliminating the interest on part-time loans during study, on average, students will save close to $350 per year.

Once this new measure takes effect, interest will only begin to accumulate on the loan after the student graduates or leaves school. For current part-time loan borrowers interest will stop accumulating beginning January 1, 2012.

In 2009-10, approximately 2,700 students received part-time loans totaling $4.6 million.
 

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