Student Loans – Reduced Interest Rates and More!
Posted by Lisa Kratzmann
The Canadian Federal government has made some changes to student loans and they are all positive for students! Here is a brief summary of what has happened.
- Interest rates drop! – The federal portion of student loans has dropped from prime plus 2.5% down to just prime. This is great news, especially for BC students who already are paying 0% interest on their BC portion. Most loans are roughly 50/50 federal/provincial and are paid back at the same time. So a drop in interest rates on the federal side will reduce your overall payments significantly.
- Interest doesn’t accrue as quickly! – After successful completion of studies, students have 6 months before they start making payments. Previously, on the federal side, interest was accrued during that half year. No longer! Now students are not penalized for using that 6 months to get their feet under them in their new career.
- Students with Disabilities get more help! – More grants and wider definitions! – Grants for students with disabilities have increased from $8,000 to $20,000 for assisting services and equipment. In addition, the definition of severe permanent disability has been widened to include those who can work but aren’t substantially gainful.
- Easier to Rehabilitate a Student Loan! – Graduated students now have the option of rolling accrued interest into their student loan payments, allowing people to get back on track with their loan repayments more easily.
For more information about each of these improvements, please visit the Government of Canada Website.